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1. Dili Drainage Infrastructure Upgrading Project to be financed by a loan from EXIM
Bank of China 2.
South Coast Highway first section from Suai-Mola 3.
Dili International Airport Development 4.
Tibar Bay Port Development 5.
National Road of Baucau-Lautem 6.
National Road of Baucau-Viqueque 7.
Suai Supply Base SSB The allocation budget of 2016 for all these loan funded project is amounted to 107 million
excluding the government counterpart fund. The detail distribution to each budget can is presented in Table 7 and Annex 1.
4.2.24 Public-Private Partnerships Program
The Government of Timor Leste is also looking at Public-Private Partnerships PPPs modality to develop infrastructure. The underlying rationale for PPPs stems from the fact that this type of
business arrangement potentially allows the Government to benefit from the private sector expertise and financing, which are important ingredients that can result in higher quality and
efficiency, as well as lower risks borne by the Government in delivering the infrastructure projects.
In the past few years, the Government has established the legal and institutional frameworks which are important elements for the PPP type of project to be developed and succeed. These
efforts have been spearheaded by the Ministry of Finance through the Public Private Partnership and Loan Units. Decree-Law No. 422012 regulating the legal regime on Public-Private
Partnerships as amended by Decree-Law No. 22014 and Decree Law 082014 Implementing Rules and Regulation of Decree Law 022014.
It is expected that well-planned and managed Public Private Partnership Projects can help the Government achieve the following objectives:
1. Support the Government to design, implement andor operate essential infrastructure
projects and attract private investment to Timor-Leste to boost economic growth. 2.
Improve the capacity of services by exploring and accessing the expertise and technology of the private firms in providing better services.
3. Sharing of risks with those who can best design andor construct andor
operatemaintain the facilities as PPP allows Government to allocate more risks to the private sector.
4. Incentivizing the private sector to deliver projects on time and within budgets.
5. Extracting long-term value-for-money through appropriate risk transfer to the
private sector over the life of the project – from design construction to operations maintenance.
