Republic of Liberia

MINISTRY OF FINANCE AND DEVELOPMENT PLANNING

P.O Box 10-9016

Intersection of Broad and Mechlin Streets

Monrovia, Liberia

REQUEST FOR EXPRESSIONS OF INTEREST

Individual Consultant

NAME OF PROJECT: Integrated Public Financial Management Reform Project, II

Assignment Title: Consultancy for Mineral Valuation Expert to Build the Capacity of the Natural Resource Tax Section, Liberia Revenue Authority (LRA) in Mineral Valuation, Tracking, Monitoring and Auditing Revenue Collection Performance in the Artisanal Small-Scale Mining (ASM) Sector

Financing Agreement reference: 2100155034068 Project ID No.: P-LR-K00-014 Reference No. IPFMRP/C/2.1.9 AfDB

Issue Date: April 28, 2021

End Date:    May 12, 2021

 

 

 

  1. 1. INTRODUCTION

The mining sector is a key anchor to Liberia’s economy, contributing at least 15% to Gross Domestic Product (GDP). The Domestic Resource Mobilization strategy proposes developing the country’s natural resource wealth to create jobs and grow the economy as well as derive returns that benefit the nation and its people. The national strategy calls for raising the tax effort in the mining sector to ensure a contribution commensurate to the sector’s weight in the national product. The mining sector is composed of the formal and informal sector.

The formal sector has seen progressive improvements towards better revenue collection as it is more institutionalised. The taxation and revenue collections for the formal sector are referenced through Mineral Development Agreements (MDAs), the Revenue Code and related legislations. Periodic negotiations continue to yield improvements as exemplified by recent Advance Pricing Agreements (APAs) reviews, which have enhanced various commercial contractual terms that will pave way for increased revenue receipts.

The informal sector remains more problematic in terms of revenue collection. This sector comprises Brokers and Artisanal and Small-Scale Miners (ASM) who often also operate informally. Revenue collections from this sector is much more elusive and complex as it is susceptible to evasion. The supply chain process is opaque and the minerals are not

valued and priced appropriately. The revenue collections made by the Ministry of Mines and Energy through the Government Gold Office and the Government Diamond office are only a small percentage of what the Government of Liberia (GoL) ought to collect from the sector. There is widespread smuggling, unauthorised movements and sales of minerals that are not formally tracked, valued and taxed. More work remains to be done in this sector to streamline processes and promote more transparency on tax affairs as exemplified by other African success stories such as Ghana and Botswana.

There are risks of revenue leakages if the internal capacity of the Natural Resource Tax Section (NRTS) is not strengthened to track, monitor and value performance of revenue collection in the sector. To lay a sustainable foundation towards continuously improving revenue collection, particularly from the informal sector (ASM), the LRA wants to engage the services of a mining industry expert to build capacity of the NRTS and other related agencies in implementing audit and compliance systems that capable of improving revenue collection in the informal sector. At the heart of the scope of the consultancy is building capacity of LRA staff through on-the-job coaching of the Audit and Compliance teams and equipping them with technical knowledge to ensure continuity post the consultancy.

The Government of Liberia received financing from the African Development Bank (AfDB), through the Integrated Public Financial Management Reforms Project (IPFMRP) II, and intends to apply part of the proceeds to hire the services of an Individual Consultant to build the capacity of the Natural Resources Tax Unit of the Liberia Revenue Authority in the area of Mineral Valuation, with specific emphasis in tracking and monitoring revenue performance and implementing audit and compliance systems that capacitate the efficacy in revenue collection for the Government of Liberia.

  1. OBJECTIVE OF THE ASSIGNMENT

The general objective of this assignment is to hire a Mineral Valuation Consultant to strengthen the internal capacity of the NRTS to be able to effectively track, monitor and audit revenue performance in the informal sector as well as appropriate application of various databases under various subscriptions in harnessing additional revenue from the formal sector based on existing agreements and pricing frameworks. The specific objectives are as follows:

  • Work with NRTS in building capacity in drafting policy proposal for effective tax compliance management of Class C and Class B miners. This will also include the assessment of the whole informal sector value chain, including the brokers.
  • Collaborate with NRTS staff to strengthen their skills and knowledge to generate proposal for possible Business Plans for ASM sector participants, organisational structures and financing options for ASM businesses that support improved GoL revenue collection from the ASM sector.
  • Coach and build NRTS staff capacity to track and monitor Advance Pricing Agreements e.g. for Iron Ore- developing staff understanding of Platts Index, Baltic Index and pricing calculations for GoL royalty valuations.
  • Work with the NRTS to design an automated reporting dashboard for tax compliance performance risk assessment to reduce complexity of monitoring ASM players (Liberia has tens of thousands of artisanal miners).
  1. SCOPE OF SERVICES TO BE PERFORMED

The Consultant shall be responsible to undertake the following activities among others:

  • Work with the Natural Resource Tax Section (NRTS) to strengthen its capacity in understanding the informal sector (ASM) and supervise practical on-the-job training to transfer requisite skills and knowledge;
  • Collaborate closely with the Commissioner for Domestic Taxes and the Manager of the Natural Resource Tax Section (NRTS) to strengthen its capacity in drafting policy proposal for effective tax compliance management and enhancing the auditing and compliance monitoring activities for the ASM sector;
  • Develop possible alternatives for operating models for ASM sector participants, the organisational structures and financing options for such ASM models.
  • Identify sources of leakages along the value chain of the ASM sector for the local Gold sector (Class C and Class B miners only);
  • Enhance Tax Audit and Compliance reporting systems through collaborating with the IT Department’s Management Information Systems (MIS) team to develop tax risk and compliance templates and business reporting information systems;
  • Building capacity to prepare documentation to facilitate engagement with key stakeholders such as Parliament, Government Ministries and other relevant bodies on matters of improving revenue collection in the Mining sector;
  • Building the capacity of the NRTS in concepts of mineral valuation modelling, strategic analysis and evidence-based persuasion techniques;
  • Work closely with the NRTS and other relevant departments to identify sources of leakages along the value chain of the ASM sector and recommend measures for risk mitigation;
  • Provide evidence backed support to the Commissioner for Domestic Taxes and Manager for NRTS, to recommend policy and legislative reforms required to improve efficiency in mining tax revenue collection;
  • Guide the NRTS in market sizing the diamond and other minerals like zircon, bauxite, etc.
  1. EXPECTED DELIVERABLES
  • Prepare and submit an inception report acceptable to the client within ten (10) working days after the effectiveness of contract on the delivery of the consultancy to include the topics to be covered as per objectives of the consultancy, the methodology for analysis and the scheduling for the various tasks and a work plan. This should include the course outline, course contents, PowerPoint presentations, handouts or brochures.
  • Prepare and submit risk assessment and compliance templates (excel based) as well as the dashboard report templates acceptable to the client to be uploaded within the NRTS repository section of the Management Information Systems to track, monitor and audit revenue performance. This report should also include a PowerPoint presentation report with ASM formalisation possible models, the value chain structure and sources of leakages in the informal sector and recommendations for the LRA towards improving mineral revenue collection in the ASM sector.
  • Before the end of the assignment, the Consultant shall submit a final report acceptable to the client detailing all the activities undertaken during the consultancy. The report will outline achievements, issues and lessons learnt and recommendations. The consultant should also carry out a post evaluation of the training program, based on: a) training evaluation by trainees, and b) on trainer’s findings submitted by a comprehensive analysis on knowledge actually improved and skills being actually developed for every participant, with recommendations.
  1. DURATION OF THE ASSIGNMENT

The duration of the assignment is 60 working days.

  1. Institutional Arrangement and Duty Station

The consultant will be based/stationed at the Liberia Revenue Authority, particularly the Natural Resource Tax Section, Department of Domestic Tax. The Consultant shall coordinate closely with the Commissioner for Domestic Tax Department to accomplish the assignment successfully.

  1. FACILITIES PROVIDED BY THE CLIENT

The Liberia Revenue Authority will provide the following facilities:

  • Access to all necessary information and stakeholders to facilitate the assignment;
  • Office space within the Liberia Revenue Authority;
  • Office furniture and equipment;

The consultant is expected to use own computer and other equipment required for the task.

  1. MINIMUM REQUIRED QUALIFICATIONS, COMPETENCES AND EXPERIENCE

Interested Consultants should meet the following Minimum Qualifications Requirements:

  • Master degree in Geology, Mining Engineering, Mineral Economics, Business Administration or an equivalent university degree with minimum of 10 years of experience in Mineral Valuation;
  • At least five (5) years’ experience working in the Mining sector with deep understanding of developing strategy and modelling revenues and cost structures of mining companies.
  • Previous experience within Corporate Strategy or Business Development teams of a Multinational Mining Company and/or strategy consulting background (mining sector) will be an added advantage;
  • Must have an in-depth understanding of the operations and activities of the informal mining sector. Knowledge of the informal mining sector in Liberia will be an added advantage;
  • Excellent understanding of mining economics and contextual appreciation of mining activities and regulatory framework in Liberia and her neighboring countries;
  • At least one (1) similar assignment on Mineral Valuation in the Sub-Saharan Africa region within the past seven (7) years; and,
  • At least one (1) capacity building experience training on mineral valuation.
  1. SELECTION METHO AND HOW TO APPLY

The Project Management Unit (PMU) of the Ministry of Finance & Development Planning (MFDP) now invites eligible Individual Consultants to express interest in providing the services by providing a list of similar assignments performed with references and submitting Curriculum Vitae (CVs), demonstrating experience in performing similar assignments with references and showing responsiveness to the qualification requirements outlined in this REOI. Eligibility criteria and the selection procedure shall be in accordance with the World Bank’s “Procurement Regulations for IPF Borrowers” July 2016, Revised November 2017 and August 2018 (“Procurement Regulations”).

A Consultant will be selected in accordance with the Approved Selection Methods for Individual Consultants set out in the World Bank Procurement Regulations for IPF Borrowers. The attention of interested Consultants is drawn to Section III, paragraphs, 3.14, 3.16, and 3.17 of the World Bank’s “Procurement Regulations for IPF Borrowers” July 2016, Revised November 2017 and August 2018 (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest.

Expressions of interest must be delivered in a written form or by email to the address below on or before 12th May, 2021 @ 17:00 hours (GMT) and indicate in the Email subject line or on the outer envelope “Consultancy for Mineral Valuation Expert to Build the

Capacity of the Natural Resource Tax Section, Liberia Revenue Authority (LRA) in Mineral Valuation, Tracking, Monitoring and Auditing Revenue Collection Performance in the Artisanal Small-Scale Mining (ASM) Sector”

Further information and the detailed TOR can be obtained at the address below during office hours, i.e. from 9:00 to 17:00 hours (GMT), Mondays through Fridays. The Address referred above is:

The Project Manager

Project Management Unit (PMU), 4th Floor 

Ministry of Finance and Development Planning (MFDP)

P.O Box 109013 – Intersection of Broad and Mechlin Streets

1000 Monrovia, 10 Liberia

Phone: +231770 161 561

E-Mail: [email protected], and copied to [email protected]