Government of Timor-Leste

A delegation from the U.S. Government’s Millennium Challenge Corporation (MCC), led by Ms. Hana Scheetz Freymiller, MCC Country Team Lead Timor-Leste visited Dili from July 20, to August 5, 2021 to advance Timor-Leste’s Compact program development. This visit was conducted in a very difficult period where Timor-Leste, United States of America and the world are facing global pandemic, COIVD-19. However, the return of MCC Delegation to Dili shows the strong commitment of the United States of America’s Millennium Challenge Corporation (MCC) to the realization of Timor-Leste Compact program.

During this visit, the MCC delegation held series of discussions with CDT-TL and President of BTL, EP, Eng. Carlos Peloi dos Reis and relevant institutions in order to accomplish of a final decision on project scope in water disinfection and sanitation components for the WSD project.  This decision is important in order to proceeds the feasibility study for the WSD project. During the discussion the BTL,EP, CDTL-TL and MCC has successfully reach 13 agreements on the major likely policy and institutional reform compact conditions and necessary associated infrastructure, the timing of construction of these assets and sources of funds to be arranged by Government of Timor-Leste. National Executive Director, Ambassador Constancio Pinto said “This visit is successful and very productive.  We look forward for the investment decision based on the result from this visit and the agreements. We can still work on the feasibility studies through the consultants and I am optimistic, although this project taking some time that it’s going forward.  This mission is very important for MCC to share with us on the progress on the feasibility study.  It has helped us to move forward and we want to sign the compact as soon as possible”.

On the other Hana Scheetz Freymiller, Country Team Lead MCC Timor-Leste said “It’s a great achievement for MCC and the Government of Timor-Leste, particularly the Compact Development Team Timor-Leste, to bring the MCC delegation here to Timor-Leste during this global pandemic. I am particularly proud of how both the MCC delegation and our government partners conducted the meetings by following strict safety protocols. Due to our joint efforts, we were able to meet with critical stakeholders on the Water, Sanitation, and Drainage and Education compact projects. Amidst the challenges brought by this global pandemic, it is a very positive and important step forward for us to gather together, engage in this dialogue over several weeks, and make decisions for the WSD feasibility study that are necessary to finalize the Timor-Leste’s compact.”

CDT-TL and MCC are currently in the process of conducting the remaining studies that will provide key data and information to finalize the details and scope of project designs on WSD and Education Project to address the country’s primary constraint to economic growth – human capital development. The proposed compact aims to reduce the country’s disease burden by upgrading the water treatment, sanitation and drainage system in Dili, and improve the quality of Secondary Education by establishing a Center of Excellence and training secondary teachers and school leaders. Even though Timor-Leste faced the COVID-19 pandemic CDT-TL with support from MCC continue work to finalize these feasibility studies. According to the plan, the Government of United State of America and the Government of Timor-Leste will sign the compact agreement within this year, 2021. It also depend on, how the COVID-19 pandemic prevention development in Timor-Leste.

The MCC Board of Directors selected Timor-Leste for an MCC Compact in December 2017. An MCC Compact involves five-year grants for selected countries that meet MCC’s stringent eligibility criteria. Timor-Leste’s strong performance in meeting these criteria led to the MCC’s decision to transition Timor-Leste from a smaller Threshold program to a full-fledged Compact. MCC’s compact investments operate on strict five-year implementation timelines–once the five-year clock starts, it cannot be stopped. In order to ensure MCC and the Government of Timor-Leste can successfully implement the proposed projects within the five years; they have invested significant time in developing the compactand preparing the projects for approval and then implementation.