Pelican Paradise Group disagrees with government order to return investment land

DÍLI, 14 August 2026 (TATOLI) — Pelican Paradise Group has rejected the Timor-Leste Government’s decision to order the return of land allocated for its investment project in Tasi Tolu and Tibar, arguing that the move does not remove the contractual obligations agreed between the company and the State.

The company issued the statement after the Council of Ministers approved a Government Resolution on Wednesday requiring the return to the State of land granted to Pelican Paradise under a Special Investment Agreement (SIA), which the government said had ceased to be in effect.

“We strongly disagree with the characterisation that this matter can simply be resolved by a Government Resolution ordering the return of the investment land,” Pelican Paradise Group said in a statement.

Pelican Paradise said it disagreed with the characterisation that the matter could be resolved solely through a government decision ordering the return of the investment land.

The company entered into a formal and binding Special Investment Agreement with the State of Timor-Leste on 3 January 2022. That agreement established obligations for both parties.

“A contractual relationship cannot simply be reduced to a Government decision concerning one party’s performance while disregarding the obligations undertaken by the other,” according to Pelican Paradise.

It said it had worked with successive Timor-Leste governments for about 18 years to develop the project and had committed substantial financial resources to planning, design, preparatory works and initial construction activities.

The company said the project had also experienced significant delays, including over infrastructure and other obligations it said were the responsibility of the State under the investment framework.

“These matters have been repeatedly raised with the relevant authorities over many years,” it said. “It is therefore inaccurate to present the history of Pelican Paradise as simply an investor failing to deliver.”

The company said the contractual obligations of both parties should be considered together.

“There are two sides to every contractual commitment. The obligations of the investor cannot be examined separately from the obligations of the State,” it said.

Pelican Paradise said it respected the authority of the Timor-Leste Government and its institutions but argued that government authority should be exercised alongside respect for contractual agreements, legal certainty and good faith.

The investor said it would base its position on documentary evidence and agreements with the State rather than “personal attacks or political rhetoric”.

“Our commitment to Timor-Leste has been unwavering,” it said.

The company argued that the dispute also raised a wider issue about investor confidence, saying commitments made by governments under binding investment agreements should be respected.

Pelican Paradise said it remained committed to Timor-Leste and wanted to resolve the dispute fairly, transparently and in accordance with the commitments made by both parties.

The Government of Timor-Leste, through the meeting of the Council of Ministers on Wednesday (12/08), approved a resolution ordering Pelican Paradise Group Limited to return to the State the investment land previously granted to the company under a Special Investment Agreement (SIA).

According to the Council of Ministers, the SIA is no longer in effect, and the company has been formally notified of its termination. As a result, the land granted under the agreement must be returned to the State.

“The resolution directs the Vice Prime Minister and Coordinating Minister of Economic Affairs, Francisco Kalbuadi Lay, to promote and coordinate the necessary actions to ensure the return of the land to the State, which must be handed over free of people and property,” said in a statement.

The resolution further stipulates that all relevant public entities, within the scope of their respective authorities, adopt the administrative measures necessary to comply with the decision.

Previously, Minister Lay said that although the company had committed to implementing the project, it had failed to deliver any progress during its 18 years in Timor-Leste.

In addition, Minister of Planning and Strategic Investment Gastão Francisco de Sousa previously said the project was progressing slowly, despite the Government having provided water and electricity infrastructure.

The US$700 million project’s Special Investment Agreement (SIA) was terminated by the government after 18 years of limited progress, while Pelican Paradise disputes the land return, citing contractual obligations and delays it says were partly linked to State responsibilities.

TATOLI