Electricity Program SUMMARY OF THE 2015 IF BUDGET BY PROGRAM 1. Agriculture Program

Page | 15 In terms of basic education, the IF is currently funding the construction of six 5 out of a total program of 13 Polo Reference Schools nationwide each catering for education from Grade 1 through to Grade 9. Of the remaining seven, construction of four Los Palos, Liquica, Aileu and Suai were proposed for commencement in 2014 but IF funding was deferred and construction of three Dili, Ainaro and Viqueque were proposed for commencement in 2015. Each school is being constructed in four phases. The first phase provides classrooms and other facilities for Grades 1 – 6 and successive phases provide the necessary facilities as the pupil’s progress through the grades. Initially the teaching staff are being supplied from Portugal under an inter- Governmental agreement and will be replaced by local teachers as their training is completed and they become available. On completion the total programme of 13 schools will provide high quality basic education facilities for about 7,000 pupils, with an annual graduation from Grade 9 of nearly 800 students as from 2020. Of the budget of 3.8 million excluding the school in Oecussi in 2014, 5.7 million is estimated to be disbursed by end of 2014 and to keep the construction programme for the schools and polytechnics on schedule, a budget of 8.0 million is required in 2015. The advanced education expansion program concerns Construction of the National University facilities at Hera and the Construction of Polytechnics for Engineering Suai, Agriculture Manufahi, Fisheries Manatuto and Commerce Los Palos. In addition, the establishment of a Polytechnic in Aileu is also under consideration to be built, operated and managed under a PPP modality. The construction of two faculties at the national University is proceeding and 2.0 million has been allocated in 2015. The DEDs for the polytechnics proposed for Suai and Lospalos are in preparation and will require 2.0 million in 2015. The contract for the preparation of DED for the fisheries polytechnic is expected to be completed sometime in 2014 and construction will commence in 2015 for which 0.7 million has been allocated. Procurement of the design engineer for the DED for the Agriculture Polytechnic has yet to commence and no funds have been allocated in 2015. The proposed PPP Polytechnic in Aileu has also not been included in the IF budget for 2015 pending advancement in project preparation. In summary, the total 2015 budget requirement for the Education program is estimated 8.0 million.

4.2.8. Electricity Program

The aim of the electricity program is to provide reliable electricity generation, transmission and distribution of electricity power throughout Timor-Leste. The importance of a safe reliable electricity supply is essential for progressing the nation to modernity and cannot be over- emphasised. These are by far the largest projects to be funded by the IF and include the construction and equipping of the Power Stations at Hera and Betano and the erection of Medium and Low Voltage Power Distribution Towers and Cables throughout the mainland of Timor-Leste and the Construction of 9 Substations. Work remains to complete the Central Control Systems, Improvement of Street Lighting, Construct a Jetty for Fuel Delivery at Hera and Construct Accommodation for Maintenance and Operating staff in the Districts. 5 Oecusse is included in the IF Oecusse Economic Development Zone program Page | 16 As for medium voltage, the initial approved budget in 2014 was 3.8 million and later, on the request of the project owner, CAFI approved an additional budget of 7.5 million which gave a total of 11.3 million which is expected to be disbursed by the end of the year. For 2015, the total budget requirement for this budget line is 15.0 million. The low voltage in 2014 has been initially allocated 8.5 million and later, on the request of the project owner, CAFI approved an additional budget of 8.2 million giving a total of 16.7 million which is expected to be disbursed by end of the year. Meanwhile, the Power Stations at Hera and Betano had been initially allocated 33.3 million and later, on the request of the project owner, CAFI approved an additional budget of 6.9 million giving a total of 40.2 million which is expected to be disbursed by the end of the year. Oecusse and Atauro Island have yet to share the benefits that most of the rest of the country now enjoys. The Oecussi power supply and distribution line projects will enhance the potential for the future development of the Special Economic Zone. The total budget initially allocated for the Oecussi Power Plant was 2.7 million and, with the approval of CAFI, this allocation has been increased to 10.6 million. For Atauro, while some electricity is generated by privately installed solar panels and small generators, the island will be connected to the mainland by a Submarine Cable and provided with Sub-stations and a Local Distribution Network. These works will commence in 2015. Overall, excluding the Oecussi located program, the above on-going projects in the Electricity sector will require 58.1 million in 2015.

4.2.9. Informatics Program