In 2012, Timor-Leste celebrated the tenth anniversary of its independence. In July 2011, the country announced a mid-term national development strategy, transitioning from the reconstruction stage to full-fledged economic development. In response to this change, JICA has reviewed its cooperation policy for Timor-Leste, and based on the basic policy of "creating a base for moving from reconstruction to development," established three cooperation programs: 1) establishing the foundation for promoting economic activities, 2) agricultural and rural development, and 3) capacity improvement in the government and public sector. Based on this, JICA is developing cooperation with a focus on stimulating and diversifying economic activity for industrial promotion to support socioeconomic development over the medium term. In 2012, the year that marks the 10th anniversary of the establishment of diplomacy with Japan, a Japanese ODA loan has been signed for the construction of a 120-kilometer road connecting the capital of Dili and Baucau, the second largest city, becoming the first loan to the government of Timor-Leste.