Timor-Leste: Road Network Upgrading Sector Project

Transport / Road transport (non-urban)

From 1975 until 1999, a struggle for independence led to prolonged violent conflict. After a brief period under United Nations administration, Timor-Leste gained formal independence in 2002. However, it had suffered massive loss of livelihoods, social capital and basic social services. Public infrastructure had been destroyed or was otherwise dilapidated. International assistance was provided to start building government institutional capacity and state authority from scratch. However, from 2006 until 2008, internal factionalism, which resulted in temporary displacement of nearly a quarter of the population, disrupted recovery efforts and international support for maintaining law and order was again required until 2012. While considerable progress has been made, Timor-Leste remains fragile and its performance remains weak in many respects. ADB's approach to achieving development effectiveness is relevant to the design of any development intervention.

Timor-Leste has, since 2005, derived income from offshore oil and gas. Its sovereign wealth fund had accumulated over $11billion by the end of 2012. Government spending has generated strong economic momentum with gross domestic product (excluding the petroleum sector and the contribution from the United Nations) growing at an average annual rate of 11.7% since 2008 and forecast to continue at 10% in 2013 and 2014. While withdrawals from the fund are prudently managed, Timor-Leste is well placed financially to invest in development.

In 2011, the government published its Strategic Development Plan (SDP), 2011-2030 which aims to sustain economic growth and fast track economic development to achieve a modern and diversified economy with high-quality infrastructure. The SDP envisages three pillars for development - social capital development, infrastructure development, and economic development. Public investment (including in roads) over the first 5 years of the SDP is intended to create the conditions to attract private investment and ensure a private sector-led economy by 2030. An efficient and safe transport system is essential to achieving the three developmental pillars. Upgrading of roads is emphasized in the SDP and the operational plans of the current government.

Alignment with country owned strategies is an important element of engagement in fragile and conflict affected situations (FCAS). Additionally, engagement in FCAS should promote inclusive growth. Economic expansion in Dili is encouraging rural-urban migration, a high rate of youth unemployment and high demands on basic services. Diversification of economic activity beyond Dili is needed to help stem these pressures and share the benefits of petroleum wealth more widely. An efficient transport network is central to economic diversification and national integration.

The currently poor condition of roads results in high costs and unreliable services. The core network comprises 1,426 km of national roads and 869 km of district roads. Rural roads, about 3,000 km in length, provide access to villages and more remote areas. Almost the entire core road network cannot be economically maintained. Only about 8% of the core road network is assessed to be in fair condition and about 70% in very poor condition. This is a constraining the country's efforts to emerge from fragility. Support is essential to bring about "quick wins" and transformational changes to the road network to underpin economic progress and social stability.

The MPW, assisted by ADB, has developed the Medium-Term Road Network Development Program, the implementation of which started in 2010. The Road Network Development Sector Project (RNDSP), the Road Network Upgrading Project (RNUP) and projects supported by Japan International Cooperation Agency and World Bank for the upgrading are under implementation and will upgrade about 356km of road. These development partner supported projects are closely coordinated and are piloting performance based road maintenance by including two-year post construction maintenance in the construction contracts. Performance based maintenance will help alleviate capacity issues that currently constrain effective road maintenance. Local contractors now have the capacity for such maintenance contracts but do not have capacity for major upgrading work. International contractors will be needed in the short and medium term. A sector assessment is in Appendix 2.

Road safety is a related emerging issue. Lack of enforcement of regulations, lack of road safety awareness, and poor road conditions contribute to high accident rates. In 2012, 76 people died according to traffic police data. However the recent WHO 2013 Global Status Report on Road Safety suggests significant under reporting of fatalities and gives a likely "point estimate" of 190 deaths or 19.5 per 100,000 population. The vehicle fleet is expanding rapidly, especially motorcycles, with a threefold increase between 2005 and 2009.

MPW is responsible for planning, developing, and maintaining roads. In common with many FCAS, human capacity is a major constraint. The MPW's Directorate of Roads, Bridges, and Flood Control (DRBFC) has only 12 engineers severely limiting its capacity to manage the road infrastructure. More professional staff, particularly new graduates, are required so that capacity development efforts can be effective. ADB supports the preparation of a medium term capacity development framework for the MPW. Ongoing TA supports scholarships and a technical upgrading program. Twinning arrangements with Indonesia and the Philippine Department of Public Works and Highways are being developed. A project management unit (PMU) will continue to be essential for management of development-partner financed projects. In line with FCAS principles, this will be gradually integrated with the line ministry.

Since 1999, ADB has been the lead development agency in the road sector. It has provided six TA projects, three project grants, one sector grant, and two loans to the road sector. The country partnership strategy (CPS), 2011-2015 continues ADB's strategic directions by concentrating on infrastructure development and management. ADB plans to provide complementary assistance in the core specializations of finance, regional cooperation and integration, and education, and will support the private sector as a key driver of change to help make the transition from a public sector-led economy. ADB support for infrastructure, financial services, and skills training will help meet the needs of a growing economy. An emphasis on the provision of services outside the capital will support growth of the rural economy. Poverty will be alleviated, particularly in rural areas, by connecting the poor to markets and increasing the availability of basic public services.

The emphasis in the CPS on infrastructure reflects its importance to the achievement of the government's development priorities for 2011 2017 and ADB's established presence and comparative strength in infrastructure. ADB will help to coordinate capacity development and investment programming across infrastructure sectors (particularly road transport and water and sanitation), and help to mobilize financial resources for infrastructure investment.

The project will support upgrading of priority sections of the national road network. In particular, the project will finance the upgrading of the trans-island road from Manatuto to Natarbora, which, in addition to greatly improving national connectivity, will directly support the governments' petroleum and gas developments on the south coast. The project will also finance the preparation of other high-priority road links.

Upgrade and climate proof national roads

Prepare detailed designs for future priority road links

Expand performance-based road maintenance

Generate awareness of road safety and transport-related social issues

Civil works for 35.13km Manatuto-Laclubar Junction and 44.6km Laclubar Junction-Natarbora under Loans 3020/3021, and Grant 0404 have been completed in 2018 and 2019, respectively.

Under Loans 3341/3342, civil works for 58.94km Baucau-Lautem 70% completed as of August 2020; and Civil works for 37.8km Maubara-Karimbala + Atabae Mota Ain 65.91% completed as of August 2020.

Local workers are hired by contactors based on the location of the road sections. Exact number of local workers hired and % of women have yet to be determined/assessed.

To be assessed.

Performance-based maintenance period for Manatuto-Laclubar Junction (35.13km) to start in January 2020. TIM Government has requested extension of Loan 3020/3021 completion until 30 June 2022 to accommodate DNP and PBM for Laclubar Junction to Natarbora section. PBM for Laclubar Junction to Natarbora (44.60km) expected in January 2021.

An earlier discussion with National Police of Timor-Leste was initially held sometime in March 2018 to coordinate the conduct of road safety awareness program and campaign in one completed loan funded project of the government, with the aim of replicating the approach with the other projects nearing completion particularly RNUSP. However, because of changes in government, as a result of the last election, the road safety awareness campaign was not finalized.

On HIV awareness seminar involving the workers, their families and the communities, four (4) sessions were already conducted by the Contractor of Package 1 (Manatuto-Laclubar Junction) while another two (2) were conducted by the Contractor of Package 2 (Laclubar Junction-Natarbora, as of Q1 2018.

Completed in October 2015

The project intended to support the creation of a National Road Safety Council and the formulation of National Road Safety Action Plan. The focal point was envisaged to be the National Directorate of Road Security under the Ministry of Interior , together with the National Police of Timor-Leste. For initial support, a Road Safety Specialist was recruited by PMU to assist in the development of policies and strategies for road safety through the conduct of workshop with key stakeholders to identify capacity, willingness and roles of key stakeholders. For the part of the Ministry, an earlier discussion with PNTL was initially held sometime in March 2018 to coordinate the conduct of road safety awareness program and campaign in one completed loan funded project of the government, with the aim of replicating the approach with the other projects nearing completion particularly RNUSP. However, because of changes in government, as a result of the last election, the road safety awareness campaign was not finalized.

The project is classified as category B for the environment. An environmental assessment and review framework (EARF) has been prepared to ensure that the project will comply with ADB's Safeguard Policy Statement (2009) and Timor-Leste laws. An initial environmental examination (IEE) has been prepared for the core subproject based on the detailed design. This has been publicly disclosed, along with the EARF on the government and ADB websites. IEEs of five candidate subprojects have also been undertaken, and these will be updated based on the detailed design. The environmental impacts of road upgrading works during construction and operation have been assessed, and can be mitigated to acceptable levels.

The Environmental Management Plan (EMP) from the updated IEE for each subproject will be incorporated in civil works contracts. The EMP will guide the PMU, supervision consultants, and contractors in managing, monitoring, and reporting environmental impact mitigations and compliance. Civil works will not start until (i) the contractor has received training on environmental management and has submitted the site-specific EMP; (ii) the site-specific EMP has been reviewed and cleared by the PMU and supervision consultant; and (iii) an

environment license has been obtained from the National Directorate for Environment. During implementation, the environmental management capacity of the DRBFC and PMU will be strengthened through environment specialists who will provide training.

The project has been classified as category B for resettlement. The improvement of roads is expected to be mostly within the existing road corridor, but will require some resettlement involving small areas of land, some houses and shops, and roadside stalls and kiosks. A

resettlement framework has been prepared, providing guidelines on screening, assessment, and the preparation of resettlement plans for road subprojects. A draft resettlement plan has been prepared for the core subproject. This has been disclosed, along with the resettlement

framework on the government and ADB websites. Resettlement plans for other subprojects will be prepared during implementation following the resettlement framework. The MPW will endorse and publicly disclose the resettlement framework and draft resettlement plan, and

disseminate relevant information in local languages in subproject areas.

The MPW will finalize the resettlement plan for each subproject after the detailed design is prepared, and ensure that affected persons receive compensation following the resettlement framework. The MPW will (i) appoint a focal person for land issues; (ii) set up an environmental and social unit within PMU, including social safeguard specialists; (iii) coordinate with the Department of Land, Property and Cadastral Services and other relevant agencies; and (iv) set up national and district committees to implement resettlement activities. The project will strengthen the MPW's social safeguard capacity by providing resettlement specialists (30 person-months) and by conducting training.

1. Consultations were held during project preparation with all national nongovernment organization (NGO) concerned with women's status and welfare. During the PSA and due diligence, meetings were held with district agriculture and education departments, district and sub-district administrators, heads of villages, and focus groups, with women participating on an equal basis. During project implementation, women in the project will participate in the same numbers as men. Women will participate in all meetings with community leaders, particularly with regard to (i) jobs in road construction and related landscaping; and (ii) the provision of measures for community gender, social, and economic development, and of small infrastructure. Participation in the resettlement program will also be achieved by setting up resettlement grievance committees in districts and consultative groups at the level of sucos (an administrative district) in which affected persons and local leaders will be the main decision makers.

2. NGOs and civil society organizations (CSO) have played a role in project preparation and implementation by providing specific services and/or involvement in monitoring and evaluation. They will be the principal managers of small gender, income-generation, and community development projects in a gender and livelihood development program that will accompany the road improvements. They will also be participants and decision makers in a community development small infrastructure program that will be undertaken with project funding in the civil works contracts. The project management unit will involve CSOs participation through information generation and sharing, consultations, and collaboration. A coordinating organization managed by an NGO with this experience and status in Timor-Leste will be responsible for the management of the gender and livelihoods development program.

3. NGOs will participate in project preparation and implementation processes. A suitably experienced NGO will be responsible for the HIV/AIDS awareness and prevention program, which will be funded under the contractor's contract. Women's and farmers' associations will be consulted about and may take part in the operation and maintenance of agricultural produce markets at road intersections to replace current unregulated roadside farmer sales. The Timor-Leste Women's Association will be a partner nationally and at the district and suco level in the GAP resettlement and grievance consultative groups.