1- OFFICE/UNIT/PROJECT DESCRIPTION

Since the Government of Japan’s (GoJ) announcement of USD 5 billion assistance package to support Iraq’s reconstruction at Madrid Conference in October 2003, the Japan International Cooperation Agency (JICA) has concluded 34 ODA Loan project agreements with the Government of Iraq (GoI), totalling approximately USD 11 billion between January 2008 and December 2023.

The GoI, as the owner and executing agency of Japanese ODA loan-financed projects, carries out key implementation activities such as procurement, contract management, and financial management through dedicated Project Management Teams (PMTs) established in each of the implementing ministries and agencies. JICA’s mandate is to promote the efficient use of loans and ensure that projects are implemented in an accountable, transparent, and efficient manner in line with its guidelines to achieve project objectives expeditiously.

To ensure accountability, transparency, and efficiency in project implementation and loan utilization, the GoI, GoJ, and JICA established a joint Monitoring Committee (M/C) that convenes quarterly. The M/C reports to the Prime Minister’s Office and is chaired by the Chairperson of the Prime Minister’s Advisory Commission (PMAC), with members comprising senior officials from the GoI, GoJ, and JICA.

Since 2009, the Loan Management Unit (LMU) within UNDP Iraq has facilitated the implementation of Japanese ODA loan projects by providing fiduciary and implementation monitoring, evaluation, and capacity development support to the M/C, the GoI and JICA.

The Financial Management Specialist will support the GoI and PMTs in strengthening fiduciary assurance for JICA’s lending operations. The Specialist will provide strategic guidance, conduct fiduciary analysis, and deliver capacity development support to enhance individual and

institutional capacities. Key responsibilities include supporting loan and budget formulation, monitoring financial management activities, preparing financial reports, assessing fiduciary risks, and implementing capacity development initiatives and to ensure compliance with JICA guidelines and the efficient use of Japanese ODA loans.

2- SCOPE OF WORK

The Financial Management Specialist will support the LMU Team Leader and lead the LMU’s national representation in financial management and facilitate high-level coordination and oversight of Japanese ODA loan activities. This role will involve close collaboration with senior GoI officials, PMTs and Iraq’s international development partners to ensure compliance with financial standards and the successful delivery of ODA-loan financed projects.

• Project Formulation and Budgeting: Strategically represent LMU as the primary interlocutor to (i) establish and strengthen high-level communication, coordination, and collaboration with the Ministry of Finance (MoF) at the Director General and above levels and with JICA. This includes leading LMU’s support to the ex-ante evaluation, formulation, and endorsement of new ODA Loans for the Federal Budget Law, and managing the processes through the GoI system; (ii) facilitate, in coordination with senior officials in the MoF Department of Public Debt and the Department of Accounts, the design and implementation of effective and comprehensive financial management arrangements that align with ODA Loan requirements; and (iii) facilitate the processes for allocating and budgeting the GoI contributions to ODA Loan project costs.
• Project Implementation and Financial Reporting: Lead LMU’s financial management support to PMTs by (i) ensuring that PMTs have sufficient knowledge of the financial management sections in Loan Agreements (L/A) and JICA’s guidelines through structured guidance and coaching as needed; (ii) evaluate and provide strategic oversight of PMTs financial management arrangements for both new and ongoing projects, making high- level recommendations for alignment with JICA standards; (iii) support implementing PMTs in preparing, updating, and revising annual disbursement plans, and track their implementation; (iv) monitor the preparation and verification of disbursement requests, and PMTs maintaining of accurate contract records; (v) prepare, and compile monthly and quarterly analytical financial reports as required by JICA; (vi) facilitate reallocation among L/A categories in collaboration with Ministry of Planning (MoP) and MoF, including delivering financial explanations and ensuring that all necessary approvals are obtained;

(vii) review and monitor PMTs’ and implementing ministries / agencies’ bookkeeping, documentation, and financial record-keeping practices for ODA Loan projects; and (viii) support PMTs in handling L/C applications, amendments, extensions and resolving discrepancies, as well as payments, and transfer requests, fostering self-sufficiency.

• Post-Completion Financial Closure and Evaluation: Lead LMU’s effort in Japanese ODA Loan project closure and post-completion monitoring by (i) supporting PMTs in the

preparation of Project Completion Reports and conducting financial closure activities for L/As; (ii) coordinate with PMTs and implementing ministries/agencies in financial planning and budgeting for the operation and maintenance of completed projects, establishing effective monitoring and reporting mechanisms for operation and maintenance; (iii) ensure comprehensive archiving and maintenance of financial documents, including disbursement records and evidence of payments, to support ex- post evaluations, GoI audits, and future project assessments; and (iv) coordinate with JICA and GoI on ex-post evaluations and audits, providing leadership in assessing project financial accountability, effectiveness, impact, and sustainability.

• Support for JICA’s Special Lending Schemes: Manage and provide strategic oversight for JICA’s Special Lending Schemes, such as the Two-Step Loan (TSL), by (i) coordinating closely with the Trade Bank of Iraq (TBI) and JICA in preparing financial rationales to ensure private sector projects selected for TSL financing meet both JICA and GoI eligibility and compliance requirements; (ii) working with MoF to obtain timely approval and issuance of sovereign guarantees, and required documentation; (iii) establishing and leading fiduciary monitoring protocols to oversee TSL loan disbursements and ensure financial compliance, with close tracking of adherence to TSL terms by TBI and MoF; and

(iv) maintaining active communication with TBI and MoF, addressing issues, discrepancies, or compliance gaps as they arise, and providing guidance and corrective measures as needed.

• Capacity Development and Technical Assistance: Develop and lead capacity development initiatives to strengthen the financial management capabilities of PMTs, MoF, MoP and TBI by (i) identifying capacity gaps in financial management skills, compiling findings, and reporting to the M/C, JICA, and LMU; (ii) designing and delivering comprehensive training programmes, including classroom and hands-on technical support, to improve competencies in financial planning, budgeting, and reporting within ODA Loan requirements; (iii) overseeing MoF’s Department of Public Debt and Department of Accounts in handling ODA Loan disbursements and financial record management, offering expert guidance to ensure accurate, timely updates; (iv) advising TBI on improving processes related to L/C management and TSL schemes, and (v) leading knowledge-sharing sessions across GoI stakeholders, fostering unified understanding and consistent implementation of best practices.
• Public Financial Management (PFM) and Fiscal Policy Analysis: Provide high-level analysis and strategic recommendations related to Iraq’s PFM and fiscal policy in the context of the ODA Loan Programme by (i) reviewing Iraq’s PFM systems, including asset management, internal audit practices, and foreign public debt management processes, to identify strengths, gaps, and areas that needs improvement; (ii) developing actionable insights to enhance GoI’s PFM frameworks, particularly in fund allocation, expenditure tracking, internal controls, and alignment with international best practices; (iii) conducting in-depth analysis of Iraq’s public debt profile, assessing both foreign and