Appel d’offre de consultance pour la conduite d’une formation spécialisée et d’un appui technique dans le secteur forestier pour la Section de l’impôt sur les ressources naturelles, Liberia

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

Consulting Firm/Association of Experts

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

Assignment Title: Consultancy to Conduct Specialized Training and Technical Support in the Forestry Sector for the Natural Resource Tax Section, Liberia Revenue Authority (LRA)

Financing Agreement reference: 2100155034068

Project ID No.: P-LR-K00-014

Reference No. IPFMRP II/C/IC/2.1.12- AfDB

Issue Date: April 28, 2021

End Date:   May 12,, 2021

       1. INTRODUCTION

Liberia stands out as the most forested country in West Africa. In 2015, forests (greater than 30 percent crown cover) made up 6.5 million ha, that is, 68 percent of Liberia’s land surface. This includes some areas under tree-crops such as oil palm, rubber, and cocoa. Out of this, about 4.3 million ha is categorized as tropical forest with over 80 percent of canopy cover.¹ Furthermore, about 15 percent was classified as degraded land (that is, canopy/tree cover under 30 percent).

The forest sector is an important contributor to income and employment for Liberia’s economy, in terms of both marketed (and measured) goods and services, as well as non-marketed (and largely unmeasured) ecosystem services. The formal (measured) forestry activities contributed 10 percent of GDP in 2014, according to the 2016 Annual Report of the Central Bank of Liberia (Central Bank of Liberia 2016). According to the report, forestry was the fourth largest contributor to the GDP after (a) services, (b) agriculture and fisheries, and (c) mining and panning. In 2015, Government revenues from forest sector levies, such as stumpage fees, export fees, and area fees, were US$8.5 million and formed almost 2 percent of the total tax revenues collected. The informal forestry sector contributes significantly (and likely much more than the formal sector) to incomes

Liberia Country Forest Note, Environment and Naturel Resource Global Practice – World Bank – January 2018 and employment, through activities such as chainsaw milling and charcoal production. The annual revenue generated by chainsaw milling alone is estimated to be US$31–41 million or about 3–4 percent of the GDP (USAID 2015).

Despite their important contributions, forests are under threat and need to be better and sustainably managed. Overall, net forest depletion as percentage of gross national income increased from 0.5 percent in 2005 to 32 percent in 2015. The forestry sector is generally taxed to achieve the twin objectives of revenue maximization and sustainability of logging levels. Over time, the number of taxes, charges, and fees on forestry activity in Liberia has proliferated, driven particularly by the introduction of new taxes for specific purposes during the 1980s. Four different charges are levied on the volume of trees (not specified by species) at the felling stage: two schedules of export taxes, differentiated by 28 species and also, for processed wood, by three stages of processing. In addition, eight administrative fees are levied on forestry activity and six on port services. Finally, there is an area tax.

The Natural Resources Tax Section (NRTS) is a specialize section within the Domestic Tax Department responsible for ensuring the compliance of taxpayers in the small, medium and large categories of businesses that are operating within the Natural Resources Sectors of Liberia. Specifically, the Section manages the tax compliance of taxpayers in the mining, petroleum, forestry and agriculture sectors. Currently, NRTS has developed minute capacities in the taxation of the forestry sector. This is underpinned by weak institutional and little or no capacity development for staff of the NRTS in managing tax compliance of the sector. These gaps in the personnel and institutional capacities of the LRA have necessitated the request to train staff of the NRTS in understanding the complexities of taxing the forestry sector.

The Government of Liberia through the Ministry of Finance and Development Planning received funding for the Second phase of the Integrated Public Financial Management Reform Project (IPFMRP-II) funded by the African Development Bank. The project primary objective is to improve accountability and transparency in PFM systems. The project is composed of many subcomponents, and one of them is to strengthen the capacity of the Natural Resource Section of the Liberia Revenue Authority. The project intends to apply part of the proceeds of the funding for eligible payment under the contract to hire the services of a consulting firm to conduct specialized training and provide technical support in the Forestry sector for the Natural Resource Tax Section of the Liberia Revenue Authority.

2. OBJECTIVE OF THE ASSIGNMENT

The general objective of this assignment is to hire a consulting firm to build the Capacity of the Natural Resource Tax Section, particularly in the Forestry sector. The Specific Objectives are as follows:

1. Examine the overall macro-economic environment of the Forestry Sector in Liberia. This should involve analysis of the socio-economic setting and national development strategic framework and the external factors affecting the sector performance. The analysis will also look into the contribution of the Sector to GDP and employment across the agriculture value chain and make policy recommendations.

2. Analyze the current situation in the global market for forest related products, market trends and possible implications on maximization of tax revenue for Liberia;

3. Discuss the advantages and disadvantages of Forest Taxes and Fees;

4. Discuss the evolution of Liberia’s Timber Sector, Liberia’ Timber Revenue System and the flow of timber through the Forest Sector and the application of taxes along the value chain;

5. Analyze and identify various policy constraints including the overall business environment, current business regulatory framework, Investment incentives for SMEs, forestry practices and constraints, processing technologies affecting the value chain actors in the industry and make policy recommendations;

6. Review the existing forestry sector related support institutions, organizations and national consultative mechanisms, identify gaps and make policy recommendations;

7. Provide an overview of the Liberian Forestry Sector providing emphasis on the Liber Trace System and its attending implications on forestry taxation in Liberia;

8. Train and build the skills of staff of the Natural Resource Tax Section in basic concepts of forestry management. This training should introduce concepts and ideas on how to tax the sector and attending sub-sectors.

9. Equip participants with advanced skills regarding the forestry sector and how Liberia can exercise its taxing rights along the value chain of the sector and related sub-sectors.

3. SCOPE OF THE SERVICES TO BE PERFORMED

The above situation highlights possible revenue loss if staff of the NRTS are not trained in the basic concepts of the Forestry sector and how Liberia can exercise its taxing rights along its value chain. To plug this leakage and tap the potential revenues from the sector, LRA wishes to engage the services of a Consultant that has expertise in the Forestry sector to provide training that will enhance the capacity of staff in the sector. The Consultant is expected to carry out the following in delivering the assignment:

• Work with the Natural Resource Tax Section to strengthen its capacity in understanding the forestry sector including community forestry and timber sales;

• Build the capacity of the Section in basic contemporary concepts and methods of forestry taxation using theoretical methods or any other applicable means;

• Develop course outline and contents that would lead to successful delivery of the knowledge and skills within the Natural Resource Tax Section in the area of forestry taxation and other related topics;

• Supervise a practical session on taxation of the Forestry sector. Some aspects of the training course will be determined by the Consultant in collaboration with the LRA;

• Assist in preparing a policy paper for the taxation of the Sector and related sub-sectors;

• Assist in preparing a policy paper for the pricing of logs and timbers of the Sector;

• Prepare PowerPoint presentations, training manual and necessary handouts covering the training program in consonance with Annex I of the detailed ToR;

• Prepare and submit the training reports with photographs of the participants and activities;

• Submit the final training documents (training manual and power point presentations, and group and individual work exercise).

4. DURATION OF THE ASSIGNMENT

The Consultant shall coordinate closely with the Commissioner for Domestic Tax Department at the Liberia Revenue Authority to accomplish the assignment successfully. The duration of the assignment is 60 working days.

5. MINIMUM REQUIRED QUALIFICATIONS, COMPETENCES AND EXPERIENCE

5.1 QUALIFICATION AND EXPERIENCE REQUIREMENTS FOR THE FIRM Interested firms or Association of Experts must meet the following Minimum Qualification Requirements:

• At least ten (10) years’ capacity building experience in Forestry taxation, forestry research, forestry management and forestry policy formulation;

• At least two (2) similar assignments in proving training in forestry sector taxation for public or private sector employees in South Sahara Region within the last seven (7) years;

• Demonstrated experience and understanding of the forestry sector of Liberia as well as other attending sub-sectors will be an added advantage; and

• Demonstrated ability to facilitate trainings with skilled and semi-skilled tax officers, and to make presentations of technical findings to the senior management.

5.2 KEY EXPERTS QUALIFICATION AND EXPERIENCE REQUIREMENTS

5.2.1 Key Expert 1: Team Leader – Level of Effort: 2 Months

Minimum Qualifications Requirements:

• Education: Master degree in Forestry with proficiency in forest protection management, forest planning and investigation, natural resource management or relevant fields.

• General Experience: At least ten (10) years of experience in forestry research, and providing training to both public and private sector institutions in forest taxation;

1. Specific Experience: At least 5 years of experience in providing policy advice on best

practices on increasing tax revenue from the forestry sector, productivity and overall forestry best practices.

• Language: Fluency in English, spoken, read and writing.

5.2.2 Key Expert 2: Forestry Taxation Expert – Level of Effort: 2 Months

Minimum Qualifications Requirements:

• Education: Master degree in Forestry with proficiency in forest protection management, forest planning and investigation, natural resource management or relevant fields.

• General Experience: At least seven (7) years of experience in providing training in the forestry sector, particularly forest taxation for public sector institutions;

• Similar Experience: At least two (2) similar experiences in conducting training in forest taxation, including mechanisms or strategies for increasing sector revenue generation; At least 5 years of experience in forestry sector; having profound 6. knowledge of policies and legislations on forestry

• Language: Fluency in English, spoken, read and writing.

5.2.3 Key Expert 3: Forestry Policy Expert – Level of Effort: 2 Months

Minimum Qualifications Requirements:

• Education: Forestry with proficiency in forest protection management, forest planning and investigation, natural resource management or relevant fields.

• Specific Experience: At least seven (7) years of experience in Forestry sector policy/strategy formulation and in designing a results-based implementation matrix to ensure that the document produced will be practical, easy to understand and implement;

• Language: Fluency in English, spoken, read and writing.

6. DUTY STATION AND PLACE OF ASSIGNMENT

The duty station and place of the assignment shall be at the Commissioner for Domestic Tax Department, Liberia Revenue Authority, Monrovia, Liberia.

7. HOW TO APPLY

 Further information and the detailed TOR (including the proposed Training Content/Outline) can be obtained at the address below during office hours, i.e. from 9:00 to 17:00 hours (GMT), Mondays through Fridays.

The Project Management Unit (PMU) of the Ministry of Finance & Development Planning (MFDP) now invites eligible Consulting firms or Association of experts 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 Consulting firm or Association of experts will be selected in accordance with the Approved Selection Methods for 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 12^th May 2021 @ 17h:00 hours (GMT) and indicate in the Email subject line or on the outer envelope “Consultancy to Conduct Specialized Training and Technical Support in the Forestry Sector for the Natural Resource Tax Section, Liberia Revenue Authority (LRA)”

The Address referred above is:

The Project Manager

Project Management Unit (PMU), 4^th 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]