LUSA 12/18/2025

Lusa - Business News - Timor-Leste: Government reassesses airport expansion loan

Dili, Dec. 17, 2025 (Lusa) - The government of Timor-Leste decided today, in the cabinet, to continue evaluating the loan with the Asian Development Bank (ADB) for the expansion project of Dili International Airport.

Last week, the Timorese government announced the cancellation of three agreements with the Asian Development Bank, including the one for the Nicolau Lobato airport expansion project, signed in 2021, totalling $85 million (approximately €72.5 million).

"The government will initiate institutional discussions with the ADB with a view to negotiating a possible reduction in the aforementioned financing component, based on the cost savings achieved and in conjunction with the ongoing implementation of the project," reads the statement from the cabinet.

The statement also explains that the assessment is part of a "broader effort by the government to ensure the efficient, appropriate and sustainable use of public resources" through a more careful assessment of the financing associated with each project.

The assessment should consider the degree of implementation, the defined national priorities and the effective capacity for implementation, the cabinet added.

MSE/ADB // ADB.

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