Dili, Dec. 10, 2025 (Lusa) - The Timorese government decided on Wednesday to cancel three financing agreements with the Asian Development Bank, including the one for the Nicolau Lobato airport expansion project, signed in 2021.

The Timorese government justified the decision "following an in-depth analysis of the various projects financed by loans, which once again highlighted the existence of initiatives yet to be started or with very low levels of implementation," according to the statement from the cabinet.

In addition to the financing agreement for the airport expansion, worth $85 million (around €73 million), the government also decided to cancel financing for the "Power Distribution Modernisation" project, signed in December 2021, worth $35 million (around €30 million), and for "Dili West Water Supply", signed in 2022, worth US$50 million (around €43 million).

"In this context, certain financing agreements currently in force are no longer necessary," the Timorese government stressed.

At the meeting, the government also approved the signing of a loan agreement, with a grant component, with the Asian Development Bank to finance the "National Road Improvement" project, phase 1.

"This project aims to modernise approximately 42 kilometres of important roads in the national road network, introducing small-scale climate adaptation infrastructure in six sucos [groups of villages] prone to flooding and drought," the government explained.

The project also includes the rehabilitation of three bridges between Baucau and Lautém, in the east of the country.

MSE/ADB // ADB.

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