African Risk Capacity (ARC) is a Specialised Agency of the African Union. The ARC Agency leads the ARC Group, a development finance institution that provides financial tools and infrastructure to help countries manage natural disaster risk and adapt to climate change. It counts 34 AU countries as members and is supervised by a ministerial level governing board elected by its Conference of the Parties. The ARC design and establishment phase was managed by WFP, under a MoU with the African Union, and WFP continues to provide administrative services support to the ARC Agency through an administrative services agreement.

In 2014, ARC launched its initial risk insurance product for member states through its financial affiliate the ARC Insurance Company Limited (ARC Ltd). ARC Ltd is a specialist hybrid mutual insurance company and Africa’s first ever disaster insurance pool, aggregating risk by issuing insurance policies to participating governments and transferring it to the international market. ARC Ltd uses the satellite weather surveillance software Africa RiskView, developed by WFP, to estimate the impact of drought on vulnerable populations – and the response costs required to assist them – before a season begins, and as it progresses, so that index-based insurance pay-outs, based on Africa RiskView, are triggered at or before harvest time if the rains are poor. With a USD 200 million initial capital commitment provided by the governments of Germany (through KfW on behalf of BMZ) and the United Kingdom (DFID). ARC aims to reach with drought, flood and cyclone coverage.

While African countries are acting to better manage today’s weather through participation in the current drought pool; Member States have requested to have a full suite of products to complement existing products. In line with the ARC Establishment Agreement Article 4 (e), ARC is mandated to facilitate the pooling of resources of Member States to provide contingency funding in a timely manner. This read in conjunction with clause (g) on assisting Member States in establishing a regional contingent credit or revolving grant facility. Together with the Insurance component, the proposed Contingency Fund will prove a vital tool in managing safeguarding lives and livelihoods and ensuring ARC develops the appropriate tools for managing disasters. ARC is therefore looking for a consultant to develop a proposal for designing a contingency fund framework which shall guide the operating model of the fund and provide the ARC Conference of the Parties (CoP) a tangible proposal on next steps.

Recognizing the need for financial and operational preparedness for disasters and acknowledging the significant contribution and increased demand from lower income countries for the services being provided by regional risk pools such as the African Risk Capacity (ARC), as well as the private risk markets, multi-lateral agencies and donors, there is a need for an objective review of contingent sovereign Financing funds.

Section 1: Scope of Study

The ARC is therefore seeking for a Consultant for the development of a study which would support the establishment of a Sovereign Disaster Risk Contingency Fund. The purpose of the study would be to objectively assess:

The current landscape of Disaster Risk Sovereign Funds (including proposed strategies & policies) in the member states and regional bodies;
The feasibility of establishing of Sovereign Disaster Risk Contingency Funds at national, regional and continental level.
1. Practical steps of formation, structure and organisation
2. Legal entity status
3. Distribution of funds - Standard and Guidelines in line with best practice
4. Innovative Replenishment scenarios and prospective alternative avenues for sourcing funds
5. Key partnership engagements
The ability and willingness of African Union Member States (focus on ARC Member States) of replenishment for disaster risk funds and to cover other costs related to the maintenance of the contingency funds;
Develop a donor engagement strategy to seed the contingency fund
1. Develop a comprehensive list of previous donor support for such activities such as Donor Countries, foundations and private sector institutions

Section 2: Indicative Methodology and Timelines

It is expected that this study should be completed by 31 August 2021.

1. Inception Report which will inform the consultants initial view of the scope of work – Due by end of May 2021

1.1 Desk research on the current landscape of national and regional contingency funds
2.2 Proposed Overview of ARC unique approach

2. Design of Contingency Fund – Due by June 2021

2.1 Design of the fund including Governance and Operational components

2.2 Operation plan of the fund defining realistic timelines

3. Resource mobilization plan - Due by June 2021

3.1 Identification and engagement plan to reac targeted donors
3.2 Analysis of the readiness of ARC members states on maintenance and sustainability of the Contingency funds

4. Knowledge and information management plan – Due by July 2021

5. Final report, policy paper and PowerPoint Presentation – Due by August 2021

DELIVERABLES:

The consultant will develop a methodological/analytical approach that includes a complex and wide range of factors with findings presented in the form of a report, a concise policy paper and PowerPoint presentation.

EDUCATION:

A Master’s Degree in one or more of the following disciplines: Economics, International Relations, Social Sciences, Finance, or another related field.

RELEVANT EXPERIENCE:

At least seven years of progressively responsible professional experience in the field of economics/law/international relations and/or politics with African Union agencies, IFIs, international NGOs, foundations or government services
International experience including Africa experience is an asset.
A strong track record in climate risk financing with a strong focus on plan prioritization and value-for-money analysis
Solid capabilities in each of the following areas:
Project design and mapping of relevant stakeholders
Monitoring and evaluation of climate planning
Value-for-money and cost benefit analysis
Significant experience with climate change adaption programmes, with an expert knowledge of the UNFCCC, climate adaptation funds and the international dialogues and debates on climate change adaptation.
Experience in working with Private Public Partnerships is an added advantage

Deadline for applications: 23 March 2021

Ref.: VA No. 141141

Qualified female applicants and qualified applicants from developing countries are especially encouraged to apply

WFP has zero tolerance for discrimination and does not discriminate on the basis of HIV/AIDS status

No appointment under any kind of contract will be offered to members of the UN Advisory Committee on Administrative and Budgetary Questions (ACABQ), International Civil Service Commission (ICSC), FAO Finance Committee, WFP External Auditor, WFP Audit Committee, Joint Inspection Unit (JIU) and other similar bodies within the United Nations system with oversight responsibilities over WFP, both during their service and within three years of ceasing that service.

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Added 3 years ago - Updated 3 years ago - Source: wfp.org