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The loan comprises two parts: an International Development Agency IDA Credit of 25.0 million and an International Bank for Reconstruction and Development IBRD
Loan of 15.0 million. The IDA Credit has a grace period of five years, maturity period of 25 years and interest rate fixed at 2, while the IBRD Loan has grace period of
eight years, maturity period of 28 years and a variable interest rate of LIBOR+1.
d. Road Upgrading Project Manatuto-Natarbora
A second road project using loan assistance from the ADB concerns upgrading the North-South link between Manatuto and Natarbora. ADB financing comprises an
ADF loan of 10.0 million and an OCR loan of 40.0 million, while the Government counterpart contribution amounts to an estimated 73.0 million.
The OCR loan has a maturity of 25 years, grace period of 5 years and a variable interest rate of LIBOR+0.5. The ADF loan has a grace period of 5 years, maturity of
25 years and a 2 fixed interest rate.
e. Tacitolu-Tibar Dual Carriageway Road Project.
This project was initiated after studies concluded that a realignment of the road section between Tacitolu and Tibar Bay would reduce the road length by 2 km and
widening of this section to four lanes all the way to the entrance of the future Tibar Bay Port would bring about significant economic benefits and justify the additional
cost of the works.
To finance this project, the government and ADB signed a new loan agreement in June 2015 in the amount of 11.78m. This is an OCR loan with an interest rate of
LIBOR+0.6, 5 years grace period and 25 years maturity.
In addition to the aforementioned projects, there are some potential loan-funded projects for 2016, which are currently in various stages of preparation or
negotiation. These projects include: Dili Drainage Infrastructure Upgrading Project, Dili International Airport, Suai-Beaco Highway, Baucau-Viqueque road upgrade
project, Baucau-Lautem road upgrade project, and Aituto-Gleno road upgrade project.
Thus, the total program budget is 107.0 million in 2016. These amounts do not include the Government
’s o t i utio . The total projected loan disbursements, over the 2016-2020 period, can be seen below in Table 2.7.3.1.
Table 2.7.3.1: Total Loan Disbursement 2016 -2020
Total 2016
2017 2018
2019 2020
Loans 1,021.2
107.0 348.4
366.2 160.5
39.2 Source: Loans Unit, Ministry of Finance 2015
