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Presidency of the Council of Ministers

Spokesperson of the Government of Timor-Leste

Ninth Constitutional Government

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Press Release

Meeting of the Council of Ministers on December 17th 2025

The Council of Ministers met at the Government Palace in Dili and approved the Government’s draft resolution, presented jointly by the Ministers of Finance and Public Works, Santina Cardoso and Samuel Marçal, respectively, which determines that an audit of the debts of public institutions to Eletricidade de Timor-Leste, E.P. (EDTL), and provides for the partial payment of the validated amount, as provided for in the 2025 General State Budget.

The decision takes into account the existence of accumulated debts related to the supply of electricity, estimated at around US$28 million, which affect EDTL’s financial sustainability and operational capacity, a situation also highlighted in reports by the Chamber of Accounts.

The Government Resolution requires the Ministry of Finance to conduct a detailed audit to determine the amounts actually owed by each entity. It also provides for the payment, in 2025, of US$18 million, already included in the General State Budget, and the definition of a phased plan for the settlement of the remaining amount in subsequent years.

The measure also establishes the obligation for public institutions to adequately budget for electricity supply expenses to avoid the accumulation of new debts and ensure the sustainability of the services provided by EDTL.

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The Council of Ministers has decided to approve the Roadmap for the Development of the Housing Market in Timor-Leste.

The Roadmap outlines a comprehensive vision for the housing sector, organised around four main pillars: guaranteeing land and housing rights, expanding access to adequate and resilient housing solutions, developing financing systems for families, and establishing the institutional and data infrastructure needed to sustain long-term policies. The approach follows a cycle of action and learning—do, evaluate, and expand—allowing solutions to be tested in the field, incorporated into public policy, and effective models to be consolidated.

Among the central pillars outlined, the following stand out: strengthening the land administration system, conducting detailed analysis of housing market needs, promoting resilient construction practices, and diversifying supply solutions, including private sector-led projects, self-build initiatives, and community and vertical housing promoted by the Government. The Roadmap also envisages the gradual development of financial instruments to help families access suitable solutions, based on the guidelines and models defined by the Central Bank of Timor-Leste.

This initiative by the Government seeks to address the increasing demand for housing and the necessity of providing decent and adequate accommodation for citizens, as outlined in the Constitution and the Program of the 9th Constitutional Government. It promotes an integrated approach involving public institutions, the private sector, and development partners, aiming to improve the living conditions of Timorese families.

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The Council of Ministers approved three draft resolutions presented by the Minister of Petroleum and Mineral Resources, Francisco da Costa Monteiro, to authorise expenditures for the development of the oil sector and the implementation of strategic infrastructure on the southern coast of the country.

Under Program A13, related to the development of the Greater Sunrise gas field and ensuring the export pipeline reaches Timor-Leste, expenditure was approved for geotechnical surveys for both the Greater Sunrise pipeline and the Bayu Undan pipeline, covering two separate lots, for the period between 2025 and 2027. The costs amount to approximately US$36 million for Lot 2 and approximately US$12.9 million for Lot 1.

Under Program A18, relating to the implementation of the Tasi Mane Project on the south coast of the country, the Council of Ministers also approved expenditure for the rehabilitation of an existing section of the highway, including the construction of two underpasses. This intervention, part of the subprogramme for developing infrastructure to support the Tasi Mane Project, involves an investment of approximately US$13.5 million.

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Lastly, following the policy decision made at the previous meeting of the Council of Ministers and the discussions held since then, including further technical talks with the Asian Development Bank (ADB), the Council of Ministers has decided to continue the assessment of the loan under the Ordinary Capital Resources (OCR) linked to the “President Nicolau Lobato International Airport Expansion” Project, dated January 1^st, 2021, in the amount of US$85 million, within the framework of the State’s financial policy and responsible public debt management.

In this context, the Government will commence institutional discussions with the ADB to negotiate a potential reduction in the specified financing component, based on cost savings achieved and in line with ongoing project implementation.

This assessment is part of the Government’s broader effort to ensure the efficient, appropriate, and sustainable use of public resources, including careful consideration of the suitability of financing instruments for each project, taking into account the project’s degree of implementation, defined national priorities, and practical implementation capacity.

It should also be clarified that, regarding the press release issued after the Council of Ministers meeting on December 10^th, 2025, the Power Distribution Modernisation project has not been cancelled; only the financing agreement previously entered into with the ADB has been cancelled. END

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On December 16^th, 2025, the Heads of State and Government of the Community of Portuguese-Speaking Countries (CPLP) decided to suspend the participation of the Republic of Guinea-Bissau in all activities of the organisation until constitutional order is restored and to appoint the Democratic Republic of Timor-Leste to temporarily hold the pro tempore presidency of the CPLP. 

The decisions were made during the First Extraordinary Conference of Heads of State and Government of the CPLP, held via videoconference, convened to assess the political and institutional situation in Guinea-Bissau following the coup d’état on November 26^th, 2025.

In the Final Statement, Member States expressed deep concern about the interruption of the electoral process in Guinea-Bissau, condemned the violation of democratic principles, and urged the urgent restoration of constitutional order and national reconciliation.

In the same context, a resolution was approved to suspend Guinea-Bissau’s participation in CPLP activities entirely, under Article 7 of the organization’s Statutes, and to transfer the pro tempore presidency to Timor-Leste, with all the associated prerogatives.

The Conference was attended by Heads of State and Government, or their representatives, from Angola, Brazil, Cape Verde, Equatorial Guinea, Mozambique, Portugal, São Tomé and Príncipe, and Timor-Leste.

 

 

2 PM, Government Palace

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The Vice Prime Minister and Coordinating Minister of Economic Affairs, Minister of Tourism and Environment, Francisco Kalbuadi Lay, participated on December 10^th, 2025, as a keynote speaker at the ASEAN Marketing Summit 2025, held in Jakarta, Indonesia, as part of the MarkPlus Conference organised by MarkPlus, Inc. 

The ASEAN Marketing Summit is part of the MarkPlus Conference, an annual regional event that brings together government officials, business leaders, and experts to discuss economic trends, marketing, innovation, and digital transformation in the ASEAN region.

In his speech, the Vice Prime Minister emphasised that, as a new member of ASEAN, “this moment has particular significance,” as it reflects “Timor-Leste’s commitment, hope, and readiness to work together with everyone to build a stronger and more prosperous region.”

Francisco Kalbuadi Lay also stated that the ASEAN Marketing Summit “is not just a technical meeting,” but “a platform where leaders, experts, and partners from across the region come together to define how we project the regional image to investors, entrepreneurs, and tourists,” adding that the forum allows “sharing ideas on how to strengthen ASEAN’s competitiveness and unity in a rapidly changing global world.”

The Vice Prime Minister also highlighted that joining ASEAN “is not just about meeting technical requirements,” but signifies “connecting our people and our future with a broader regional family,” emphasising that economic integration will allow Timorese companies to participate in regional value chains and attract investment.

The event focused on topics such as digital transformation, artificial intelligence, consumer behaviour, and strategies to enhance economic competitiveness in Southeast Asia.

Lecture by H. E. the Prime Minister, Kay Rala Xanana Gusmão
Universiti Kebangsaan Malaysia, Kuala Lumpur – 29 October 2025

Speech at the ASEAN Secretariat — “Responsibility and Opportunity: Timor-Leste in ASEAN”

Timor-Leste and Indonesia have concluded the second round of formal maritime boundary negotiations in Yogyakarta, Indonesia, held from 8 to 10 December 2025. 

This round follows the first formal negotiations in Dili on 19 to 20 August 2025, where both countries exchanged opening positions and agreed on the guiding principles for the negotiations.

Timor-Leste’s delegation was led by Ms Elizabeth Exposto, Chief of Staff to Prime Minister Kay Rala Xanana Gusmão and CEO of the Land and Maritime Boundary Office. Indonesia’s delegation was headed by His Excellency Ambassador Amrih Jinangkung, Director General of International Treaties, Ministry of Foreign Affairs.

Across three days of discussions, the two delegations worked constructively and made progress toward an equitable outcome. Ms Exposto said, “Settling equitable maritime boundaries with Indonesia is central to strengthening bilateral cooperation, including maritime security, fisheries management, resource development, environmental protection and cross-boundary economic activity.”

Both delegations reaffirmed their commitment to achieving an agreement consistent with international law, including the United Nations Convention on the Law of the Sea (UNCLOS).

Timor-Leste and Indonesia agreed to hold a third round of negotiations in the new year, to be hosted by Timor-Leste.

Timor-Leste has previously concluded a permanent maritime boundary with Australia through a successful conciliation under UNCLOS, resulting in a treaty signed in 2018 and ratified in 2019.