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Annual Report 2003 : Moving the Poverty Reduction Agenda Forward: Priorities and Outcomes : The Pacific

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Timor-Leste

Strategy and Policy Dialogue.
Since Timor-Leste's independence in May 2002, assistance to the country has shifted from relief and rehabilitation to longer-term development programs. ADB’s strategy continued to support the improvement of public infrastructure, largely through investment projects funded by the multidonor Trust Fund for East Timor. ADB technical assistance in 2003 supported these projects with capacity building. It also focused on strengthening the microfinance institution—enhancing its sustainability and enabling it to expand to rural areas and improve the microcredit access of the rural poor, particularly women. The Government’s public financial management capacity was strengthened by continuing advisory support on the issue of Timor Sea oil and gas and by assisting in the development of trade statistics.

Several technical assistance grants helped the Government develop a policy framework for poverty analysis including the establishment of baseline data on its extent, nature, and dimensions. They also helped the Government to decide on its poverty reduction strategy. Assistance was provided to develop infrastructure expenditure programs to enhance the Government’s ability to develop a financially viable and fiscally responsible budget. This work enhanced the linkages between the national development plan and the combined budget sources and supported government decision making and priority setting within and across sectors.

In October 2003, ADB signed a PPA with the Government.

Loans and Technical Assistance.
No loans were approved. One advisory technical assistance grant for $550,000 was approved.

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