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Pelican Paradise Resort: US$180M from Gov-TL required to address water supply and electricity challenges

Pelican Paradise Resort: US$180M from Gov-TL required to address water supply and electricity challenges

Image Pelican Paradise

DILI, 27 january 2025 (TATOLI) – The Pelican Paradise Group Limited demanded a deposit of US$180 million from the Government of Timor-Leste to address the water and electricity challenges, said Samuel Ong, Director of Pelican Paradise Holdings Timor-Leste.

Water supply and electricity problems have been considered the main challenges to speeding up the construction of the multi-million-dollar project.

“Due to the long delay, our funder required a government deposit of US$180 million with 4% interest per annum during construction to ensure the water supply, electricity, and visas and all their responsibilities stipulated in the SIA agreement are met.  The amount will be fully refunded upon completion of Phase 1 development,” Director Ong told Tatoli.

Pelican Paradise said that the scale of Pelican Paradise requires extensive infrastructure and regulatory support, including the provision of water, and electricity, and the timely issuance of permits, visas, and other essential approvals: “These requirements, outlined in the Special Investment Agreement (SIA), are responsibilities that only the Government can fulfill.”

“Government’s cooperation and support is imperative for the success of this project. In light of the countless delays over the past 16 years, the request for the US$180 million deposit from the Government is to ensure the Government’s commitment to this project. Our funder has requested for this deposit to be held in a non-depleting, interest-bearing account at 4% per annum in favor of the Government. This deposit will be held for a period of 60 months during the construction and maintenance period and is meant to ensure all the Government’s obligations are met, specifically in regulatory stability and infrastructure provisioning. This includes critical areas such as water, electricity, and the timely issuance of permits and licenses, all of which are essential to the smooth construction of the project,” Pelican Paradise posted on its Facebook page, last year.

Pelican Paradise said that it has signed term sheet with its funding partner for US$825 million, ready, willing, and able to be deployed for the execution of the project. “The documented proof of the availability of these funds has been forwarded to the relevant Government authorities. All information about the funder, including their track record, has been shared with the Government. The terms of the fund have also been shared to ensure everything is above board.”

Pelican Paradise considered that without the deposit from the Government of Timor-Leste, it is highly unlikely that a project of this magnitude can be completed successfully.

“The Pelican Paradise project in Tibar remains in the same stage as last year. Progress on the construction of our Show Unit Gallery, located on the hill past Dili Rock, has significantly slowed. This decision was made due to challenges such as water supply and electricity. We cannot operate our development without these necessities,” Ong explained.

In January 2022, the VIII Constitutional Government and Pelican Paradise Group Limited signed the Special Investment Agreement (SIA) for the implementation of the 5-star hotel project. But, the initial project agreement was signed in 2008.

Later that same year, the President of the Republic, José Ramos Horta, accompanied by the former Prime Minister, Taur Matan Ruak, and the Chairman of Pelican Paradise Ltd, Datuk Ong Han, celebrated the groundbreaking ceremony for the construction of the Pelican Paradise Resort.

This world-class resort includes Hotels, flats, villas, golf courses, tennis courts, youth development centers, kids’ clubs, hospitals, shopping centers, and so on.

The first phase of the US$700 million mega-project is expected to employ more than 1,000 local people.

The resort would cover 550 hectares, from Tasi-Toli in Dili to Tibar in Liquica municipality.

 

Related News: TL and Pelican Paradise celebrate the groundbreaking ceremony of a 5-star resort hotel

 

TATOLI

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