Countries and Regions

	Table of Contents
p. 17 of 18 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program

Country Assistance Plans - East Timor

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VII. ADB’s Operational Program

A. The Proposed Program

45. In addition to the $29.8 million Emergency Infrastructure Rehabilitation Project, sector programming missions have also been undertaken under ADB supervision for the water and sanitation and telecommunications sectors. Water and Sanitation Project was implemented in September 2000 and a microfinance project in December 2000. ADB is also assisting the World Bank in the implementation of a $20 million Community Empowerment Program that commenced in February 2000.

46. The main issues affecting project implementation relate to the unique political and administrative system in place in East Timor for the transition period. The East Timorese themselves have no official authority as a counterpart government, and the capacity of the UN administration to support project implementation is limited.

47. In addition, the importance of rapid action to implement reconstruction and development activities in virtually all sectors necessitates special arrangements to expedite project design and processing without compromising quality. In order to respond in a timely fashion, ADB will use its existing procedures for emergency loan operations, which are already significantly streamlined, but incorporate appropriate checks and balances.

48. In the expectation that East Timor will seek membership of ADB at the earliest opportunity after it achieves formal independence, ADB’s three-year assistance program has included provision for TA assistance at this stage (see Table 1 and Appendix 2). Based on available statistics relating to the poverty situation, it is expected that East Timor will be categorized in Group A of ADB member countries and will be eligible for Asian Development Fund (ADF) financing. ADB will prepare a full lending and TA program once East Timor has become a member of ADB.

B. Strengthened Role of ADB's Liaison Office

49. In line with the new strategy for Resident Missions, ADB has established a Special Liaison Office in East Timor. The main objective is to bring ADB closer and make it more responsive to the needs of East Timor. The office will also improve coordination with UNTAET, local East Timorese, donors and regional organizations. The Head of the Special Liaison Office commenced work in August 2000.

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