CONDUCTING A CAPACITY ASSESSMENT FOR THE EXTRACTIVE INDUSTRIES IN MALAWI

Background

The extractive industries in Malawi provide a great potential to contribute to the country’s sustainable socio-economic development. A World Bank’s Mining Governance and Growth Support Project Appraisal Document, March 2011 projected that the value of Malawi’s extractive industries, particularly in the mineral sector, could reach some $250 million in the next three years, and would double this figure after ten years. Available information indicates that Malawi is endowed with various types of natural resources, particularly minerals such as uranium, rare earths, coal, bauxite, phosphate, limestone, glass sands, amongst others. At the same time, speculation/exploration of these natural resources is steadily intensifying. To date, Malawi has issued a total of 65 licenses for speculating minerals. 
However, like most other African countries, Malawi’s sudden realization of the growth potential in the extractive industries could be a “blessing”, if well managed, or a “curse”, if poorly managed. If well managed, the extractive industries offers opportunities to advance human development as the economy directly or indirectly benefits from these industries. Direct benefits are measured in terms of contribution to GDP, international terms of trade, foreign exchange, foreign direct investment (FDI), government revenues as well as job creation. Indirect benefits are derived from backward and forward linkages through demand in inputs into the operations of the industries, the development of labor market, infrastructure development as well as benefits to the surrounding communities. However, if poorly managed, the boom in the extractive industries can severely impede human development as powerful actors seek to maintain control of resources and extract rent. It can also lead to suboptimal government revenue generation if not well negotiated. Furthermore, communities are often disillusioned if not fully consulted and involved, not only in the productive activities that the sector engenders, but also in decision-making. Unsustainable management of natural resources can also cause problems in the areas and localities where the extraction is taking place, affecting livelihoods. The environment can be severely compromised if the operations are not well managed and follow accepted environmental safety and protection measures.
Malawi estimates that, in the medium-term, the extractive industries could contribute 30% of the country’s GDP. But for this to materialize, the Government recognizes that, among other interventions, it has to strengthen its national capacities to balance what is often seen as “an asymmetrical” relationship with multi-national companies involved in exploration and extraction of these natural resources. It is on this understanding that the Government of Malawi, through its Minister of Economic Planning and Development, requested the UNDP Country Office to provide support to develop Government’s capacity in governance, economic planning, policy analysis and formulation, and management of the extractive industries to attain broad based national objectives. In this respect, it is deemed that a comprehensive capacity assessment to delineate existing national capacity gaps is in order. The recent launch of the approximately US$44 million Mining Governance and Growth Support Project by the World Bank makes the capacity assessment even more imperative. 
The assessment will take into account on-going capacity development interventions by the various development partners to avoid duplication of efforts. These Terms of Reference have been prepared to solicit Request for Proposals (RFPs) from reputable firms to conduct this capacity assessment exercise.   

Duties and Responsibilities

Scope and Tasks of Assignment
The purpose of these Terms of Reference is to solicit RFPs from reputable firms to conduct capacity assessment for effective development and management of Malawi’s extractive industries and revenues thereof. Building on UNDP’s Framework on “Resource Extraction for Human Development”, existing capacity development interventions by other development partners, the selected Contractor shall:
  • Map-out all institutions (public, quasi-public, private, non-governmental organization and civil society organizations) involved in extractive industries, human rights, environmental management, rural development; their roles and responsibilities. Legal existence and mandates;Based on (i) above, review capacities of these institutions to negotiate and advocate policies and contracts entered into by the Government to ensure that they benefit the nation and avoid, among other things, rent seeking behaviors;
  • Assess capacities of Malawian citizens to hold public and private sector actors accountable for their decisions in the extractive industries;
  • Recommend an appropriate investment model for Malawi and assess the capacity of the Government to make investment decisions of revenues from the extractive industries that would transform the economy and accelerate social services and, in turn, ensure human development;
  • Assess the gaps in undertaking strategic and individual EIAs and its enforcement;
  • Assess the current EIA policies and legal framework effectiveness to regulate the extractive industries from environmental perspective;
  • Assess the gaps in undertaking social impact of extractive industries and its enforcement;
  • Assess the gaps in undertaking both the positive and negative health impact of extractive industries and their enforcement;
  • Assess the capacity of public institutions in generation of geo-data and maintaining it;
  • Assess the gaps in the education system at all levels in relation to extractive industries;
  • Assess the capacities for planning, policy and strategy formulation to ensure the drive for economic diversification is not lost. It is important other sectors like manufacturing benefit from the extractive industries;
  • Recommend on other additional relevant technical assistance the country might need to augment national expertise in the short- and medium-terms; and
  • Building on capacity development interventions by other development partners, recommend “specific areas” of UNDP’s comparative advantage for involvement in developing the capacities of the extractive industries.  
 The following outputs and deliverables are expected from the Contractor:
  • An Inception Report (max. 10 pages). The Inception Report shall include: (a) an assessment of the TORs; (b) a strategy and work plan of how to implement the assignment; (c) an outline of the Capacity Assessment Report and proposed Scheme; (d) a list of stakeholders to be consulted; and (d) references.   The Inception Report will have to be submitted within 5 working days after commencement of assignment, and to be finalized after presentation at a workshop;
  • A draft Capacity Assessment Report that defines the national capacities needed to affectively develop and manage extractive industries in Malawi. The Report should clearly state capacities at all levels – policy and planning, institutional, training and individual levels – to balance asymmetrical relationship between national governments and multi-national companies. The Report should also look into the capacities of community based organizations and communities themselves to effectively engage;
  • Presentation of the draft Capacity Assessment Report to UNDP and the National Reference Group (see Annex I for composition of the Group) for comments;
  • Final and approved Capacity Assessment Report. The Final Report shall reflect all comments provided by UNDP and the national Reference Group at the Stakeholders’ Workshop. The report shall propose areas of focus for UNDP intervention with recourse to UNDP’s mandate and comparative advantage. 

Competencies

Competencies and Critical Success Factors

The selected consultant should demonstrate the following competencies:
  • A thorough understanding of institutional development and capacity issues and challenges in the extractive industries;
  • A good knowledge of extractive industry policies, regulations and systems;
  • A good understanding of the different extractive industries capacity assessment frameworks and methodologies;
  • Ability to build strong relationships with diverse clients in the extractive industries and responding positively to feedback;
  • Ability to work with government officials;    
  • Integrity by learning and applying the UN values and ethical standards;   
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability; and
  • Treats all people fairly without favoritism.

    Required Skills and Experience

    Team composition, education and experience
     
    The selected firm will put together a four-man team to carry out the Capacity Assessment. Below are the required academic qualifications and experience of individual team members:
     
    Team Leader

    Education:
    • S/he should have an advanced university degree (Masters or higher level) in public administration or other relevant studies.
    Experience:
    • S/he should have an in-depth knowledge in capacity assessment assignments in extractive industries with 10 years experience;
    • S/he should have strong leadership, facilitation, coordination, and communication/inter-personal skills;
    • S/he should be able to link policy and planning, institutional and individual capacity issues in extractive industries to human development.
    Legal Expert

    Education:
    • S/he should have an advanced degree (Masters or higher level) in law.
    Experience:
    • S/he should have 8 years experience in assessing capacities of institutions involved in regulating extractive industries and managing revenue;
    • Experience in Sub-Saharan Africa will be an added advantage. 
    Institutional Expert/Economist

    Education:
    • S/he should have an advanced university degree (Masters or higher level) in economics, taxation and statistics.
    Experience:
    • S/he should have 8 years experience reviewing institutional set-up with bias towards natural resource economics and in-depth knowledge of economic and taxation policy evaluation related to extractive industries;
    • S/he should be able to recommend appropriate mix of expertise within the institution to better manage extractive industries.
    Geology/Natural Resources Management Expert
    Education:
    • S/he should have advance university degree (Masters or higher level) in relevant subject.
    Experience:
    • S/he should have a strong understanding of rules and regulations governing exploration and exploitation of natural resources;
    • S/he should be technically sound in deploying GIS-related tools;
    • S/he should have experience in undertaking strategic and individual EIAs.
    Language: 
    • Fluency in written and spoken English.
      UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence.
      http://jobs.undp.org/cj_view_job.cfm?cur_job_id=38399
      CONDUCTING A CAPACITY ASSESSMENT FOR THE EXTRACTIVE INDUSTRIES IN MALAWI CONDUCTING A CAPACITY ASSESSMENT FOR THE EXTRACTIVE INDUSTRIES IN MALAWI Reviewed by Unknown on 7:18:00 AM Rating: 5

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