Countries and Regions

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p. 4 of 5 BACK | NEXT I. Country Strategy II. Current Development Trends and Issues III. Implementation of the Country Strategy and Program IV. Portfolio Management Issues V. Country Performance and Assistance Levels

Country Strategy and Program Update 2003-2004: Timor-Leste

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IV. Portfolio Management Issues

A. Portfolio Performance

27. At present, ADB has no lending program for Timor-Leste. However, ADB has been assisting funding agencies in preparing and implementing TFET grant projects totaling $52.8 million¹⁹. ADB has so far prepared and is implementing the following grant projects: two for road rehabilitation, two for water supply and sanitation, one for fishing port rehabilitation, and one for microfinance. Most projects are at an advanced stage of implementation. Generally, the implementation of projects has been satisfactory.

28. Since 2000, 20 TAs have been approved totaling $8.6 million. The TAs are mainly for capacity building. As at 30 June 2003, there were 15 active TAs. Most TAs are being implemented satisfactorily.

29. The Government is still in the formative stage and there is a significant lack of implementation and absorptive capacity. The availability of capable local staff and contractors to implement programs is limited. In order to maximize the capacity-building impact of its assistance, ADB advocates participatory approaches in the design and implementation of its projects. ADB will continue to be involved in helping to improve the policy framework in key sectors, including infrastructure, microfinance, and environment.

B. Performance Monitoring and Evaluation

30. ADB currently monitors its program through review of regular progress and audit reports. All ADB assistance will be closely monitored to ensure efficient utilization of resources. Currently, the Special Office in Timor-Leste (SOTL) plays an active role in monitoring and evaluation of all ADB activities. Overall, performance has been satisfactory. Two projects have experienced delays in audit reporting. In one instance, delay was caused by the destruction in the Dili riots of project records held in the microfinance institution.

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