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Consultant - “Strategy Paper - Innovative Financial Mechanism for Combating land....

Job Category:
Career Level:
Job Type:
Full Time
Agency / Project:
Posted On:
19 June, 2010
Last Date to apply:
03 July, 2010
Experience in years
2 to 4

Experience of working with a law associates firm with experience of developing and establishing funds in Government and Corporate sector will be preferred. Extensive knowledge of UNCCD & UNFCCC. Experience of working with government, non-government and research institutions in the area directly relevant to sustainable environmental management.


A. Background

Pakistan like many other developing countries is confronted with daunting challenges of environmental degradation, especially in dryland ecosystems covering 80% of the land and supporting livelihoods of Pakistan’s two-thirds of its rapidly growing population. Over the years, the pace of land degradation and desertification in arid and semi-arid areas has spiraled to enormous proportion due to over-exploitation of natural resources and unsustainable land management practices.  In order to overcome the challenges of land degradation and desertification, the GEF/UNDP is currently funding the Sustainable Land Management Project (SLMP) Phase-I in Pakistan. The objective of this cross-sectoral project is to create an enabling environment for mainstreaming sustainable land management practices in sectoral policies and plans, launch Sustainable Land Management (SLM) related local area development initiatives to address desertification and land degradation issues, all in an effort to alleviate poverty in drylands.

The extent of the land degradation and desertification in Pakistan is so vast that it is not possible to address problems only through donor and PSDP assistance. There is a growing realization that controlling land degradation problems require innovative funding mechanisms, including involvement of the private sector.  In order to ensure long-term sustainability of efforts for combating land degradation and promoting SLM, assessing innovative financial mechanisms, including creation of a National Desertification Control Fund (NDCF) has been envisaged under the SLMP and the National Action Program (NAP).  During the implementation of SLMP Phase-I, it is planned to prepare a detailed strategy paper for assessing and purposing innovative financial mechanisms, including NDCF that aims at combating land degradation, and at the same time enhance local livelihoods. Innovative financing mechanisms are considered necessary to ensure long-term sustainability and uptake of appropriate technologies. This will require expertise of a consultant familiar with banking systems and introducing innovative financial mechanisms, including National environmental funds; National desertification funds; ecosystem function payments – e.g. payment from water users to upstream communities to protect catchments; carbon financing, green banking; small grant programmes; risk guarantees for SLM investors; and debt swaps for promoting.

It is expected that the consultant will undertake a holistic review and assessment of the problem, analyzing the situation and existing programs that contribute towards SLM and come up with an elaborate funding mechanism at national level with disbursement procedures to support local area development initiatives.  In this context it is essential to examine in detail the successful model of NRSP providing fund/grant assistance to Local Support Organization (LSO) and Pakistan Poverty Alleviation Fund (PPAF) working with partners with well targeted community outreach programmes.  A transparent and operational funding disbursement mechanism at local level has to be part of such a fund.    

The main purpose of developing a national level funding mechanism is to pool all available financial, human and local level resources for undertaking effective preventive and control measures to combat desertification and land degradation. The fund will also help in adopting collective SLM practices, mainstreaming interventions in priority areas proposed under the NAP into policy frameworks and development programs.  It will also show GOP’s commitment towards the implementation of the National Action Programme (NAP) as enshrined under UN Convention to Combat Desertification (UNCCD), Mid-Term Development   Framework (MTDF), Millennium Development Goals (MDG’s), United Nations Forum on Forests (UNFF) and other national and international frameworks/instruments to address land degradation and deforestation. 

As a first step towards initiating discussions on the design and structure of an appropriate funding mechanism to control land degradation and desertification local initiatives, the consultancy output will be  a “Strategy Paper” that provides a roadmap and broad parameters of an innovative and sustainable financial mechanism.  This may include details for establishing an NDCF, including its constitution, proposed executive board, funding sources and future fund raising strategy, operational procedures, and other essential guidelines. The strategy paper would help in setting up of a functional, independent and non-governmental institutional entity with funding source(s) to promote SLM interventions on sustainable basis. This will require expertise of a person familiar with banking systems and introducing innovative financial mechanisms.

B. Objective 

The objective of the study is to develop a Strategy Paper for designing an innovative financial mechanism, including NDCF with linkages and disbursement procedures for supporting SLM related local area development initiatives to combat land degradation and desertification in Pakistan.
C. Reporting Requirements

The consultant will work under the overall direction and guidance of NPD and NPC, SLMP with direct reporting to the Coordinator, Policy Reforms at the National Coordination Unit of the SLMP. In order to design a comprehensive strategy paper, the consultant will have to work in close coordination with existing public and private sector funds, SLMP team, Ministry of Finance, Planning and Development Division and other key stakeholders.

D. Tasks and Responsibilities

The consultant will be responsible for identifying and proposing innovative financing mechanism (including NDCF) for promoting SLM in Pakistan. He/she has to indicate key stakeholders/partners for financing mechanism and highlighting their roles in SLM. This would involve reviewing GEF global portfolio, listing innovative financial mechanisms and identifying national, provincial and local partners for adoption of innovative financing mechanisms.
The specific tasks and responsibilities of the Consultant will be as under:

Task 1: Inception meetings, methodology, work plan and draft table of contents  

- Hold inception meetings with management bodies of the funds established  under legal instruments such as Section 42 of 1984 companies ordinance etc, SLMP Team at the NCU, concerned officials in the Federal Ministries, NGOs and other institutions to review the overall process for  conducting study,

- Identify preliminary background information for designing an innovative financial mechanism, including NDCF with linkages and appropriate disbursement procedures to support local areas development initiatives for desertification and land degradation control in Pakistan, and

- Work out methodology, work plan and draft table of contents for the final strategy paper.

Task II: Review documents related to innovative financing mechanisms

- Review Global Environmental Facility (GEF) and Global Mechanism portfolios and funding mechanism for Thematic Programme Networks under the UNCCD,

- Review literature regarding  possible funding mechanisms  for  SLM to combat land degradation in Pakistan and other countries, the mechanism of  its operation, extent and source of funds, donations, whether a government or an independent entity.

- Examine in detail various trust funds established in Pakistan with the  objective of conserving natural resources such as Mountain Areas Conservation Fund (MACF), Fund for Protected Areas (FPA) etc and other funds/projects/companies limited by guarantees (under Companies Ordinance 1984) such as NRSP model of LSO (Local Support Organizations), Ghazi Barotha Taraqiati Idara, Agri-Business Support Fund, Pakistan Poverty Alleviation Fund (PPAF), Devolution Trust for Community Empowerment (DTCE) etc;

- Critically analyze the current status, management structure, budgets, and funding sources of the projects and programmes aimed at SLM practices in all provinces of the country;

- Estimate the financial needs for priority degraded areas as identified in NAP fulfilling developed funding criteria; determine all relevant funding mechanisms governmental contributions, income generated by other sources; determine the role of the trust fund for ensuring sustainable funding of the SLM practices;

Task III: Indentifying Innovative Financial Mechanism, including Design of NDCF

- Identify innovative financial mechanisms for combating land degradation and promoting SLM, including NDCF, carbon financing, small grant programmes, ecosystem services payments, greening banks and money lenders, risk guarantees for SLM investors, debt swaps for SLM,

- Designing of NDCF based on assessment of innovative financial mechanisms and critical evaluation of existing funds, including taking into account the special nature of the cross-sectoral interventions to promote SLM with legal, institutional and financial options including linkages and funding disbursement procedures for financing local area development initiatives.

Task IV: Draft strategy paper elaborating innovative financing mechanism for Desertification, Land Degradation and Drought (DLDD) control in Pakistan

 Prepare first draft report of the Strategy Paper containing recommendations regarding innovative financial mechanisms, including establishment of NDCF, proposal for its board members (Chairman, Chief Executive Officer, etc.)
 Share the draft strategy paper with SLMP Team to take inputs/feedback.
 Incorporate inputs/feedback from SLMP Team and prepare the second draft of the Strategy Paper

Task V: Seek validation of recommendations from Stakeholders

 Facilitate a National Validation Workshop for discussing the Strategy Paper on innovative financial mechanism (including NDCF) and taking inputs from key stakeholders, Government agencies and NGOs.

 Present findings of the study to the stakeholders in the workshop for validation of the study report and finalizing its recommendations.

 Prepare a brief workshop report focusing on stakeholders’ feedback.

 Finalize Strategy Paper based on input during the stakeholders’ workshop.

E. Time frame and duration

The total duration of this consultancy will be three months, while the time frame for the assignment is to be mutually agreed between the consultant and the SLMP.

F. Outputs/Deliverables
The deliverables include:
 A brief outline (table of contents), methodology, and work plan for the study within two weeks after signing the contract.
 A hard copy and a soft copy of the First Draft Strategy Paper based on the outputs mentioned above for feed-back from the project.
 A hard and a soft copy of the 2nd Draft Strategy Paper after incorporating the comments/views on the first draft.
 National workshop facilitation and finalization of its report.
 Two (2) hard copies and a soft copy (on CD) of final consultancy report after incorporating comments of workshop experts and stakeholder comments.

G. Delivery of payment schedule

The assignment is required to be completed in a period indicated above and mutually agreed by the consultant and the project. The project will make lumpsum payments, subject to the satisfactory approval of the deliverables. Delivery of outputs and payment schedule will be as under:
i. 1st installment (10 %) on submission of methodology and workplan for completion of the assignment including table of contents of the Draft Strategy Paper.
ii. 2nd installment (20%) on submission of Draft Strategy Paper based on the outputs mentioned and the report outlines (table of contents) agreed by the project for feed-back by SLMP team.
iii. 3rd installment (20%) after submission and approval of 2nd Draft Strategy report incorporating inputs of the SLMP team.
iv. 4th installment (20%) after holding national workshop and preparation of report.
v. 5th installment (30%) subject to the acceptance of the final report (Strategy Paper).
H. Requirements for Submission of Brief Proposals/Concept Note
The individual consultants will be required to submit their CVs along with a 3-4 pages concept note covering relevant experience, approach/proposed methodology for the study and indicative amount of the consultancy fee in lump-sum, including travel expenses (if involved) for the assignment.

Must Degree Degree Level Country Description
YesMasters DegreeMasters DegreeThe consultant should possess a Master’s Degree in the field of Development Economics, Management Sciences with specialization in finance.

Must Title Level Description
YesEnglish Language and report writing Excellent   He/she should be fluent in English with excellent writing skills. He/She should have good understanding of the national/regional/local issues as relevant to SLM.  Experience of conducting multi-stakeholder workshops and synthesizing participant inputs.  Excellent computing skills, including MS Word, Excel, Power-point other skills.