The Minister of Finance, Rui Augusto Gomes, on behalf of the Government of Timor-Leste, and the Deputy to the First Secretary of the Southeast Asia Division, Ridwaan Jadwat, representing the Government of Australia, signed today, December 15, 2022, a Financing Agreement worth $73.4 million to fund the development project of President Nicolau Lobato International Airport (PNLIA).

This budget will be used for the construction of the road leading to the passenger terminal, a fire-fighting package, a quarantine facility for animals and plants, a primary healthcare building, a fuel depot, electricity and public lighting, the supply of drinking water, and the site, including the passenger terminal drop-off zone.

Additionally, the Government of Timor-Leste has also allocated $17.3 million to fund the construction of the runway, relocation of families living near the airport, and construction supervision consultancy services.

With this project, Timor-Leste aims to meet safety standards, ensure safe and efficient air transport, enhance air connectivity with neighboring countries in the Asia-Pacific region, as well as promote tourism and other economic sectors to support economic diversification and contribute to ASEAN membership.

Improved air connectivity is essential for tourism development, a significant driver of economic growth. Good facilities and security will facilitate the exchange of goods, services, knowledge, and ideas by connecting with major cities in Southeast Asia. Timor-Leste needs good access to international capital, human resources, investment, and improved air connectivity, which has the potential to have a transformative effect on the economy.

The PNLIA expansion project aligns with the Strategic Development Plan, with its main priority being infrastructure development, aiming to consolidate economic growth and reduce inequality. According to the plan, this project will conclude by the end of 2027.

This strategic project complements the New Tibar Port, which was inaugurated by the Prime Minister, General Taur Matan Ruak. These two strategic mega-projects will facilitate Timor-Leste’s international connectivity and regional and global integration.

In the meeting on December 2, 2022, the Council of Ministers granted full authority to the Minister of Finance, Rui Augusto Gomes, to sign, on behalf of the Government of Timor-Leste, the Loan Agreement with the Government of Australia for the project designated as the “Timor-Leste Airport Facilities Project.”

This agreement envisages a financial contribution from the Australian Government to Timor-Leste amounting to $28.36 million and the acquisition of a loan worth $45 million, with a maturity of 25 years, to finance the development project of Nicolau Lobato International Airport.