Ministry of Finance signs NAO System Institutional Capacity Agreement with the European Union
On the April 27, in the Ministry of Finance’s “Knowledge Centre”, the Minister of Finance, Emília Pires, on behalf of the Timor-Leste Government, signed an agreement between the European Union and the Ministry of Finance regarding the finance of the NAO System’s (National Authorizing Office) Institutional Capacity. This Agreement aims to broaden the dialogue with the Timor-Leste development partners, in conformity with the Paris Declaration vision and consolidate the national capacity in order to management the resources allocated to this nation.
The NAO – in copartnership with the EU chief of delegation in Timor-Leste – is responsible for all the issues related with the EDF (European Development Fund), including the planning, implementation and accounting of the projects financed by the EDF funds. The NAO responsibilities are defined in the “Cotonou Partnership Agreement” that has already been signed by 27 European States Members and 79 African, Caribbean and Pacific Countries (ACP). The Timor-Leste Government signed this partnership Agreement in 2005 and the amended version was ratified by the Parliament in 2008.
The Cardno Emerging Market, SA Company is responsible for the technical assistance in the correspondence and execution areas of the EDF operations and also responsible for the accounting procedures strengthening.
In May 2008, with the “Country Strategy Paper” signature, the rural development, health and institutional capacity were the sectors were the EDF budget fell upon.
The NAO System Institutional Capacitating program duration will be 72 months, in several locations of the country and is composed of the following:
a) Partially decentralized Management (TA through contract of services) € 1,815,000;
b) Partially decentralized Management – through the “Programme Estimates” (PE):
- Local Technical Assistance € 360,000
- Operation € 450,000
- Training, workshops and seminars € 200,000
c) Direct implementation by EC (monitoring, audit and evaluation) € 400,000
d) Contingency € 278,000
With the Financing Agreement signature, it his hoped that there is a renewed energy and dedication of all contributors in the process, which is necessary to better guarantee the implementation success of the remaining activities financed by the ninth EDF, as well as others still in study or in draft process under the tenth EDF programme.
