2.1       Purpose of the Mission

Libya's budget classification and chart of accounts are not consolidated. Different classifications are used across budget preparation, execution and accounting, they do not map consistently onto one another, and none aligns with international government finance statistics standards. Budget data cannot therefore be aggregated reliably, expenditure cannot be tracked by function or programme, and financial reports cannot be produced in a form usable for decision-making. The PFM Legal and Operational Diagnostic Report identifies this as the precondition for the accounting, reporting and information-system work planned under Component 1.

The purpose of this mission is to deliver that precondition in practice: to establish what is actually in use today, to prepare with the Ministry's teams a consolidated classification and chart of accounts with a bridge table from the current codes, and to train the departments that will apply it. In parallel, the mission introduces a structured mid-year review of budget execution — the quickest instrument available to give the Ministry in-year control over execution, and one that requires no legal change. The mission prepares the ground for the government accounts manual, the financial reporting framework and the future financial management information system planned for the following phase.

2.2       Strategic Context

The inception phase of INVEST4Libya (January – September 2026) delivered, for each component, a validated legal and operational diagnostic and a sequenced reform roadmap, developed with Libyan counterparts and confirmed through onsite validation workshops. The implementation phase operationalises these roadmaps: it translates the diagnostic findings into technical assistance, regulatory production, and capacity building delivered directly to the Libyan institutions concerned.

Libya's reform trajectory remains defined by structural dependence on hydrocarbons, recurrent fiscal shocks, and the fragmentation of public-sector authority. In the current institutional context, the enactment of new primary legislation is not achievable; reform support must therefore concentrate on instruments within the existing legal framework — regulations, ministerial instructions, circulars, manuals, and operational procedures — sequenced to deliver early, confidence-building results without destabilising macroeconomic balances.

3.1       Project's Objectives

Expertise France is the French public agency for international development cooperation. It is a subsidiary of the Agence Française de Développement (AFD) Group and the second-largest agency of its kind in Europe. Its mission is to strengthen public policies in partner countries in a sustainable way. Working alongside public actors, civil society, and the private sector, Expertise France designs and implements projects that stimulate innovation and reinforce their actions to benefit everyone. Through its expertise in governance, security, climate, health, education, entrepreneurship, and cultural and creative industries, Expertise France contributes to achieving the Sustainable Development Goals (SDGs) in over 140 countries, with public funding from French and European sources.

Since 2016, Expertise France has supported Libya's economic recovery by empowering the private sector, digitalising economic services, facilitating access to finance, supporting economic policy reforms, and fostering employability through the reinforcement of skills.

The INVEST4LIBYA project, launched by the European Union, aims at supporting Libya's economic institutions to strengthen the diversification of the Libyan economy and public finance management. The Overall Objective/Impact of this action is the following: strengthen the Public Finance System and enhance investments for the green and digital transition.

The Specific Objectives (Outcomes) of this action are as follows:

-    SO 1. The capacity to design and implement targeted public financial management reforms is strengthened;

-    SO 2. The governance of the financial sector, the legal and regulatory framework for enhancing investments, with a specific focus on the green and digital sectors, is reinforced;

-    SO 3. Entrepreneurship, financial inclusion and green and digital innovation are enhanced.

3.2       Mission’s Objectives

The mission pursues four objectives:

-    Establish a clear picture of the classifications currently in use across budget preparation, execution and accounting, and of the gaps against international practice.

-    Deliver a draft consolidated budget classification and chart of accounts, with coding rules and a bridge table from the current codes, allowing budget and accounting data to be reconciled.

-    Deliver the method, indicators and template for a mid-year review of budget execution, including the format of the resulting note to decision-makers.

-    Build the capacity of the budget, accounting and sector departments to apply the classification and run the mid-year review, through training and on-the-job coaching over a first review cycle.

3.3       Scope of Work

The expert will perform the following tasks, with the Ministry of Finance teams and under the technical direction of the Key Technical Expert of Component 1.

1. Review of the classifications currently in use. Map the budget classifications and account structures used in budget preparation, budget execution and government accounting; identify the inconsistencies between them; and assess the gaps against international practice, in particular the GFS economic classification and the COFOG functional classification. Document the practical consequences of each gap for aggregation, reporting and control.

2. Consolidated budget classification and chart of accounts. Prepare, with the Ministry's budget and accounting departments, a consolidated structure covering the administrative, economic, functional, funding-source and, where relevant, programme and geographic segments; define the coding rules and the length and logic of each segment; produce a bridge table from the current codes to the proposed structure; and set out the prerequisites, risks and indicative sequencing for its introduction, including the implications for the future financial management information system.

3. Mid-year budget review. Prepare the method and template for a mid-year review of budget execution: the indicators to be monitored, the data required and their source, the thresholds and rules for flagging deviations, the responsibilities of the budget and sector departments in the exercise, and the standard format of the note submitted to decision-makers.

4. Training and coaching. Design and deliver two training workshops for the Ministry's budget, accounting and sector department staff, with materials in English: the first on international classification standards and what they imply for Libya; the second on the proposed classification, the use of the bridge table and the mid-year review method, with practical coding exercises on Libyan budget lines. Then coach the teams on the job through a first application of the review template.

5. Coordination with the other Component 1 experts. The classification designed under this assignment is the expenditure classification against which the macro-fiscal projection model operates, and the structure of the execution data used in the mid-year review. The expert coordinates directly with the macro-fiscal expert and with the other experts mobilised under the Component 1 roadmap: a joint working session at inception to align the economic classification and the data structure; a second joint session before the classification and the model are finalised; and a written statement, in the final report, confirming that the classification, the bridge table and the review template are consistent with the macro-fiscal data structure. Discrepancies between experts are resolved before submission. Where the work touches financial-sector reporting, the same coherence is maintained with Component 2.

6. Sequencing for the next phase. Assess the state of counterpart ownership at the end of the assignment and set out, in the final report, what remains to be done and in what order — the roll-out training to spending units, the government accounts manual, the reporting templates and calendar, and the first full mid-year review exercise.

The assignment is carried out under the Component 1 reform roadmap validated with the Libyan counterparts in September 2026. The roadmap sets the activities, their sequencing and the institutions concerned. The expert works within it and does not reopen the diagnostic on which it is based.

The following principles govern the way the work is performed:

-    Co-production, not substitution. Each technical product is prepared with the designated counterpart focal points, using Libyan data and Libyan procedures. Products prepared without counterpart involvement are not accepted.

-    Tools paired with transfer. Every technical product is accompanied by a training or on-the-job coaching sequence, so that national staff can use and maintain it once the assignment ends.

-    National ownership of the pace. The sequencing is led by the Libyan authorities. Decisions on the adoption and application of any measure rest with the competent national institutions. The expert advises; it does not commit the counterpart.

-    Efficient use of onsite time. Missions are reserved for working sessions, training and validation. Data collection and drafting that can be performed remotely are performed remotely.

-    Donor coordination. The expert takes account of ongoing IMF and World Bank activity in the same field and flags any overlap to the Key Technical Expert of Component 1 as soon as it is identified.

-    Coordination within the expert team. The expert works alongside the other experts mobilised under Component 1, shares drafts with them at the points set out in the scope of work, and aligns technical conventions with them. A product that is internally sound but inconsistent with another expert's product is not accepted.

3.1       Quality Requirements

All deliverables must meet the following requirements:

-    Build on the 2026 diagnostic and agreed reform roadmap; do not repeat a broad diagnostic unless a specific factual update is required for the assigned task.

-    Ensure coherence and complementarity with relevant technical work undertaken under Component 2, particularly where public financial management, macro-fiscal, budgeting and financial-sector reforms intersect.

-    Ensure consistency with the products of the parallel Component 1 assignments, in particular the macro-fiscal data structure and projection model.

-    Submit concise, evidence-based deliverables in clear professional English.

-    All figures, assumptions and legal references are sourced. Where Libyan data are incomplete, the gap and the proxy used are stated explicitly.

-    Models and templates are delivered unlocked and fully documented, with visible formulas, no external links and no hidden sheets, so that they remain usable and maintainable by national staff.

-    Deliverables are operational products — procedures, models, templates, manuals, guidance. Literature reviews or generic international comparisons are not accepted in place of operational products.

-    EF format and the EU disclaimer are respected. Deliverables that do not comply are returned before technical review.

5.1.1         Governance Approach

The governance and validation arrangements of the implementation phase are designed to combine technical quality, clear accountability and stakeholder ownership. The validation process will ensure that project deliverables are coherent, evidence-based, adapted to the Libyan context, and aligned with the objectives of INVEST4Libya and the expectations of the relevant partners.

The governance system rests on three complementary layers:

-    Expertise France (EF) – ensuring methodological rigour, operational discipline, and donor compliance;

-    Libyan Technical Piloting Committee – ensuring political legitimacy, contextual realism, and national ownership;

-    European Union Delegation – ensuring policy alignment, coherence with the EU Special Measure 2024, and donor visibility.

5.2       Internal Coordination and Communication Mechanisms

All official deliverables (reports, notes, briefs, presentations, models and templates) shall be submitted to the Invest4Libya Technical Coordinator. Technical clearance is issued by the Key Technical Expert of Component 1; final validation rests with the Invest4Libya Project Leader.

The expert takes part in a bi-weekly coordination call with the Component 1 team and submits a short written progress update (maximum one page: work performed, days consumed, blocking points, next steps) before each call. The expert also takes part in the joint sessions with the other Component 1 experts set out in the scope of work and copies the Technical Coordinator on the technical exchanges with them. Any difficulty in accessing counterparts or data is reported without delay and not at the deliverable submission stage.

Administrative deliverables :

·         A detailed monthly timesheet

·         A report after each training/ workshop, using EF's template, submitted to the Key expert.

The following provisions apply.

Acceptance of deliverables. Expertise France provides written comments within ten (10) working days of receipt. The expert submits the revised version within ten (10) working days of receiving the comments. A deliverable that remains non-compliant after the second round may be rejected, in which case the corresponding days are not payable and the deliverable may be reassigned.

Working days and invoicing. Working days are invoiced against accepted deliverables only. The expert submits a monthly timesheet stating the days worked, the activity and the deliverable concerned. Days that do not correspond to a deliverable accepted by Expertise France, or that exceed the allocation set out in this document without prior written authorisation, are not payable.

Participation. Participation in the workshops, coordination meetings and validation sessions scheduled under this assignment is a contractual obligation. Absence without prior written agreement from the Key Technical Expert of Component 1 results in the non-acceptance of the days concerned.

Duration, performance review and extension. The initial period runs for a minimum of six (6) months from the date of signature. A performance review is conducted in the final month of that period, covering technical quality, timeliness, counterpart engagement, responsiveness and compliance with reporting obligations. Any extension of the assignment, and any additional allocation of working days, is decided on the basis of that review.

Intellectual property. All deliverables, data files, models and materials produced under this assignment are the property of Expertise France. They may not be reused, published or transferred to third parties without prior written authorisation.