ADB approves $127m loans to help Timor-Leste provide water services in Dili

The Asian Development Bank has approved $127 million in loans to help Timor-Leste provide safe and reliable water in Dili, the capital city which is home to two-thirds of the country’s population.

“Rapid urbanization and a growing population in Dili are putting pressure on the city’s water resources and facilities,” said ADB Country Director for Timor-Leste Sunil Mitra. “The Dili West Water Supply Project will help strengthen the city’s water supply network, improve service delivery, and enhance the regulatory environment to deliver safe drinking water.”

Dili’s water treatment and supply infrastructure is operating beyond its design capacity. The network is subject to high levels of leakage, which coupled with increasing exposure to climate risks has resulted in low levels of service through intermittent water supply and disruptions. The system currently provides an intermittent supply of non-potable water to 30% of Dili’s population. To meet the growing demand for an adequate and reliable supply of water, climate-resilient and energy efficient infrastructure upgrades are required.

The project will support the development of climate-resilient infrastructure, including 2 water treatment plants, 13 groundwater holes, 5 service reservoirs, and 320 kilometers of new water network mains to deliver potable water from diversified sources such as groundwater and surface water. The project will benefit 36,200 households and commercial establishments in the capital city.

The project will also enhance the operations of state-owned water services utility Bee Timor-Leste (BTL) through the adoption of a gender-sensitive and socially inclusive water services operational plan to support key functions including customer service, human resources, long-term capital investment planning, operations and maintenance, and asset management.

In addition, the project will support the development of water services regulatory guidelines for adoption by the government’s National Authority for Water and Sanitation. The guidelines will ensure the protection of water resources and enhance the financial sustainability of BTL.