Water Sanitation Investment Tender

Project Status Active DescriptionThe project will focus on enhancing water supply and sanitation services and providing infrastructure that will facilitate long-term sustainable and economic growth. The project is consistent with the strategic goals set in the governments SDP 2011-2030 and ADB Strategy 2030. It supports ADB Strategy 2030s key operational priorities of tackling climate change making cities more livable and strengthening governance and institutional capacity. The project is also aligned with the governments commitments to meet the Sustainable Development Goals 6 ensure universal access to water and sanitation to all 3 improved health and well-being for all 5 gender equality and 11 make inclusive safe resilient and sustainable cities and human settlements by 2030. The Timor-Leste Country Partnership Strategy 2016-2020 identifies improved water supply services in urban centers as a priority area for ADB support. The project will be aligned with the following impact 100 service coverage for both water supply and sanitation by 2030 footnote 2. The outputs will result in the following outcome inclusive and sustainable access to water supply and sanitation services in participating cities achieved. Economic outlook. Timor-Leste continues to face significant challenges in leveraging income from offshore oil and gas production to drive sustainable development and poverty reduction. In 2017 the gross domestic product GDP was 2.49 billion 1900 per capita. However non-oil GDP which is a better indicator of domestic economic activity was significantly lower at 1.6 billion 1200 per capita. While there has been progress in reducing income poverty there are still large gaps in the coverage of basic services and limited opportunities for formal employment. Urbanization. Timor-Leste has experienced a steady urban growth over the last decade. Since 2008 the urban population has grown at a rate of 4.2 per annum and currently represents about 30 of the total population. Urban development will transform the current rural-based economy of Timor-Leste by providing opportunities for the country to increase employment and rural-urban interactions improve wages and reduce the proportion of population living in absolute poverty. To date majority of urban population has concentrated around the capital city of Dili. However this is slowly spreading to secondary cities such as Lospalos Viqueque and Same. Policy framework. The government has identified a need to strengthen public institutions human and financial capacity promote employment reduce income inequality and address the growing requirements for public services including infrastructure. This is emphasized