Decree-Law No. 4/2012 establishing the Planning of Integrated District Development (PDID)

Article 1 through its Local Development Programme, which set out the Scope institutional arrangements of local 1. The present diploma creates the government, planning and local Integrated District Development Plan implementation, budget management (PDID) which defines and regulates the and local public procurement, and applicable rules regarding powers, created the link between community planning, implementation and financing leadership and the Government. for the implementation of State projects At the same time, the Government also at District and Sub-District level. implemented its programmes in 2. This Decree-Law also establishes the Districts, Sub-Districts and Sucos, process by which the District through its devolved services. For this Investment Plan (PID) shall be drawn purpose, in 2010 the Government began up. It is an annual plan implemented in its study on the practical lessons learnt harmony with the Suco Development through the Decentralised Development Plan (PDS), Local Development Programme (PDD) which also devolved Programme (PDL) and the its implementation to the administration Decentralised Development Programme of the District. (PDD) at District and Sub-District level. Furthermore, the Ministry of State 3. The rules defining the planning Administration and Territorial process, approval, implementation and Management has played the role of monitoring shall also apply to the facilitator in Sucos to help identify programmes set out in the Decentralised community priorities, through the Sucos Development Programme (PDD) I and Development Plan (PDS), with the II, in joint coordination with the purpose of coordinating these priorities National Development Agency for the with the Local Development Plan and implementation of the projects. also contributing to the Government’s Strategic Development Plan (PED). 4. The Ministry responsible for Local Administration shall be responsible for Based on the aforementioned guaranteeing the implementation of this experiences, and in order to better Decree-Law. prepare all Districts before their transformation into Municipalities, and to strengthen the Government policy defined in the PED, the Government needs to establish a planning and

Article 2 SECTION II Objectives District Development Commission This objective of this Decree-Law is to Article 4 define and regulate: Powers a) The planning process, The District Development Commission, implementation and monitoring of hereinafter known as CDD, shall be the sectoral programmes at District and district-level deliberative body with Sub-District level. powers to plan, decide and implement b) The composition and the powers of the District Investment Plan. the bodies responsible for planning,

Article 5 approving, implementing and monitoring the projects implemented Composition through the PDID. 1. The CDD shall consist of: c) The rules of mandatory consultation a) Administrator of the district as with the bodies set out in article 3 of Coordinator; this diploma. b) District Secretary as Vice CHAPTER II Coordinator; BODIES AND POWERS c) Director of Territorial Delegations of SECTION I Ministries relevant at District level as members; General Provisions d) Sub-District Administrators as

Article 3 members; Bodies e) Three representatives from among 1. The planning and implementation of the members of the Suco Council, the PDID shall be undertaken by way of elected for each Sub-District a consultation and monitoring process Development commission. with the following bodies: 2. At least one of the representatives of a) District Development Commission; each Suco Council shall be a woman. b) Sub-District Development 3. The process to elect the Commission; representatives from among the members of the Suco Council c) Territorial Delegations of Ministries mentioned in paragraph 1 above shall be in Districts and Sub-Districts; defined and regulated by Ministerial d) Suco Council. Diploma issued by the Ministry 2. The synchronisation of the PDID at responsible for Local Administration. District and National level shall be Article 6 undertaken through consultation and coordination between the relevant Powers bodies, during: 1. It shall be incumbent on the CDD to: a) The District Development a) Plan and decide on the projects and Coordination Meeting; and the PID budget; b) The National Development b) Readjust the District Investment Plan Coordination Meeting. in accordance with the General State Budget Law, approved by National d) Inform the members of the Parliament; Commission on the progress of the implementation of CDD decisions; c) Supervise the implementation of the PID in the corresponding District; e) Represent the CDD before any entity; d) In coordination with the National Development Agency, supervise and f) Coordinate development activities coordinate the implementation of the and public service provision in the projects defined as PDD II; District; e) Maintain and secure the information g) Secure the good financial on the progress of the implementation management of the budget allocated to of the PID is given to the Community; the District through the PDID; f) Approve the progress report h) Authorise payment and sign contracts concerning implementation activities between the CDD and other entities; and the financial report, regularly drawn i) Monitor and draw up the reports on up by the CDD Secretariat to be the personal performance of CDD submitted to the Ministry responsible members to be submitted to their for Local Administration; respective ministries. g) Officially deliver to the Community SECTION III or the competent body of the Government, the equipment and assets Composition and Powers of the CDD realised by way of the implementation Support Bodies of the PID projects. Article 8 h) Approve the PID planning and CDD Secretariat implementation schedule; 1. CDD operations are supported by a i) Other functions which are assigned to technical and administrative Secretariat. it by way of Ministerial Diploma issued by the Ministry responsible for Local 2. The powers and composition of the Administration. Secretariat and its support bodies shall be defined by Ministerial Diploma 2. In order to decide on the approval of issued by the Ministry responsible for the PID Projects, the CDD shall also Local Administration. analyse the results regarding the needs of the District, indicated in the reports SECTION IV of the latest Census. Sub-District Development

Article 7 Commission Powers of the CDD Coordinator Article 9 The CDD Coordinator shall have the Nature and Powers powers to: 1. The Sub-District Development a) Summon and run CDD meetings; Commission, hereinafter referred to as CDSD, shall be the advisory body b) Ensure that all CDD activities are established in the Sub-District with the carried out in accordance with the purpose of supporting the CDD in defined and approved schedule; drawing up recommendations on c) Ensure that the deliberations and priority areas for local development. decisions of the CDD are implemented; 2. The CDSD shall have the powers to: a) Be made responsible for consultation e) To maintain and secure information on the priorities of the Suco; on the progress of CDD activities and give the community such information; b) Decide on the proposed investment priorities to be recommended to the f) Report to the CDD on the progress of CDD; the implementation of the PID; c) Support the CDD Secretariat in the g) Carry out the other tasks set out by supervision of the implementation of law or delegated by the CDD. the PDID in the Suco; SECTION V d) Submit a report on the progress of the Territorial Delegations implementation of the PDID to the CDD; Article 12 e) Present information to the local Nature and Powers community. 1. Territorial Delegations, hereinafter

Article 10 referred to as DT, shall be the devolved services of the Ministries which are Composition of the CDSD relevant at District and Sub-District The CDSD shall consist of: level, established with the purpose of drawing up the District Investment Plan a) Sub-District Administrator as Head in each sector, at the District and Sub- of the Commission; District level to be submitted to the b) Head of the Territorial Delegations of CDD. the Ministries relevant at Sub-District 2. Territorial Delegations shall be level as member; represented by a District Director. c) Suco heads as members; and 3. The District Director shall d) Members of the Suco Council as obligatorily participate in the meetings. members with at least one woman, This function may not be delegated to elected in accordance with the rules any other official except in the event of defined by Ministerial Diploma issued a duly justified impediment. by the Ministry responsible for Local 4. TD have the powers to: Administration. a) Submit to the CDSD the proposed

Article 11 priority investment of the Sub-District Powers of the Head of the CDSD sector and to the CDD at District level; The Head of the CDSD shall have b) Draw up a draft and technical cost powers to: estimate for investments; a) Represent the CDSD before any c) Submit a report to the CDD during entity; the implementation of the PID in each b) Summon and run CDSD meetings; sector; c) Guarantee that all CDD activities are d) Guarantee that future Operation and carried out in accordance with the Maintenance costs of projects to be schedule previously defined and implemented are allocated to the approved; budgets of the corresponding Ministries. d) Secure consultations at Suco level;

Article 13 SECTION VI Powers of the District Director Suco Council The District Director as the Article 14 representative of the territorial Suco Council delegation shall have the powers to: a) Summon and run the meetings in each sector; Notwithstanding the powers set out in Law no. 3/2009 of 8th July, the Suco b) Actively participate in the meetings Council shall be assigned the following and CDSD and CDD activities; powers for the purpose of the c) Guarantee good coordination with the implementation of this process: representatives of the Ministries a) Accountable for consultation on the relevant at District and Sub-District priorities of the Suco; level with a view to drawing up the strategic plan, the allocation plan related b) To support the supervision of the to investment capital and administrative implementation of the PID; affairs of each sector; c) To present information to the local d) Guarantee that the technical draft and community and the CDD; estimated costs of infrastructure projects d) To choose and appoint its are submitted to the CDD within the representative at CDSD in accordance established time limit; with the rules defined by Ministerial e) Undertake the technical supervision Diploma issued by the Ministry of the implementation of infrastructure responsible for Local Administration. projects in the relevant sectors; Article 15 f) Guarantee the implementation of Powers of the Head of the Suco CDD activities in accordance with the previously established and approved Notwithstanding the powers set out in schedule; Law no. 3/2009 of 8th July, the Head of the Suco shall be assigned the following g) To maintain and secure information powers for the purpose of the on the progress of PDID activities in the implementation of this process: sectors and give the community such information; a) To summon and run the meetings in the Suco with a view to drawing up the h) Submit a report to the CDD and Suco Development Plan; corresponding Ministry on the progress of the implementation of the PID; b) To guarantee the members of the Suco Council actively participate in the i) Appoint a technical officer as Suco Council meetings; coordinator of the Verification, Assessment and Supervision Team in c) To secure the consultation process accordance with his sector. with the local community on the priorities of the Suco; d) To prioritise and approve the priorities of the Suco based on the needs of the community; e) To submit the priorities of the Suco to the CDSD; f) To provide support to the supervision 3. The ECDN shall be chaired by the of the implementation of the projects in Prime Minister, or by his representative, the Suco. and shall be run by the Ministry responsible for Local Organisation and by the Ministry of Finance. SECTION VII 4. The Ministers of the relevant Coordination Meetings Ministries shall take part in the ECDN

Article 16 in order to ensure the annual projects plan is in line with the National District Development Coordination Development Plan. Meeting 5. At the end of the ECDN the list of 1. The District Development PID projects shall be confirmed. Coordination Meeting, hereinafter referred to as ECDD, shall be the 6. The approved PID shall be submitted meeting summoned and run by the CDD to the central Government through the Coordinator with the participation of all Minister responsible for Local the relevant entities in the District. Administration. 2. The ECDD shall be held to discuss CHAPTER III and synchronise the draft PID in order DRAFTING OF THE DISTRICT to avoid duplication with other INVESTMENT PLAN development plans. SECTION I 3. The Director-General or his representative shall take part in the Principle underlying the Drafting of ECDD to present the policy of the the District Investment Plan respective Ministry. Article 18 4. At the end of the ECDD a list with Principle underlying the drafting of the investment proposals to be the PID incorporated in the PID shall be drawn The PID shall be drafted once a year up. based on the harmonisation between the

Article 17 Suco Development Plan and the National Strategic Development Plan. National Development Coordination Meeting Article 19 1. The National Development Drafting of the PID Coordination Meeting, hereinafter 1. The drafting of the PID shall take referred to as ECDN, shall be the place according to the following phases: meeting held at national level with the participation of the representatives of all a) Identification of the development Districts, representatives of Ministries investment need of the Suco; at District and National level, of civil b) Prioritisation of the investment needs society and development partners. at Suco level and of the Territorial 2. The ECDD shall be held to discuss Delegations at Sub-District level; and align the proposal of the annual c) Prioritisation and approval of the projects plan with the National investment needs at CDSD level and of Development Plan in order to avoid the Territorial Delegations at District duplication. level; d) Examination, verification and CHAPTER V assessment at District level; FINANCING OF THE PDID e) Prioritisation of the proposals and

Article 21 preparation of the draft District Investment Plan by the CDD; Financing f) Presentation and discussion of the 1. The expenses resulting from the draft District Investment Plan drawn up responsibilities of the PDID shall be set by the CDD at the ECDD and ECDN; out once a year in the General State Budget, which incorporates the g) Completion and approval of the allocations of PDD I and II and the District Investment Plan drawn up by community development programmes. the CDD; 2. The PDID may also be financed by h) Submission of the District the local community or by development Investment Plan to the Ministry partners. responsible for Local Administration; 3. The budgetary allocation process for i) Readjustment of the District PDID projects shall take the following Investment Plan in accordance with the factors into consideration: General State Budget approved by National Parliament. a) Equitable distribution; 2. The rules covering the b) Population Density of the District; implementation of each phase shall be c) Meeting minimum conditions; defined by Ministerial Diploma issued by the Ministry responsible for Local d) Assessment of the quality and Administration. performance in the previous year. CHAPTER IV Article 22 IMPLEMENTATION OF THE Financial Management DISTRICT INVESTMENT PLAN The financial management shall be

Article 20 administered under the terms of Law no. 13/2009 and other applicable Implementation of the PID regulations. 1. The implementation of the PDID Article 23 shall take place according to the following phases: PDID Audit a) Public Procurement and Contract 1. Notwithstanding the powers of other Process; entities, the Inspection and Internal Audit Office of the Ministry responsible b) Implementation of the Project; for Local Administration shall be c) Technical Supervision; responsible for the audit and inspection of the implementation of the PDID. d) Operation and Maintenance; 2. The Government shall be responsible e) Report. for the audit of financial 2. The detailed description of the implementation allocated to the PDID implementation phases shall be projects, which shall take place by way regulated by the joint Ministerial of external auditors. Diploma issued by the Ministry 3. The financial statements of the CDD responsible for Local Administration shall also be subject to monitoring by and the Ministry of Finance. another public institution with powers Approved in Council of Ministers on assigned to it by law. 11th January 2012 CHAPTER VI FINAL AND TRANSITIONAL The Prime Minister PROVISIONS

Article 24 Kay-Rala Xanana Gusmão Regulations It shall be incumbent on the Ministry The Minister of State Administration responsible for Local Administration to and Territorial Planning regulate all the necessary and supplementary procedures for the appropriate implementation of this Arcângelo Leite Decree-Law.

Article 25 Promulgated on 6/2/2012 Repeals 1. Ministerial Diploma no. 8/2005- MAE, Ministerial Diploma no. 1/2008- To be published MAEOT, Ministerial Diploma no. 1/2010-MAEOT on Local Assemblies, and Ministerial Directive no. 7/2005 of The President of the Republic 15th March, which establish the Financial Procedural Manual of the José Ramos-Horta Local Development Fund and Ministerial Directive no. 8/2005-MAE of 15th March, the purpose of which is to regulation Public Procurement and Contracts shall be repealed. 2. All other provisions contrary to the present diploma shall also be repealed.

Article 26 Project under implementation The entry into force of the present diploma in no way affects the implementation of PDL development projects, which have already been approved, and whose implementation falls under the scope of previous legislation.

Article 27 Entry into force This Decree-Law shall come into force on the day immediately following its publication in the Official Journal of the Republic.