DILI, 10 december 2025 (TATOLI) – The Council of Ministers has authorised the Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, to sign a loan agreement with a grant component with the Asian Development Bank (ADB) to finance the “National Road Improvement Project (Phase I).”
In a statement, the Government said the project “aims to modernise approximately 42 kilometres of essential roads in the national road network, introducing small-scale climate adaptation infrastructure in six villages along the route that are prone to flooding and drought, to strengthen connectivity with municipalities in the south and east.”
The project also includes the rehabilitation of the Seical, Borouai, and Malailada bridges located between Baucau and Lautém.
According to the statement, “the initiative also involves implementing climate-resilience measures led by local communities, targeted at mitigating vulnerabilities along the road corridor and reducing the risk of climate change impacts in vulnerable villages.”
The loan comes with highly favourable terms for Timor-Leste, offering an interest rate of 1% per year, a 40-year maturity period, and a 10-year grace period. The principal will be repaid at 2% annually during the first decade after the grace period and 4% in the following years, ensuring a manageable long-term financial commitment for the State.
Journalist: Camilio de Sousa
Editor: Filomeno Martins
