European Union and the Government of Timor-Leste sign a EUR 12 million agreement to support digital transition and Public Financial Management

Dili, Timor-Leste – 26 May 2025 – The European Union and the Government of Timor-Leste signed today a Financing Agreement for the implementation of the “Partnership for Public Financial Management (PFM) and Digital Transition in Timor-Leste” (PADIT-TL) project. With this project, the European Union will grant 12 million to the Government of Timor-Leste: EUR 9 million allocated as budget support to the Ministry of Finance for the development of public finance management and EUR 3 million provided as complementary support dedicated to e-government services and digital literacy.

 

The signing marks a significant milestone in the country’s efforts to modernize its public financial management systems and leverage digital tools to enhance governance and service delivery.

Timor-Leste is taking exciting steps toward a digital transformation to create a government that is efficient, transparent, and accessible to everyone. Funded by the Neighbourhood, Development, and International Cooperation Instrument (NDICI–Global Europe), the PADIT-TL project is key to improving public financial systems and using digital tools to strengthen institutions. It also helps Timor-Leste align with ASEAN and global standards, support regional cooperation, and contribute to the EU's strategy in the Indo-Pacific and its focus on digital growth. 

H.E. Ms. Santina José Rodrigues F. Viegas Cardoso, Minister of Finance of Timor-Leste, emphasized that this partnership strategically aligns with the Ministry of Finance's Five-Year Plan for 2024–2028, which “encompasses our comprehensive national strategy for public finance reform”. The Minister further notes that the PADIT-TL programme directly supports the IX Constitutional Government's Programme for 2023–2028, focusing on strengthening governance, expanding digital transformation, advancing decentralization initiatives, and developing a more professional public service. “In the broader context”, adds Minister Cardoso, “this programme advances our nation's long-term Strategic Development Plan, which aims to reduce poverty, stimulate sustainable economic growth, and foster a more equitable and inclusive society.” 

In addition, H.E. Bendito Dos Santos Freitas, Minister of Foreign Affairs and Cooperation of Timor-Leste, stated, “This partnership with the European Union is a testament to our shared commitment to advancing Timor-Leste’s development. It is not just about financial support; it is about creating a future where every Timorese citizen can benefit from a transparent, efficient, and inclusive government. The PADIT-TL project represents a crucial step forward in this vision, and we are excited to work alongside our European partners to build a stronger, more resilient nation.”

H.E. Marc Fiedrich, the European Union ambassador to Timor-Leste, emphasized that this signature clearly reaffirms the European Union's commitment to the people of Timor-Leste and to creating an inclusive state where every Timorese citizen can access necessary services, participate more fully in public life, and build a better future for themselves and their communities.

Marc and other Dev partners