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p. 9 of 18 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture and Rural Development B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Development 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 : III. Sector Strategies

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B. Infrastructure

1. Transport

28. The restoration of transport infrastructure in East Timor was identified as the most urgent priority within the initial six-month work program for TFET. In their current deteriorated state, roads and ports in particular, were not able to fully facilitate humanitarian efforts or security operations. Small carriageways, weak embankments, and damage caused by heavy military traffic meant that the roads could only carry minimum loads. Extremely limited capacity in the port sector has caused serious operational bottlenecks in the Dili port for channeling humanitarian aid and moving other cargoes into East Timor.

29. ADB was requested to take the lead role in coordinating and managing all TFET activities in each of the transport subsectors (including roads, ports and civil aviation). These activities have built on the extensive work already undertaken during the emergency phase by UN, bilateral and non-government agencies. ADB is assisting UNTAET to establish a framework for medium-term reconstruction requirements in the transport sector, including through the design and supervision of infrastructure rehabilitation activities to be financed through the TFET, development of institutional and regulatory frameworks, provision of advisory support as required, and coordination with other agencies active in the sector. Advisory TA has been provided to develop a framework for all transport sector activities to be financed by aid agencies during the transition period. The TA has also initiated work on the establishment of management institutions and regulatory frameworks for each subsector and has reviewed the respective long-term requirements to enable these subsectors to contribute to poverty reduction and economic growth.

30. ADB is implementing a major emergency infrastructure rehabilitation project (EIRP) on behalf of TFET, for the transport and power sectors. EIRP is undertaking emergency road repair works to facilitate efficient transport of humanitarian aid and security cargo, and to induce revival of economic activity. It has also expanded port facilities to reduce congestion and eliminate bottlenecks at the Dili port.

2. Water and Sanitation

31. As agreed under the JAM, ADB has taken the lead in implementing and managing TFET activities in the water and sanitation sector and in coordinating these with the activities of other donors. ADB undertook a sector planning mission in April 2000, to draw together information on the work that had been done, identify gaps and donor interests, and prepare a prioritized framework for future action. The mission developed a Water Supply and Sanitation strategy to provide the people of East Timor with adequate water and sanitation services using appropriate technology and good management systems. The strategy aims to (i) build local capacity and capability to effectively manage the WSS sector; (ii) rehabilitate and develop water supply and sanitation facilities in urban and rural communities; and (iii) promote improved health, hygiene and community participatory practices. The sector strategy has four components/outputs, which are outlined below in more detail:

• WSS Sector Management Framework, under which the Project management Unit (PMU) has been established and a detailed Project Design Document prepared.
• Capacity Building and Institutional Development Program, which establishes the human and institutional foundations necessary to complement the physical water supply and sanitation works.
• WSS Implementation Program, which covers rehabilitation and development of urban and rural water supplies and sanitation across East Timor.
• Community Development and Environmental Health Program, under which complementary health promotion, hygiene education and strengthening of local NGOs will be carried out.

32. Priority areas for donor support in the immediate term relate to urban water and sanitation issues, including establishment of a centralized water company, with a full workshop and mobile teams to undertake repair works in a methodical way. This requires physical works to make the Dili water treatment plant operational, training of crews (and later, managers), and provision of equipment and tools. With regard to sanitation, Dili rubbish collection is a key priority, requiring plant and equipment, and waste management services.

3. Telecommunications

33. Rehabilitation of landlines is expected to be a major undertaking, since all 13 of the exchanges outside Dili have been destroyed. Initially, a temporary concession was granted to the Australian telecommunications company, Telstra, to provide mobile telephone services as an interim solution. ADB was requested to take the lead in coordinating and managing TFET activities in the telecommunications sector. In order to ensure the efficient provision of public telecommunications services, ADB provided TA support in 2000 for the telecommunications sector in two phases. Phase One was carried out from May to July 2000 and examined viable technical options to rehabilitate and reconstruct the telecommunications sector in East Timor, taking into account the existing technical set-up as well as future extensions, and the short term and long term implications of various technical solutions. It also covered strategy and planning recommendations for the future East Timorese telecommunications sector. Phase Two was based on the findings of Phase One and generally focussed on the preparation, including structuring, and implementation, of a telecommunications sector project involving an international bidding process for the equipment and/or operation of the telecommunications sector in East Timor.

4. Energy

34. Lack of power supply following the destruction of major power stations in September 1999 contributed to a severe shortage of water, cold storage for food and medicines, and health facilities. Most of the power stations have been left unoperational due to physical damage, the departure of operating staff, and lack of fuel. Immediate priorities include the need to rehabilitate the Dili power generation and distribution system, develop local maintenance and repair capacity, rehabilitate major power stations and their distribution systems in primary population centers, and rehabilitate power systems to ensure the safety of their operations. The United Kingdom provided emergency assistance until March 2000 aimed at meeting the power needs in major centers in the country. As the lead agency responsible for coordinating and managing TFET activities in the power sector, ADB, using TFET, is providing assistance for the EIRP to reinstate power supply in areas where power has not been available in East Timor since the post-consultation destruction. Restoration of power supply will enable operation of borehole water pumps and provision of emergency health care, as well as resumption of economic activity. In addition to physical works, the EIRP is also supporting the financial management of the power sector.

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