Timor-Leste seeks US$30m World Bank loan for Baucau Water Supply Project
DILI, 12 August 2026 (TATOLI) — Timor-Leste’s government has authorised the Minister of Finance to negotiate a US$30 million loan with the World Bank to finance a major water supply project in Baucau municipality.
The Council of Ministers approved the decision following a proposal by Vice-Minister of Finance Regina de Jesus.
Finance Minister Santina José Rodrigues F. Viegas Cardoso is authorised to negotiate the financing through the World Bank’s International Development Association (IDA).
The Baucau Municipal Capital Water Supply Project is part of the second phase of the World Bank’s regional Water Security and Resilience initiative. It aims to expand access to safely managed water services in selected areas of Baucau.
The project will develop a centralised and climate-resilient water supply system expected to serve about 37,000 people by 2031.
“With projected funding of US$30 million, the project includes the rehabilitation and expansion of existing water sources and pumping systems, the construction of new water intake facilities, pumping stations, pipelines, treatment and storage facilities, as well as the installation of approximately 7,000 household connections with sub-metering,” said in a statement.
The project also includes measures to strengthen the institutional and operational capacity of Bee Timor-Leste (BTL) through technical assistance, capacity building, and support for infrastructure management and maintenance.
The financing will be provided on highly concessional terms, with a 10-year grace period and a 40-year maturity.
“It will also include an option to defer payments in the event of a national emergency related to climate-related events. Implementation will be carried out by the Ministry of Public Works through the Project Management Unit, with BTL responsible for the operation and maintenance of the infrastructure upon its completion,” the statement concluded.
TATOLI
