PROSIVU (Partnership for Inclusive Prosperity) is a facility (AUD61.5 million, 2022-2028) supporting governance reform and inclusive development in Timor-Leste. PROSIVU is structured around three main pillars:
1. Stronger more inclusive growth
2. Sustainable public finances
3. Better public administration.
The mid-term review (MTR) of PROSIVU was undertaken by Abt Associates between March and August 2025 and, assessed the performance of PROSIVU providing strategic and operational recommendations with an emphasis on identifying changes required for any extension beyond 30 June 2026. The review found that overall PROSIVU is highly valued by Timor-Leste’s government, and has been a flexible, responsive approach to addressing key economic and financial governance issues. Strengths include an ability to pivot quickly to Government priorities; the quality of technical assistance provided; strong brand recognition with Government; and transparent reporting; ability to adapt, although this flexibility has sometimes led to a lack of strategic coherence. While some outcome areas have shown success, they are largely driven by external factors. Challenges include engagement with key ministries including progressing decisions from the steering committee, delays due to shifting government priorities, and the need to reallocate resources effectively. The program’s ambitious goals have increased pressure on delivery teams, and despite its commitment to Gender Equality, Disability, and Social Inclusion (GEDSI), PROSIVU’s impact in this area has been limited, though recent improvements show promise.
Of the 20 recommendations, the Department of Foreign Affairs and Trade agrees with 19 recommendations and does not agree with one.
Since the MTR and recommendations were presented, advice has been received from Canberra that contract ceilings will remain fixed – with no option for increases through amendment despite the program taking on new activities that were consistent with PROSIVU’s original goals and objectives but weren't provided for in the original design and budget. As a result, the anticipated four years for the second phase of PROSIVU (from July 2026) will be two years (to June 2028) and activities adjusted accordingly. The responses to the MTR reflect the amended, reduced timeframe for activities which have been adjusted accordingly. In responding to the MTR, PROSIVU has commenced work to address agreed recommendations with a focus on completing the remaining activities through the design update process which is expected to take place prior to the next phase in July 2026.