ADB and Timor-Leste sign $35m loan to modernize electricity services

“Building climate-resilient infrastructure and providing basic services is a focus of ADB’s support to Timor-Leste, as the country tries to diversify its revenue base beyond oil,” said ADB Country Director for Timor-Leste Sunil Mitra.


ADB | Manila | Updated: 20-12-2021 11:35 IST | Created: 20-12-2021 11:08 IST
ADB and Timor-Leste sign $35m loan to modernize electricity services
Representative Image Image Credit: ANI
  • Country:
  • Timor-Leste

The Asian Development Bank (ADB) and the Government of Timor-Leste have signed a $35 million loan to modernize the country's power distribution system and strengthen state utility Electricidade de Timor-Leste's ability to manage the electricity grid.

"Building climate-resilient infrastructure and providing basic services is a focus of ADB's support to Timor-Leste, as the country tries to diversify its revenue base beyond oil," said ADB Country Director for Timor-Leste Sunil Mitra. "Investment in electricity system is crucial to the growth of industry, trade, and tourism. The project, ADB's first energy sector project in Timor-Leste, aims to improve the state utility's operating efficiency, financial sustainability, and its institutional capacity for grid operations."

The Power Distribution Modernization Project will install smart meters to help households manage their electricity usage. It will set up a distribution automation system to improve network reliability and a distribution management information system to improve network operations, as well as distribution transformers to reduce overloading.

The project will boost women's employment in the energy sector. It will train households, especially women, on electrical safety and productive uses of electricity. Electricidade de Timor-Leste will also promote gender equality and enhance inclusiveness in its business activities.

ADB's investment will also help Electricidade de Timor-Leste mitigate climate change challenges while strengthening environmental, social, and technical standards and improving management capacities.

"Effective implementation of this investment program will further enhance the reliability and sustainability of electricity access, a priority for Electricidade de Timor-Leste," said Electricidade de Timor-Leste Executive Committee Chair and President of the Board of Directors Paulo da Silva. "We are pleased to be working with the Asian Development Bank on the first energy sector project in Timor-Leste."

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