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Grant: H7710-TJ
Project name & ID: Private Sector Competitiveness Project, P130091
Assignment title: Consultant to assist National Bank of Tajikistan for development of rules and regulation of the Central Securities Depository (CSD), and the development of the securities market
Procurement reference No.: PSC/IC11
Data: January 25, 2019

The Republic Tajikistan has received financing from the World Bank toward the cost of the Private Sector Competitiveness Project, and intends to apply part of the proceeds for consulting services. The consulting services (“the Services”) include engagement of a consultant for development of rules and regulation of the Central Securities Depository (CSD), and the development of the securities market.

The State Committee on Investments and State Property Management of the Republic of Tajikistan and National Bank of Tajikistan now invite eligible individual consultants (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services (CV, copy of documents evidencing appropriate qualifications and skills, experience and competence related to the task, description of similar tasks performed, references, etc). The consultant's minimal qualification requirements are:

• Practical experience (not less than 10 years) in the development of the regulatory framework of the Central Securities Depository (CSD);
• Proven experience in the development of government securities market structure, including experience in developing countries;
• Successful completion of at least 2 projects on the development of the Central Securities Depository (CSD); compilation of the regulatory framework and related instructions;
• Work experience in less developed and/or countries with economies in transition and experience in similar tasks in at least three other countries with similar tasks;
• Knowledge in the field of risk management related to the Central Securities Depository (CSD);
• Knowledge of Russian or Tajik languages ​​is welcomed.

The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits& Grants by World Bank Borrowers (January 2011, revised July 2014)  (“Consultant Guidelines”), setting forth the World Bank’s policy on conflict of interest.

A Consultant will be selected in accordance with the selection of Individual Consultants (IC) method set out in the Consultant Guidelines.

Further information can be obtained at the address below during office hours 8:00 - 17:00 (GMT + 5).

Expressions of interest, CV and other supportive information must be delivered via email address below by 14.02.2019.

National Bank of Tajikistan
Contact person: Mr. Firdavs Sanginov
107/A Rudaki Avenue, 734003, Dushanbe, Tajikistan
Tel: +992 44 600 31 31
Fax: +992 44 600 32 35 E-mail: f_sanginov@nbt.tj; Cc: pscp-7710@mail.ru

TERM OF REFERENCE
for
International Consultant to assist
National Bank of Tajikistan
for development of rules and regulation of the
Central Securities Depository (CSD)
and the development of the securities market.

PSC/IC11

February 2019

1. Background
The World Bank has provided a grant for realization of the Private Sector Competitiveness Project. In order to assist in implementation of this project, a Project Implementation Unit (PMU) was created and this PMU is responsible for all implementing activities. PMU is based in the State Committee for Investments and State Property Management (SCISPM) which is the main executive agency responsible for implementation of state policy and regulations in the area of investments, property management and support to entrepreneurship in Tajikistan.

2. Purpose
The purpose of this TOR is to support and assist the National Bank of Tajikistan to develop regulatory aspects of the Central Securities Depository (CSD), the development of the securities market in the Republic of Tajikistan, including the amendment and drafting of the regulatory framework and related instructions.
The consultant will provide recommendations to Department of Open Market Operations of the National Bank of Tajikistan on regulatory aspects of the Central Securities Depository (CSD) and development of the securities market as a whole. Also, the Consultant will perform the task management responsibilities listed below in the "Scope of Work" section.

3. Scope of work
The Consultant will assist the National Bank of Tajikistan in achieving the following deliverables:
1. Formation of the regulatory and institutional framework for the functioning of the Central Securities Depository (CSD);
2. Revision and amendment of existing legislations;
3. Development of the main regulatory and legal documents that laid the basis for the activities of the Central Securities Depository (CSD) on the securities market of the Republic of Tajikistan:
• Systemrules (standards) for depository, notary, accounting and risk management functions;
• The CSD integration with trading venues, and cash settlement;
• The CSD pre-trading, trading, post-trading, clearing and settlement arrangements.
4. Develop the government securities market including:
• developing the role of the MOF as the issuer of the debt and the role of NBT as the agent of the issuer including designing plans for the debt issuing and maturity, designing the primary market including role of primary dealers and contracts between MOF and primary dealers, the conditions and obligations of primary dealers;
• developing a multi-tier secondary market including OTC market, stock exchange, bid & ask market;
• developing trading venues and trading instruments, including REPO, securities lending, .etc.;
• developing collateralization and using government securities as collaterals, and management of collaterals;
• developing market players, mainly custodians, brokers, and big investors, and designing the market to allow for transparency and competition.
5. Conduct examination of corresponding documents, including draft amendments to the banking legislation and other regulatory frameworks and related instructions, so as to bring them to the final state for subsequent adoption and state registration. Review current legislation regarding securities, including regulatory frameworks and provide professional advice based on international practice;
6. In the decision-making process, the Consultant should consider the comments of the structural units of the National Bank of Tajikistan, state bodies, and assist the Special Group for Project Management of the National Bank of Tajikistan in preparing revised documents relating to these comments;
7. Assist the National Bank of Tajikistan in provision of information, prepare/response to comments, questions and requests regarding the implementation of the proposed documents;
8. Understand the functional specification of the CSD and provide relevant recommendations regarding the system's functionality.

4. Reporting obligation:
• The Consultant must submit reports on the tasks performed including the Inception Report, the Progress Report and the Final Report to Department of Open Market Operations of the National Bank of Tajikistan. Report should include the current state of the securities market in the Republic of Tajikistan, the tasks accomplished, and the problems that arose during the work of the Consultant;
• All reports should be submitted in English with a translation into Russian (both in electronic and in hard copy);
• The National Bank of Tajikistan may require from Consultant to prepare additional ad-hoc reports on the status of the project, with recommendations;
• The results of the Project Consultant's work should be subjected to a quality control process involving an expert group to be determined by the National Bank of Tajikistan. The consultant participates in review meetings (including virtual meetings) and appropriately reviews comments, materials and proposals for review that will be made in the quality control process. The consultant should respond to quality control comments, how to solve them, and submit replies to the National Bank of Tajikistan together with the required clarifications.

5. Duration of the assignment
The assignment is planned to start in March, 2019 and continuing till October 2019.

6. Client's Input
Client shall provide to the Consultant working space in National Bank of Tajikistan including access to office, internet, necessary equipment and related documents to carry out the assignment.

7. Qualification requirements:
• Practical experience (not less than 10 years) in the development of the regulatory framework of the Central Securities Depository (CSD);
• Proven experience in the development of government securities market structure, including experience in developing countries;
• Successful completion of at least 2 projects on the development of the Central Securities Depository (CSD); compilation of the regulatory framework and related instructions;
• Work experience in less developed and/or countries with economies in transition and experience in similar tasks in at least three other countries with similar tasks;
• Knowledge in the field of risk management related to the Central Securities Depository (CSD);
• Knowledge of Russian or Tajik languages is welcomed.