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Progresses and Challenges of Infrastructure Spending in Timor-Leste. The 2013 Timor-Leste Update - ANU. By: Antonio Vitor. ADB Consultant & MPW Adviser. Outline: Background The Targets in Strategic Development Plan Some Progresses The Challenges. Background.
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Progresses and Challenges of Infrastructure Spending in Timor-Leste The 2013 Timor-Leste Update - ANU By: Antonio Vitor ADB Consultant & MPW Adviser
Outline: Background The Targets in Strategic Development Plan Some Progresses 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: - rural 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)
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?
Figure 2: Dili Water Supply System zoning showing estimated supply continuity level of service (source: ADB TA-7981 in consultation with DNSA)