Timor-Leste: Preparing for Regional Economic Integration

Sovereign Project | 46273-001

Summary

The TA is helping to the Government of Timor-Leste to identify and implement the reforms needed for regional economic integration and to develop associated systems and processes. It is building the capacity of government officials by providing mentoring support and training, and facilitating participation in knowledge sharing events.

The TA started in 2013. Timor-Leste's planned accession to the Association of Southeast Asian Nations (ASEAN) is a key focus of TA activities. Work in this area is informed by studies by ADB's Office of Regional Integration assess Timor-Leste's readiness to join ASEAN and the Japan International Cooperation Agency (JICA) to review the costs, benefits and requirements of ASEAN membership.

Latest Project Documents

Title Document Date
Preparing for Regional Economic Integration Dec 2012

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Procurement Documents

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Project Name Preparing for Regional Economic Integration
Project Number 46273-001
Country Timor-Leste
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8256-TIM: Preparing for Regional Economic Integration
Japan Fund for Poverty Reduction US$ 850,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Public sector management - Economic affairs management
Gender Equity and Mainstreaming
Description

The TA is helping to the Government of Timor-Leste to identify and implement the reforms needed for regional economic integration and to develop associated systems and processes. It is building the capacity of government officials by providing mentoring support and training, and facilitating participation in knowledge sharing events.

The TA started in 2013. Timor-Leste's planned accession to the Association of Southeast Asian Nations (ASEAN) is a key focus of TA activities. Work in this area is informed by studies by ADB's Office of Regional Integration assess Timor-Leste's readiness to join ASEAN and the Japan International Cooperation Agency (JICA) to review the costs, benefits and requirements of ASEAN membership.

Project Rationale and Linkage to Country/Regional Strategy The government recognizes ADB's unique role in regional economic integration and has asked for continuing support in this area. The Timor-Leste Country Partnership Strategy 2011-2015 and Country Operations Business Plan 2011-2013 provided for such support, and recognized that special attention should be paid to ties with Southeast Asia. Such support needs to be coordinated closely with other development partners active in supporting Timor-Leste on regional cooperation and integration, the most active of which have been the Governments of Indonesia and Japan.
Impact Enhanced regional economic integration with Asia
Project Outcome
Description of Outcome Improved ability by Timor-Leste to carry out the obligations of membership of REI initiatives
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Improved understanding of the implications of membership of REI initiatives

2. Improved policy framework for REI

3. Improved communication with regional organizations and partner countries

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1. A comprehensive training program commenced in 2013. Regular training has been provided to government officials from the government departments who are most directly involved in regional integration initiatives. A detailed analysis of the costs and benefits of ASEAN accession has been prepared in collaboration with the Ministry of Finance and the Ministry of Foreign Affairs and Cooperation. This report is being finalized and is due to be published in 2014. Seminars with international experts have also been organized for government officials, the private sector, and civil society to consider specific issues such as the development of regional value chains and the prospects for the horticulture sector following integration.

Output 2. The TA is supporting the preparation of a Memorandum on the Foreign Trade Regime which documents Timor-Leste's current legal and institutional framework and its compliance vis a vis the requirements of regional integration initiatives such as ASEAN. This work is establishing the basis for improvements in the policy framework for REI.

Output 3: The TA has facilitated exchanges with representatives of partner countries. Clear progress in improving communications with partner countries and regional organizations is expected as the training program and analytical work streams continue.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with government agencies and stakeholders has identified the key challenges to be faced in strengthening regional economic integration. These are gaps in: understanding across stakeholders of regional initiatives; in the policy framework for regional economic integration; and in communication with regional organizations and members of regional initiatives. Timor-Leste appreciates the contribution that could be made by technical assistance (TA) to narrow these gaps. The government's priority is to secure assistance from experts with a deep, practical experience in Asia's regional economic integration initiatives, especially ASEAN.
During Project Implementation The inception workshop (17 October 2013) were participated in by representatives from Australian Aid and JICA. And the workshop on "Economic Impact of Timor-Leste's Accession to ASEAN" (24-28 March 2014) was held to discuss the economics of international integration and research methods to assess economic integration costs and benefits to staff members of the Ministry of Finance. Public seminars on the ASEAN Community; the impacts of trade liberalization on the horticulture sector; and prospects for Timor-Leste to join global value chains have been held in Dili in 2013 and have been well attended.
Business Opportunities
Consulting Services The proposed TA will require up to 95 person-months of consulting services, provided by a Team Leader (international, up to 24 months), a Deputy Team Leader (national, 24 months), Lead Advisers (2 international advisers of up to 4 months each), Technical Specialists (up to 5 international positions of up to 3 months each), and a Communication and Liaison Officer (national, 24 months).
Responsible ADB Officer Shane J. Rosenthal
Responsible ADB Department Pacific Department
Responsible ADB Division Timor-Leste Resident Mission
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 04 Jul 2012
Fact Finding 22 Jun 2012 to 26 Jun 2012
MRM -
Approval 10 Dec 2012
Last Review Mission -
Last PDS Update 26 Nov 2014

TA 8256-TIM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2012 04 Feb 2013 04 Feb 2013 31 Dec 2014 30 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 850,000.00 0.00 0.00 0.00 0.00 850,000.00 10 Dec 2012 375,926.27
Title Document Type Document Date
Preparing for Regional Economic Integration Technical Assistance Reports Dec 2012

Safeguard Documents

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Evaluation Documents

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