Second Timor-Leste Petroleum TA

closed

Over the next several years Timor-Leste's petroleum sector is expected to provide revenues accounting for up to 50 percent of GDP and 85 to 90 percent of government revenues and foreign exchange. These figures will drive future poverty reduction programs, facilitate economic recovery, and allow for donor exit. Following are components to the project: The proposed project will provide support to two key agencies: the Timor Sea Office (TSO), and Ministry of Planning and Finance (MOPF) (more specifically, the Timor Sea Tax Division (TSTD), and a new petroleum revenue management function of the MOPF). Expatriate consultant services account for the largest share of project costs. For the TSO these include, on a residential basis, a coordinator, general legal adviser, petroleum negotiations adviser, media director, and external consultant support in the areas of fiscal and financial advice, commercial oil and gas law, and international strategy. Consultant services going to the MOPF include a resident tax/legal adviser, an outside tax audit adviser and a resident expert in petroleum revenue management. Goods to be provided will go to the TSTD to cover essential office upgrading, including such items as photocopiers, printers, fax, telephone and internet connections in Dili, and a branch office to be opened in Perth (the location of the majority of taxpayers). Training support has been allocated to the TSO for English language and petroleum economics/commercial practices, and to the TSTD for tax accounting and auditing. Finally, funds have been set aside for support of incremental operating costs, including staff travel and per diem associated with negotiations (TSO) and tax audits (TSTD).