Result of Service

The consultant will deliver the following in a timely manner: • Detailed outline (.DOC) of approximately 5 pages that will include the list of 4-5 case studies, the government officials to be interviewed, and preliminary questions and topics that will be discussed. • First draft of a technical paper (.DOC) of approximately 30 pages on the “Innovative financing instruments for mobilizing affordable finance for addressing “triple crisis” and accelerating sustainable development”, drawing on country examples from the Arab Region, Africa, and Latin America and the Caribbean. o The draft paper will include findings from virtual interviews of one official from each of the case study countries (may be recorded and/or transcribed, if possible) • Final Paper following one round of integrated comments.

Work Location

Remotely

Expected duration

4 months

Duties and Responsibilities

Background: Several countries are exploring innovative financing options to respond to various challenges, including the “triple crisis” of rising food prices, increasing fuel prices, and financing climate actions while debt service burdens are high. The COVID -19 pandemic, the war in Ukraine, global inflationary pressures, and the associated policy responses have exacerbated these challenges on a global scale. Countries around the world are working to limit their borrowing costs and catalyze private finance through innovative financing instruments, such as debt swaps, green bonds, sustainability-linked bonds (SLBs). While there are successful examples of issuance of such innovative instruments, authorities in most countries lack technical capacity to structure these instruments to convince investors to accommodate them. Member States require a better understanding of these instruments, so they are prepared to access them, which enhances fiscal space toward addressing the many challenges faced by the countries. This consultancy aims to produce a technical paper on “Innovative financing instruments for mobilizing affordable finance for addressing “triple crisis” and accelerating sustainable development”. The paper will discuss the emerging instruments in the global market, their requirements for countries in pre-issuance stage, and challenges and impact in post-issuance stages. Drawing on experiences from countries in the Arab Region, Africa, and Latin America and the Caribbean, the paper will present key learnings and practical implications for countries interested in pursuing these instruments. The paper will set a stage for developing practical tools on improving capacities and preparedness of sovereigns to access emerging innovative financing instruments. This consultancy supports implementing output 1.1 of an interregional Development Account Project on “Innovative financing instruments for climate action and sustainable development in Arab states, Africa, and Latin America”, jointly implemented by ESCWA, ECA and ECLAC. Duties and Responsibilities: The consultant will work in close cooperation with the Project Manager and project team at ESCWA. The main duties and responsibilities of the consultant are the following: • Introduce emerging innovative financing instruments as a response to challenges faced by developing countries, including those related to food, fuel, and climate. • Take stock of emerging instruments in the global market and their international requirements (ICMA standards), including green bonds, SLBs, and other ESG-relevant bonds, climate/SDGs debt swaps, and blended finance mechanisms. • Discuss their trends in terms of issuances by countries, market share, innovations that are emerging in terms of de-risking the instruments, future opportunities or challenges. • Analyse a selection of 4 or 5 cases representing Arab, Africa and Latin American countries that successfully introduced the instruments in their debt management strategy (suggestion of countries: Uruguay or Chile for SLBs; Egypt, Rwanda, Mexico, or Brazil for thematic bonds; Jordan, Barbados, Cabo Verde, or Ecuador for debt swaps), including the following: o Analyse pre-conditions: How did the countries meet criteria to issue? What are the indicators to fulfill? How did they develop the key performance indicators (KPIs) and/or sustainability targets? Incorporate insights and practical applications from country examples by desk review and meeting key contacts in these countries. [UN will help to arrange interviews with key persons from the countries as needed and source documents from the country cases]. o Based on available information, and interviews with relevant actors, analyze post-issuance impact: what is the implication on cost efficiency, challenges (Data and institutional requirements to develop KPIs, measurement processes and mechanisms for monitoring and evaluation, impact reporting), ESG performance, and sovereign ratings. • Discuss practical implication for countries, in particular developing countries, for pursuing these instruments, drawing lessons from the countries mentioned. • Discuss the institutional arrangements for KPIs and/or sustainability targets and how they can be applied to these instruments. For thematic bonds, this implies i) the definition of the developmental objectives/outcomes to be financed, ii) the identification of investment categories which will guide the use of proceeds, iii) the mechanisms which will determine the selection of specific projects to be financed; iv) the mechanisms or governance aspects to manage processes; iv) the processes for monitoring and reporting.

Qualifications/special skills

An advanced university degree in economics, finance or related area is required. All candidates must submit a copy of the required educational degree. Incomplete applications will not be reviewed. A minimum of 10 years of professional work experience in debt management and debt-issuance related research and advisory services to sovereigns is required. A minimum of five 5 years of work experience in innovative financing instruments issuances and related research and advice to sovereigns and businesses is required.

Languages

English and French are the working languages of the United Nations Secretariat; and Arabic is a working language of ESCWA. For this position, fluency in English is required and knowledge of French is desirable. Note: “Fluency” equals a rating of ‘fluent’ in all four areas (speak, read, write, and understand) and “Knowledge of” equals a rating of ‘confident’ in two of the four areas.

Additional Information

Not available.

No Fee

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.