The Asian Development Bank (ADB) will grant a soft loan of US$12 million to Timor-Leste (East Timor) to pay for road widening works between Dili and the future port of Tibar, under the terms of an agreement signed in Dili.
The project, which was recently signed by the Minister of Finance, Santina Viegas Cardoso and the head of the ADB in Timor-Leste, Shane Rosenthal, is part of programme to improve the road network in Timor-Leste.
“Creating a shorter and safer road link between Dili and Tibar bay, the site of the planned international port, will make it easier and cheaper to transport goods,” said Rosenthal.
This loan, which was included in the state budget for 2015, was granted at an interest rate equal to Libor plus 0.6 percentage points with an amortisation period of 25 years.
The loan will be used in practice to repair the 5-kilometre road and expand it to four lanes. Following construction of the port of Dili – the start date of which is not even known – traffic in the area is expected to increase significantly.
The road is part of a wider project that includes the link to the west to Indonesia, passing through Liquica, and to the south and southwest, where the project will cover another 57 kilometres of roads. (macauhub/TL)