Page
5 of 57
The implementation of the IF programs in 2017 is a continuation of programsprojects that have been initiated from the previous years. In fact, except strategic projects no new projects have
been included in the fiscal year of 2017, as the government is focused on on-going projects.
1.4. PROJECT APPRAISAL FOR INFRASTRUCTURE FUND
Project appraisal objective is to prioritize and select the best projects for investment based on methodology which is taking into account the contribution to the SDP, economic viability,
readiness of the project for funding. There are two key elements for project scoring and evaluation:
• Importance for development, • Readiness for funding.
The appraisal methodology based on a set of 8 multiple criteria for evaluation, including: i relation of the project or the project`s sector to the Strategic Development Plan; ii economic
impact as measured by the economic internal rate of return iii and effectiveness of investment; iv social impact as direct number of new jobs and indirect number of benefited population;
v readiness for implementation as measured by requited environmental license and other documents; vi dependence of the project on additional infrastructure for reasonable cost,
vii readiness of the project for construction and availability of required documents such as concept design, feasibility study, detailed engineering design and other related documents,
viii readiness of land for the project in terms of land availability for construction and assessment of requirements of possible resettlement under the project.
Finally, the appraisal for infrastructure projects is focusing on the following results:
• Invest in priority projects with the maximum economic and social impact, • Improve infrastructure for economic development of Timor-Leste,
• Support growth and key sectors of Strategic Development Plan. The main objective of the project appraisal is to identify major benefits of the projects, evaluate
the viability and readiness of the projects based on multi-criteria analysis. Finally, to rank all submitted project proposals based on overall importance in terms of social and economic impact
and readiness for funding and implementation.
1.5. ANNUAL BUDGET ALLOCATION AND EXECUTION 2011‐2016
Since the establishment of the Infrastructure Fund, a total of 3.548 billion has been approved and allocated to finance all IF Programs, including Public Private Partnership and External Loan
programs. Summary of the budget allocation and execution from 2011 – 2016 is presented below.
Table 1. Summary IF Budget Allocation and disbursement during 2011-2016
Year Budget
Book Million Disbursement
Million Execution
2011
599.31 474.43
79
2012
875.13 372.40
43
2013
604.38 215.97
36
2014
368.55 330.39
90
2015
317.30 240.93
76
2016 783.66
726.93 93
Total 3,548.33
2,361.05 67
Projected disbursement up to December 31, 2016
Page
6 of 57
The key results and achievements of above investment from IF include improvement of national electrification system through the construction of Hera and Betano power plants, big irrigation
projects in rural areas, water supply and road improvements. More detailed information by IF programs and sectors regarding completed projects are presented in the II Part of this Budget Book.
II. INFRASTRUCTURE FUND PORTFOLIO AND BUDGET BY PROGRAMS
The 2017 IF budget is aiming on financing 21 programs with the source of funding from the State budget, external borrowing, and public-private partnership PPP modality. During the
period 2011 - 2016 a total number of IF programs has increased from 12 to 21. Currently, a cumulative number of projects under the Infrastructure Fund are 1309. The status of IF projects
are as follows: 542 completed projects since the establishment of IF in 2011, 512 ongoing projects, 196 projects have not started and 59 projects in IF Portfolio, but have not yet funded
. The government priority for IF investment is still focusing on basic and vital infrastructure,
including power and water supply, roads and bridges as presented in the Figure 2 below.
Figure 2. Infrastructure Fund Portfolio by IF Programs
