International Consultant – Senior Development Financing Specialist

Background

Cambodia is performing well in terms of domestic revenue mobilization (amongst the best performers in terms of tax/GDP ratio in ASEAN) but domestic savings remain much lower than comparators, and some of Cambodia’s macro fundamentals have been stressed in the wake of COVID-19. Further changes are likely to be in play in its financing landscape, considering the continued monetary tightening in developed countries with knock-on impact on interest and exchange rates for developing countries, the consideration of Cambodia's graduation from LDC status, and the rebasing of the GDP. There is also a growing need to address how the financing system can be made more equitable and sustainable in light of saturation of and challenges with high levels of indebtedness to MFIs etc.,[1] need for strengthening SME access to finance, use of blended finance and de-risking approaches to steer financing to priority areas as well as consideration of scaling up strengthening scope and use of micro insurance, micro savings facilities (e.g., Bangladesh), matching funds and health care financing to diversify sources of financing for productive uses and to reduce vulnerability.[2]

Further, while official development assistance (ODA) flows remain significant – estimated around 7.9% of GDP – their composition has already started to shift towards loans and, within this, towards less concessional terms. If Cambodia remains on track to be considered for Least Developed Country (LDC) graduation (2nd review in 2024), it will need to further diversify its financing. Moreover, as Cambodia starts to tap into international capital markets and grow the domestic market it will be important to proactively manage risks given the current turmoil in global financial markets as well as opportunities arising from the growing sustainability orientation in financial markets.

UNDP Cambodia portfolio of sustainable finance initiatives is also evolving to better respond to emerging needs and opportunities. It currently includes support to the government on Integrated National Financing Framework (INFF) in partnership with UNCDF to better leverage both public and private finance and related priorities (e.g., support the development of a diversified financing strategy as well as enhance readiness to tap into international and regional capital markets for sovereign thematic bonds while developing the domestic one), a focus on tapping into carbon markets and others for climate-finance, emerging blended finance approaches and more private investment facing approaches.

In the lead up to the development of its new country programme for 2024-2028, UNDP Cambodia, in collaboration with UNDP Sustainable Finance Hub (Bangkok Regional Hub and global teams), is exploring opportunities to leverage partnerships and expand its sustainable finance portfolio to better support government and engage with private sector and support the strengthening of the financing ecosystem in the country in collaboration with other partners at this critical juncture.

[1] See HRW article World Bank: Investigate Cambodia’s Micro-Loans which points to the study by the Microfinance Index of Market Outreach and Saturation (MIMOSA), which based on data provided by the World Bank Group’s International Finance Corporation (IFC), found serious problems in Cambodia’s micro-loan sector. The MIMOSA scorecard, which measures market penetration for micro-loan borrowers, found that Cambodia’s rate of credit saturation was the highest among the 11 countries it studied.

[2] See World Bank Resilient Development: A Strategy to Diversify Cambodia’s Growth Model (2021).

Duties and Responsibilities

The consultant is expected to assist the UNDP Cambodia Country Office (CO) to identify ways to (1) expand the financing strategy for INFF implementation and LDC graduation; (2) strengthen its sustainable finance portfolio, including identification of new opportunities and areas; (3) explore business models for sustainable delivery of technical assistance and services; and opportunities to mobilize financing and partnerships towards this end.

1. Support the expansion and implementation of the financing strategy for the INFF and LDC graduation

Support the expansion and implementation of the strategy as relevant as well as identify opportunities to take forward the financing strategy for the INFF and LDC graduation. This would involve building on existing assessments and documents in relation to INFF (e.g., Development Finance Assessment, SDG Investor Map, Financing Strategy and other diagnostics supported by UNCDF, capital markets study, financing instruments under discussion or existing, progress on SDGs, etc.) and exploring opportunities to also support concretization of SDG investment opportunity areas in priority sectors in engagement with other partners. The expanded Financing strategy is expected to identify policy options and priorities in the key areas and outline an implementation action plan with timeframes, milestones, pre-requisites and responsible bodies to be discussed with the government and development partners to build consensus on supporting the country for a smooth LDC graduation and sustainable financing for the SDGs.

Collaborate on the implementation of the INFF and taking forward of the expanded financing strategy, with resources from UNDP’s INFF facility, to support:consultations and financing dialogues with stakeholders to consider the policy options, reforms and instruments needed to prepare Cambodia for LDC graduation and beyond; Identify and propose a governance structure for the expanded financing strategy implementation; identify and propose targets and indicators to monitor the implementation of the expanded financing strategy.

2. Strengthen UNDP Cambodia’s sustainable finance portfolio

Conceptualize a forward-looking sustainable development finance portfolio for UNDP Cambodia for its new country programme cycle. This exercise will be based on existing work of UNDP Cambodia in development financing; UNDP’s comparative advantage in development financing and success stories in other countries; specific needs and opportunities in the Cambodian context as identified in the INFF and associated deliverables; initiatives in energy, climate finance, blended finance and private sector and collaboration opportunities with development partners.

With the growing shift to loans and non-concessional finance, analyze the growing loan portfolio of Cambodia (sector, sovereign or domestic, budget % of GDP, type as in productive or expenses, interest rate, time frame, source, etc.), including assessment of performance and risk of defaultwith a view to identifying how to enhance fiscal space for the SDGs and strengthen impact, consider any SOE (State Owned Enterprise) reforms, and support government’s attempts to promote domestic savings and a gradual shift to greater use of local currency which calls for a diversification of resources considering the continued hangover of high interest rates in the global financial market.

Based on the above analysis on the loan portfolio, identify opportunities to support the government in accelerating the implementation.

Assess the interest of Cambodian SOE in promoting ESG-compliant and SDG-impactful investments and other development initiatives.

3. Identify business models for sustainable delivery of technical assistance and services; and opportunities to mobilize financing and partnerships towards this end.

Drawing on lessons from other UNDP COs, flagship programmes focused on private sector facilities and partners, explore options for more sustainable delivery of services and technical assistance on sustainable finance, including leveraging payment for advisory services to the private sector and SOEs (development service agreement and other).

Propose possible models for UNDP’s collaboration with IFIs, DPs, SOEs, private companies and other partners (e.g., commercial and development banks) to support mobilize, catalyze and leverage financing resource for achievement of the SDGs in Cambodia, including to take forward action areas for the INFFs including also support concretization of SDG investment opportunity areas in priority sectors in engagement with other players in the ecosystem, and leverage private sector impact financing (SME de-risking, guarantee schemes, insurance, etc.).

Competencies

Corporate competencies:

Demonstrates integrity by modeling the UN’s values and ethical standards.

Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.

Treats all people fairly without favoritism.
Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment.

Required Skills and Experience

Education:

A Master’s degree in the field of Finance, Economics or other relevant fields.

Experience:

At least 7 years of experience in the field of development finance, public financial management, budgeting and planning and/or private sector financing,

Experience in formulating INFF or similar development financing strategy in developing countries will be an advantage.

Experience working for/with multi-lateral institutions and IFIs, or major development agencies would offer a distinct advantage

Proven in similar country level work rooted in public policy reforms

Proven ability to lead consultations and facilitate dialogue among senior government officials and other senior stakeholders

Research and analytical experience in areas of public or private financing policy for sustainable development

Private sector financing experience will be a strong advantage.

Knowledge of Cambodia’s macroeconomic and development finance contexts an advantage.

Knowledge of financing in thematic areas of finance relevant to Cambodia’s context and the assignment (e.g., agricultural and development finance, microfinance, finance for SMEs, guarantees) would offer a distinct advantage
Excellent knowledge of data collection, analysis and statistics tools

Language Requirement:

Fluency in English (written and oral)