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Press Release
Meeting of the Council of Ministers on October 28th, 2026
The Council of Ministers met at the Government Palace in Dili and approved the draft Decree-Law, presented by the Vice Prime Minister and Coordinating Minister of Economic Affairs, Francisco Kalbuadi Lay, and the Governor of the Central Bank of Timor-Leste (BCTL), Hélder Lopes, concerning the Legal Framework for the Use of Electronic Payment Instruments in the Conduct of Economic Activities.
The Decree-Law imposes an obligation on economic operators to provide electronic payment instruments and to accept electronic payments, with a view to promoting the efficiency, security, transparency and traceability of transactions, as well as the development and use of the national payment system.
The scheme covers operators of economic activities throughout the country, payment service providers authorised by the BCTL, the public administration and other public bodies, whilst providing for exceptions for street traders and for activities carried out in remote areas where the technical, technological or infrastructural conditions necessary for the use of these instruments do not exist. The operators covered by the scheme have a period of six months to comply with the new obligations, with the legislation coming into force on the first day of the month following its publication.
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The Council of Ministers has approved the draft Government Resolution, presented by the Minister for Finance, Santina José Rodrigues F. Viegas Cardoso, which approves the paid-in capital of the National Development Bank of Timor-Leste, SA (BNDTL – acronym in Portuguese) and authorises the related expenditure.
The Resolution approves the BNDTL’s paid-in capital, fully subscribed by the State, in the amount of US$30 million, and authorises expenditure up to December 31st, 2026, using funds allocated in this year’s General State Budget.
Paid-in capital is a prerequisite for the BNDTL’s application for authorisation from the Central Bank of Timor-Leste. The Bank’s mission is to promote the country’s sustainable and inclusive economic development by providing appropriate financing solutions for domestic companies and projects, whilst complementing the commercial banking and existing financial systems.
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The Council of Ministers has decided to approve the Memorandum of Understanding between the Ministry of Foreign Affairs and Cooperation of the Democratic Republic of Timor-Leste and the Ministry of Foreign Affairs of the Republic of Korea on the establishment of a bilateral consultation mechanism.
The Memorandum establishes a mechanism for regular bilateral consultations to strengthen relations and cooperation between the two countries, facilitate the exchange of views on bilateral, regional and international issues of mutual interest, and assess progress in cooperation in areas that may include trade, the economy, health, education, science and technology, and agriculture.
Consultations will take place at the senior official level of the respective Ministries of Foreign Affairs, once every two years, or whenever the parties deem it necessary, alternating between Timor-Leste and the Republic of Korea.
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The Council of Ministers approved the draft Decree-Law, presented by the Minister for Public Works, Samuel Marçal, on the Special Procurement Regime for the Construction of Infrastructure Aimed at Improving Accessibility and the Regeneration of the City of Dili, as part of preparations for events related to Timor-Leste’s ASEAN Chairmanship.
The Decree-Law establishes a special procurement regime to streamline procedures for implementing priority projects to improve accessibility and regenerate the city of Dili, with a view to ensuring their timely completion in time for the events relating to Timor-Leste’s ASEAN Chairmanship, which is scheduled to begin in 2029.
The regime covers nine sections of roads and streets in the city of Dili, including works on roads, pedestrian routes and public spaces, the replacement of overhead public electricity systems with underground systems, and the installation or pre-installation of public sanitation, water supply, and telecommunications infrastructure.
For the implementation of these projects, the legislation permits competitive tendering or direct award procedures, regardless of contract value, without derogating from the principles and other rules applicable to public procurement and the execution of public expenditure.
The Ministry of Public Works and the public corporations under its authority are responsible for implementing the projects, whilst the National Procurement Commission, I.P., is responsible for conducting the procurement procedures. The National Development Agency, I.P., retains its powers of technical and financial verification, as well as any other powers provided for in the applicable legislation.
The aim of this measure is to ensure the timely implementation of the works required to prepare the city of Dili for the events associated with the ASEAN Chairmanship, whilst also helping to improve road and pedestrian traffic flow, the urban environment and the public infrastructure affected by the works.
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The Council of Ministers approved the draft Government Resolution, presented by the Minister for State Administration, Tomás do Rosário Cabral, for the first amendment to Government Resolution No. 19/2026 of April 1st, which sets the maximum expenditure to be incurred in connection with the process of transferring the remains of Catholic prelates who carried out pastoral duties in Timor-Leste.
The approved amendment increases the maximum amount allocated to cover the costs of transferring the remains of Portugal’s prelates to Dili Cathedral, as well as the associated funeral and memorial services, from US$600,000 to US$854,990.
This increase, amounting to US$254,990, is intended to cover the additional costs approved during the course of the process by the Interministerial Committee responsible for organising the ceremonies, namely those relating to the government’s institutional representation at the ceremonies held at Évora Cathedral in Portugal, the construction of the Mehara monument, and the ceremonies held in Bali, Indonesia. END