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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 1st, 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 10th, 2025, the Power Distribution Modernisation project has not been cancelled; only the financing agreement previously entered into with the ADB has been cancelled. END