Timor-Leste: Multitranche Financing Facility - Electricity System Strengthening and Sustainability Program (Tranche 1)

Sovereign Project | 49177-003

The proposed investment program will finance investments in Electricidade de Timor-Leste (EDTL), Timor-Leste's state-run electric utility) to improve electricity service reliability, expand access to modern energy services, and improve performance of EDTL's management, maintenance, and revenue-collection systems throughout Timor-Leste. Achievement of these objectives will substantially reduce the fiscal drain of the power sector on Timor-Leste's budget. Investments will be financed consistent with a sector development strategy and investment roadmap, to be prepared as a key output of project preparatory technical assistance (PPTA).

Project Name Multitranche Financing Facility - Electricity System Strengthening and Sustainability Program (Tranche 1)
Project Number 49177-003
Country Timor-Leste
Project Status Dropped / Terminated
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Multitranche Financing Facility - Electricity System Strengthening and Sustainability Program (Tranche 1)
Ordinary capital resources US$ 15.00 million
Strategic Agendas
Drivers of Change
Sector / Subsector

For classification / For classification

Gender Equity and Mainstreaming
Description The proposed investment program will finance investments in Electricidade de Timor-Leste (EDTL), Timor-Leste's state-run electric utility) to improve electricity service reliability, expand access to modern energy services, and improve performance of EDTL's management, maintenance, and revenue-collection systems throughout Timor-Leste. Achievement of these objectives will substantially reduce the fiscal drain of the power sector on Timor-Leste's budget. Investments will be financed consistent with a sector development strategy and investment roadmap, to be prepared as a key output of project preparatory technical assistance (PPTA).
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.

The bulk of capital investments to be financed under Tranche 1 may be implemented by EDTL within the framework of the proposed PPP arrangement. The Government of Timor-Leste is expected to retain ownership of EDTL and most of its assets. Tranche 2 investments in any new generation assets (i.e. other than conversion of existing generation from diesel to natural gas) are expected to be complemented by private-sector investment.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Trainor, James Michael
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Min of Transport, Communications and Public Works
Telecom Building
Dili, Timor-Leste
Timetable
Concept Clearance -
Fact Finding -
MRM 16 Aug 2019
Approval -
Last Review Mission -
Last PDS Update 26 Sep 2018

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Related Publications

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Procurement Plan

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