ADB Approves $6M Grant to Boost Climate Resilience and Livelihoods for Rural Communities in Timor-Leste

“Timor-Leste is highly vulnerable to climate and disaster risks and is one of the most food insecure economies in the world,” said ADB Country Director for Timor-Leste, Stefania Dina.

The Asian Development Bank (ADB) has approved a $6 million grant to support the Rural Resilience and Livelihood Improvement Sector Project in Timor-Leste. This project, with a total cost of $16.6 million, aims to improve climate resilience, enhance water and food security, and create sustainable livelihood opportunities for rural communities, particularly in the Manatuto municipality, where agriculture is the primary economic activity.

The project is a collaborative effort, funded by a combination of grants from the Asian Development Fund ($6 million), the Global Environment Facility ($4.59 million), the Japan Fund for Prosperous and Resilient Asia and the Pacific ($3 million), the Nordic Development Fund, and the governments of France and the United Kingdom ($2.5 million), and the Ireland Trust Fund for Building Climate Change and Disaster Resilience in Small Island Developing States ($500,000).

“Timor-Leste is highly vulnerable to climate and disaster risks and is one of the most food insecure economies in the world,” said ADB Country Director for Timor-Leste, Stefania Dina. “By investing in rural communities, we aim to create pathways to a brighter and more sustainable future. Together, we can empower every farmer and family to thrive, fostering resilience and opportunity for generations to come.”

The project will directly benefit approximately 46,000 people in rural areas, with a focus on communities that rely heavily on agriculture but face limited livelihood and income-generating opportunities. By introducing climate-smart agriculture techniques, improving access to water, and boosting agricultural productivity, the project seeks to strengthen food security and build resilience against climate change. In addition, it will improve market linkages, allowing rural farmers to access broader markets and diversify their income sources.

An essential aspect of the project is its inclusive approach. The government, in close collaboration with local communities, will plan and implement investments in rural infrastructure, agriculture, and livelihoods. This participatory approach ensures that the needs and priorities of local residents are taken into account, ensuring the effectiveness and sustainability of the interventions. Moreover, capacity-building initiatives will be incorporated, equipping local communities with the skills and knowledge needed for long-term growth and resilience.

By addressing key challenges such as water security, climate vulnerability, and access to markets, the Rural Resilience and Livelihood Improvement Sector Project will help rural communities in Timor-Leste build a sustainable future, improving their quality of life and strengthening their ability to adapt to the impacts of climate change.