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On October 6th, 2026, in Moscow, Minister of Foreign Affairs and Cooperation Bendito dos Santos Freitas met with the Russian Federation’s Minister of Foreign Affairs, Sergey Lavrov, as part of the first official visit by a Timor-Leste Foreign Minister to Russia.
The meeting continued the political dialogue between the two countries and followed the meeting between Prime Minister Kay Rala Xanana Gusmão and the President of the Russian Federation, Vladimir Putin, held in June this year in Kazan on the sidelines of the ASEAN–Russia Commemorative Summit.
During the talks, the two Ministers discussed bilateral relations and opportunities to strengthen cooperation across various sectors, with particular emphasis on energy and mineral resources, fisheries, tourism, education, trade, and investment.
In the field of education, the Russian Federation expressed its readiness to continue providing training opportunities for Timorese citizens at Russian universities and other educational institutions. The two sides also discussed the possibility of resuming training for Timorese diplomats at the Diplomatic Academy of the Ministry of Foreign Affairs of the Russian Federation.
The two countries also agreed to strengthen the legal framework for cooperation and to promote regular consultations between their respective Ministries of Foreign Affairs to ensure more regular bilateral dialogue.
The meeting also addressed ASEAN–Russia cooperation following Timor-Leste’s full accession to the organisation, as well as national preparations for assuming the ASEAN Chairmanship in 2029. The two officials reaffirmed their support for ASEAN centrality and discussed ways to strengthen coordination across multilateral forums, including within the United Nations.
The two Ministers also discussed preparations for the 25th anniversary of the establishment of diplomatic relations between Timor-Leste and the Russian Federation in May 2027, with initiatives planned to mark the occasion.
The visit to Moscow marks a further step in developing diplomatic relations between Timor-Leste and the Russian Federation, established in 2002, and in identifying concrete areas for strengthening bilateral cooperation.
On October 6th, 2026, the National Parliament approved, in a final overall vote, Draft Law No. 18/VI (3rd), concerning the third amendment to Law No. 9/2011 of August 17th, which approves the Organic Law of the Chamber of Accounts of the High Administrative, Tax and Audit Court, with 37 votes in favour, 16 against, and one abstention.
The approved amendment eliminates prior audit while maintaining concurrent and subsequent audits of public expenditure and public contracts.
During the parliamentary debate, the Government emphasised that the amendment aims to adapt audit mechanisms to the current needs of the Public Administration, reducing delays in administrative procedures and in the implementation of public programmes and projects, without eliminating control mechanisms over the use of State resources.
The Vice-Minister for Parliamentary Affairs, Adérito Hugo da Costa, explained that prior audit enables control before the execution of public contracts and expenditure, but can also cause procedural delays. According to the Vice-Minister, although the law sets a timeframe for verifying legality, some processes have, in practice, experienced longer review periods, affecting the execution of public projects and cooperation with international partners.
With the retention of concurrent audit, the Chamber of Accounts will be able to monitor public expenditure procedures throughout their execution, from procurement processes through to project implementation. Subsequent audit, in turn, will allow for verification of financial execution.
The Government stressed that the amendment does not eliminate control over the use of public resources or remove the responsibility of implementing entities. Public bodies remain responsible for the planning, procurement, execution, and results of projects, and in cases of irregularities or violations of the law, those responsible remain subject to the applicable legal and financial mechanisms.
The amendment thus seeks to reconcile audit and transparency in the management of public finances with greater efficiency in administrative procedures and in the execution of development programmes and projects.
The Minister of Justice, Sérgio de Jesus Fernandes da Costa Hornai; the Minister of Public Works, Samuel Marçal; the Minister of Planning and Strategic Investment, Gastão Francisco de Sousa; the Vice-Minister of Finance, Regina de Jesus; and the Vice-Minister for Parliamentary Affairs, Adérito Hugo da Costa attended this plenary session of the National Parliament.
On October 6th, 2026, in Dili, the Government, through the Ministry of Public Works and Electricity of Timor-Leste, EP (EDTL, EP), signed a technical assistance agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to prepare wind power generation projects in Larigutu in the municipality of Viqueque and in Oeleu in the municipality of Bobonaro.
The agreement provides EDTL with technical support from the IFC to prepare the projects, including the necessary studies and documentation to launch a public tender to mobilise private investment for implementation.
The Minister of Public Works, Samuel Marçal, said that developing wind energy is part of the Government’s plans to diversify electricity sources, reduce dependence on imported fuels, and lower energy production costs.
“We will be able to start using energy from the wind and the sun, thereby reducing the budget for electricity generation,” the Minister said.
Feasibility studies are already underway, and 100-metre-tall towers have been installed in Larigutu and Oeleu to collect and analyse wind data. Technical teams from the IFC and EDTL will continue preparatory work and the detailed definition of the projects.
Paulo da Silva, Chairman of the Board of Directors of EDTL, explained that the tender is scheduled to be launched in 2027 and that, if the process proceeds as planned, the Power Purchase Agreement (PPA) could be signed in the middle or at the end of that year.
The projects are expected to follow the Independent Power Producer (IPP) model, under which the private sector will make the investment, as adopted for the solar photovoltaic project in Laleia in the municipality of Manatuto.
The World Bank Group Representative in Timor-Leste, David Freedman, noted that the technical assistance will support project preparation and help achieve the targets set out in the 2027–2030 Medium-Term Plan.
According to the timeline presented, the procurement process is expected to begin in 2027, with project completion planned for 2028 or 2029. The Government has also set a goal to increase EDTL’s financial autonomy between 2030 and 2031 and to reduce its dependence on State subsidies.
On October 6th, 2026, in Bangkok, Thailand, Prime Minister Kay Rala Xanana Gusmão participated in a seminar on the prudent management of the Petroleum Fund, organised by the Ministry of Finance in joint collaboration with the Central Bank of Timor-Leste (BCTL), with the participation of national and international experts in finance and investment.
The seminar, held on October 6th and 7th, aimed to analyse the Petroleum Fund’s sustainability, fiscal and investment strategies, and the challenges of long-term asset management.
At the seminar’s opening, the Prime Minister highlighted the Petroleum Fund’s role in financing national development since the restoration of independence and called for reflection on its future management, given declining petroleum revenues, and the current international economic context.
“We are now facing a period of concern because [the Fund] is gradually being depleted and we do not know what uncertainties the current world holds. I am grateful that we are here together to reflect—drawing on your knowledge and experience—and to help find the best way to manage our Petroleum Fund prudently,” said the Prime Minister.
The Head of Government also said the work will enable a more detailed analysis of the Fund’s sustainability, the impact of projects funded by its resources, and the fiscal strategy.
The Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, highlighted the fiscal and developmental dimensions of the Petroleum Fund’s sustainability.
“We all know that the Petroleum Fund has been central to financing Timor-Leste’s development and continues to fund a large share of the General State Budget. Therefore, its sustainability is not merely an investment matter but also a fiscal and development issue for the Government,” stated the Minister.
The Petroleum Fund framework was established to balance the needs of present and future generations, with the Estimated Sustainable Income (ESI) serving as the benchmark for sustainable withdrawals.
The Minister of Finance noted that the investment strategy must preserve the Fund’s purchasing power over the long term and pointed out that, in recent years, withdrawals have exceeded the ESI amid significant reductions in petroleum revenues.
“The Fund has performed better than expected. Petroleum revenues and investment returns exceeded projections, while withdrawals were lower,” she stated.
As part of the Government’s priority to ensure the prudent management of the Petroleum Fund, options for a gradual fiscal transition are under review, guided by rules and principles designed to promote the Fund’s sustainability.
The Governor of the BCTL, Hélder Lopes, explained that the Petroleum Fund Law establishes the Investment Advisory Council, which advises the Minister of Finance on the management and investment of the Fund’s resources.
According to the Governor, the Council holds an annual working seminar, and this year’s edition will take place in Bangkok during the Prime Minister’s official visit to Thailand.
During the sessions, the Ministry of Finance presented the current status of the Petroleum Fund, including trends in revenues from oil and gas production, investment returns, and withdrawals. The BCTL also presented analyses to support the definition of the Fund’s investment strategy.
“Prime Minister Xanana Gusmão presented his vision for how we should manage our Fund, followed by the Central Bank’s presentation, and provided guidance to help us conduct a better analysis, with a view to preparing material for the Minister of Finance and the Prime Minister himself, which can be used in policy formulation,” stated Hélder Lopes.
The Petroleum Fund’s balance is currently nearly US$19 billion.
The seminar also featured presentations by international experts on investment, capital mobilisation, and financial sustainability, as well as shared experiences from Australia and Norway in sovereign wealth fund management.
The Prime Minister was accompanied by Timor-Leste’s Ambassador to Thailand, Francisco Tilman Cepeda, and by the Prime Minister’s Chief of Staff, Elizabeth Exposto.
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Press Release
Meeting of the Council of Ministers on October 7th, 2025
The Council of Ministers met at the Government Palace in Dili and analysed the preliminary presentation of the Agreement between the Governments of the Democratic Republic of Timor-Leste and the Republic of Indonesia on the Promotion and Protection of Investments.
The Agreement aims to establish more favourable conditions for investment between the two countries by providing a framework for the protection and treatment of investments, streamlining procedures, and mechanisms for resolving any disputes. The Agreement thus seeks to strengthen investor confidence, promote the flow of capital and technology, and contribute to economic development and the strengthening of bilateral cooperation. END