January 2011 Edition No. 1 www.adb.org/Timor-Leste

About ADB Activities have focused on improving physical The Asian Development Bank (ADB) is a multilateral infrastructure and building the capacity to deliver development bank with an overarching goal of quality basic social services. reducing poverty in Asia and the Pacific. ADB's clients From 1999 to 2007, ADB focused on the are its member governments, who are also its emergency rehabilitation of infrastructure, funded shareholders. through the multidonor Trust Fund for East ADB is owned by 67 members, 48 from the region (TFET). ADB implemented about $49 million in trust and 19 from other parts of the world. Timor-Leste fund projects covering urban and rural power, joined ADB in 2002, and is the 34th largest national roads, ports, and water and sanitation. TFET shareholder among regional members. ADB has funds amounting to $4 million was also used to offices throughout Asia and the Pacific. establish the Institute of Microfinance in Timor-Leste. The main instruments for helping developing In 2005, Timor-Leste began to access the Asian member countries are policy dialogue, loans, equity Development Fund (ADF). This is one of ADB’s key investments, guarantees, grants, and technical resources for low-income member countries, and is assistance (TA). now the main source of funding for ADB activities in ADB's vision is an Asia and Pacific region free of Timor-Leste. ADB also draws on funds from other poverty. Its mission is to help its developing member sources, such as the Japan Fund for Poverty countries substantially reduce poverty and improve Reduction. the quality of life of their people. Despite the region’s ADF grant funding amounting to $62 million has many successes, it remains home to two-thirds of the been approved. A national roads rehabilitation project world’s poor: 1.8 billion people who live on less than ($10 million from the ADF) concluded in 2009 and $2 a day, with 903 million struggling on less than has been succeeded by a new Road Network $1.25 a day. ADB is committed to reducing poverty Development Sector Project ($46 million from the through inclusive economic growth, environmentally ADF). ADB administers a complementary $3 million sustainable growth, and regional integration. project in support of roadside communities, funded by the Japan Fund for Poverty Reduction. ADB also supports the water supply project ($6 million ADB’s contribution from the ADF). ADB activities in Timor-Leste have closely aligned with Timor-Leste is the recipient of one of ADB’s the government’s development priorities, as largest TAs, the Infrastructure Project Management established in the 2002 National Development Plan TA. This $15 million package, funded with and, subsequently, through the national development cofinancing from the Government of Australia, priorities process. commenced in 2007 and helps plan, prepare, and execute the Government of Timor-Leste’s capital development program. How to reach us? Other ADB activities include the strengthening of microfinance, statistics and macroeconomic Special Office in Timor-Leste management, aid management, and skills in public ADB–World Bank Building, Avenida dos Direitos Humanos sector management. Support is provided through Dili, Timor-Leste country-specific TA, and regional TAs that also assist Telephone: +670 332 4801 other member countries in Asia and the Pacific. Headquarters There has been no lending to Timor-Leste, with all 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ADF resources provided as grants. ADF resources will Telephone: +63 2 632 4444 be available as a mix of grants and loans beginning in 2011.

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This assistance was designed to deliver an Ongoing grants elevated level of public works, while at the same time Road Network Development Sector Project building capacity through on-the-job training and The project initiated implementation of a 10-year plan hands-on technical assistance (e.g., by developing for the core road network developed with the support skills in procurement, and project and contract of ADB TA. The project will rehabilitate the Dili– management and supervision). Liquica–Batugede and Dili–Ermera–Maliana routes. A The emphasis on capacity building of staff has road maintenance program will be established progressively increased during implementation, through support for development of the policy including through the establishment of an overseas framework, and programming and implementation scholarship program. The program provides short- capacity. Budget support is provided for the initial and long-term training to build essential skills in operation of the maintenance program on the infrastructure management within the Ministry of rehabilitated roads. The project is also designed to Infrastructure. address weaknesses in the capacity of local contractors. It provides contract packages appropriate Strengthening Major Public Investments for small national contractors, and will train small This activity will assist the government put in place contractors in road maintenance technology, bidding, new project implementation arrangements for contracting, and project management. strategic public investments.

Our Roads, Our Future Oecussi and Ermera Water Rehabilitation Project This activity will help communities participate in the A project will be prepared by this TA to help Pante rehabilitation and maintenance of rural feeder roads Makasar in Oecussi and another district capital and basic infrastructure in areas supported by the manage their urban water supply system. The project Road Network Development Sector Project. It will will also rehabilitate the Debo Lehumo Lake in Eraulo. develop the skills of small, community-based Community construction of erosion control structures contractors and local administrations in project for the lake will be funded by the TA. management, and basic engineering and supervision.

Strengthening Road Network Development Dili Urban Water Supply Sector Project Support will be provided for the preparation of road The water supply system will be improved in parts of rehabilitation works, and a “Timor-Leste Road Dili by this project, with an emphasis on the Outlook.” distribution system (i.e., the final connections to users). The project is to provide a model approach Capacity Building to Strengthen Public Sector that can be replicated across the remainder of Dili Management and Government Skills, Phase III and other urban areas. The TA supports the Ministry of State Administration The project was integrated with the recently strengthen the capacity of civil servants. The activity completed Dili Water Supply Performance works closely with the National Institute for Public Improvement TA. This TA addressed constraints in the Administration. policy framework (e.g., insufficient demand management, a high level of non-revenue water) and improved the capacity of the water and sanitation Statistical and Macroeconomic Capacity Building service in business planning, management, and The activity assists the Ministry of Finance improve the reporting. statistical system by developing the skills of the Directorate of National Statistics. The TA also assists the Macroeconomic Directorate improve its capacity Ongoing country TAs to undertake macroeconomic analysis.

Infrastructure Project Management Support for Effective Aid Management The TA initiated a wide-ranging, long-term program This new TA will provide an international standard aid of support to build the capacity of infrastructure information management system to improve the link agencies and their staff. between external assistance and the planning and Support initially concentrated on a gap-filling role budgeting system. that would prepare capital expenditure projects for implementation and facilitate procurement.