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 and conservation practices, improving local livelihoods, and increasing climate resilience through community-based initiatives. The overall goal of the project is to contribute to poverty alleviation through climate-resilient sustainable development.

The key objectives of the project are:

1. Developing bio-physical ecosystem management practices to supply ecosystem services.
2. Developing governance capacity for ecosystem management, including climate-sensitive gender mainstreaming.
3. Developing economic instruments to promote desired ecosystem results.
4. Promote renewable energy solutions for green growth and development.

The Expected Results (ERs) of the project are:

1. Improved biophysical ecosystem management practices through 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 solution delivering environmental, economic, and social benefits.

Objective of the Consultancy

Contributing to objective III, this consultancy will lead the development and implementation of Payment for Ecosystem Service (PES) along with the cost-benefit analyses, and financial modeling of the eco-incentive programs. The consultant will evaluate the economic (monetary) and ecological (non-monetary) impacts of environmental incentive initiatives contributing to conservation practices. This role will play a critical part in shaping policy and investment decisions by balancing environmental sustainability with economic development and social welfare. The Consultant will assess the effectiveness of economic instruments (PES), develop financial models, and provide actionable insights to inform strategies that enhance both ecological and community outcomes.

Scope of Work and Expected Outputs/Deliverables

Main Activities

1. Cost-Benefit Analysis

• Conduct comprehensive cost-benefit analyses of eco-incentive initiatives, considering direct and indirect environmental, social, and economic impacts.
• Identify and evaluate the financial feasibility of existing incentive programs and economic instruments.

1. Economic Instrument Design

• Develop and design incentive programs such as Payment for Ecosystem Services that reward communities for adopting sustainable practices, including biodiversity conservation, carbon sequestration, and water quality improvement.

1. Financial Modeling

• Utilize advanced financial modeling techniques to project future costs and benefits (Monetary and non-monetary) of conservation strategies.
• Incorporate ecological variables such as biodiversity impacts and carbon sequestration rates into the designed models.

1. Stakeholder Engagement

• Collaborate with government agencies, NGOs, community leaders, and other stakeholders to align economic strategies with ecological and community goals.
• Facilitate workshops and training sessions to build capacity in financial management for ecosystem conservation.

1. Policy and Reporting

• Prepare detailed reports summarizing findings, financial models, policy recommendations, and policy briefs for decision-makers.
• Document lessons learned and best practices to inform future conservation initiatives.

Expected Outputs

• Comprehensive cost-benefit analysis report for targeted ecosystem conservation initiatives (monetary and non-monetary).
• Detailed incentive programs including PES and other economic instruments in the context of Pakistan particularly Gilgit Baltistan.
• Financial models projecting the economic and ecological outcomes of proposed conservation practices.
• Stakeholder engagement reports and training materials.
• Final consultancy report summarizing all findings, analyses, and policy recommendations.

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

• Desk research on existing policies and global best eco-practices.
• Data collection through field visits, surveys, and stakeholder consultations.
• Financial modeling and scenario analysis using advanced software tools.
• Regular engagement with stakeholders to ensure alignment with project objectives.

Time Frame and Input

The consultancy span will be over 12 months.

Key Qualifications of Consultant

• Advanced degree in Finance, Engineering, 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 financial modeling 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, GB, providing regular updates and ensuring alignment with project goals. Deliverables will include detailed reports, presentations, and documentation as outlined in the schedule above.