DILI, March 25, 2026 (TATOLI) — Pelican Paradise Group said on Monday it has not received any formal notification from the Government of Timor-Leste regarding the reported cancellation of its multimillion-dollar investment project in Tibar, Liquiçá Municipality.
The company issued the statement in response to remarks by Vice Prime Minister and Coordinating Minister for Economic Affairs and Minister of Tourism and Environment, Francisco Kalbuadi Lay, who earlier signaled the possible cancellation of the project.
Pelican Paradise said that it has not received any “official communication” regarding the possibility of the cancellation of the investment project.
Responding to the project’s delay, the investor attributed the lack of progress to the government’s failure to meet key preconditions.
“The delay was caused by the ‘Government’s failure to provide land titles and to finalise and formalize the Special Investment Agreement, a process that took approximately 14 years,” the statement read. “These were fundamental prerequisites before any meaningful development could begin.”
Pelican Paradise rejected the Vice Prime Minister’s statement that the company was responsible for the lack of progress, saying the situation reflected a failure by the “State” to meet its contractual obligations.
“Any attempt to cancel the project under these circumstances raised serious concerns regarding compliance with the agreement,” the statement added.
Since signing the Special Investment Agreement (SIA) in 2022, the company said it has repeatedly flagged issues with water and electricity supply and sent multiple letters to the government, receiving no response.
The investor said it had held several discussions with the vice prime minister, TradeInvest, BTL, EDTL and other relevant authorities, but “no resolution was reached, and the required provisions remain outstanding.”
“The issue is simple: the agreement must be honored. The State must fulfil its obligations,” the statement stressed.
Under the SIA, the government has binding obligations, including “providing sufficient electrical power and water and – clearing the project site of occupants.”
On Monday, following the launch of the BCTL’s Annual Economic Performance Report 2025, Vice Prime Minister Lay told reporters that the government was moving toward cancelling the project.
He said that although the company had committed to implementing the project, it had failed to make progress over more than a decade in the country.
“Therefore, we will cancel it. This is a decision, and I have sought guidance from the Prime Minister, and he has approved it,” Lay said.
Prime Minister Kay Rala Xanana Gusmão, who was present at the time, briefly responded in Tetun, “Loos” (Correct), endorsing the move.
TATOLI
