ADB and Timor-Leste Sign $78 Million Deal to Build Climate-Resilient Roads

The investment aims to strengthen road connectivity, facilitate trade and mobility, and enhance community-led climate and disaster resilience along one of Timor-Leste’s most important transport corridors.

The Asian Development Bank (ADB) and the Government of Timor-Leste have signed loan and grant agreements worth a combined $78 million to rehabilitate a critical section of the country’s national road network linking the eastern region to the southern coast. The investment aims to strengthen road connectivity, facilitate trade and mobility, and enhance community-led climate and disaster resilience along one of Timor-Leste’s most important transport corridors.

The financing package includes a $75 million loan from ADB and a $3 million grant provided under ADB’s Community Resilience Partnership Program. The project will restore and upgrade deteriorated road and bridge infrastructure that has been repeatedly damaged by flooding and extreme weather, ensuring reliable access for people, goods and essential services.

The grant component is supported by a diverse group of international partners, including Agence Française de Développement (AFD), the Government of Ireland, the Green Climate Fund, the Nordic Development Fund, and the Government of the United Kingdom. It is designed to empower villages along the road corridor, many of which are highly vulnerable to climate-related hazards, to co-lead the design and implementation of small-scale, locally appropriate adaptation measures.

Through a participatory approach, communities will help identify and implement solutions that reduce the impacts of flooding, landslides and extreme rainfall. These measures will combine green and gray infrastructure, ensuring that engineering solutions are complemented by nature-based approaches tailored to local environmental conditions.

The project will also strengthen the capacity of local communities and national agencies to plan, implement and maintain resilient infrastructure. In addition, it will support the development of national standards and technical guidelines for integrating community-level climate adaptation and nature-based solutions into future transport investments across Timor-Leste.

According to ADB Country Director for Timor-Leste Stefania Dina, building resilience at the community level is essential for protecting lives, livelihoods and critical infrastructure in the face of increasing climate and disaster risks. She emphasised that the project will enable communities to take an active leadership role in developing sustainable and adaptive solutions while supporting inclusive and long-term development.

On the infrastructure side, the project will rehabilitate damaged bridges, address chronic flood-related disruptions and improve overall road performance. Key upgrades will include enhanced drainage systems, elevated embankments, climate-adapted asphalt pavements, and bioengineered slopes designed to stabilise terrain and reduce landslide risks. These innovations will significantly improve road safety, durability and reliability, ensuring uninterrupted connectivity even during severe weather events.

By improving transport links between the eastern region and the southern coast, the project is expected to boost trade, reduce travel times and costs, and improve access to markets, schools and healthcare facilities. At the same time, it will create opportunities for local employment and skills development, strengthening ownership and sustainability at the community level.

Overall, the initiative highlights ADB’s integrated approach to infrastructure development—combining large-scale investment, community participation and climate resilience—to support Timor-Leste’s efforts to build a more connected, resilient and inclusive economy.