PROJECT BACKGROUND:

We are implementing a project, titled “Gilgit-Baltistan Local Area Development Programme (Diamer Region)” in District Diamer. It focuses on enhancing ecosystem services management, improving local livelihoods, and increasing climate resilience through community-based reforestation initiatives in Chilas and other areas of Diamer. The overall goal of the project is to contribute to poverty alleviation through climate-resilient, sustainable development.

The key objectives of the project are:

• Improving biophysical ecosystem services through the provision of ecosystem management practices.
• Strengthening governance capacity for ecosystem management, with a focus on climate-sensitive gender mainstreaming.
• Developing economic instruments effectively promoting desired ecosystem outcomes.
• Increased access to renewable energy solutions delivering environmental, economic, and social benefits. 

The Expected Results (ERs) of the project are:

1. Improved biophysical ecosystem management practices through the provision of ecosystem services.
2. Strengthened governance capacity for ecosystem management, with a focus on climate-sensitive gender mainstreaming.
3. Enhanced economic instruments effectively promoting desired ecosystem outcomes.
4. Increased access to renewable energy solutions delivering environmental, economic, and social benefits.

Objective of the Consultancy

The objective of this consultancy is to support the design and implementation of economic instruments and PES that promote ecosystem conservation and sustainable livelihoods as outlined under ER III. The specific objective of the consultancy is to conduct a comprehensive cost-benefit analysis to assess the potential ecological, economic, and social impacts of proposed MBIs and PES, with defined eligibility criteria, implementation mechanisms, and monitoring frameworks.

Scope of Work and Expected Outputs/Deliverables

Main Activities

Literature Review & Scoping

• Review existing studies on economic instruments relevant to the context (national/regional).
• Study the economic instruments and PES designed under the Donor project for relevance and stakeholder interest.

Methodology Development

• Design methodological framework for cost-benefit analyses, including:
• Valuation techniques for environmental goods and services
• Methods for capturing non-monetary benefits and social impacts
• Risk and sensitivity analysis approaches

Cost-Benefit Analysis

• Conduct comprehensive cost-benefit analyses of MBIs and PES, considering direct and indirect environmental, social, and economic impacts.
• Prepare a Cost-benefit analysis report evaluating the potential impacts of economic instruments and PES on ecosystem conservation and socioeconomic outcomes.

Reporting

• Develop a comprehensive report explaining the methods applied, outlining the findings from each analysis, with conclusions and practical recommendations to guide policy and decision-making.

Expected Outputs

• Inception report outlining work plan, methodology, and timeline
• Comprehensive cost-benefit analysis report for targeted ecosystem conservation initiatives/economic instruments.
• Final consultancy report summarizing all findings, analyses, and recommendations.

Methodology
The consultant will adopt a participatory and data-driven approach to ensure the effectiveness and sustainability of proposed strategies. Activities will include:

• Desk research on existing policies and global best practices.
• Analysis of PES and MBIs developed under the Donor project.
• Regular engagement with stakeholders to ensure alignment with project objectives.

Time Frame and Input

The consultancy will span 4 months.

Key Qualifications of Consultant

• Advanced degree in Finance, Economics, Environmental Economics, or a related field.
• At least 5 years of experience in financial management, economic analysis, or ecosystem management initiatives.
• Proven expertise in cost-benefit analysis and PES system for conservation projects.
• Proficiency in data analysis tools such as Excel, or similar software.
• Strong communication skills for presenting financial and technical information to non-experts.

Deliverable & Reporting Requirements

Deliverables

The consultant will provide the following deliverables:

Reporting Requirements:

The consultant will report directly to the Regional Coordinator, providing regular updates and ensuring alignment with project goals. Deliverables will include detailed reports, presentations, and documentation as outlined in the schedule above.

Note: