Dili, May 28, 2019 (Lusa)
The construction in Portugal of the Haksolok ferry, destined for Timor-Leste, will require an additional $14 million USD (approximately €12.5 million) to complete — on top of the $16 million already spent. The vessel is already three years behind schedule, with construction of two pontoons also pending.
Background: The Haksolok Ferry Project
The Haksolok is designed to carry 377 passengers and 25 vehicles, connecting:
- Dili (the capital) to Ataúro Island
- Dili to the Oecusse-Ambeno enclave
The acquisition process began in 2014, initiated jointly by the Timorese Central Government and the Administrative Office of Oecusse-Ambeno (RAEOA). The construction contract was signed with Atlanticeagle Shipbuilding in September 2014, with work starting in 2015.
Cost Overruns
Transport and Communications Minister José Agustinho da Silva, following a visit to Portugal, confirmed the additional budget requirement:
“The contract with Portugal’s Igen Shipbuilding company has already had a budget allocation of 13 million, but the construction is not yet finished and so it requires an additional budget of 14 million dollars to finalize the construction of Haksolok.”
According to Mari Alkatiri, president of the Special Administrative Region of Oecusse-Ambeno, the $14 million figure covers:
- The remaining work on the ship itself
- Part of the cost of two pontoons (~$3 million each) — one for Oecusse-Ambeno and one for Ataúro Island
As of the report date, the $16 million already spent accounts for:
- 70% of the ship’s construction (completed)
- 50% of the Oecusse pontoon
- Purchase of steel for the Ataúro pontoon
Timeline of Delays
The project has repeatedly missed its deadlines:
| Date | Milestone |
|---|---|
| September 2014 | Contract signed with Atlanticeagle Shipbuilding |
| 2015 | Construction begins |
| October 30, 2015 | Original delivery deadline |
| January 22, 2016 | Addendum extends deadline to November 15, 2016 |
| August 2016 | Deadline postponed again to May 2017 |
| May 2019 | Construction still incomplete; ship at Mondego Shipyards |
The Chamber of Accounts audit noted: “All these deadlines have been largely exceeded, since delivery has not yet occurred until the date of preparation of this Audit Report.”
Causes of Delay
Initial delays stemmed from difficulties the company faced in presenting the financial guarantees required to begin the contract and receive advance payments. This led to a renegotiation of the guarantee structure via a contract addendum.
More recently, the situation worsened due to legal disputes between Atlanticeagle Shipyard and its subcontractors, which undermined the shipyard’s financial position and caused construction to be suspended entirely.
Alkatiri acknowledged shared responsibility for the situation:
“The management of the company (in Portugal) has been catastrophic and was not able to meet our expectations. But there were also mistakes at the start.”
He also clarified the governance history:
“This began with the central government, the contract was awarded by the government in 2014, when there was not even RAEOA, and then it was transferred to RAEOA.”
Quality and Oversight
Despite the management failures, independent audits commissioned by RAEOA confirmed the high quality of the ship’s construction. The Portuguese institute ISQ (Instituto de Soldadura e Qualidade) was contracted to supervise the build and ensure compliance with international maritime standards.
RAEOA has maintained that the disputes between the shipyard and its subcontractors are external to their organisation, while continuing to pursue solutions proactively. Legal representatives have been appointed in Portugal to protect Timor-Leste’s interests and seek resolution.
Alkatiri estimated that once the company resolves its internal problems, the ship could be completed within 12 months.