Construction of the Port of Tibar has already reached 72%

Thu. 24 of February of 2022, 09:44h

The cumulative progress of the Tibar Bay Port construction reached 72% by December 31st, 2021. The Government of Timor-Leste has made, through the Escrow Account managed by the Ministry of Finance (MF) from August 2019 until December 2021, a payment to the Viability Gap Funding (VGF) in the amount of US$ 84.1 million to Timor Port S.A., the concessionaire of the Tibar Bay Port Public Private Partnership (PPP) project.

When it is start operational, the Tibar Bay Port will replace the Port of Dili, facilitating the movement of imported and exported goods, with a capacity to handle one million containers per year. The port consists of a wharf with two berths, which will be used to reduce delays in container release, including transaction costs, to facilitate efficient customs services and trade activities.

“These efficiency improvements are considered an important step by the Ministry of Finance, within the scope of the Tax Reform and Public Finance Management - a key priority of the 8th Constitutional Government's Program”, mentioned Finance Minister Rui Augusto Gomes.

“These efficiency improvements will also help the government, through the Ministry of Finance, to collect revenue more quickly, fairly and transparently.” 274587461_298831685680265_4680311800348468950_n

“This new modern port will facilitate Timor-Leste's maritime connectivity in the Asian region, connect our country to global social markets, and improve our access to trade in goods, particularly for agriculture, tourism, fisheries, livestock, and industry,” concluded the Minister.

The construction of the Tíbar Bay Port, in PPP modality, is a partnership between the Government of Timor-Leste, which has allocated US$ 130 million to the Viability Fund (VGF), and Timor Port, a subsidiary of Bollorè, which has allocated US$ 150 million.  In total, it is US$ 280 million for the initial construction phase, with a total investment estimated at US$ 500 million over 30 years.

Currently, 949 people are working on the Tibar Bay Port project, 579 of whom (61%) are Timorese.

Regarding development local, until December 2021, the China Harbour construction company has outsourced some services to 69 local companies, with a value of US$ 21.2 million, and there are 392 Timorese working indirectly with these companies.