INDIVIDUAL CONSULTANT PROCUREMENT NOTICE  
National Consultant / Innovative Finance Expert 
Reference No.: UNDP-NPL-00343 (UNDP/PN/2024/49) Date: 26 August 2024 

The United Nations Development Program (UNDP) in Nepal has been implementing the Effective  Development Financing and Coordination II (EDFC II) project, led by the Ministry of Finance’s (MoF)  International Economic Cooperation Coordination Division (IECCD) and supported by UNDP is assisting the  Government of Nepal (GoN) through capacity development initiatives to strengthen approaches to  mobilizing, coordinating, and effectively managing international development cooperation. It is seeking  services of an individual to perform the work described in this document. 

In consideration of your qualifications, we are hereby inviting you to submit an offer for this particular  assignment. To assist you in understanding the requirements of this assignment, we have attached hereto  the following : 

• The Terms of Reference for the assignment described above. 

• The standard Letter of Confirmation of Interest and Availability, which you must accomplish and  submit to UNDP; and 

• The Individual Contract and its General Terms and Conditions, which you would be expected to  sign in the event you are the selected Offeror in this procurement process. 

Should you be interested and decide to submit an offer for this assignment, kindly submit directly in the  online supplier portal no later than the deadline indicated in the system. If any discrepancy between  deadline in the system and in deadline indicated elsewhere, deadline in the system prevails. 

We look forward to your favorable response, and thank you in advance for your interest in working with  UNDP. 

BACKGROUND

Nepal faces numerous challenges in financing its development needs. With aspirations to graduate  from Least Developed Country (LDC) status by 2026, Nepal requires substantial investment in  infrastructure, healthcare, education, and sustainable development. On the one hand, the  government's capacity to invest in infrastructure is declining, on the other hand, the need forinvestment in infrastructure is increasing day by day due to the impact of global infrastructure  development, climate change, increasing access to information technology and the need of the hour. 

Nepal is also confronted with considerable financing needs for its SDG’s and NDC’s. The NPC 2018  report on Nepal financing needs for achievement of SDG’s shows that the country would face a  financing gap of nearly USD 5 billion per annum leading up to 20301. In addition, on climate change  finance the country’s Nationally Determined Contribution (NDC) costs are estimated at USD 28.4 billion  – of which, USD 25 billion are conditional on realizing relevant financing needs 2. Nepal also has  developed a comprehensive National Adaptation Plan (NAP) that carries a financing requirement of  USD 47.4 billion till 2050. Managing the country's public expenditure is gradually becoming challenging. Traditional sources of financing, such as government revenue and international aid, are often  insufficient to meet these needs.  

Various alternative finance tools are now being used in the world for the development of infrastructure  and productive sectors. Alternative finance, which is playing an important role in development finance  globally, is also relevant in Nepal particularly at a time when the country's government finances alone  are not sufficient for developing infrastructure. 

All these financing requirements necessarily warrant consideration of financing instruments – particularly in the post-graduation setting and careful planning and structuring of same. There is a  growing interest and need in exploring alternative financing mechanisms, including mobilizing bonds,  innovative finance, and blending finance. It is required to develop necessary arrangements based on  the experience that other countries with economies like Nepal have successfully used instrumentssuch  as green bonds, sustainable development bonds, clean energy bonds and infrastructure bonds, debt  swaps, matching funds and guarantee. There is also a need to develop a feasible project pipeline to  increase the leverage rate of development assistance by mobilizing private capital through innovative  methods of public-private partnership such as blended finance, hybrid annuity. For its successful  implementation, Ministry of Finance is working to develop necessary policy and procedural  arrangements with clear roadmap and action plan also considering the ongoing process of developing  Integrated National Financing Framework (INFF) and debt sustainability. 

The potential for mobilizing bonds, innovative finance, and blending finance in Nepal is significant.  These mechanisms can provide much-needed capital for development projects, drive economic growth,  and enhance financial inclusion. However, to realize this potential, Nepal needs to establish a conducive  regulatory environment, build institutional capacity, and foster a culture of transparency and  accountability. By leveraging these innovative financing instruments, Nepal can accelerate its progress  towards sustainable development and economic resilience. 

The Effective Development Financing and Coordination II (EDFC II) project, led by the Ministry of  Finance’s (MoF) International Economic Cooperation Coordination Division (IECCD) and supported by  UNDP is assisting the Government of Nepal (GoN) through capacity development initiatives to  strengthen approaches to mobilizing, coordinating, and effectively managing international  development cooperation. It is seeking an individual contract to deliver the assigned activities. 

REQUIREMENTS FOR EXPERIENCE AND QUALIFICATIONS

Educational Background: 

• Master degree or higher in finance, economics, business administration, or a related field. • Specialized certifications in finance (e.g., CFA, CAIA, FRM) are desirable. 
  

Professional Experience: 

• At least 10 years of experience in financial services, investment banking, or development  finance. 
  
• Proven track record of working on project & infrastructure finance, energy finance, PPP,  project development and management. 
• Experience in emerging markets, preferably with direct experience in Nepal or similar  economies. 

Technical Expertise: 

• Deep understanding of financial instruments, including government and municipal bonds,  corporate bonds, green bonds, and other innovative finance mechanisms.  
  
• Knowledge of public-private partnerships (PPPs), the role of development finance institutions  (DFIs). Expertise in structuring and implementing blending finance strategies. 

Analytical Skills: 

• Strong analytical skills to assess financial markets, risk factors, and the feasibility of various  financing instruments. 
  
• Ability to conduct economic and financial analysis, including cost-benefit analysis and impact  assessment.

For detailed TOR, CLICK HERE.