Regions and Countries

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p. 5 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 2005-2006: Timor-Leste

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V. Country Performance and Assistance Levels

A. Lending Level Proposed

40. Based on the criteria adopted by ADB for the classification of developing member countries, Timor-Leste is likely to be classified¹⁰ in Group A,¹¹ in which case it will be fully eligible for Asian Development Fund (ADF) financing. The allocation of ADF resources will depend on the revised performance-based allocation policy, to be finalized later in 2004. For the present, the Government continues to maintain a "no borrowing" policy. The impact of the proposed grant facility in ADF IX with its implications for Timor-Leste as a poor, post-conflict country will need to be assessed when details are finalized.

B. Nonlending Program

41. ADB will provide sectoral leadership in infrastructure and in microfinance development. ADB will also continue to play a role in supporting the Government’s policy, economic, and financial planning functions. ADB’s TA program will focus on three main areas: capacity building for economic management, microfinance development, and infrastructure development.

42. In 2004, ADB proposes TA to build capacity for economic and financial management and TA to strengthen capacity in microfinance to support the proposed expansion of the microfinance branch network and operations. In 2005, TA is proposed to build capacity in the key infrastructure ministries and to prepare an infrastructure sector development program. In 2006, ADB proposes TA to strengthen macroeconomic management and policy analysis. TA will also be provided to design and pilot test approaches for community management of basic infrastructure. In 2007, ADB proposes TA to further support microfinance expansion and TA to prepare a project for rural power.

C. Summary of Changes to Nonlending Program

43. A TA on Strengthening Financial Management Capacity and a TA on Strengthening Microfinance Development have been included in the 2004 program. The TA on capacity building in key infrastructure ministries has been rescheduled for 2005. The TA on Small and Microenterprise Development proposed for 2004 has been removed from the program.

44. For reference, the 2004 Assistance Program for Nonlending Products and Services is provided in Appendix 4. No loan was provided in 2004.

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