fbpx 47002-001: Expansion of Financial Services | Asian Development Bank

Timor-Leste: Expansion of Financial Services

Sovereign (Public) Project | 47002-001 Status: Active

The CDTA will support the commercial transformation of BNCTL through (i)support to the implementation of BNCTL's strategic and business plan, (ii) design and delivery of products (credit, savings, payments, trade finance) that are suited to the Timorese context and that are currently not available for a large part of the population; (iii) the introduction of technologies that improve efficiency; and (iv) building staff capacity and support for the commercial transformation of the institution to underpin commercial objectives and attract strategic investors.

Project Details

Project Officer
Mohd Ismail, Mohd Sani Southeast Asia Department Request for information
Country
  • Timor-Leste
Sector
  • Finance
 
Project Name Expansion of Financial Services
Project Number 47002-001
Country Timor-Leste
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8762-TIM: Expansion of Financial Services
Technical Assistance Special Fund US$ 750,000.00
TA 8762-TIM: Expansion of Financial Services (Supplementary)
Government of Australia US$ 298,600.00
TA 8762-TIM: Expansion of Financial Services (Supplementary)
Government of Australia US$ 227,460.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Finance / Inclusive finance

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The CDTA will support the commercial transformation of BNCTL through (i)support to the implementation of BNCTL's strategic and business plan, (ii) design and delivery of products (credit, savings, payments, trade finance) that are suited to the Timorese context and that are currently not available for a large part of the population; (iii) the introduction of technologies that improve efficiency; and (iv) building staff capacity and support for the commercial transformation of the institution to underpin commercial objectives and attract strategic investors.
Project Rationale and Linkage to Country/Regional Strategy The TA is aligned with the country partnership strategy (2011 2015) in that it helps to achieve economic growth and sharing of economic opportunities across the population. ADB's support in infrastructure, financial services and skills training helps to meet the needs of a growing economy and improve competitiveness of the private sector. It is a continuation of previous technical assistance provided and also intends to link or complement existing ADB projects, such as the Technical and Vocational Education and Training program and PSDI Phase III, or those of other development partners.
Impact Large portion of the population has access to and use a range of financial services
Project Outcome
Description of Outcome An improved BNCTL, growing and operating sustainably, consistent with its commercial banking license
Progress Toward Outcome The TA supported the commercial transformation of BNCTL, including commercial strategy development and implementation of a new core banking technology platform in October 2017. This resulted in BNCTL broadening its product offerings and thus increasing access to a range of financial services available for the Timorese population. The TA also improved operational and financial performance of BNCTL, creating the foundation for a sustainable commercial banking operation. Additional financing of A$400,000 from the Australian Government in mid-2017 was utilized to strengthen BNCTL's audit and risk management functions. The current round of co-financing (approved in July 2018) from the Australian government focuses on improving corporate governance and risk management.A total of six international consultants were engaged in the past on an intermittent basis by the TA: a transformation manager (21.6 person-months), a bank operations advisor (7.7 person-months), a bank information technology expert (8.2 person-months), a Credit Risk Management Expert (5.6 person-months), an Operational Risk Expert (6.8 person-months), and a Compliance Expert (6.1 person-months). Currently, two risk and governance experts are engaged on an intermittent basis to improve BNCTL's governance and risk management. These international experts will also support the new BNCTL Board formulate and implement a new commercial banking strategy.
Implementation Progress
Description of Project Outputs

BNCTL management and staff apply commercial banking principles efficiently and effectively

Road map and action plan for comprehensive institutional strengthening finalized

Status of Implementation Progress (Outputs, Activities, and Issues) The TA supported the commercial transformation of BNTCL, including commercial strategy development and implementation of a new core banking technology platform in October 2017. Output 1 supported the finalization of the road map and action plan for comprehensive institutional strengthening. This was achieved with the BNTCL board members' approval of the gender-sensitive road map and action plan in Q1 2016. Output 2 supported the effective and efficient application of commercial banking principles by the management and staff of BNTCL.Majority of the activities have been completed while others are either ongoing or pending subject to the appointment of the new board of directors of BNTCL. The TA completion date was extended to 31 Dec 2020 to allow completion of TA support to BNCTL.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA fact-finding mission concluded with a memorandum of understanding outlining agreed impact, outcome, outputs, implementation arrangements, and outline terms of reference for consultants. The TA was discussed with BNCTL; development partners and government agencies.
During Project Implementation The project team continues to consult with BNCTL; development partners and government agencies.
Business Opportunities
Consulting Services

A total of six international consultants were engaged on an intermittent basis by the TA: a transformation manager (21.6 person-months), a bank operations advisor (7.7 person-months), a bank information technology expert (8.2 person-months), a Credit Risk Management Expert (5.6 person-months), an Operational Risk Expert (6.8 person-months), and a Compliance Expert (6.1 person-months).

The additional cofinancing coverd intermittent international consultant inputs of approximately 6.4 months

Procurement N/A
Responsible ADB Officer Mohd Ismail, Mohd Sani
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Banco Nacional de Com rcio de Timor-Leste
Ave.Martires da Patria Mandarin
Dili, Timor Leste
Timetable
Concept Clearance 08 Oct 2014
Fact Finding 08 Oct 2014 to 10 Oct 2014
MRM -
Approval 20 Nov 2014
Last Review Mission -
Last PDS Update 27 Mar 2020

TA 8762-TIM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Nov 2014 30 Dec 2014 30 Dec 2014 30 Jun 2018 31 Dec 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
977,460.00 298,600.00 0.00 0.00 0.00 0.00 1,276,060.00 20 Nov 2014 1,033,388.64

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Expansion of Financial Services: Technical Assistance Report Technical Assistance Reports Dec 2014

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Risk and Corporate Governance Expert Individual - Consulting Closed 19 Sep 2018 25 Sep 2018
Finance Risk Specialist Individual - Consulting Closed 02 Dec 2017 08 Dec 2017
Credit Risk Expert Individual - Consulting Closed 10 Aug 2017 23 Aug 2017
Transformation Manager Individual - Consulting Closed 01 Aug 2017 07 Aug 2017
Compliance Risk Expert Individual - Consulting Closed 18 Jul 2017 24 Jul 2017
Operational Risk Expert Individual - Consulting Closed 18 Jul 2017 24 Jul 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.