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Xian Zhu
Country Director,Timor-Leste, PNG and Pacific Islands
East Asia and Pacific Region
The World Bank
Dili, Timor-Leste, April 26, 2005 Your Excellency, Mr. President
Your Excellency, Mr. Prime Minister
Honored Ministers of the República Democrática de Timor-Leste
Distinguished Delegates
Members of the Press The lively discussions we have had together over these two days reflect both the challenges facing Timor-Leste and your achievements, and I would like to take this opportunity to once again pay tribute to the resolve of the Timorese people. We know how carefully you are laboring to turn from the earlier challenges of transition to the even more daunting tasks of consolidation, and we are proud to work with you and your development partners to help bring the fruits of peace and prosperity to each Timorese family. Government has continued to build the overall architecture of governance, and has made truly impressive achievements in the framework for the petroleum sector, and we congratulate you for this. Timor-Leste has taken important steps to strengthen key oversight institutions that provide necessary checks and balances, and in this regard we note the recent election of the Provedor by Parliament, and the referral of cases of alleged corruption or malfeasance directly to the Prosecutor General. As we have discussed in detail, the revenue situation facing Timor- Leste has continued to improve, but the portion of the nation’s resources that come from petroleum will always be subject to the tremendous price volatility that characterizes the world market. We also realize that even a larger annual budget, corresponding to the higher projected level of sustainable income, would not be sufficient to finance the full range of activities needed to achieve the Millennium Development Goals and implement your National Development Plan. In this context, and to support their desire to shift high-priority expenditures from off-budget onto CFET, Government has asked development partners to continue budget support under the Consolidation Support Program, or CSP. Participants were generally positive about the CSP, while noting candidly that budget execution must improve considerably in order for CSP to be seen as an attractive financing instrument by development partners. Therefore, we have concentrated much of our discussion on the challenge of improving budget execution to more effectively channel resources to deliver key services to the people. Government Announced several measures in this regard, including a restructuring of several critical Government ministries, and a transparent and Detailed fiscal year 2006 capital expenditure budget for education and health, and we welcomed these announcements. In our last session together, we focused our attention on another critical topic, one given a sharper sense of urgency by the continued reduction in the UN presence in Timor-Leste. I am speaking, ofcourse, of the challenge of strategic capacity building, and here our discussions were also fruitful. We heard of the results of the broadranging assessment done by the Capacity Development Coordination Unit, or CDCU, which gave us information about the demand for training and advisors from staff across all units of Government. Our discussions included the need to focus our collective efforts in the next year specifically on strategic capacity building efforts in the two areas where need seems most urgent: in planning and financial management (with a special emphasis on capital expenditures), and in the justice sector. As we committed to you in May of last year, the World Bank has joined with Government and other interested development partners to design a comprehensive medium-term institution and capacity-building program encompassing the Ministry of Planning and Finance and the financial management functions in key line agencies, including in the districts. Mr. Prime Minister, your progress has been impressive, and the challenge of moving from post-conflict transition to consolidation is equally formidable. The World Bank, and all your development partners, are dedicated to supporting the government and the people of Timor-Leste, in striving for a world free of poverty. I would like to extend to you, Mr. Prime Minister, our sincere compliments on the hard work done by staff across Government in organizing the arrangements for this meeting and showing us the superb hospitality that we have come to depend upon. Let me also say a special “thank you” to the interpreters who have provided excellent support over the past few days. President Gusmao, Prime Minister Alkatiri, Distinguished Members of Parliament and Government –
I would like to conclude by offering you a word of special thanks from Vice President Jamil Kassum, who has asked me to convey to you the deep sense of honor that he – and all of us at the Bank – feel in having been your partner through the transition to the restoration of independence and now to nation building. Jamil joins all of our team here in Timor-Leste in assuring you of our strong and continuing commitment to your efforts to consolidate your economy, and your nation. Thank you.
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