The institutionalization of an effective PPP legal and operational framework can help the government of 
Armenia to only pursue PPP deals that are fiscally responsible and more relevant to the country's 
national investment priorities. Recent efforts have been to complete the PPP legal and operational 
framework under the current good principles enumerated above, and to build enough capacity at MOE and 
line-ministries to run it on a timely and 
effective manner before detrimental pressures set in and challenge the policy choices that underpinned 
the specific scope and design of the new PPP law. In the context of the current Post-Program Engagement 
Framework to ADB’s Armenia Second Public Efficiency and Financial Markets Program, and in terms of 
medium-term results, this TA aims to help (i) achieve significant upgrades in fiscal credibility; (ii) 
complete an effective framework that only 
promotes fiscally responsible and planning-relevant PPPs; and (iii) develop some capacity to manage and 
assess the risks in the current stock of and forthcoming PPPs. Integrated with the ongoing and parallel 
reform processes of ADB programmatic assistance in Armenia (which aim at improving fiscal risks and 
public debt management), the sovereign risk premiums and rating outlooks for Armenia would be expected 
to gradually reflect these reforms and 
developments over time without jeopardizing efforts to close infrastructure gaps in the country. Recent 
ADB TA efforts with MOF's new fiscal risks management structure produced draft proposals for the 
establishment of fiscal affordability tests for PPPs linked to fiscal ceilings. These proposals have 
built on PPP-related fiscal risk management guidelines already approved by MOF. This will help to ensure 
PPP-related fiscal liabilities (both 
contingent and non-contingent) can be captured explicitly in a forthcoming reform of the fiscal rule for 
macro-fiscal planning. 

a.   Provide additional hands-on support, given the need to orient and guide incoming new MOF staff to 
fiscal management functions. This is to be designed as peripatetic advisory, with a mentorship approach. 
b. Help implement the new Fiscal Risks Management Development Roadmap. 
c. Work with the ADB team to assist the fiscal risks monitoring and legal teams at MOF to address 
emerging problems at the “legacy” PPPs and pre-empt renegotiation pressures and less transparent fiscal 
mitigation requests. From a fiscal risk management perspective, provide inputs to help MOF form a legal 
view on each item of this specific portfolio (to raise the Government’s readiness to pre-empt 
renegotiation problems) and 
well-determined and studied contingency plans. 
d. Provide inputs to the ADB TA team’s proposals—from a fiscal risk management perspective—for a (stop-
gap) short-term legal solution to restrict renegotiations of “legacy” PPPs without MOF’s oversight (a 
more permanent mechanism to be established through amendments to the existing PPP Law is a medium-term 
objective). 

Short regular reports of activity, with each claim, will support the monitoring of the implementation of 
the expected tasks.
 
To support the eventual knowledge dissemination objectives of Reg-TA 6749, progress reports for the 
entire TA subproject will include, in annex format, stand-alone summaries of proposed and 
then/eventually achieved/approved guidelines and methodologies on e.g., PIM, FRM and SOE Performance 
Monitoring, depending on progress. This expert will be requested to also stand ready to contribute to 
this objective on the basis of its technical deliverables, and this will be defined during the 
implementation of the TA efforts. 

The specialist will have a postgraduate degree in a finance-related practice with public policy 
relevance, and at least 10 years’ experience in fiscal risk management work.