Progresses and Challenges of Infrastructure Spending in Timor-Leste The 2013 Timor-Leste Update - ANU

By: Antonio Vitor ADB Consultant & MPW Adviser

Outline:

1. Background 2. The Targets in Strategic Development Plan 3. Some Progresses 4. The Challenges

Background

• • • The status of infrastructure : inadequate and inefficient Source of Financing : Self + co-financing • • Implementation issues Low execution High budget diversion

Timor Leste’s Strategic Development Plan 2011-2030

•

SDP Goal

: achieving a middle income country by 2030.

•

Infrastructure Tasks

: building & maintaining core and productive infrastructures to support growth, increase productivity, create jobs, and national private sector development •

Targets

for: •

Roads

: - r ural roads are fully rehabilitated by 2015 - district roads fully rehabilitated by 2020 - national roads fully upgrade by 2020 - comprehensive maintenance program - national ring road highway (2 + 2 lanes) by 2030 (to start with Suai-Beaco)

•

Water

: by 2030, all citizens will have access to clean water and improved sanitation •

Power/ Electricity

: by 2015 everyone in Timor-Leste will have access ( 24/7); and by 2020 reduce fuel dependency by half.

•

Ports

: Tibar - by 2020 - new, fully operational and efficient major port Suai – by 2015, fully operational and efficient •

Airports

: Dili: extension of the runway and a new terminal building

Progresses: National roads

: • upgraded Liquica-Maubara (Dec 2013) – 14 km • by 2017 will upgrade about 600 km out of 1,426 kilometers (40%) • Key links (Dili to Motain; Tibar-Gleno, Dili Baucau, Baucau-Viqueque, Baucau Loapalos (Com), Dili-Ainaro, and Manatuto Natarbora

Rural roads

: 240 kilometres out of 3,025 km of rural roads rehabilitated & maintained (70% of the population living in rural areas)

Pilot National Roads Upgrading (Liquica-Maubara)

Progresses (continued)

Electricity

: • 2 new power plants with 250 mgws capacity in place • 9 Sub-stations, • connection of 506 km of transmission lines out of 603 km • June 2013, ---106.072 hhs access to electricity, • 97,072 hhs connected to the grid -- 9,000 hhs renovable energy.

Tibar Port

(PPP) at procurement stage

Challenges

• Reform the current system, practices and institutional arrangement?

• lacks capacities (human resources & institutions) to deliver SDP targets • under-developed national private sector (construction, design, supervision) • still low performance in public investment management and public finance management • relative small market for private investment low participation – lack competition high cost)

Challenges (continued):

• under-developed financial markets, high-cost in doing business, weak macro-economy environment, poor governance (led to low return on capital) • political economy influences investment logics • institutional arrangement in delivering infrastructure (overlapping responsibilities , coordination issues) • Ineffective investments prioritization • political interference and of multiple, changing and competing stakeholders. • clear separation of political and technical responsibilities

MPW 5-year Action Plan

 

“100% of Dili households with safe 24-hr supply by 2017

~4000 new connections / year?

Dili households with pipe connections

50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 2012 Target 2013 Current 2014

Year

Trend?

2015 2016 4000 / yr 2017

Figure 2: Dili Water Supply System zoning showing estimated supply continuity level of service (source: ADB TA-7981 in consultation with DNSA)