Dili (Lusa) – The new Port of Tibar, located on the outskirts of Dili, has been recognised with an international award as the best public-private partnership (PPP) project in Asia and the Pacific, attributed by IJ Global.
About the Award
The Asia Pacific Best Public-Private Partnership Award is granted by IJ Global, a leading global infrastructure and project finance organisation that annually recognises the best sectoral projects worldwide.
“This international recognition granted to the first PPP developed in Timor-Leste is a great achievement for the Government and a real impetus for the next projects that are now in preparation,” stated the project’s implementation unit.
“It also demonstrates that the path taken to the development of PPP projects is giving results and that the objectives are being achieved.”
Significance for Timor-Leste
The Port of Tibar is both the first major public-private partnership project and the largest infrastructure project ever undertaken in Timor-Leste. Its first stone was laid in August 2018, with a three-year construction period planned.
Project leaders consider that “Timor-Leste’s PPP strategy proved to be sensible and successful,” with projects carried out on the basis of “a legal and institutional framework that provided a solid foundation for the implementation” of such projects in the country.
Institutional Framework
Central to the process was the creation of the Public-Private Partnerships and Loans Unit (UPPPE), under the Ministry of Finance, staffed with highly qualified consultants.
The Technical Unit is responsible for:
- Developing policy and appropriate legislation and regulation before initiating any PPP
- Identifying potential PPP projects
- Analysing project feasibility
Project Location and Financing
Location: Bay of Tibar, 10 kilometres west of Dili
IFC Support: International Finance Corporation (IFC) of the World Bank Group
Phase 1 — Construction, Equipment and Operation
| Party | Investment |
|---|---|
| East Timorese Government | US $129.45 million (€110.7 million) |
| Private partner (Bolloré) | US $148.85 million (€127.3 million) |
| Total | US $278.3 million (€238 million) |
Phase 2 — Operational Expansion
Bolloré plans to invest approximately US $211.7 million (€181.1 million) in the second phase, largely funded from port revenues.
Construction Details
The construction contract was awarded to China Harbor, a Chinese public company. Key engineering facts include:
- Over 3.5 million cubic metres of land to be dredged
- 28 hectares of sea reclamation
- Main wharf dimensions: 630 metres long by nearly 60 metres wide
- Concrete slab resting on 630 iron pillars buried to a depth of 70 metres
Background and Delays
The project experienced several false starts. A first launching ceremony took place in June 2017, led by then Minister of Strategic Planning and Investment Xanana Gusmão and the Bolloré-led consortium. Issues related to financing and subcontracting delayed the project’s start-up.
As of the award date, some necessary permits — including for the quarry that will supply materials to the new port — had not yet been issued by the Government, according to Demeter de Amaral de Carvalho, Secretary of State for the Environment.