ADB to give East Timor $1.2m

ADB to give East Timor $1.2m

Agence France-Presse, Jakarta

The Asian Development Bank (ADB) said on Friday it will give
US$1.2 million to East Timor next year to improve the country's
economy and public infrastructure.

The grant is aimed at building local capacity for economic and
financial management, improving public infrastructure to support
private sector growth, and to generate income at the community
level, the bank said in a statement.

"While the country is not borrowing any funds, ADB's technical
assistance is crucial for Timor's overall advisory and
institutional capacity building," the statement said.

East Timor was Asia's poorest country upon independence in May
2002. Half the population lacks any formal education, youth
unemployment is high and two out of five people live on less than
55 cents a day.

It was occupied between 1975 and 1999 by Indonesia, after
Portugal had abandoned the territory to independence movements
while remaining the officially recognized administrator under
international law.

Thousands were killed in East Timor in fighting between
elements for and against independence, and forces loyal to
Indonesia supported by Indonesian troops were accused of
widespread crimes against humanity.

About 80 percent of the infrastructure in East Timor, which
has about 800,000 inhabitants, was destroyed in the fighting.