ADB and Timor-Leste

1. The Asian Development Bank (ADB) has been supporting Timor- Leste’s preparation for ASEAN membership and is currently administering a $1 million technical assistance program to support training, capacity development, and the design of ASEAN related reforms with a particular focus on the AEC.
2. The Asian Development Bank (ADB) has been supporting the development of Timor- Leste’s capacity for regional economic integration since 2013. Assistance has been provided through a 3- year capacity development technical assistance (TA) project financed by the Japan Fund for Poverty Reduction. Responsibility for project administration was transferred to ADB’s Timor- Leste Resident Mission in November 2014. The project is scheduled for completion in early 2016. It has made good progress in building capacity for regional integration and has supported important analytical work.
3. The government appreciates the initial TA and has requested ADB to continue to support its preparations for regional economic integration, with a focus on achieving full membership in the Association of Southeast Asian Nations (ASEAN). A new capacity development TA project was included in the non-lending pipeline of the country operations business plan, 2015- 2017. The TA will enable a smooth continuation of ADB support following completion of the current project.
4. The TA amount is estimated at $1,000,000 of which $500,000 will be financed on a grant basis by the Regional Cooperation and Integration Fund and $500,000 will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF-V). the government will provide counterpart support in the form of counterpart staff, office and accommodation, office supplies, and other in-kind contributions.
5. The country operations business plan (COBP) presents the indicative program of assistance that the Asian Development Bank (ADB) will provide to support inclusive growth and poverty reduction in Timor- Leste. The COBP builds on ADB’s strategic foundations in Timor Leste and presents a program to support the country’s transition to more inclusive and private sector led growth. It acknowledges Timor- Leste’s fragility and is closely aligned with the Strategic Development Plan 2011- 2030, the Program of the Sixth Constitutional Government 2015- 2017, the midterm review of ADB’s Strategy 2020 and the ADB country partnership strategy 2016- 2020.
6. The COBP presents a pipeline of proposed investments and technical assistance to address key constrains to inclusive growth and economic diversification. It indicates lending support for transport, urban services and energy. Technical assistance (TA) and grants will support development of technical and vocational education, increased access to finance, regional cooperation and integration, and capacity development. This choice of sectors is consistent with the country partnership strategy 2016- 2020.

The COBP positions ADB to facilitate transformative improvements in infrastructure services, technical education, and the enabling environment for private sector. Loan financed investments in transport, energy, and urban services will leverage financing and expertise from government and the private sector. These investments will help to ensure the success of ongoing reforms to introduce sustainable operations and maintenance. Grants and technical assistance will be used to prepare loan financed projects and to support strong synergies with ADB’s loan and grant funded projects. These included regional cooperation and integration, and capacity development for infrastructure planning and management.