Dili, 9 November 2000
TRANSITIONAL CABINET AGREES ON PRIORITY PROJECTS

The East Timorese Transitional Cabinet agreed today to a revised list of unfunded priority projects for which donor assistance would be sought, including teachers, reconstruction of additional class rooms and capacity building activities.

The list would be maintained and updated on a monthly basis by the National Planning and Development Agency, in consultation with the Central Fiscal Authority, and presented to the Cabinet for approval, if changed. The bilateral assistance would only be sought and accepted on the basis of the list.

The Cabinet also discussed a draft strategy for transition to an independent East Timor administration in all key sectors. Once finalized, the draft will be provided to donors, following National Council approval.

A work program for the World Bank administrated Trust Fund for East Timor for January-June 2001 was endorsed by the Cabinet, to be submitted to the National Council. The work program provides allocations of the Trust Fund for East Timor to various sectors during the period.

The program calls for the signing of grant agreements for an additional US$ 38.8 million in five areas: infrastructure (US$ 2 million), water and sanitation (US$ 4,5 million), agriculture (US$ 6 million), health (US$ 11 million) and education (US$ 14 million, with 1.3 million in operating costs).

The Cabinet Member for Social Affairs reported that the recommendations of the Inspector General with respect to the school teacher recruitment were being implemented.

NATIONAL COUNCIL HEARS RECOMMENDATIONS ON THE BUDGET

At today’s session, the East Timorese National Council heard the recommendations prepared by the Committee on Budget and Finance.

In its report, the committee recommends that the other committees of the Council conduct detailed inquires into matters such as salary level for members of the East Timorese defense force, living conditions of Falintil members at the present moment and numbers of teachers provided in the education system.

In addition, the report requires the Cabinet to report to the National Council on the ways of addressing weaknesses in revenue for East Timor in mid to long term, and on the capacity of less well off East Timorese to pay electricity charges.

The Council also discussed the Regulations to amend Regulation No. 2000/18 on a revenue system for East Timor and Regulation No.2, 2000-2001 on Appropriations Budget. The Cabinet Member for Finance, Michael Francino, answered questions of the National Council’s members.

Prior to the vote on the regulations proposed, scheduled for tomorrow 10 November, the Council will question the Cabinet Member for Social Affairs and Cabinet Member for Economic Affairs.


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