Statement of Work for Technical Advisers to Assist the Kurdistan Regional Governments

Statement of Work for Technical Advisers to Assist the Kurdistan Regional Governments I. PROJECT DESCRIPTION This is a tender for technical advisers to work directly with the Kurdistan Regional Government (KRG) in the territories governed by the KRG The purpose of the project is twofold. First, to work with the KRG to oversee the execution of current on-going Oil for Food (OFF) projects and help design the next set of projects that will be funded out of the remaining Oil for Food funds designated for the north. The majority of the current and envisioned projects are capital projects in the telecommunications, electricity, water sanitation, agriculture, health, and education sectors. Second, to transfer skills in project design, evaluation, management, and implementation to the KRG. The KRG needs technical advice in developing ministry level policies and procedures for preparing project budgets and in carrying out contracting and procurement associated with development projects. The KRG’s personnel need training in modern project design and management skills. The KRG Audit Board also needs assistance in developing its audit procedures. Background The Security Council Resolution 986 (SCR 986/1995) which created the Oil for Food Program included a provision that 13% of the oil revenues generated by the Government of Iraq were to be channeled through the United Nations for use as humanitarian assistance to the three northern governorates of Dohuk, Erbil and Sulaimaniya. Allocations were made from these funds to various sectors such as construction, health, electricity, education, and water and sanitation. The 13% program was designed to assist the predominantly Kurdish area from which Saddam withdrew all services and supplies in 1991. In 1996, when the OFF program began, the area was administered by the de facto Kurdistan Regional Government, a body not recognized by the then Government of Iraq. For this reason there are references to the three northern governorates even though the territories served by the 13% program were not synonymous with the governorate boundaries, but in fact covered parts of six of the northern governorates. The Oil-for-Food Program was terminated in November 2003 and the majority of its ongoing and planned infrastructure projects were transitioned to the Coalition Provisional Authority (CPA). The administration of the transitioned program was entrusted by the CPA to an office especially established for this purpose, the Office of Project Coordination (OPC), with its headquarters located in the city of Erbil. The OPC is staffed by local Kurdistan Regional Government officials, local staff, CPA staff assigned to the OPC, and expatriate advisors. The OPC’s initial role was to address the need to restart or complete ongoing funded projects which were passed to OPC control by the CPA. The projects were to be restarted in conjunction with the appropriate ministries in the three northern governorates and control of the projects will pass to the KRG by June 30, 2004. Separate sector advisors for agriculture, public finance, construction, health, electricity, education and water and sanitation were assigned by the OPC to assist and advise the KRG in the transition of these projects to their control. In the context of this transition, a major role of the advisors was to build capacity within the KRG ministries to plan, initiate and monitor their future capital investment programs. While much has been accomplished, the long-term objectives of the KRG require continuing advisory assistance as outlined in the following statement of work. The KRG is recognized under the Transitional Administrative Law as the official government of the territories that were administered by the KRG on 19 March 2003 in the governorates of Dohuk, Erbil, Sulaimaniya, Kirkuk, Diyala and Neneveh. The KRG has two administrations, one based in Erbil and the second in Sulaimaniya. The two administrations work together as the Kurdistan Regional Government. However, each administration has its own Ministries, Council of Ministers, and Prime Minister. There is one Kurdistan National Assembly. II. STATEMENT OF WORK The Technical Advisors will work under the KRG Ministry of Finance and with the specific KRG Ministries involved. A. Objectives The advisers will have four objectives: 1. To assist the Ministries of Administrations of Erbil and Sulaimaniya manage the implementation of contracts issued for Oil for Food projects. 2. To help the Ministries, where needed, to design and implement new development projects attached to a second inflow of Oil for Food money. 3. To work at the senior levels of the Ministries to develop project management systems; to administer contracts, administer public procurements; execute financial oversight, audit and control over existing contracts and future public procurements that are consistent across the Ministries of Erbil and Sulaimaniya governments. 4. To provide training in the above systems across the relevant Ministries and the Supreme Audit Board. Attachment A provides some details on the type of assistance and training the KRG will likely need. More details on the scope of work and terms of reference for the individual advisers will be given to the winning contractor. B. Description of Technical Advisers Sought All advisers should have sufficient experience in their field to develop government policies appropriate to the situation in Iraq and the international experience necessary to work with senior government representatives. However, one of the advisers should be able to function as Chief of Party for the group. It is expected that this person would have exceptional background in designing and implementing training programs, and experience in working with officials from other governments. Most likely this person would be one of the first four positions listed below. 1. Contracts and Procurement Specialist : University degree in business or public policy; a postgraduate degree is preferred. Minimum of six years experience working in public management or contracting preferably in an international capacity. Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. Proven capability in designing and implementing training programs. 2. Public Finance Specialist: University degree in finance; a postgraduate degree is preferred. Minimum of six years work experience, preferably in a government and/or international capacity. Extensive experience in policy analysis at national and international levels as well as in capacity building and policy advisory work. Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. Proven capability in designing and implementing training programs. 3. International Auditor: University degree in public finance or accounting; a postgraduate degree is preferred. Minimum of six years of work experience preferably in an international capacity. Extensive experience in policy analysis at national and international levels as well as in capacity building and policy advisory work. Proven skills to develop and assess public auditing proposals. Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. Proven capability in designing and implementing training programs. 4. Municipal Planner: Advanced degree in urban planning, or civil engineering. Minimum of six years work experience, preferably in a government or international capacity. Proven experience as head or senior management member of a national/international municipal department planning unit. Strong strategic thinking skills. Extensive experience in policy analysis at national and international levels as well as in capacity building and policy advisory work. Proven skills developing and assessing public planning proposals. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. 5. Electricity Specialist: Advanced university degree in industrial engineering or relevant development field. Minimum of six years work experience, preferably in an international capacity with proven experience as head or senior management member of a national or international municipal department – planning unit. Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. 6. Telecommunication Specialist: University degree in telecommunications engineering; a postgraduate degree is preferred. Minimum of six years work experience preferably in an international capacity. Experience designing and implementing telecommunications systems in developing countries. Proven experience in a national or international telecommunications department planning unit. Good knowledge of international telecommunications regulations and standards (i.e. ITU). Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. 7. Water and Sanitation Specialist: Advanced university degree in industrial engineering or relevant development field. Minimum of six years work experience, preferably in an international capacity with proven experience as head or senior management member of a national or international municipal department – planning unit. Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. 8. Education Specialist: Advanced degree in education with specialization in systems development. Minimum of six years work experience, preferably in an international capacity dealing with Education Ministries. Strong strategic thinking skills. Proven communications and networking skills with experience in leading negotiations with government and private sector officials. Proven ability to provide policy and technical advice on educational institutions and government planning. 9. Health Specialist: Medical Doctor, or with an advanced degree in Public Health. Training in health administration, legislation or management. Minimum of six years experience working on health systems in developing countries. Proven experience as head or senior management member of a national or international health department planning unit. Strong strategic thinking skills. Excellent knowledge of health public policy theory, proven skills developing and assessing health policy proposals. Proven communications and networking skills with experience in leading negotiations with government and private sector officials 10. Agriculture Specialist: Advanced degree in Agro-economics, specializing in agricultural policy analysis. Minimum of six years of professional experience, preferably in an international capacity. Several years of international experience dealing with Agricultural Ministries and agricultural policy. Strong strategic thinking skills. Proven ability to develop and assess agricultural policy proposals and design and implement agricultural development projects. Proven communications and networking skills with experience in leading negotiations with government and private sector officials C. Key Results After one year the key results will be: 1. Current Oil for Food Projects will be well managed and integrated into the KRG government control systems. 2. Project designs are completed for second group of projects. Sectoral Ministries are fully trained and capable of planning and executing capital programs within their sectors. The Ministries are able to plan capital programs to achieve sectoral policies that are consistent with national government policy. 3. Systems are in place for capital program and recurrent budget planning, contracting and procurement, and auditing. Budget planning, contracting and procurement and auditing are carried out by local government agencies and the local Ministries of Finance in accordance with the principles of sound public finance and budget instructions and processes as issued by the Ministry of Finance in Baghdad. 4. Key staff in relevant Ministries and the Audit Board will be well trained in modern methods of public finance, budget, contracting and procurement, and auditing. D. Contract Performance Dates and Location The contract will start in July 2004 and end one year later. The place of performance is in Erbil, Iraq and includes the three northern Governorates of Dohuk, Erbil, and Sulaimaniya. E. Logistical Support Transportation. The selected contractor is responsible for transportation for their personnel. The CPA controls entrance to Iraq until June 30, 2004, thus contractors will be required to obtain country clearance approval from the CPA until then. Beginning July 1, 2004, the contractor will need to obtain country clearance from the appropriate authority. Life Support. Office facilities and internet access on site in Iraq will be provided by the KRG government. The contractor will be responsible for lodging, feeding, transportation, and security for their staff. Attachment A – Background Information Institutional Strengthening Needs – Project Management Project Planning and Management- The Advisors shall assist the Ministries in developing project management systems whereby the project management teams, supported by other departmental resources (engineering/design, procurement, finance, etc.) develop the capacity for taking responsibility for project planning and implementation from initial conception through project completion. The Advisors will also provide formal training for relevant Ministry staff in specific skill areas such as: Project Management : assessment of ongoing international and local projects; estimating and forecasting of program expenditures; scheduling; preparation of tender documents; tender evaluation and contract negotiations; project monitoring; contract administration including invoicing, payments, and acceptance. Engineering/design: the engineering/design function within a project management environment; preparation of technical specifications for tender documents; use of local and international standards; contractor drawing and design document approvals; document handling and archiving. Procurement: The KRG will be taking on the responsibility of international tendering for the large scale capital projects for the first time. Training in internationally accepted “best practices” of project tendering would need to be addressed: establishment of bidders lists; preparation of non-technical sections of tender documents, tender issuance and commercial evaluation; contract negotiations; contract award and follow-up. Finance and Budget: establishment of budgets including the use of a budgetary classification system and the separation of capital and operational budgets; fiscal planning and project cash flow projections; contract sureties including bank guarantees and letters of credit; contract payment accounting; establishment of transparent procedures including reporting, record keeping and authorizations. Integrity Management Systems- The tremendous amount of responsibility that has been placed upon the KRG Ministries in such a short period of time will need to be coupled with instruction on how to best avoid institutional problems with ethics. Exposure and encouragement in the integration of an Integrity Management System would be an important component. Sustainability Planning Most of the capital projects that are being implemented, or are under execution, give little or no consideration to the future operation and maintenance cost. Concurrent with the capacity development tasks discussed above, the advisors shall lay the groundwork for a subsequent phase aimed at the transition from reconstruction and rehabilitation to sustainable long term operation. Tasks shall include: Initiation of a program to develop clear and comprehensive sector operational procedures; Design of a program to further strengthen financial management systems; Preparation for tariff/rate/usage fee reform including a review of the organizational measures required to implement such reform and the design of a program that will provide consumers with the appropriate cost signals; Review of management information systems and recommendations for improvements; Identify core and non-core activities to allow effective and efficient performance of sector functions. PAGE PAGE 8