1.1       Purpose of the Mission

The inception-phase assessment constitutes the analytical nucleus and strategic inflection point of the INVEST4Libya programme. Its purpose is to subject the project’s entire architecture—its Theory of Change, logical framework, and reform delivery design—to a scientific, methodologically defensible examination anchored in internationally recognised standards.

Over six months (January–June 2026), a senior, multidisciplinary team of experts will conduct a PEFA-informed, IMF- and WBG-aligned diagnostic across Libya’s macro-fiscal, financial-governance, and enterprise-development systems. The assessment’s mandate is not descriptive but determinant: to establish the empirical and institutional foundations upon which all subsequent implementation will rest, and to ensure that every reform measure under INVEST4Libya is credible, feasible, and sequenced within Libya’s political-economy constraints.

1.2       Strategic Context

Libya’s reform trajectory stands at a systemic crossroads, defined by structural dependence on hydrocarbons, recurrent fiscal shocks, and the fragmentation of public-sector authority. The volatility of oil revenues, the duplication of institutions, and the erosion of fiscal discipline have created a macro-economic environment where public finance, monetary policy, and investment regulation operate in isolation rather than synergy.

In this context, INVEST4Libya operates as a strategic convergence platform—a mechanism through which fiscal credibility, financial-sector governance, and private-sector dynamism can be realigned into a coherent national development pathway. The inception assessment is therefore conceived not as a baseline study but as a sovereign-scale diagnostic, designed to:

·         Identify and prioritise fiscal and financial reforms that can deliver early, confidence-building results without destabilising macroeconomic balances;

·         Evaluate institutional interdependencies among the Ministry of Finance (MoF), Central Bank of Libya (CBL), Audit Bureau, Ministry of Economy and Trade (MoE), and Privatisation and Investment Board (PIB)—the limited but decisive set of actors whose coordination determines systemic coherence; and

·         Establish the analytical foundations for a sequenced reform roadmap, linking fiscal transparency to financial governance and to the investment ecosystem required for entrepreneurship, innovation, and sustainable growth.

The Stakeholder Network Analysis highlights that reform feasibility in Libya depends less on formal mandates than on institutional alignment and signalling. Progress in one node—budget reliability or payments transparency—reverberates across the system, creating credibility loops that attract investment and consolidate reform momentum. Conversely, failure in a critical institution can cascade through the network, eroding trust and policy traction.

The inception assessment must therefore operate at a strategic altitude: mapping incentives, constraints, and interdependencies with a level of analytical depth comparable to that of IMF Article IV Consultations or World Bank Financial Sector Reviews. It must blend macroeconomic modelling, institutional diagnostics, and applied political-economy analysis into a coherent whole, yielding outputs that can withstand scrutiny by international financial institutions, policymakers, and peer reviewers alike.

1.3       Expertise France Strategic Positioning

As the implementing agency and lead technical partner of INVEST4Libya, Expertise France (EF) approaches this inception assessment as a demonstration of methodological excellence and institutional credibility. EF’s ambition is to deliver a diagnostic exercise that meets the highest standards of analytical and academic rigour.

This aspiration reflects EF’s dual identity as both a technical cooperation agency and a centre of methodological innovation within the French Development ecosystem. The Agency’s added value lies in its capacity to integrate:

·         International standards with contextual intelligence,

·         Empirical analysis with political-economy reasoning, and

·         Operational feasibility with academic-grade precision.

Accordingly, the ToRs target only senior, high-calibre experts with demonstrated experience in large-scale fiscal, financial, and institutional reform diagnostics. Entry-level or generalist profiles will not be considered. This mission demands strategic discernment, analytical discipline, and thought leadership commensurate with assignments commissioned by the IMF, the World Bank, or the EU at headquarters level.

EF’s approach to this inception phase is therefore twofold:

1.     To ensure that the analytical process and deliverables meet the highest international benchmarks of methodological transparency, coherence, and validation; and

2.     To position EF as a trusted technical interlocutor capable of translating complex reform diagnostics into actionable, nationally owned strategies for Libya’s sustainable economic transformation.

While the European Union remains the donor and contracting authority of the action, this inception mission is entrusted to EF precisely because of the Agency’s proven ability to operate at the intersection of academic rigour and operational diplomacy—a space where few actors can perform credibly in fragile and politically complex contexts.

1.4       Strategic Imperative

This inception assessment findings will precise the operational methodology of INVEST4Libya. Its success will:

·         Establish the empirical baseline for programme implementation and future evaluations;

·         Provide the analytical foundation for adjusting the Description of Action, Theory of Change, and logical framework; and

·         will contribute to the enhancement of methodologies and practices underpinning EF-led diagnostics in fragile and transitional environments.

The Senior National Expert will provide high-level institutional facilitation, political-economy insight, and strategic engagement to support the inception-phase diagnostic of Libya’s Public Financial Management (PFM) system under INVEST4Libya.

He/She will ensures that the diagnostic is:

·         Contextually grounded,

·         Politically feasible,

·         Institutionally owned, and

·         Aligned with Libyan administrative realities.

The expert acts as the primary bridge between Expertise France and Libyan institutions, ensuring access, legitimacy, and contextual intelligence across the entire inception phase.

The Senior National Expert will contribute to the following overarching objectives:

·         Enable smooth institutional engagement with Libya’s PFM institutions (MoF, CBL, Audit Bureau, MoP, Parliament).

·         Provide political-economy insight essential to interpreting PFM bottlenecks, reform incentives, and institutional dynamics.

·         Support the establishment and functioning of the Technical Piloting Committee (TPC), ensuring balanced representation and national ownership.

·         Contribute to consultations, validation sessions, and the co-creation of the PFM Reform Roadmap, ensuring recommendations are realistic and implementable.

·         Strengthen institutional buy-in, reducing risk of resistance, fragmentation, or misunderstanding.

Given the interlinkages between public finance, financial sector regulation, and private-sector development, the expert will ensure systematic coordination with the inception-phase assessments under SO2 (financial sector strengthening) and SO3 (entrepreneurship and MSME ecosystem), to guarantee methodological coherence and avoid fragmented diagnostics.

More specifically the expert will:

1.      Institutional Engagement & Access Facilitation

·         Facilitate high-level access to MoF, CBL, Audit Bureau, MoP, Parliament, and relevant directorates.

·         Establish relationships with institutional focal points and ensure timely provision of data and documentation.

·         Support EF in engaging both Western and Eastern authorities and ensuring balanced participation.

·         Mediate institutional sensitivities and reduce risks of misunderstanding or resistance.

·         Maintain continuous communication with institutions to ensure alignment with the analytical process.

2.      Contextual and Political-Economy Advisory

·         Provide political-economy analysis of PFM reforms, incentives, constraints, and institutional interdependencies.

·         Inform EF and the international experts of emerging political risks or opportunities that affect timelines or methodology.

·         Interpret institutional behaviours, informal practices, and decision-making structures relevant to the diagnostic.

·         Validate contextual findings (institutional mapping, workflows, bottlenecks) produced by the international experts.

3.      Leadership in the Establishment and Functioning of the Technical Piloting Committee (TPC)

The expert will play a central role in designing, formalizing, and operationalizing the TPC, including:

·         Identifying relevant institutions and high-level nominees across Western and Eastern administrations (MoF, CBL, Audit Bureau, Ministry of Planning, Parliament).

·         Conducting political groundwork to secure formal institutional endorsement, signatures, and buy-in for TPC membership.

·         Facilitating communication with senior officials to obtain nominations from the appropriate level of authority.

·         Supporting EF in preparing and delivering letters, invitations, and follow-up correspondence.

·         Assist in organising and chairing the inaugural TPC meeting.

·         Ensure the TPC becomes a functional, respected mechanism through:

·         Regular follow-ups with members

·         Tracking commitments and data requests

·         Ensuring attendance and participation

·         Consolidate TPC feedback during diagnostic and roadmap stages.

4.      Contribution to Diagnostics, Consultations & Roadmap Development

·         Participate in structured interviews, focus groups, and consultations with institutions.

·         Validate and enrich technical findings by adding contextual insights.

·         Ensure that sensitive sections of the diagnostic are appropriately framed for Libyan institutional audiences.

·         Participate in interim and final validation workshops.

·         Provide feasibility assessments on proposed reforms (risks, institutional capacity, political acceptability).

·         Facilitate national endorsement of the final diagnostic and reform roadmap.

The Senior National Expert will apply a methodology that blends political-economy insight, participatory engagement, and evidence-based institutional analysis, consistent with the overall inception phase methodology.

1.      Key Methodological Principles

·         Context-driven interpretation of findings

·         Continuous institutional engagement

·         Sensitivity to political and regional dynamics

·         Active participation in the EF-led analytical process

·         Systematic coordination with the international PFM experts and EF team

·         Alignment with SO2 and SO3 where institutional mandates intersect

2.      Operational Approach

·         Weekly coordination meetings with EF Libya team and the international experts.

·         Continuous interface with the TPC throughout the inception phase.

·         Joint preparation and participation in national consultations and validation sessions.

·         Use of structured templates for engagement logs, political-economy briefs, and TPC follow-up.

Throughout the process, the expert will emphasize capacity transfer by involving Libyan technical counterparts in data collection, analysis, and validation. This ensures the outputs are not only technically sound but also institutionally owned and implementable.

5.1       Governance Approach

The governance and validation architecture of the inception-phase assessment is designed to balance technical independence with institutional legitimacy. Given the strategic sensitivity of Libya’s fiscal and financial domains, the validation process must ensure that analytical findings are credible, nationally anchored, and internationally defensible.

The governance system rests on three complementary layers:

1. Expertise France (EF) – ensuring methodological rigour, operational discipline, and donor compliance;
2. Libyan Technical Piloting Committee – ensuring political legitimacy, contextual realism, and national ownership;
3. European Union Delegation – ensuring policy alignment, coherence with the EU Special Measure 2024, and donor visibility.

5.2       Institutional Configuration

The assessment’s governance structure will operate through a dual-validation mechanism between Expertise France and the Libyan Technical Piloting Committee, supported by structured communication with the EU Delegation and EF Headquarters (Paris).

This configuration ensures that validation is both technically robust and politically grounded, maintaining a clear chain of accountability while preserving EF’s analytical autonomy.