PPP Consultancy Services for Local Government PPP Capacity Development

Joint Programme for Local Governance and Decentralised Service Delivery

PPP consultancy services for local government PPP capacity development in Somalia

TERMS OF REFERENCE

Background

Public Private Partnerships (PPP) provide a feasible option for national and local governments across Somalia to cope with increasing demands for basic public services despite tight financial and budgetary constraints. Infrastructure requirements to provide safe water, roads, waste services, for example, require sizeable investment, expertise and organizational knowledge. These are some of the stock of ‘capital’ that the private sector can bring to a public private partnership.

Different forms of PPP demonstrate how effective combinations of private and public financing and enterprise can significantly strengthen service provision and improve the wellbeing of people in urban and rural cities and towns. Not all features of PPP’s are well appreciated or understood, however, resulting in some project difficulties or under tapped potential.

PPP bring multiple benefits and risks to the stakeholders involved. Private companies can benefit from profitable investments and operations. Some other benefits to local councils are transfers of technology, employment benefits, and capacity building. However, there are operational, political and financial risks that are borne by central/local governments and the private companies involved in PPP - underlying the need for an appropriate legal, policy and regulatory environment with consistent rules and processes, new forms of contracting and financing, that will ensure credibility and financial sustainability for the partners.

There is general agreement that the PPP approach to public service provision requires a high level and diversity of expertise from the partners. Capacity building of the authorities in charge of the process will have to come in various ways and forms, as the requirements and levels of expertise show a significant variation across local councils in Somaliland and Puntland.

It is in this context that ILO under the auspices of the UN Joint Programme on Local Governance and in partnership with UN Habitat and UNICEF are embarking on a capacity development programme with the purpose of increasing the capacity of central and local governments to promote, develop, operate and manage public-private partnership projects for infrastructure development and the provision of basic services.

By and large public-private partnerships have been conceived and implemented in Somalia particularly in Somaliland and Puntland without an overall legal and policy framework for PPPs. This was possible because of the vacuum created following the collapse of central government in 1991 and public authority during and immediately after civil conflict in the country. With renewed peace and reconstruction and ongoing efforts aimed at developing the legal and regulatory framework for private sector development, there is an opportunity to engage private sector participation in service delivery.

With support from the UN JPLG programme draft PPP policy frameworks were developed in Somaliland and Puntland; a toolkit and some orientation training provided a few years back; and in Puntland a PPP working group convened bringing relevant ministries, LG government and private sector actors together. Whilst the drafted PPP policy is in the stages of Parliamentary approval in Puntland, the legal framework lacks provisions that would regulate with sufficient precision and clarity the development of PPP projects throughout all its phases. Another barrier in developing PPPs is the lacking capacity of local/central authorities both in developing a supportive institutional framework and in developing and implementing LG PPP projects. Even though several projects referred to as/can be qualified as PPP have or are being developed in Somaliland and Puntland, still PPP development is only at its beginning, as representatives from authorities are lacking in knowledge, skills and abilities. This assignment seeks to contribute towards efforts to developing an appropriate institutional, policy and legal framework for PPPs at local level by assessing current status and providing the respective administrations with technical advice and recommendations and proposing an action plan; and to build the technical knowledge and skills and training capacity of national consultants, academia and key government personnel regarding PPP development.

Objective

1. To provide technical advice and recommendations on requirements for an adequate institutional, policy and legal framework supportive of PPPs at local level.
2. To build the technical capacity of central and local governments, the private sector and academia to promote, develop, operate and manage public-private partnership projects for infrastructure development and the provision of basic services at the local level.

The envisaged outcomes this assignment will contribute towards include:

1. Technical knowledge and capacity required in all phases of PPP projects, from initial concept through the transparent and competitive tendering process to implementation enhanced.
2. Increased awareness and capacity of municipalities to create and implement PPPs while improving local governance practices; and
3. Enhanced capacity of municipalities and government agencies will improve the efficiency and quality of public services and infrastructure through private sector participation;

Deliverables

The Consultant will deliver the following outputs of the assignment:

Output 1: Assessment of local government PPP in Somalia

Conduct an assessment of existing LG PPPs and the current institutional, policy and legal frameworks for local government PPP as the basis for identifying and defining actions to address weaknesses in current PPP projects in Somalia. The assessment will:

1.Describe the status of municipal PPPs in selected sectors, mainly water and solid waste, in Somaliland, Puntland and Mogadishu; and the existing institutional, policy and legal frameworks and arrangements within which they operate.

1. Illustrate the benefits or potential risks that such municipal PPPs represent.

3.Highlight the key issues and challenges impacting/inhibiting the current or potential PPP projects and those faced by PPP stakeholders and how these can be addressed.

4.Gauge the potential for private sector participation in managing and delivering municipal PPP projects.

5.Make recommendations, including on necessary institutional arrangements, legislative and regulatory requirements to support PPPs in LG service delivery; describe strategies with an accompanied action plan that can be pursued by local and government to enhance PPPs efficiency and leveraging private sector capital, where required.

Proposed approach to be adopted to assess PPP practices at the local level should include inter-alia:

1. Review existing literature from UN agencies participating in Joint Programme on Local Governance and other development partners including World Bank, International NGOs supporting public-private sector service delivery/PPP engagement.
2. Gather secondary data and undertake primary research, meet with key stakeholders in the public (central and local government) and private sector, LG associations, development partners (local and international), gather insights from practitioners and stakeholders in PPP projects, through a number of primary interviews and focus group discussions.
3. Prepare the assessment draft report and recommendations (detailing findings under and recommendations as per 1-5 above).
4. Conduct a workshop to:

· Discuss the assessment findings

· Discuss potentials, issues and challenges faced by stakeholders in adopting and implementing PPPs;

· Discuss PPP service delivery models for large and small municipalities;

· Discuss recommendations, strategies and accompanied action plan that can be pursued by local and government to enhance PPPs efficiency and leveraging private sector capital, where required.

In Puntland the Technical Expert will engage the inter-ministerial working group through the process.

Deliverables

1. Inception report and detailed work plan
2. Draft assessment report detailing points 1-5 outlined above
3. Workshop reports
4. Final assessment report with recommendations and detailed local government PPP strategy and action plan.

Output 2: Build PPP competencies in local government and private sector

Activities:

1. Develop a PPP skill and competency framework and assessment tool for public and private sector actors and assess competencies in local government and private sector to implement PPP projects, which is often recognised as a major hurdle in uptake of PPP model.
2. Develop PPP training material building on/revising the PPP guide and toolkit developed by the ILO Somalia programme.
3. Conduct PPP training to selected institutions both public and private institutions, potential trainers/service providers including universities, LG associations, LG, MOI and selected ministry/agency representatives, with the capability to facilitate, guide, train and deliver PPP capacity development support to LGs in designing and implementing PPP projects in Somaliland, Puntland Mogadishu.

In order to achieve the objective, the PPP Specialist is expected to carry out the highest level services to assure that as a result of their work the participants:

a) Will possess understanding and knowledge on/the capability for:

· PPP concept - rationale of PPP, characteristics, principles and constraints, types and schemes, area of use, contractual options, problems in developing and sustaining successful PPPs, PPP perspectives and trends.

· PPP environment - key features required for legal, regulatory, institutional and policy environment at central and local level.

· PPP project cycle - development and implementation - description, phases, components, functional and technical issues, decision making process, performance terms, financial and commercial issues, project appraisal and assessment, project management, contract conditions and negotiations, reporting, communication.

Note: By and large PPP project across Somalia have not systematically followed due process and often lack the rigorous assessment and analysis that underpin efficient and successful PPP service deliver projects. It is imperative that the capacity development programme incorporates the following:

· PPP concepts, rationale and contractual options;

· Project appraisal and feasibility studies

· Project finance and investment analysis

· Procurement process

· Community and stakeholder relations

· Contract management

b) Based on a sound understanding and knowledge of the PPP project cycle will be able to:

· Provide orientation and training on the PPP project cycle to PPP stakeholders both the public and private sector.

· Provide technical support and guidance to LG on the PPP cycle and what it entails.

· Assess needs and articulate technical expertise requirements and guide LG in procuring required expertise necessary for PPP project development and implementation.

Deliverables:

1. PPP competency tool to assess capacities required to implement LG PPPs and report detailing findings on PPP competencies in local/central government and private sector.
2. The PPP skills and competency framework defining key requirements and how these may be developed.
3. Revised PPP guidelines, training programme developed and training manual, materials and tools for public and private sector actors.
4. Training delivered and training report.

In addition, to the specific deliverables the Expert will be expected to prepare a refined and detailed work plan within two weeks of commencement of the assignment.

Organizational Setting

The consultant will work in both Hargeisa and Garowe under the technical supervision of the ILO LED Technical Adviser and supported by the LED Officers, and operational support will be provided by the ILO Programme Officers in Hargeisa and Garowe. The consultant shall consult and liaise with the JPLG partner agencies JPLG in particular UN Habitat and UNICEF who are also engaged in supporting local government service delivery during the assignment. ILO will provide the consultant with the necessary information and materials for fulfilment of tasks and will facilitate the necessary meetings.

Qualifications and skills required

Education:PhD/Master degree in Economics, Public finance, Public Administrative Reform or Public Administration or related discipline; relevant professional qualifications in public private partnership a plus.

Experience:

· At least 10 years of overall work/professional experience in the field of PPP frameworks development, setting up or implementing PPP projects;

· At least 10 years of working experience in training/teaching on PPP development;

· Experience of work in a related to PPP field in (post)conflict countries, will be an asset.

Abilities:

· Strong communication skills, to develop methodical and training materials;

· Excellent analytical skills and strong commitment to sharing expertise and experience in order to develop capacity of others, and work as a member/advisor of a team;

· Able to work effectively in an environment where systems do not exist or function as they should;

· A high standard of written and spoken English is essential; written and spoken Somali an excellent asset.

· Personal attributes: Dedicated and responsible worker, strong inter-personal skills, punctuality and self-discipline.

Note: The assignment will entail travel to and within Somalia including to Puntland and Somaliland

Duration: Estimated 60 days over period starting May 2015 to July 2015.

Interested candidates should submit a brief proposaloutlining their understanding of the TOR, the approach to the assignment and workplan and budget.

HOW TO APPLY:

All applications should be sent via email to: hrsomalia@ilo.orgwith the title reference"PPP Consultancy Services for Local Government PPP capacity development in Somalia" no later than 1700 hrs on 14th May, 2015