Growing and diversifying the economy is crucial for Timor-Leste's sustainable development. A stronger economy will provide ongoing revenue to fund government services and jobs for Timorese citizens, including a growing population of young people. Australia is well placed to support private sector development, improved infrastructure and connectivity, and improved access to international and regional organisations to promote trade, and skills and labour mobility opportunities.

PARTISIPA: Partnership to Strengthen Village Development and Municipal Administration

Up to $103.1 million (2019-2030)

PARTISIPA supports the Government of Timor-Leste to strengthen policies, systems, and skills to improve the delivery of decentralised services and village level infrastructure, including the sub-national road network. Improving the operation and maintenance of village infrastructure – particularly water systems – is a priority. PARTISIPA's team of technical advisors, engineers, finance specialists, and logistics personnel work with national government counterparts and staff in all 13 municipal authorities.

PARTISIPA has four program components:

• Municipal Governance Strengthening: PARTISIPA supports municipal authorities to develop and strengthen foundational administrative systems and processes required to improve access to basic infrastructure and services. This includes support for planning, public financial management, contracting, procurement and gender equality and disability and social inclusion (GEDSI).
• Sub-national roads: PARTISIPA provides technical assistance to the national and municipal public works departments, including engineering, GEDSI and policy expertise, to support the management of Timor-Leste's sub-national road network. PARTISIPA is also supporting the government to trial new climate resilient road technologies.
• Operations and Maintenance: PARITISPA is supporting the government to extend the life of village infrastructure, particularly rural water systems, through better operations and maintenance. This includes technical support to improve operations and maintenance policy and guidelines. At the sub-national level, PARTISIPA supports municipal authorities and communities to establish and strengthen water management groups.
• Community infrastructure: PARTISPA supports the delivery of the Programa Nasional Dezenvolvimentu Suku (PNDS) or National Program for Village Development, the government's community infrastructure program. This includes engineering, finance and GEDSI support for municipal authorities.

Related documents

PROSIVU: A Partnership for Inclusive Prosperity / Parseria Ba Prosperidade Inklusivu

$67 million (2022-2026)

PROSIVU is Australia's primary program working with the Government of Timor-Leste (GoTL) to support sustainable public financial management, inclusive economic growth, and better public administration. PROSIVU supports the GoTL and its key central agencies to achieve social and development outcomes through strengthened economic development and improved public service delivery.

PROSIVU works with other DFAT programs (PARTISIPA, Program for Human Development, TOMAK, Market Development Facility) as well as through civil society organisations (both international and national), to help decision makers fully understand the issues that matter to citizens and shape responses to them. PROSIVU builds and maintains partnerships and collaboration between different government agencies and jurisdictional levels, to improve inter-ministerial coordination, as well as supporting twinning arrangements between GoTL agencies and overseas institutions.

Key achievements of the program to date include:

• Supported Timor-Leste's successful accession to the WTO through legal, technical and communications advice, and continuing to support its membership following its formal accession.
• Supporting Timor-Leste's accession to ASEAN through technical advisory support, capacity building and institutional partnerships.
• Established a partnership between the Australian Bureau of Statistics (ABS) and the Central Bank of Timor-Leste (BCTL) that will lead to the publication of trade and investment data, fulfilling a critical requirement in Timor-Leste's accession to ASEAN in addition to strengthening its statistical capability.
• In June 2024, PROSIVU supported the Timor-Leste-Australia Economic and Business Conference, convened to strengthen economic ties and connect investors and business leaders from both countries. The successful event highlighted investment opportunities and economic cooperation.
• Supported the negotiations between Timor-Leste and Malaysia to sign new air service agreements, increasing the opportunities for more direct flights into Timor-Leste.

Market Development Facility (MDF)

$12.1 million (2022-2027)

Market Development Facility (MDF) is a multi-country initiative operating in Timor-Leste, Fiji, Sri Lanka, Papua New Guinea, Vanuatu, Tonga, and Samoa. MDF promotes sustainable economic development, through higher incomes for women and men. It connects individuals, businesses, governments, and NGOs with each other, and with markets at home and abroad. This enhances investment and coordination and allows partnerships to flourish, strengthening inclusive economic growth.

MDF starts by analysing the economy and looking for markets that are underperforming. MDF specifically looks for markets in which there are large and active disadvantaged populations – for example, farmers in agricultural markets and urban industries that employ large numbers of disadvantaged women. MDF tries to understand the underlying reasons that each market is not working as well as it could. This could be issues with information, technology, infrastructure, finance, standards, or regulations. MDF then develops a strategy to change each target market, so that it works better for poor people.

In Timor-Leste, MDF deliberately works across a broader suite of markets than it does in other countries. This is due to the relatively small size of the private sector and need to promote broad-based economic growth. MDF's two target sectors – agriculture and tourism, are aligned to two of the four priority sectors of the Timorese Government's Strategic Development Plan 2011-2030. Within each target market, MDF maintains its relevance by constantly analysing developments including new players, investments, regulations and adjusting its approach where appropriate.

MDF supports Australia's wider economic diplomacy goals by providing economic information, market intelligence and insights from the private sector, making Timor-Leste a more attractive place for foreign investment and business, and building relationships with public and private stakeholders across a wide range of economic sectors.

Related documents

Related link

Market Development Facility

Skills and employment opportunities

$4 million (2024-2028)

Australia's development cooperation in Timor-Leste aims to strengthen skills and employment opportunities for young people, to help grow and diversify the Timor-Leste economy. Our support for in-demand technical and vocational skills supports local industries and creates jobs in Timor-Leste and Australia, including through the Pacific Australia Labour Mobility (PALM) scheme. PALM's support is particularly focussed on increasing opportunities in semi-skilled roles and strengthening returned worker contributions to the economy.  
Workforce development support is delivered through the Australia Pacific Training Coalition and the Pacific Labour Facility and, from 2025, the Pacific Australia Skills Platform and the Pacific Labour Mobility Support Program.

Australia Awards Timor-Leste

Up to $6 million (2022-2026)

Australia Awards scholarships provide a means of fostering people-to-people links between Australia and Timor-Leste, as well as equipping emerging Timorese leaders with academic, professional and leadership skills and networks. Short courses further develop women leaders and help people with disability access scholarship opportunities.

Related links

• Australia Awards
• Australia Awards Timor-Leste
• Pacific Australia Labour Mobility scheme

Australia Infrastructure Financing Facility for the Pacific (AIFFP)

Australia is supporting Timor-Leste to build infrastructure that will increase connectivity, create local jobs and private sector growth and support climate change adaption. We will continue our partnership with the aviation sector, supporting the re-development of Dili's International Airport and look to partner with the Government of Timor-Leste (GoTL) on new infrastructure projects including in the renewable energy sector.

In late 2024 Timor-Leste's first submarine internet cable will become operational, transforming the digital sector. Going forward, Australia will continue to support cable delivery and digitalisation of government and private sector services.

• AIFFP – Dili International Airport
• AIFFP – Timor-Leste South Submarine Cable

ASEAN and WTO accession

$11.8 million, 2022-2029

Australia has committed $11.8 million over seven years (2022 to 2029) to support Timor-Leste's accession to ASEAN and the WTO. This funding package is primarily being delivered through our flagship governance program in Timor-Leste, PROSIVU – A Partnership for Inclusive Prosperity. Additional assistance and funding are also provided through Australia's broader ASEAN support programs.

Direct Budget Support

$47 million, 2020-2025

Australia provides direct budget support to the Government of Timor-Leste (GoTL) to achieve its development goals through country-led programs and priorities. This form of support originated from Australia's Community Resilience and Economic Recovery response package to the COVID-19 pandemic which provided budget support to countries across the region to address the economic and social disruptions caused by the pandemic. The most recent agreement, the third phase of Direct Budget Support, now includes support for community infrastructure, labour mobility and skills, and health.

The program is administered through key GoTL line Ministries: the Secretariat of State for Employment and Vocational Training (SEFOPE) for labour mobility and skills, including for training in English, hospitality and labour mobility preparation and aged care; the Ministry of State Administration to improve critical community infrastructure through Timor-Leste's Programa Nacional Dezenvolvimentu Suku (PNDS); and the Ministry of Health to support a new maternal, child health and nutrition initiative starting in 2025.