Regional : Implementing the Regional Cooperation and Integration Operational Plan

Multisector / ADB's corporate management, policy and strategy development

Regional connectivity and competitiveness in connected markets and Asia's collective action leadership strengthened

Options for more innovative RCI interventions developed

New areas of connectivity supported

Competitiveness through new opportunities supported

Asia''s collective action leadership supported

Quality of operations and reporting of results enhanced

Output 2: Competitiveness through new opportunities supported - An Interim report has been prepared for the Scoping Study on RCI between Indonesia and Timor-Leste through the establishment of a cross border economic zone linked to an economic corridor. Background work has been undertaken for the second component of output 2 to address cross border agricultural trade. to solidify the scoping study, a reconnaissance mission was conducted from 28 June to 22 July with the goal of discussing an aide memoire with Fergana Valley countries. Individual consultants will be engaged by May 2019.

On output 4,_Under the project classification component, recruitment of consultants began in the last quarter of 2017. Several key milestones of this component have been accomplished. The RCI project classification handbook was successfully revised and used during the training in October 2018. The first RCI corporate progress report was published and launched during the RCI Week in November 2017. Under the second component, the RCI information system related to project mapping has been initiated and will be capped off by April 2019. Emerging area assessments were submitted by consultants and will be published in 3rd Quarter 2019.

Inception mission was conducted in August 2017 in Jakarta to gain feedback on literature review and proposed methodology. Inception and consultation mission was conducted in Dili, West Timor and Jakarta in October and November 2017. This included visits by the team to Oecussi and the border control post at Batugade-Motaain. Cross government stakeholder consultations were undertaken alongside financial institutions, NGOs, private businesses and development partners.

This mission resulted in the development of individual reports for the four components of the study (i) trade & investment (ii) transport infrastructure (iii) business development and financial services (iv) special economic zones by December. This were combined into an Interim Report with initial recommendations. This was presented at a joint Focus Group Discussion (FGD) on the 28th February 2018.

The objective of the FGD was to (i) discuss the interim findings and recommendations from the Scoping Study on greater cooperation and integration between Indonesia and Timor-Leste; and (ii) receive guidance and comments on which recommendations should be developed in the Final Report. The FGD included participants from Indonesia and Timor-Leste and it was the first time that representatives from both countries have held joint discussions on this study.