Timor-Leste: Power Distribution Modernization Project
The project will (i) support the modernization of the power distribution system to contribute to the sustainability, resiliency, and reliability of the electricity system; and (ii) provide institutional strengthening and capacity building to the implementing agency, Electricidade De Timor-Leste (EDTL). It is aligned with the following Sustainable Development Goals (SDGs): SDG 7 on access to affordable, reliable, sustainable, and modern energy for all, and SDG 13 on urgent action to combat climate change and its impacts. The project will support EDTL improve the power supply infrastructure in Timor-Leste.
Project Details
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Project Officer
Miller, Daniel
Southeast Asia Department
Request for information -
Country/Economy
Timor-Leste -
Modality
- Loan
- Technical Assistance
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Sector
- Energy
Related Projects
Project Name | Power Distribution Modernization Project | ||||||||||||
Project Number | 49177-002 | ||||||||||||
Country / Economy | Timor-Leste |
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Project Status | Active | ||||||||||||
Project Type / Modality of Assistance | Loan Technical Assistance |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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Sector / Subsector | Energy / Electricity transmission and distribution |
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Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||||||||
Description | The project will (i) support the modernization of the power distribution system to contribute to the sustainability, resiliency, and reliability of the electricity system; and (ii) provide institutional strengthening and capacity building to the implementing agency, Electricidade De Timor-Leste (EDTL). It is aligned with the following Sustainable Development Goals (SDGs): SDG 7 on access to affordable, reliable, sustainable, and modern energy for all, and SDG 13 on urgent action to combat climate change and its impacts. The project will support EDTL improve the power supply infrastructure in Timor-Leste. | ||||||||||||
Project Rationale and Linkage to Country/Regional Strategy | The principal weaknesses in the power sector are the high cost of generation, inefficient distribution, low level of revenue generation, ongoing need for substantial fiscal subsidies, and excessive technical and non-technical network losses. These problems are, to some extent, the result of other weaknesses in the institutional, legal and regulatory environment, namely the absence of proper commercial practices within EDTL and poor implementation of the legal and regulatory frameworks for the sector. Substantial challenges remain beyond the high cost of diesel generation. Roughly 60% of generated electricity is not billed to customers. Network losses are high, and the installation of meters has not kept pace with new connections. Substantial investment needs also remain, especially at the distribution level (20 kV and lower voltages) to extend service to populations that still lack access to modern energy services. The government's Strategic Development Plan 2011-2030 (SDP) target for 100% electrification by 2015 has not been met, which implies the need for additional investment in new distribution assets. Existing legacy networks also need investment in modernization and replacement of ageing assets. This is a particularly acute need in Dili and Baucau, where networks are several decades old and service interruptions are frequent. To sustain progress in the sector and promote expanded economic opportunity throughout Timor-Leste, EDTL must begin to operate on a more commercial basis: the government currently subsidizes roughly 85% of operating costs in the sector (over $100 million per year). The amount of subsidy required will grow unless technical and non-technical losses decline and generation costs can be reduced. The government also recognizes that the solution may lie in changes to the institutional, legal and regulatory arrangements in the sector. EDTL remains a department within the Ministry of Public Works, Transport, and Communications (MPWTC) and has never operated on a commercial basis. It lacks the human capacity and business systems and processes to operate efficiently and cope with the myriad operational and developmental challenges it faces. Addressing the sector's identified shortcomings and facilitating its sustained development will require further targeted investments in EDTL's distribution assets to reduce physical and commercial losses, improve service quality, and improve financial performance of EDTL as a commercial enterprise. Investments are also required to provide for: (i) expansion of service coverage to population not currently served by formal network electricity service; (ii) lowering the cost of power generation through public and private investments in fuel-switching and development of Timor-Leste's renewable energy resources; and (iii) the introduction of new management systems and practices, and new commercial and contractual arrangements within EDTL. |
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Impact | Access to reliable electricity supply enhanced (Timor-Leste Strategic Development Plan, 2011-2030) |
Project Outcome | |
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Description of Outcome | Power supply reliability and financial performance of EDTL improved. |
Progress Toward Outcome | |
Implementation Progress | |
Description of Project Outputs | Service delivery to end users strengthened Distribution network upgraded and regional offices constructed and/or rehabilitated to green standards Institutional and community capacity for electrical safety and operations strengthened |
Status of Implementation Progress (Outputs, Activities, and Issues) | |
Geographical Location | Nation-wide |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | C |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | |
Involuntary Resettlement | |
Indigenous Peoples | |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | |
During Project Implementation |
Responsible ADB Officer | Miller, Daniel |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Energy Division, SERD |
Executing Agencies |
Council for Administration of the Infrastructure Fund |
Timetable | |
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Concept Clearance | 29 Jan 2016 |
Fact Finding | 09 Dec 2020 to 17 Dec 2020 |
MRM | 21 May 2021 |
Approval | 26 Oct 2021 |
Last Review Mission | - |
Last PDS Update | 26 Oct 2021 |
Loan 4132-TIM
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
26 Oct 2021 | 20 Dec 2021 | 17 Mar 2022 | 30 Jun 2027 | - | - |
Financing Plan | Loan Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 50.00 | Cumulative Contract Awards | |||
ADB | 35.00 | 24 Jan 2023 | 0.00 | 0.00 | 0% |
Counterpart | 15.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 24 Jan 2023 | 0.03 | 0.00 | 0% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
TA 6813-TIM
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
26 Oct 2021 | 11 Nov 2021 | 11 Nov 2021 | 31 Dec 2024 | - | - |
Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
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ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
Gov | Beneficiaries | Project Sponsor | Others | |||||
1,250,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,250,000.00 | 24 Jan 2023 | 257,452.68 |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Title | Document Type | Document Date |
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Loan Agreement (Ordinary Operations) for Loan 4132-TIM: Power Distribution Modernization Project | Loan Agreement (Ordinary Resources) | Dec 2021 |
Power Distribution Modernization Project: Project Administration Manual | Project/Program Administration Manual | Oct 2021 |
Power Distribution Modernization Project: Gender Action Plan | Gender Action Plans | Oct 2021 |
Power Distribution Modernization Project: Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2021 |
Capacity Building of Electricidade de Timor-Leste in Distribution Network Operation and Maintenance: Technical Assistance Report | Technical Assistance Reports | Aug 2021 |
Power Distribution Modernization Project: Procurement Plan | Procurement Plans | Apr 2021 |
Electricity System Strengthening and Sustainability Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jan 2016 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Title | Document Type | Document Date |
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Power Distribution Modernization Project: Due Diligence Report on Resettlement | Safeguards Due Diligence Reports | May 2021 |
Power Distribution Modernization Project: Initial Environmental Examination | Initial Environmental Examination | May 2021 |
Power Distribution Modernization Project: Resettlement Framework | Resettlement Frameworks | May 2021 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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Timor-Leste, ADB Sign $35 Million Loan to Enhance Electricity Services
The Asian Development Bank and the Government of Timor-Leste have signed a $35 million loan to modernize the country’s power distribution system and strengthen state utility Electricidade de Timor-Leste’s ability...
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Financial Management | Firm - Consulting | Closed | 21 Dec 2022 | 28 Dec 2022 |
Power System Planning Specialist | Individual - Consulting | Closed | 15 Oct 2022 | 21 Oct 2022 |
Hydropower Specialist | Individual - Consulting | Closed | 24 Sep 2022 | 30 Sep 2022 |
Training Curriculum Specialist | Individual - Consulting | Closed | 24 Sep 2022 | 30 Sep 2022 |
Power Distribution Specialist | Individual - Consulting | Closed | 24 Sep 2022 | 30 Sep 2022 |
4132-TIM: Power Distribution Modernization Project [OCB/035/EDTL E.P-2022] | Invitation for Bids | Closed | 30 Jun 2022 | 11 Aug 2022 |
Power System Planning Specialist | Individual - Consulting | Closed | 05 Apr 2022 | 11 Apr 2022 |
Project Supervision Consultants (PSC) of Power Distribution Modernization Project | Firm - Consulting | Closed | 10 Mar 2022 | 22 Apr 2022 |
Senior Energy Advisor/Team Leader | Individual - Consulting | Closed | 09 Nov 2021 | 15 Nov 2021 |
Project Supervision Consultants | Firm - Consulting | Closed | 08 Nov 2021 | 07 Dec 2021 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
Title | Document Type | Document Date |
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Power Distribution Modernization Project: Procurement Plan | Procurement Plans | Apr 2021 |