On June 4th, the Minister of Finance, Rui Augusto Gomes, representing the Democratic Republic of Timor-Leste, and the Australian Embassy Chargé d’Affaires, Philippa Venning, representing the Government of Australia, signed a USD$ 15.5 million Direct Financial Contribution Agreement to support the Community Resilience and Economic Recovery Program.
This second phase of the financial contribution will be allocated to the National Villages Development Programme (PNDS – Portuguese acronym), with a sum of USD$ 10.5 million, and will be used to rehabilitate basic infrastructure such as roads, walls, drainage systems, potable water, irrigation and clinics in approximately 200 villages.
The remaining $5 million will be allocated to the Bolsa da Mãe – Nova Geração Program (BdM JF – acronym in Tetum) – a new social assistance program for pregnant women and young children, whose pilot program will be launched in the municipalities of Ainaro and Bobonaro, and in the RAEOA, having as beneficiaries more than 40,000 people. The objective of this Program is to reduce malnutrition and poverty in Timor-Leste, targeting pregnant women and children from zero to two years old. This program was presented by the Ministry of Social Solidarity and Inclusion (MSSI) and was approved by the Council of Ministers in February 2021.
The PNDS and BdM-JF programs will be implemented in the context of community resilience and economic recovery in Timor-Leste during the global pandemic of COVID-19. This specific budget will be implemented over 2 years, from July 1st 2021 to June 30th 2023.
In the opening speech of this signing ceremony, Minister Rui Gomes said that “this financial contribution will be allocated directly to the communities, to continue to support basic infrastructure projects that can create jobs, the opportunity to have some income and an improvement in the provision of services for all families – components of this recovery, which are also aligned with the Economic Recovery Plan.
The Government representative highlighted that the financial contribution will be allocated directly through the Government’s budget system and is a part of the budget allocation process. This demonstrates the confidence of the Australian Government in the system created by the Government of Timor-Leste and the two parties committed to work together in improving this program.
The Government representative also reminded the ministerial lines and all the implementing agencies so that they improve the delivery of services at the base, in order to guarantee that this assistance effectively brings a significant impact and change in the lives of the Timorese.
“On behalf of the Government of Timor-Leste, I thank the Government and People of Australia for these supports. It is an honour for us to consider you as our development partners, our neighbours and our friends”, concluded the Minister.
The Australian Embassy Chargé d’Affaires, Philippa Venning, in her speech said “The Australian Embassy is very proud to support the Government and People of Timor-Leste with the Economic Response package to COVID-19, worth approximately USD$ 15.5 million, which will directly support communities in Timor-Leste to recover from the impacts of COVID-19 on the economy. Australia is also very pleased to be able to provide this package through two effective programs: The National Villages Development Program (PNDS) and the Bolsa da Mãe-Nova Geração, in conjunction with the Ministry of Finance, Ministry of Foreign Affairs and Cooperation, Ministry of State Administration and Ministry of Social Solidarity and Inclusion.”
“This financial contribution will allow the construction of new basic infrastructures in around 200 villages and provide essential social assistance to 40 thousand pregnant women and children in Timor-Leste,” concluded the Acting Ambassador.
At the signing ceremony, Minister Rui Gomes was accompanied by the Minister of Foreign Affairs and Cooperation, Adaljiza Magno, the Minister of State Administration, Miguel Pereira de Carvalho and the Vice Minister of Social Solidarity and Inclusion, Signi Chandrawati Verdial.
In the meeting of June 2nd, 2021, the Council of Ministers granted full powers to the Minister of Finance, Rui Augusto Gomes, to represent the Government of Timor-Leste and sign the Direct Financial Contribution Agreement – Phase II, with the Government of Australia, in the amount of USD$ 15.5 million.
In May last year, in response to the pandemic of COVID-19, the Government of Australia had also made a financial contribution of USD$ 4.7 million through the PNDS program. This financial contribution was used to build basic infrastructure in 150 villages, supporting the rehabilitation of drinking water and sanitation facilities, which was an essential aid in the fight against COVID-19.