EU paves the way for investments in Timor-Leste’s water, waste, and forestry sectors

The European Union Delegation to Timor-Leste and the European Investment Bank (EIB Global) have worked closely with the Government of Timor-Leste to prepare investment projects aimed at improving the country’s infrastructure and fostering sustainable development. The three proposals resulting from this collaboration focus on water supply, solid waste management, and forestry, and are now ready to be transformed into tangible investments.

The three projects include a commercial forestry initiative in the municipalities of Covalima and Bobonaro, a national solid waste management project including a health waste management component, and a water supply project for selected municipalities. The forestry project aims to transform underutilised state lands, generating essential resources like firewood and timber, while creating thousands of jobs for local communities. The national waste management project introduces solutions for the safe and efficient management of waste thus reducing significantly the pollution discharged into the environment. The water supply project focuses on improving access to clean water in key municipalities, addressing both urban and rural needs for better sanitation and reliable water sources. Together these initiatives require a total investment of about €260 million.

The preparation of the three investment projects was made possible through the Project Preparation and Implementation Programme (PPIP), which concluded today with the final Steering Committee meeting where these projects were presented. Managed by EIB Global, the PPIP was supported by a €5 million budget, including €4.75 million in technical assistance from the EU and €250,000 from the Cotonou Partnership Agreement.

The final Steering Committee meeting was chaired by H.E. the Minister for Planning and Strategic Investments, Gastão Francisco de Sousa, and attended by representatives from the Government of Timor-Leste, EIB Global, the EU Delegation to Timor-Leste, and other stakeholders.

The Ambassador to the European Union Delegation to Timor-Leste, Mr Marc Fiedrich said: “If converted into a loan, the Project Preparation and Implementation Programme opens a new era of cooperation. Until today, our support, although significant in terms of funds, consisted of limited instruments: grants, technical assistance, and budget support. With this programme, we add loans and guarantees, and maybe later private investments. This is the new trend of cooperation promoted by the EU, the innovative Global Gateway strategy that may become the norm in the near future.”

The Vice-President of the European Investment Bank Ambroise Fayolle said: “Alongside our EU partners on the ground, we have been supporting the Government of Timor-Leste in identifying and preparing investment projects. By focusing on strategic sectors such as forestry, water supply, and waste management, these initiatives will not only address immediate community needs but also lay the groundwork for sustainable economic growth. We look forward to turning these project proposals into tangible investments. As the EU’s financial arm, the EIB stands ready to provide the necessary financial support to make these projects a reality, in line with the EU’s Global Gateway strategy.”

Minister for Planning and Strategic Investments, Gastão Francisco de Sousa said: “All three projects have the potential to make significant and long-term contributions to Timor-Leste’s development, and to improved rural and urban environments. The projects comply with and support our national development objectives for their respective sectors.” He emphasised the role of the Ministry of Planning and Strategic Investments in facilitating and coordinating efforts across the sectors.

Minister of Agriculture, Livestock, Fisheries and Forestry, Marcos da Cruz said: “I would like to thank the EIB, the EU Delegation and COWI for the design of the Timor-Leste Commercial Forestry Project. We welcome this innovative approach to the development of commercial forestry in Timor-Leste, using currently unproductive land. In addition, the project is expected to provide jobs for people living in the target areas, re-green vulnerable areas, increase incomes from forest products, and increase Government’s income.”

Minister of State Administration, Tomás do Rosário Cabral said: “We are grateful for the European Investment Bank’s support for waste management projects. Providing adequate and affordable waste services to the entire population is of great concern for the Government. It will improve public health and is much needed for protecting the terrestrial and marine environment. Specifically, better healthcare risk waste management is urgently needed. In this respect, the EIB project proposal provides a modern, efficient, and sustainable solution that should be implemented as soon as possible.”