The FINANCIAL — The Asian Development Bank (ADB) has approved a new Country Partnership Strategy (CPS) with Timor-Leste for 2016-2020 which will help it develop a sustainable non-oil economy by improving infrastructure, developing key institutions, and increasing investments in human capital.
The CPS has an indicative financing pipeline of $325 million, including loans and grants for technical assistance, and ADB will also seek to leverage grant and loan support from other financing sources.
“This is a critical time in Timor-Leste’s development, with greater stability and returns on resource extraction providing a platform for deeper development,” said Shane Rosenthal, ADB Country Director for Timor-Leste. “ADB looks forward to a growing partnership with Timor-Leste and we will continue to coordinate our on-the-ground operations with those of our development partners”.
Non-oil GDP growth was estimated at 4.1% in 2015 and is expected to rise to 4.5% in 2016. ADB projects economic growth in Timor-Leste to accelerate in 2016-17 to 5.5% on rising public and private investment, but while the overall outlook remains bright, declining oil royalties and a young population highlight the need to diversify the economy and increase job creation, according to ADB.
The new CPS will help Timor-Leste upgrade transport links, expand access to clean water in major urban centers, and make improvements to the financial and environmental sustainability of its electricity system. ADB will also help the government develop an integrated system for technical education and continue important reforms to develop the financial sector.
Timor-Leste joined ADB member in 2002 and has received cumulative loans of $178 million, grants of $137.8 million, and technical assistance funding of over $35.8 million.
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