Mid-term evaluation of the Supporting Programme to Decentralization and Deconcentration process in Timor-Leste (SPDDTL)

Since its independence in 2002, the Timorese Government has made significant efforts to strengthen its institutional framework and Rule of Law, with constant support from development partners to build administrative capacities to strive towards fully effective and functional institutions. Gradual deconcentration was launched in 2013, while full decentralization (with elected councils in several municipalities) was originally planned for 2022. However, the decentralization process is experiencing serious delays due to various causes (COVID-19, economic recession etc.) and several key structural elements such as the legal and PFM framework for decentralization are still being put into place, while the first municipal elections are not likely to take place before 2024. The EU has been supporting the Timorese Government in its efforts towards deconcentration and decentralization since several years, in line with priorities identified in the National Indicative Programme (NIP 2014-2020), which has Good Governance as its main pilar, alongside Rural Development. With the objective to support the deconcentration and decentralization process in Timor Leste, and help strengthen Good Governance and Rule of Law in the country, the EU launched the Supporting Programme to Decentralization and Deconcentration in Timor Leste in (SPDD-TL) in 2019. This Programme is implemented in two contracts - a Budget Support Sector Reform contract, and a complimentary action. The objective of this project is to carry out the mid-term evaluation of the SPDD-TL programme and thereby provide the EU staff and all relevant stakeholders involved in the programme with: an overall independent assessment of the performance of the SPDD-TL Programme, paying particular attention to its intermediate results measured against its expected objectives; and the reasons underpinning such results; key lessons learned, conclusions and related recommendations in order to improve current and future interventions. Specific issues that will be analyzed are the following: The conditions under which budget support has an effect (or not) and the possible intensity and nature (positive or negative) of such effect in Timor-Leste and its Deconcentration and Decentralization process; How the budget support programme has contributed (or not) to strengthen Public Financial Management (PFM) system at MSA and in their liaison; How far SPDD-TL budget Support already prepared and contributed for/to decentralisation of responsibilities and competencies to local authorities-municipalities. The relevance targets of each budget support's indicators for the remaining implementation year based on the current progress of the decentralization strategy and calendar of the government; Constraints in government policies, institutional structures and administrative arrangements in Timor-Leste which might impede the effectiveness of Budget Support on spending actions and targeted public policies and reforms. Mapping of the Development Partners (DP) activities on decentralization and assessment of the level of coordination/synergy amongst DP.