Timor-Leste : Expansion of Financial Services
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
Hattel, Kelly L.
Southeast Asia Department
Request for information -
Country/Economy
Timor-Leste -
Sector
- Finance
| Project Name | Expansion of Financial Services | ||||||||||||
| Project Number | 47002-001 | ||||||||||||
| Country / Economy | Timor-Leste |
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| Project Status | Closed | ||||||||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships Private sector development |
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| Sector / Subsector | Finance / Inclusive finance |
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| Gender | 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 (20112015) 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 |
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| 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.As of 30 September 2020.The TA engaged consultants to strengthen the capacity of the Board and Management of Banco Nacional de Comercio de Timor Leste (EA & IA of the TA). The extension of the closing date will allow completion of the TA's support to the EA. |
| Geographical Location | |
| Summary of Environmental and Social Aspects | |
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| 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 | Hattel, Kelly L. |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SERD |
| Executing Agencies |
Banco Nacional de Comrcio de 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 | 30 Sep 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 | 06 May 2021 |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 750,000.00 | 526,060.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,276,060.00 | 17 Jun 2022 | 1,088,665.54 |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Expansion of Financial Services: Technical Assistance Completion Report | TA Completion Reports | Dec 2021 |
| 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.
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Requests for information may also be directed to the InfoUnit.
Access to Finance Stimulates Small Business Growth in Timor-Leste
ADB helped launch Timor-Leste’s first locally-owned commercial bank that provides loans to individuals and businesses. The National Commercial Bank of Timor-Leste (NCBTL), now has branches in towns and rural areas.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Risk and Corporate Governance Expert | Individual - Consulting | Closed | ||
| Finance Risk Specialist | Individual - Consulting | Closed | ||
| Credit Risk Expert | Individual - Consulting | Closed | ||
| Transformation Manager | Individual - Consulting | Closed | ||
| Compliance Risk Expert | Individual - Consulting | Closed | ||
| Operational Risk Expert | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.