Consultant to Conduct Scoping Study of Fair Finance in Laos

1. Background:

Laos’ economic growth averaged 7.8% over the last decade. Around one-third of this growth is driven by natural resources, including hydropower and mining. As the country prepares its Green Growth Strategy, introducing sustainable finance principles in this long-term plan could help establish sustainable financial markets and attract more private sector investments in green technology and renewable energy. This could help Laos ensure sustainable management of its natural resources, as well as enjoy sustainable development and economic growth. Therefore, sustainable financing plays a vital role in environmental and social protection by engaging financial institutions (FIs) in complying with investment regulations, particularly those relating to transparency and accountability of the financial sector, and environmental and social risk management. FIs should also increase their institutional capacity to integrate and implement sustainable finance in their policies and practices. A multistakeholder approach, which includes meaningful engagement between, and among, regulators, FIs, civil society organizations (CSOs) and communities, is key to ensuring an enabling policy environment for sustainable finance and ensuring relevant regulations are implemented to uphold human rights and gender equality, and the protect the environment.

According to the Interactive Country Fiches (ICF), growth in public finances is needed to provide public services, social protection, and infrastructure to the most marginalized rural communities. However, there are constraints to revenue collection, and increased non-concessional borrowing has meant that the Government is facing higher budgetary interest payments, which are constraining its fiscal space. The ICF further states that “Foreign direct investment (FDI), which has been central to past increases in private finance, is set to decline significantly as hydropower projects are finalized and due to a moratorium on new mining concessions. Poor infrastructure and the lack of a skilled workforce have negative impacts on manufacturing growth, and laws restricting foreign participation in the tourism industry create barriers to increasing FDI in other areas. The government of Laos has set a target for net-zero emissions by 2050 or earlier. As part of the Mekong region, there is transborder grid integration of both fossil fuel-based and renewable energy generation. Laos has an ambitious plan to expand forest cover to 70% of total land area by 2025.  Although the plan has not yet been implemented, it has attracted significant funding.

Given Addressing Laos’s economic challenges, debt unsustainability, and financial sector sustainability are key government pathways to economic recovery. Notably, financial recovery of the energy sector is also particularly important as the sector’s debts account for 42% of total public and publicly guaranteed (PPG) debt in 2021.   Agriculture is also identified as a priority sector due to its potential to increase income and jobs for impoverished rural communities.   However, for this to be achieved, the government acknowledges that investment and development of rural roads are needed. 

Given all the above mentioned, Fair Finance has started implement in Laos since mid of 2023 and aims to work as strategic program with finance coalitions in the country to support sustainable finance. The initial thematic areas are: energy sector, particularly on just energy transition, renewable energy, and hydropower sector, agriculture sector, and transportation infrastructure. The long-term impact and change that FFL aims to contribute to is a responsible and accountable financial sector in Laos that integrates and considers international principles and standards of sustainable finance in their policies, practices and impacts through the engagement and efforts of a resilient civil society that actively advocates for improved financial sector knowledge, attitudes, and practices, and raises citizen and community voices. In this connection, Oxfam in Laos is looking for local consultant to review existing policy and practices following Fair Finance Guide International (https://www.oxfamnovib.nl/donors-partners/about-oxfam/projects-and-programs/fair-finance-guide-international) to come up with the scope Fair Finance in Laos.

2. Overall Objectives:

The primary objective of this study is to review the existing policies under the Fair Finance Guide International Methodology" to identify potential opportunities, map the financial sector in Laos with their environmental and social management along with their customers/investment lenders including gender inclusion. Additionally, the study also analyzes the gaps and propose recommendations for next 4 years work plan for Fair Finance in Laos (FFL) that should be priority for 2024 ASEAN Engagement

Specifically, this study aims to:

1. To assess the context, it is important to identify and understand relevant policies, agendas, and programs that are pertinent to the financial sector or the connections between Oxfam and Fair Finance coalitions.
2. To understand the key stakeholders and platforms that can be engaged to foster dialogue, collaboration, and support for the promotion of Fair Financial practices in Laos.
3. To scope and understand the local context, identify potential opportunities, map the financial sector in Laos, and assess the environmental and social impact of investments, while also considering gender inclusion, environmental, social, and governance aspects, and human rights related to fair finance in Laos.
4. To identify barriers, opportunities, needs, and priorities to validate the draft 4-year Fair Finance Laos result framework for Oxfam in Laos, which should be aligned with the Fair Finance Asia result framework.
5. Understand the priority theme of the financial sectors for 2024 ASEAN engagement such as green finance, taxonomy, inclusive business, etc.

3. Scope of work:

Based on initial consultations with FFL coalitions, the potential topics of interest for engagement and influencing in the country include inequality, environment, social and governance/climate change, and gender (specifically women’s rights and empowerment). The sectors of focus are extractives, power generation, agriculture, infrastructure, and manufacturing.

The term "influencing" refers to a series of interventions aimed at changing the policies and practices of financial sector actors and decision-makers (private and public financial institutions, regulators, governments, standard-setting bodies, etc.) with the aim of bringing about a positive change in our environment and the lives of poor people across the region through sustainable finance. These interventions can include but are not limited to, direct advocacy, research, campaigning, public mobilization, communications, and media coordination with (potential) allies.

In this research context, the main objectives include guiding individuals in comprehending and navigating the sustainable finance landscape in Laos, as well as understanding the dynamics between actors and stakeholders within the ASEAN system who are involved in this topic. Another goal is to create a roadmap for FFL, which will consist of conducting a stakeholder analysis and, as far as possible, facilitating initial meetings with key stakeholders and focal individuals from significant organizations such as the Finance Institutions, Bank of Laos, Association Microfinance, Association of Bankers in Laos, and various SCOs and NGOs dedicated to gender inclusion, human rights, and environmental social governance.

4. Target site(s) or project sites:

The scoping study areas will be selected for Vientiane, the capital of Laos, where we will meet with stakeholders for individual interviews and focus group discussions involving the community, Finance Institution, Bank of Laos, Association Microfinance, Association of Bankers in Laos, as well as various SCOs and NGOs dedicated to gender inclusion, human rights, and environmental social governance. Additionally, review existing policies and financial sector strategies is needed.

5. Research questions:

1. What are the key factors and challenges in understanding and navigating the sustainable finance landscape in Laos?
2. What is the relationship between actors and stakeholders involved in sustainable finance within the ASEAN system?
3. How can a roadmap be developed for Fair Finance Laos, including stakeholder analysis?
4. Who are the key stakeholders and focal persons within the Finance Institution, Bank of Laos, Association Microfinance, Association of Bankers in Laos, SCOs, and NGOs working on gender inclusion, human rights, and environmental social governance?
5. What are the existing policies and financial sector strategies related to sustainable finance in Laos?
6. How can initiatives and actions be identified to promote gender inclusion, human rights, and environmental social governance within the sustainable finance context in Laos?
7. What are the priority themes that should be engage with 2024 ASEAN under financial sector? 

6. Methodology:
   1. Data collection:

This purely desk research utilizes a triangulation approach, incorporating multiple data sources and various research participants and methods. When implemented correctly, triangulation ensures the gathering of essential factors that are supported by multiple sources of evidence. The following combination of methodologies has been employed for this research:

1. Consultations : A half-day meeting with the Oxfam team will be organized to discuss in detail the scope and methodology proposed by the consultant. Following this, the consultant will conduct at least two focus groups consultation meetings with relevant stakeholders to identify key informants and validate the report. These meetings can be held either online or in person, as needed. From the first meeting, the consultant is required to develop and present an inception plan, considering the consultation process, approach and methodologies, work plan, and timelines.
2. Desk review:

4. Existing literature: Review relevant policy, programme, reports, and studies on fair finance in the context of Laos. This includes publications from government organizations, non-governmental organizations, academic institutions, and international agencies specifically for financing on energy sector (hydropower, coal plant and mining, and transportation).
5. Policy and regulatory framework: Examine the existing policies, laws, and regulations related to finance and inclusive development in Laos. Assess the extent to which these address fair finance practices and principles.
6. Financial institutions: Analyze the landscape of financial institutions in Laos, including banks, microfinance institutions, credit unions, and non-bank financial institutions. Identify any existing initiatives or programs that promote fair finance.
7. Stakeholder mapping: Identify and map relevant stakeholders, such as government agencies, financial institutions, civil society organizations, and communities. Understand their roles, perspectives, and potential contributions to fair finance in Laos.
8. Socio-economic context: Examine the socio-economic conditions in Laos, including poverty levels, income distribution, and access to financial services. Assess how fair finance can contribute to inclusive economic growth and development.
9. Best practices and innovations: Research global and regional best practices and innovative models related to fair finance. Identify successful initiatives that can be adapted or replicated in the context of Laos.
10. Challenges and gaps: Identify the challenges, barriers, and gaps hindering the adoption and implementation of fair finance in Laos. This can include factors such as limited financial literacy, lack of infrastructure, and policy constraints.
11. Opportunities and potential solutions: Identify potential opportunities and solutions to promote fair finance in Laos. This can include policy recommendations, capacity-building initiatives, and collaborations among stakeholders.
    2. Data Analysis:

Descriptive statistics will be used to present any quantitative data extracted from the desk review or provided by the interviewed stakeholders. This analysis will include trend analysis over time or geographic scope, presented in graphs or tables. The results of the desk review and interview transcripts will be analyzed using content analysis.

7. SCHEDULE
   1. Timeline of Activities.

The proposed timeline of activities initially covered the period from May 29, 2024 to June  31, 2024. However, the timeline has been adjusted due to the 25-day difference from the project start date. The project timeline now covers the period from the contract signing date.

1. 2. Deliverables

• 3. Qualification
• He or she has at least a University Decree on related sustainable finance
• He or she has more than 5 years of experience in sustainable financial management.  
• He or she has good experience in social and environmental sectors.
• He or she understands policy and stakeholders related to finance inclusion in Laos.
• He or she need to has strong analysis skills and data processing.
• Fluency in English writing.  
• And Others.

• Applying:

  All applicants please apply through the following link: https://career2.successfactors.eu/career?company=OxfamNovibP 

  
  by May 3rd, 2024 at 23:59 ICT.