The establishment and operationalisation of the Special Regional Administration of Oe-Cusse and the Special Economic Zone for Social Market Economy (ZEESM) requires a range of interventions, investments and preparatory work to build institutional, policy and legal frameworks leading up to the establishment of the ZEESM. There are also imperatives for inclusive economic and social development, with a need to develop not just the Zone economy inside the designated Zone area, but the economy outside of the Zone in the whole of Oe-Cusse and to establish forward and backward linkages between the two, as well as with the rest of TimorLeste and the region. In addition, there is a need to provide for an institutional arrangement that facilitates and enables ZEESM managers to respond with agility and flexibility to evolving, emerging and immediate needs. This Project provides a strategic approach to addressing all three needs. It identifies key issues, gaps and priorities and provides a streamlined implementation design. The projects aims to: (i) lay the foundations for an efficient, effective and agile regional administration in Oe-Cusse; and (ii) put in place sustainable and innovative frameworks to develop the Oe-Cusse economy and to develop its linkages with the ZEESM.