Building basic services and infrastructure that is resilient to climate change are the two pillars of the new country partnership strategy (CPS) the Asian Growth Bank (ADB) has established for Timor-Leste. These initiatives promote the country’s development and encourage economic diversification. The CPS, which runs from 2023 to 2027, will direct ADB’s assistance to the Timor-Leste government in achieving economic recovery, inclusive development, and climate resilience. The CPS acts as a guide to assist Timor-Leste in overcoming significant development obstacles and overcoming the COVID-19 pandemic’s effects stronger.
“The CPS is especially relevant in the current global context,” said ADB Country Director for Timor-Leste Sunil Mitra. “Adding to ongoing ADB projects and programs in Timor-Leste, the new strategy will help strengthen economic diversification and improve governance, institutional capacity, and public financial management.”
The first pillar of the CPS prioritizes enhancing connectivity, guaranteeing equitable access to water and sanitation, introducing cleaner and more efficient energy, making investments in livable communities, and enhancing infrastructure governance. The second pillar aims to improve human development, private sector growth, financial access, regional collaboration, and trade, as well as providing technical assistance toward membership in the Association of Southeast Asian Nations (ASEAN).
By encouraging the business sector to participate, increasing policy discussion, and strengthening collaborations, the plan also encourages a stronger focus on the market. Additionally, it places a focus on encouraging knowledge and innovation, particularly digitalization, and quickening the pace of gender equality. The ADB will work to maximize cofinancing under the CPS.
Timor-Leste is a small island developing state that struggles with infrastructure and services, climate change, human capital development, public financial management, and an environment that fosters enterprise. It also finds itself in a precarious and conflict-affected scenario. The long-term Strategic Development Plan, 2011-2030, and the medium-term Economic Recovery Plan serve as the foundation for the CPS. Additionally, it is in line with ADB’s 2030 Strategy.
Since 1999, the ADB has been providing assistance to Timor-Leste, concentrating on improving state capacity and basic infrastructure, particularly land transportation. ADB has given Timor-Leste 76 loans, grants, and technical assistance commitments totaling $619 million thus far. Twelve loans and five grants totaling $482 million are part of the ADB’s ongoing sovereign portfolio in Timor-Leste.
While continuing its efforts to end extreme poverty, ADB is dedicated to establishing a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. It was founded in 1966 and is owned by 68 members, 49 of them are locals.
