Comunicados - PM

DEMOCRATIC REPUBLIC OF TIMOR-LESTE
OFFICE OF THE PRIME MINISTER


MEDIA RELEASE

Dili, December 3 2006

$US80 million power project joint venture agreement signed in Timor-Leste

An $US80 million biomass gasification power generation project will now proceed following today’s signing of a joint venture agreement between the Government of Timor-Leste and a Thai company, KYTBW Co. Ltd.

It is the largest foreign investment commitment to date in Timor-Leste – outside of the petroleum sector.

The first 10-megawatt power generation unit is planned to be operational within four or five months. A second 10-megawatt unit to be installed as a reserve generator is hoped to be commissioned within two months of the first being completed.

The Minister for Natural Resources, Minerals and Energy Policy José Teixeira said the next stage of the project, a Power Purchase Agreement, was expected to be signed within a couple of weeks.

“The term of this agreement is 20 years,” Minister Teixeira said, “with an option for extension.”

Mr Teixeira said the Government of Timor-Leste would contribute $US8 million and the Thai company $US72 million. He said it was the largest foreign investment in Timor-Leste to date: “even larger than the investment of Timor Telecom.”

“We are carrying out extensive repair work and upgrades to transmission lines, transformers and other equipment in an effort to ensure Dili has reliable power supplies,” Minister Teixeira said.

“These power units will have ample capacity to relieve generation pressures that Timor-Leste’s electricity supplies are currently experiencing, and together with the other critical work I have mentioned, I am looking forward to a more reliable power supply for the city.”

Mr Chainarong Leumsri, project manager for the biomass project, said his company would work with the Ministry to see whether there was anything that could be done immediately to ease the current pressures on Dili’s power supplies.

“Electricity supplies are a mix of complicated and interdependent technologies and we are honored to have been chosen to supply the generation units,” he said.

The agreement was signed at the offices of the Prime Minister in the Palacio do Governo.

“This project will generate cleaner and cheaper power for the people of Timor-Leste,” Prime Minister Dr José Ramos-Horta said.

“And as power supplies stabilize and are totally reliable it will result in more employment for Timorese. Investors need guaranteed and reliable power supplies before they will commit to projects.”

The power project will be run by EGET – Energy Generating Enterprise Timor-Leste – a joint venture comprising the Timor-Leste Government and Thai and UK investors.

It is expected power from the new plants will be generated at about half the current cost.
All types of waste – including plastic bottles, coffee waste, wood waste, straw, weeds, rice and corn husks and coconut husks – will be used together with coal in the generation of electricity, making it environmentally friendly.

At least 100,000 families will be serviced by the new power plant and between 100 and 150 people will be employed in the power plants.

Timor-Leste’s Minister of Natural Resources, Minerals and Energy Policy José Teixeira signed the JVA on behalf of the Government and the President and chief executive of KYTBW Prof Dr Yuwat Vuthimedhi, and Vice-President To Maneechoti represented the company.

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DEMOCRATIC REPUBLIC OF TIMOR-LESTE
OFFICE OF THE PRIME MINISTER


MEDIA RELEASE

Dili, December 4 2006

A remarkable woman plans to expand microcredit across Timor-Leste

A remarkable woman helping the poor of Timor-Leste through a successful microfinance program is working to attract financing to expand her activities to every District in the country, with the exception of Dili.

Helen Todd, who leads the Moris Rasik organisation, told Prime Minister Dr José Ramos-Horta who visited her in Aileu on the weekend that she wanted to expand her program. Currently Moris Rasik operates 13 offices in eight of Timor-Leste’s 13 Districts. It organizes solidarity groups among its clients, disburses credit to individuals with a group guarantee, and encourages voluntary savings.

“Helen Todd is an amazing woman,” Dr Ramos-Horta said today. “She has suffered so much and yet continues to devote her life to our people.”

In 1991 her 19-year-old son Kamal Bamadhai was among the 271 mourners killed by Indonesian troops at the Santa Cruz cemetery massacre.

“At a time when Helen Todd should be living a comfortable life with her husband, Helen Todd chooses to continue to work here with our poor,” Dr Ramos-Horta said.

“She is truly a most remarkable woman and is continuing the legacy of her son.

“The provision of microcredit services is an important contribution towards alleviating poverty and my Government wants more of our poor to have access to these programs.

“The Government is currently evaluating methods to properly support the extension of microcredit services across the country.”

Moris Rasik is based on the Grameen Bank methodology. In 2006 it had grown to 9000 clients and had more than doubled its portfolio. It has by far the largest outreach to poor, rural households in Timor-Leste.

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