DILI, 17 december 2025 (TATOLI) – The Council of Ministers has decided to continue the assessment of the US$85 million loan under the Ordinary Capital Resources (OCR) linked to the President Nicolau Lobato International Airport Expansion Project, within the framework of the State’s financial policy and responsible public debt management.
The loan agreement with the Asian Development Bank (ADB) dates back to January 1, 2021.
In this regard, the Government will commence institutional discussions with the ADB to negotiate a potential reduction in the specified financing component, based on cost savings achieved and in line with ongoing project implementation.
“This assessment is part of the Government’s broader effort to ensure the efficient, appropriate, and sustainable use of public resources, including careful consideration of the suitability of financing instruments for each project, taking into account the project’s degree of implementation, defined national priorities, and practical implementation capacity,” the government said in a statement.
The Government also clarified that, contrary to interpretations of the press release issued after the Council of Ministers meeting on December 10, 2025, the Power Distribution Modernisation project itself has not been cancelled, only the financing agreement previously signed with the ADB.
Journalist: Camilio de Sousa
Editor: Filomeno Martins
