Timor-Leste commercial ppa financing

Did Timor-Leste receive a grant from ppiaf?

In early 2018, Timor-Leste received a final $90,000 grant from PPIAF that enabled IFC to help the Tibar Bay PPP project reach financial close in August 2018. The assistance focused on capacity building for the Tibar Bay Project Management Unit and included the completion of a contract management manual and training.

How does ppiaf help the government of Timor-Leste?

Since 2011, PPIAF has assisted the Government of Timor-Leste to attract private-sector investment. PPIAF’s technical advisory funds have advised the government on their best options and acted as a catalyst for informed discussions with the private sector. In this way, the PPIAF grants are the first de-risking instruments deployed.

Why did Timor not attract international investors?

Whilst the government sought to prioritise major infrastructure investments such as shipping ports and airports, it was difficult to attract international investors to finance and build much-needed infrastructure, due to the lack of a PPP or investment track record and Timor’s history of conflict and instability.

How did IFC work with Timor-Leste's new PPP unit?

IFC worked with Timor-Leste’s new PPP Unit to deliver a transparent tender process that attracted globally reputable port operators. The key bid variable was the Viability Gap Financing subsidy required by each bidder after a very strict technical pre-qualification.

How did the World Bank benefit Timor-Leste?

Leveraging the broader World Bank Group’s work benefitted the project by delivering complementary investment policy and customs reforms. IFC worked with Timor-Leste’s new PPP Unit to deliver a transparent tender process that attracted globally reputable port operators.

Why does Timor-Leste need a port?

The port is vital for government efforts to establish new logistics and industrial zones that will help diversify Timor-Leste’s economy, create economic opportunities for its citizens, and open doors for future private investment in the nation’s infrastructure.