The National EBF – Phase 3.

1. Timor-Leste: Better Business Initiative (BBI) Update The National EBF – Phase 3. • Started January 2008 • ‘Champion ministry’ = Ministry of Economy&Development (MED); houses coordinating unit; also exploring other options to house coordinating unit: a) at future dialogue unit within PM’s office (not yet established), b) at Secretariat of newly established Interministerial Committee • Finalized BBI structure and drafted agreement (MoU) in consultation with MED; circulated with other key ministries for the dialogue; final agreement pending • Recruitment of one intern. and one local position to staff BBI Secretariat ongoing (interview phase); to be completed in April • Closely evaluated issues raised at former dialogues (esp. WB-supported), and from company surveys; T-L specific challenge: dialogue format not unknown, but so far lacking clear results/reform focus; certain ‘dialogue fatigue’ to overcome • Preparation of issues paper based on above as input to first PSWG

2. BBI Update cont. The National EBF – Phase 3. • First Private Sector Working Group meeting on March 14 on Administrative Barriers:- good turn out (30+), first time ever strong participation of women entrepreneurs (around 60%);- Vice Minister MED as observer- prioritization of issues; discussed adequate process of selection of delegates for Working Group (with Gov.)- Full buy-in on structure/process, but needed to clarify IFC’s role (partly perception that IFC creates competing association through BBI)- dialogue fatigue successfully overcome; need to keep going, be strongly engaged; show results asap • Working group on access to financial services under discussion • Next steps: share minutes+get agreement; selection of delegates and organization of Working Group with public side; finalize recruitment and then go full force • BBI extremely useful structure for T-L environment; unfortunately high politicalization on all levels, special challenge for BBI Secretariat • BBI raises IFC’s profile, but challenge to constantly play ‘honest broker’ role

3. Timor-Leste BBI: Structure Government Development Partners (as observers) Coordinating Unit in MED Timor-Leste Better Business Initiative National Forum BBI Secretariat Administrative Barriers WG Additional WG Add. WG Add. WG PSWG PSWG PSWG PSWG Timor-Leste Private Sector reps., Business Forum, Chamber of Commerce, Associations

4. BBI Structure cont. The National EBF – Phase 3. PS Working Groups Public-Private WG National BBI Forum PSWG meet to discuss the issues and prepare the proposed agenda for the Working Group with public sector. Government is represented, with observer status, to ensure continuity. The draft agenda and issues paper is prepared by the BBI Secretariat, and circulated to the Coordinating Unit in the Ministry of Economy and Development (MED). The MED Coordinating Unit circulates the agenda and the issues paper to the other relevant Ministries prior to the Working Group meeting. The BBI Secretariat arranges the logistics for the Working Group meeting. The WG is co-chaired by a rep. from private sector and a rep. from GoTL, and facilitated by the BBI Secretariat. Detailed minutes are prepared by the Secretariat and circulated after the meeting for feedback and signing-off. A National BBI Forum is held every 6 months. An advisory board for the BBI Forum, with reps. from private sector and GoTL selects key issues from the WG meetings held, and submits to the BBI Secretatiat. An agenda is prepared accordingly.