DILI, 15 October 2025 (TATOLI) – The Government has authorized Finance Minister Santina Cardoso to begin negotiations with the Asian Development Bank (ADB) for a loan agreement with a grant component to support the National Roads Improvement Project – Phase I.
The project with an estimated budget of US$84.8 million aims to modernize 42 kilometers of the national road connecting Lospalos and Iliomar, and rehabilitate three bridges: Seiçal, Borouai, and Malailada, located between the municipalities of Baucau and Lautém.
The initiative also includes support infrastructure and institutional strengthening measures to enhance climate resilience in six high-risk sucos vulnerable to floods and droughts in these areas.
“Financed primarily through a concessional loan of US$75 million and a US$3 million grant from the ADB, the project aims to improve road connectivity, enhance safety, and strengthen climate resilience in local communities, in line with the Strategic Development Plan 2011–2030 and the national climate adaptation targets,” Government said in a statement.
The government says the new spending plan is affordable. It insists the country’s debt level is safe and remains below international limits.
The Government also highlighted that the effective cost of existing loans “is lower than the estimated return of the Petroleum Fund,” ensuring that this type of financing remains “economically advantageous and sustainable.” This approach, it added, enables investment in strategic projects “without disrupting public finances.”
Journalist: Camilio de Sousa
Editor: Filomeno Martins
