REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE
MINISTÉRIO DAS FINANÇAS
Applications need to be sent to our Programme Implementation Officer-PFMCBP at email address,
pfmcbp@mof.gov.tl, no later than 17:00 hours Timor-Leste time on 17th April 2009. Only short-listed candidates will be contacted. Please note that applications received after the deadline will not be considered.
TERMS OF REFERENCEJob Title: Lead Petroleum Revenue AdviserReporting to: Director-General of Revenue and Customs Senior Management Adviser, Revenue and Customs PIO (for contractual and administrative purposes)
Counterpart staff: National Director Petroleum Revenue
Duration: 12 months, with possibility of extensions for up to 1 July 2011 subject to an annual review of performance and needs of the Petroleum Revenue Directorate
Location: Ministry of Finance, Dili – Timor Leste
I. BACKGROUND
Planning and Finance Management Systems in Timor-Leste
Since the restoration of independence in 2002, the Government of Timor-Leste (GoTL) has made steady progress in building its Planning and Finance Management (PFM) systems, but significant challenges remain. Institutions responsible for planning, budgeting, budget execution, revenue collection, internal control and reporting are particularly weak in a context of rapidly accumulating revenues and expansion of the state budget. The PFM system is characterized by extremely low budget execution on a cash basis, caused by low capacity within the civil service and weaknesses in planning, budgeting, procurement, implementation and project management. Progress to convert existing resources into economic growth and tangible service delivery improvements is slow.
Strengthening PFM in any country is a long-term agenda. Sound PFM requires government wide systems and processes that operate in a fully integrated manner; weak links must be addressed in a systematic manner. Areas requiring immediate attention include:
- Linking planning and budgeting
- Reform of procurement and devolution to the line agencies
- Improving cash planning and cash management to prevent excessive Treasury liquidity
- Strengthening core IT systems to support the budget process
- Improving internal and external controls and monitoring
- Implementation of a comprehensive program of capacity building and professional development for civil servants including delivery of incentive and reward reforms.
The GoTL is conscious of the key role of PFM systems for growth, service delivery and poverty reduction, and has commenced implementation of a Planning and Finance Management Capacity Building Program (PFMCBP) to assist to secure these objectives.
The Planning and Financial Management Capacity Building Program The PFMCBP aims to achieve sustainably strengthened planning, budgeting, public expenditure management and revenue administration for growth and poverty reduction, with emphasis on efficiency, effectiveness, accountability, integrity, service culture, and transparency.
Funded through a World Bank multi-donor trust fund, the PFMCBP is a five year coordinated program of targeted capacity building in planning and financial management. The key GoTL implementing agency is the Ministry of Finance (MoF), but PFMCBP also includes support for financial management staff in the line ministries and districts.
The program comprises four major components, encompassing:
(a) public expenditure management;
(b) revenue administration and macro-economic management;
(c) support for executive management and other cross cutting activities; and
(d) support for program implementation.
Early capacity building initiatives in the MoF focused largely on getting the public financial management system up and running without fully addressing the capacity shortfalls of civil servants. This has created a system that remains heavily reliant on the presence of international advisers, who have largely focused on in-line performance and, to a limited extent, on the transfer of skills. Through PFMCBP the GoTL wants to move beyond the transitional substitution of international for local expertise, to an integrated approach to institution building that relies on three pillars: skills and knowledge; systems and processes; and attitudes and behaviours. Based on the three-pillar framework, the objectives for the PFM function are
(i) improved service delivery, both to internal clients and to the population; and
(ii) to create a sustainable PFM system that would be increasingly managed and run by national staff, with the number of advisers decreasing over time as national staff take on increasing responsibility. To achieve this, the Program has adopted a “platform” approach under which first steps and foundations are consolidated before more advanced steps are attempted.
PFMCBP faces two central challenges in the near term. The first challenge will be to creatively and flexibly support elaboration and implementation of the change management strategy by the RWG, task teams and senior management team. It will take time to define and communicate elements of the change process: it must not proceed too quickly, or according to a technical blueprint. The second challenge will be to ensure the program does not lose focus on the pressing need to improve the Ministry’s core public finance management responsibilities and maintain operations. Government capacity is already limited and there is a risk that dramatic changes may divert focus. PFMCBP should target activities that improve service delivery, support economy and employment outcomes, and underpin government’s efforts to establish its legitimacy.
Program Management
The program is managed and implemented by the MoF through a dedicated Program Implementation Unit (PIU), led by the Program Implementation Officer (PIO). Comprising a core group of TA management specialists, the PIU ensures best practice capacity building efforts throughout the program.
The PIU is located within the Executive Office of the Ministry of Finance, and is designated part responsibility for aid effectiveness also, together with associated PIUs in MoF.
A Steering Committee chaired by the Minister of Finance and involving senior managers, key line agencies and district representatives as appropriate will provide the strategic direction for the program and ensuring that the program progresses in line with the Government’s development and public financial management objectives.
A Supervisory Committee chaired by the Minister of Finance and comprising the World Bank and one or more development partners will monitor progress in program implementation and make recommendations to the Steering Committee on issues affecting the successful achievement of the program’s objectives. The Supervision Committee will provide a forum for continuous policy dialogue and will oversee and advice on the integration of all activities and advisers within the program framework, including coordination and consultation with donors involved in parallel financing and co-financing
All Technical Advisers recruited to the PFMCBP are contracted by, and accountable to, the Minister of Finance. Senior Management Advisors will be responsible for planning and monitoring the quality of performance of TA assigned to their respective branches and units.
Ministry of Finance Reform
The Ministry of Finance is the Government body responsible for the design, execution, coordination and assessment of the finance policies defined and approved by the Council of Ministers, particularly in the areas of budget and finance, and the Government’s annual planning and monitoring of their programs.
In 2008, the Ministry of Finance has commenced a process for institutional reform that aims to improve the quality of services that the Ministry provides to policy-makers, line ministries and districts. A restructure of the Ministry and the implementation of the new Organic Law are underway, providing some of the conditions necessary to improve performance, in particular at senior management level. Plans are also underway to: establish a group of experienced managers; address issues of staff reward and incentives; review skills and proper job placement of existing staff; preparation of a program for the professional development (PDP) of ministry staff; systematically communicate planned changes to existing Ministry staff; and improve the Ministry’s facilities, IT and other related infrastructure.
As an initial step in this restructuring process, a Senior Management Committee has been established to transmit reform messages and lead performance improvements within the Ministry. The team is composed of the Minister, the Vice-Minister of Economy and Development (in his acting capacity as Vice-Minister of Finance), the Chief of Staff and Interim Director of the Administration and IT Services, the Senior Management Advisers of the General Directorate on Corporate Support and the three (3) General Directorates of the Ministry, namely, i) General Directorate of State Finances; ii) General Directorate of Revenue & Customs; and, iii) General Directorate of Policy Analysis & Research. It is envisaged that the Senior Management Committee will provide counterparts to the Senior Managers of the MOF, when they are appointed.
II. ROLE OF THE NATIONAL DIRECTORATE OF PETROLEUM REVENUE
The Directorate of Petroleum Revenue (PRD) refers to the newly created National Directorate in the Directorate-General of Revenue and Customs responsible for the administration and collection of Government taxes from petroleum operations in the Joint Petroleum Development Area (JPDA) in the Timor Sea.
In 2008, petroleum revenues totaled US$2,284 million, of which PRD collected US$895 million in income tax, additional profit tax, VAT and others. Royalty and profit gas (collected by the National Petroleum Authority) accounted for the remainder. Timor-Leste’s petroleum sector is expected to provide over 90 per cent of the country’s annual revenues in the next 20 years.
Petroleum taxpayers in Timor-Leste have substantially increased following the release of new acreage for exploration. The applicable legal/fiscal regimes are numerous and complex.
They fall into four main categories:
Operations in Timor-Leste’s exclusive jurisdiction (to date at exploration stage) governed by the laws of Timor-Leste;
The Bayu Undan gas and condensate field (producing since 2004) in the Joint Petroleum Development Area (JPDA) with Australia, governed by the Timor Sea Treaty (the agreement governing the JPDA) as well as aspects of Indonesian laws and regulations in force at the time the original agreements on Bayu Undan were made
Potential new operations in the JPDA, which would be governed by the Timor Sea Treaty; and
The yet to be developed Greater Sunrise gas field, which lies partly in but mainly outside of the JPDA, and thus governed partly by the Timor Sea Treaty and partly by the 2007 Treaty on Certain Maritime Arrangements in the Timor Sea (CMATS).
The PRD currently coordinates with and relies on information sourced from
(i) the Timor Sea Designated Authority (TSDA), which oversees operations in the JPDA, but will soon be replaced with a National Petroleum Authority (NPA)1 in Timor-Leste to regulate the above-listed operations on behalf of Timor-Leste, including administering royalty and petroleum production sharing provisions (Timor-Leste’s share of profit oil and gas); and
(ii) the Banking and Payments Authority (BPA, the precursor to the Central Bank).
Operational work includes interpreting the relevant tax laws, dealing with taxpayer enquiries, discussing the applicable legal regimes, auditing and advising taxpayers on tax regulations, etc. Knowledge and compliance with the laws by taxpayers requires a significant advisory and educational program by the Petroleum Revenue Directorate.
The work of the Directorate is conducted by two departments, the Petroleum Operations Department and the Petroleum Compliance Department, the Heads of which report to the National Director Petroleum Revenue.
1 The NPA will combine
(i) the Oil and Gas Directorate of Timor-Leste’s Secretariat of State for Natural Resources, which is responsible for production sharing contracts (PSCs) in the area of Timor-Leste’s exclusive jurisdiction; and
(ii) the TSDA, which is responsible for PSCs in the JPDA. JPDA revenues are split 90 percent to Timor-Leste and 10 percent to Australia.
III. OBJECTIVES OF THE ASSIGNMENT
The objectives of the Lead Petroleum Revenue Adviser are to assist with the implementation of the new National Directorate of Petroleum Revenue. In particular, the Lead Petroleum Revenue Adviser will be the couterpart of the National Director Petroleum Revenue (when
appointed) to support and advise on all petroleum taxation administration issues with a special emphasis on the capacity building and training activities for the national staff in the PRD in regard to: legal interpretation, tax administration and management; basic accounting; taxpayers’ compliance measures; and tax audit procedures.
IV. DUTIES AND RESPONSIBILITIES
The Adviser will provide both operational support and capacity building to PRD staff as follows:
(i) Core Tasks
1. Assist the National Director PRD and Department Heads in the PRD accomplish their day to day tasks better;
2. Provide advice to the Director-General (if
appointed) or Senior Management Adviser (Revenue & Customs) and National Director Petroleum Revenue in the areas of petroleum tax and related legal services;
3. Provide overall support to the goal to improve the management of the Petroleum Revenue Directorate and in particular support the National Director PRD to:
Develop, manage, and lead the PRD
Design, develop, implement, and evaluate strategies for the effective tax administration of large, petroleum-related businesses operating in Timor-Leste and the Timor Sea;
Manage and administer petroleum taxation, including policy formulation as required Develop professional industry relationships and conduct community liaison;
4. Assist the Senior Management Adviser in the coordination of the technical assistance extended within the PRD;
5. Provide continuity and direction in the absence of the senior national staff;
6. Assist the National Director PRD in the discharge of his responsibilities;
7. Provide timely policy advice and support to the Director-General (if appointed) or Senior Management Adviser (Revenue & Customs) on matters related to the concerns of PRD; and,
8. Perform such other supporting tasks, both administrative and technical in nature, to enhance the operations of the PRD, and as will be required by the Ministry of Finance.
B. Capacity building functions
In addition, the Lead Petroleum Revenue Adviser will be expected to help develop on-the-job training program for basic skills on areas of concern of the PRD.
The Lead Petroleum Revenue Adviser will be expected to incorporate the three pillar approach to capacity building in all aspects of his/her work with Timorese counterparts. The Senior Management Adviser shall model transparency and accountability in his/her own behavior, and by focusing on development of skills and systems, together with support to behavioral and attitudinal change, the adviser shall help to build capacity by:
• Agreeing on specific tasks within activities for which national counterparts will be responsible; agree on methodology and monitorable indicators for assessing progress on agreed tasks, and for providing feedback to staff;
• Increase, incrementally, the level and number of tasks for which national incumbents are responsible, commensurate with progress/improvements in technical and functional capabilities.
C. Deliverables
Within the first three (3) weeks of the assignment, the Lead Petroleum Revenue Adviser shall prepare a Workplan based on the objectives of the assignment and specific functions for approval by the Director-General Revenue & Customs or his duly authorized representative prior to implementation, copy furnished to the Senior Managers Revenue & Customs and the PIO-PFMCBP.
Within the first six (6) weeks of the assignment, the Lead Petroleum Revenue Adviser shall prepare a capacity building workplan, as outlined above. This will be prepared in consultation with human resource development staff and the HR&Capacity Building Adviser.
The Lead Petroleum Revenue Adviser shall then provide a duly endorsed monthly Workplan Progress Report to the Director-General of Revenue & Customs; copy furnished to the PIOPFMCBP, on the progress and /or completion of the activities outlined in the Work Plan.
In the first year of assignment, the deliverables of the Lead Petroleum Revenue Adviser shall include, among others:
.. provision of high level strategic and technical advice to the National Director PRD, on the management and efficient handling of the concerns of the PRD
.. In close coordination with the HR&Capacity Building Adviser and the Professional Development Program (PDP) Adviser and other concerned TA in the PRD, develop a detailed professional development plan that will provide individuals within the PRD to have high potential for growth, including an individual improvement plan involving both academic advancement and relevant work experience. Such plan shall include key program milestones and detailed reporting requirements.
In addition, the Lead Petroleum Revenue Adviser shall discuss and submit to the Director-General of Revenue and Customs, no later than five (5) working days before the end of the current contract, an end of assignment Workplan Progress Report summarizing work undertaken against the Workplan, the degree to which the work has concluded, and a statement of outstanding tasks.
V. QUALIFICATIONS AND COMPETENCIES
Technical Competencies
The selected candidate should have at least eight
(8) years experience in tax aministration and management, particularly in a public sector environment, specifically in the areas of systems controls and monitoring and reporting of tax management and administration as well as experience with petroleum taxation. Experience in a business process change management role is a distinct advantage. In addition, the candidate should have:
• A university degree in a relevant discipline such as taxation, commerce, business administration, accounting, audit, economics, or financial management. Further postgraduate related courses would be desirable.
• Qualification or certification of the Certified Public Accountant (CPA), Chartered Accountants (CA) or Cost and Management Accountants (CMA) or equivalent is desirable.
• Advanced knowledge of taxation law and accounting principles and tax audit techniques and procedures with at least eight (8) years progressive experience in tax administration, compliance and audit. Expertise in petroleum revenue administration is essential.
• Demonstrated knowledge, skills, and experience in tax administration reform and/ or change management and familiarity with government systems and processes including integrity, service culture, and accountability and transparency mechanisms.
• Excellent organizational, analytical, and prioritization skills, with ability to follow assigned tasks through to completion.
• Demonstrated experience in monitoring and evaluation frameworks and developing realistic work plans.
• Demonstrated ability to work effectively in a mentoring role.
• Excellent command of systems based accounting and risk management.
• Excellent computing skills and proficiency in the Microsoft’s Office package – Excel, Word, PowerPoint, and Access.
• Excellent communication skills, both written and oral, and fluent in written and oral English; proficiency in Tetum and/ or Portuguese a distinct advantage; a demonstrated willingness to undertake further language training as needed.
• Experience working in a fragile state environment is desirable.
Capacity Building Competencies and Experiences
The adviser should be able to demonstrate experience in developing and delivering outcomes based capacity building activities, from the needs analysis stage through to execution, evaluation and analysis of ongoing support requirements.
The adviser should be familiar with the principles and techniques involved with adult learning, and understand capacity building methodologies.
The adviser must posess excellent oral and written communication skills and be experienced in designing and providing on-the-job training.
In addition:
• A commitment to supporting Timorese staff to achieve the outcomes and objectives of the Ministry;
• Committed to training and promoting the professional development of the Ministry’s staff;
• Recognition and respect of peers, and a demonstrated ability to interact effectively and collegially with peers at all levels;
• Demonstrated ability to make sound judgments on capacity issues that will require management referral and guidance;
• Demonstrated ability to work effectively in a mentoring role;
• Demonstrated ability to communicate ideas and analyses clearly and tactfully, both orally and in writing;
• Demonstrated ability to assist and support the development of useful processes and procedures within the unit to implement effectively the work program;
• Demonstrated ability to transfer skills and knowledge to counterparts in a culturally appropriate and effective manner – previous training or teaching experience a plus;
• Demonstrated ability to adapt to challenges in the workplace, including finding creative solutions; and,
• Familiarity with Timor-Leste and Timorese culture and/or willingness to acquire it.
VI. PERFORMANCE EVALUATION
Ongoing performance shall be assessed by the Programme Implementation Unit (PIU) in accordance with the functions and agreed deliverables in the TOR and performance review framework for advisors; and be subject to inputs and recommendations from the Steering and Supervisory Committees, joint supervision missions and the World Bank Task Team as appropriate.
Satisfactory execution of the indicated technical and capacity building functions mentioned above consistent with the Program’s objectives as evaluated by a Supervisory Review Committee at the end of the engagement. Where a contract extension is required, performance assessment results will be taken into consideration.
VII. SELECTION CRITERIA
PLEASE REFER TO OUR APPLICATION GUIDELINE FOR HOW TO ADDRESS
THESE:
SELECTION CRITERIA EXPERIENCE
University degree in a relevant discipline; further professional qualifications and certifications are desirable
At least eight (8) years of experience in tax administration, tax management and petroleum taxation, preferably in a public sector environment
Strong track record of working in a capacity building role, having demonstrated the ability to build skills and transfer knowledge to counterparts in a culturally appropriate and effective manner.
Track record of implementing new structures and supporting and managing restructuring and changes in business process
Experience in tax administration reform and policy development
Experience working in a developing country in a management and/ or advisory role
Proven ability to approach problem solving in a culturally sensitive manner to ensure cooperation, ownership and acceptance
Language Requirements:
a. Fluency in English
b. Fluency in Tetum/ Portuguese or other languages spoken in Timor Leste desirable
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