relationto the damagecaused and use made of the roadsystem. A balanced approachis needed,including assessment ol the willingnessond ability to pay of road usercond oI the implicdtionsof using other sourcesof revenue to Iinanceroads. A risein fuelprices of 10 percentwill increasethe costof travelby publictransport, for example,by about3 percent.The needto improvethe levelof cost-recoveryis not urgentgiven the otherissues facing the Government,though some refinement of currentcharges may improve theirequity.

Theretail price of fuelin Timor-Lesteis not highby internationalstandards. However,it is highgiven the low levelof fuel tax (e.g.see pacific lslands ForumSecretariat 2004). Consideration will be givento meansfor reducing the costof importedfuel to a levelcomparable to countriessimilarly situated to Timor-Leste.Introducing an off-settingfuel tax couldraise additional revenueto the Governmentof aboutS1.5 million per annum.An annual vehicleregistration fee of Sf00 per vehicleplus an administrativecharge couldgenerate net revenue to theGovernment of 51million per annum.

4.4.4 Roadand Bridges Development

L. Overview

Roadsprovide access to ruralTimor-Leste, where the majorityof the poor live.They link rural communities to markets,to servicesand to participation in the widersociety. Urban roads sustain important commercial, industrial andservice activities in towns.Timor-Leste has an extensiveroad network, but it is.in poorcondition. The roadnetwork is stronglyinfluenced by its spatialand physical environment. A mainarterial road runs along the semi- aridnorthern coast, serving the economicactivity around and along the coast.Connections with the southerneconomic zone cross a mounratnous andmidland area, which includes steep lands of unstablerock and poor soils that are highlysusceptible to erosionand landslides.The southern coastal zone,which has higherpopulation density, agricultural production and energyreserves, has a moisterclimate and comprises alluvial formations and numerousrivers which aggrades and are prone to changingcourse during the monsoonrain period.

RepAblico Democraticd De Timor-Leste Thenetwork is thus vulnerableto naturalhazards of erosionand flooding, andaccess is frequently cut at highrisk locations during the wet season.The terrainand low standard of roadslimit the support provided to the economy in the southand midlands,such as coffee and agriculture, and soon energy sources.About 80 percentof the coreroad network is paved.There are about 317 bridgeson the nationalroad network,with an averagelength of 34 meters.Half of the bridgesare less than 10meters in length.While the road networkis extensive,road standardsare generallypoor. Pavementsare generallynarrow (3.5 to 5.5 meters)and requirevehicles to moveoff the pavementto pass other vehicles.Ver:tical and horizontalalignments commonlylimit sight distance, restricting tiavel speeds, reducing the ability to overtake,and increasingthe risk of accidents.Inadequate drainage exacerbatesroad damage.

Expenditureon roadsup to about2003 necessarily focused on maintaininga basiclevel of accessibilityin Timor-Leste,especially on nationalroads, and therefore comprisedbasic maintenanceand emergencyworks. This emergencyphase is now completed.Until the end of the fiscalyear of 2OO4/5,the qmountof costspent is 571.3milliqn with S43.9million from grantsand 527.4 million from CFET(consolidated Fund for EastTimor). The useof 530.3million of the TFET(Trust Fund for EastTimor) was directed at the EIRP(Emergency Infrastructure Rehabilitation Project) which is a national and districtroad rehabilitationproject. Funds were also used for the rehabilitationof 355 rural roadsamounting to 1445 km, with 1000 km finish ed.

The projectwas done by the CEP(Community Empowerment Project) in a sub-districtauthority. The JapanEngineering Group (JEG)has cleaned landslidesand fixed severalroads with a cost of 53 millionwhich is not includedin the CFET,TFET or any bilateralprograms. The Japanese governmenthas given the assistanceof 519.7million for the improvementof the Dili- Cassaroad, and 54.6 million for buildings,training, and advisory to the Ministryof PublicWorks. The Road Sector Improvement Project (Asian DevelopmentBank) is a S10and 52.5 million as grant to the government. EuropeanUnion for roadsrehabilitation (57.6 million), rural roads western district53.3 million and asgrant S0.3 million. Almost all projects are done in the fiscalvear oI 2006/7.

Rep(tblicaDemocrotico De Timor-Leste Accordingto a datasurvey by the ADB,the wholeroad network amounts to morethan 6.000km. TableL showsthe Timor-Lesteroad network length accordingto district,while the existingroad network map canbe seenin Figure1. Current efforts for bothrehabilitation and maintenance are focusing on the core networkand urbanroads. Thereis a neednow to start addressingthe accessrequirements in rural areas, and to furtherdevelop the fundingand maintenance arrangements for theseroads.

Repiblica Democrdtico De Timor-Leste Figure4.13 - ExistingRoad Network

2. RoadNetwork Condition

a) The averagewidth of surfacepavement of nationaland regionalroads are 3.5 to 5.5 meters(to narrow by internationalstandards), vertical and horizontalalignment do not meetthe standardswhile construction of roadsides and drainage is poor (seeTable 4)

b) Thereare approximately 317 bridges with an averagespan of 34m

c) The conditionof nationalroads is estimatedto be 80% damaged(ln Searchof Prosperity- Removingthe Constraintsto Growth in Timor- Leste", 2008)

d) Thecondition of districtroads is estimated to 90%damaged

e) Mostroads are impassable during the rain

f) Roadswith asphaltpaving is estimatedto amountto 25% of the nationaland districts roads

c) Unfavourablegeographical conditions exist in the centreof the island. Landsare mountainous with a highslope. There are also many rivers. Manyroads are built parallel to the beachor nearthe mouthof rivers. Floodare apparentin the rainyseason and is often accompaniedby muo

Repiblico Democraticd De Timor-Leste h) Thelevel of trafficaccidents in the cityof Dilican be categorizedas high

Table4.39 - RoadSurface TYPe

Asphalt - C""a.t" Atplt"tt 564 4oyo O Oyo 564 25o/o - surface zlq szy" 502 62Vo 7.236 56% Maintenance Non-Asohalt o oo/" 109 1.3% L09 5% - Earth 108 \yoaYo zu.l2or 25% 309 14%

So*c"; t"*nXA working Paper- ctober2006, The Louis Berger Group' lnc

3. OngoingPrograms

a) Rehabilitationof severalkey points in the nationalroad network

b) Settingup the "RoadFund", which is fundedby the MCC(Millennium ChallengeCorporate), preparation of a maintenancefund, which is also a contingencyfund; approximately 560 million.

c) Roadtechnical assistance on Rightof Way (ROW)for the wideningof nationalroads and a costestimation of landacquisition; approximately 540million.

d) Technical and equipment assistancefor the development and regulationof roadsand transportation; 55 million'

e) Scholarshipsfor the educationof RoadEngineers, Designers, Project Managers,Construction Managers andTransport Economics; estimated at 520million.

f) Bloengineeringis prepared for the conservationand sustainabilityof naturalresources; 528 million.

4. Problemsand Constraints

a) Highinvestment and maintenancecosts while funding is limited

b) Highneed for raw materialsand man power to buildroad networks

Rep I bli co Dem ocrati co De Tim or- Leste c) Lackof a masterplan for alltransportations

d) Transportationaccess does not coverthe wholeof Timor-Leste,with the effectof limitedaccess in severalareas

Almosthalf of allasohalt roads are considered to bein Doorcondition

0 Theexisting asphalt road are not sufficientdue to the lackof a Rightof Wavarea standard

g) A wavymorphology and geology is unfavourablefor the rehabilitation of existingroads and the development of newroads

h) Lackof regulationsfor roadsafety, road clarification system, road axis limitsand land acquisition.

i) Lackof humanresources to manageroad and bridge networks

TheGovernment therefore has set a 10-yearvision for the roadsystem to:

a) Bring the road network up to a sustainablecondition where, with regularmaintenancer life-cycle transport costs will be minimized,road clgsureswill be reducedand manageable,and road accesswill be reliable.

b) lmprovekey roads to supporta growingeconomy.

DevelopGovernment capacity to effectivelyand efficientlymanage the roadsystem.

Sixprinciples will guidefuture Government spending on roads:

a) Prioritywill be givento maintainingcurrent roads before expenditure that increasesthe quantityof roadassets and associatedmaintenance oblieations.

b) Prioritywill be givento maintainingthe core road network,i.e. roads that servemaior economic and administrative functions.

c) In-kindcommunity contribution will be soughtfor maintenanceof the non-coreroad network.

Replblico Democratico De Timor-Leste d) Investmentwill be focusedon projectsthat providenet economic benefitsin termsof reducedroad maintenance and vehicle operating costsor supportagricultural and industrialdevelopments that are worthwhilewhen account is taken of thecost of roadinvestment.

e) Wherecost-effective, the privatesector will be usedto implementroad maintenanceand developmentworks, to both minimizecosts and to developa competentand efficient domestic contracting industry.

0 Roadusers will, over time, be expectedto makea greatercontribution to the costof providingroads.

Developmentof roadinfrastructure isnow divided into these programs

a) Programfor AcceleratedNational Development (pfAND)

b) EvaluatedPriority Road Program - District Roads

c) OtherCore Network Road lmprovements

d) RoadDevelopment (widening and new roads)

e) Newlyproposed road improvement programs in thisSlp

fl Bridgeand river work lmprovements

Routinemaintenonce should be carriedout continuouslyand treatedas a recurrentbudget item. PeriodicMointenorce as indicatedabove is carried out everyfive to eightyears on average,with the decisionson whento dothe maintenancebased on surveysofthe roadcondition. The interval between routine maintenancevaries accordingto traffic levels- more heavilv traffickedroads may need to be maintainedevery four years, while less used roadsmy only need periodic maintenance every 10-12 years.

t. Planningand programming - Road Maintenance Manatement System

Ensuringthat periodicmaintenance activities are carriedout when needed requires(in additionto adequatefunding) some form of road asset managementor road maintenancemanagement system to recordroad maintenanceconditions and then to assessthe maintenancework required, andto prioritizethe roadsections to be maintainedin anyyear and the type

RepAblicoDem ocrotico De Timor-Leste (lndonesia)and Singapore. Other services also operate to Indonesianports. A ferry"BERLIM NAKROMA" service between Dili to Oecussi(twice weekly) and Dilito Atauro(once weekly). The service (which uses a 300passenger vessel that is ableto accommodateabout 10 vehicles)is generallywell-patronized. Whileit is nowgenerally well-equipped to accommodateanticlpated demand for sometime into the future,some additional investment is neededto securethis potential.

The locationof the currentport in the centreof Dili increasesthe riskof environmentaland traffic problems. Capacivteonstraints may also emerge in the longer term. Initial investigatipnsseveral years ago favoured developmentof a futurecommercial port at T;bar,about 15 km westof the currentport. A feasibilitystudy is needed to developand assess the proposal in detail.lt woulddraw on thg maritimesector development strategy (see nextproject), which would present a developmentframework for the sector. The investigationw.,-gyld prepare a conceptualengineering design, consider roaddevelopment needs to provideaccess to the new port,establish what would happento the current'blliport, estimatetotal projectcapital and recurrenlco:!!n,prepare fidancial and economic analyses of the proposal,and presentoptions fbr howit cou'ldbe financed and implemented.

Developm€ntof a.newinternational port to replacethe currentport in Dili worlld,,all€vi;t6.adine of itle problemsassociated with the locationof the currentlibrt in tl'ie.centreof the:town.The cost of developinga new port and suitableroad links wil[ be substantial, and is unlikelyto bejustified in the near termfuture. The implications for the freightindustry of movingthe port to a lesscentral location will alsoneed to be examined.Probably the bestsite for a futurecargo port would be at Tibar,about 15 km to thewest of Dili.

Trafficconditions of the flow of goodsthat go throughthe port of Dili is primarilyin the formof the containersand general cargo, with the volumeof the flow of goodsequal to 1 25,000TEUs per year (2008). The condition of loadingand unloading of equipmentis also relatively limited, particularly for loadingand unloading operations containers to andfrom the dock,generally usinga craneship, as well as container yard. Ground facilities are cramped andhas been only 5 unitsare equipped with equipment a reach stacker.

Repiblico Democrdtico De Timor-Leste Ingeneral, the shorelinecondition ofTimor-Leste in the northernpart is more suitablefor the locationof a portfacility, compared to the southwhich has characteristicof largerwaves. The mostideal location for a port facilityis nearthe city of Dili,which is shieldedby the islandand the islandof Alor Atauro.By geographiclocation, the northshore is closerwith international shippinglane lines, and has a greaterpotential to bea harbourport for trade in Timor-Leste(Figure 3).

With referenceto the currentcondition of the annualvolume of goodsflow, especiallyfor the portof Dili,in the short-termperiod until the longterm, Dili Dortwill stillbe sufficientto meetthe serviceneeds of the flowof goodsand passengersea transport throughout . But to meetthe needsof limitedimport Oecussi district, adequate port faCilities is required.Similarly, passengertransport numbers are still relativelylow. A meansof liaison betweenAtauro lsland and Oecussi districts with the mainlandof EastTimor, thenwithin the next 10 years will not change significantly.

Figure4.15 - Airportand Seaport lmprovement Plan

2. Problemsand Constraints

Thecondition of allthe seaportsfacilities are generally poor and the Diliport is the mainand only internationalport of entryto Timor-Leste,with the unfavourableplacing of theport s facilitiesright in thecentre of Dili'

Repiblicq Democrdticd De Timor-Leste Theport of Dili hasno sulficientspace for containeryards, open storages, transit shedsand parkingareas, as well as number of cargohandling equipments,which will becomemore and more crucial for the operabilityof the oort.

a) TheDili port basinhas maximum draft up to - 6 metersand some parts of the channelhave reduced to - 3.5meters due to sedimentation.

b) Shiprepair facilities are unavailable.

c) Therelocation of presentports at the qgntreof Dilito the newsite at Tibarbay.

d) Thereare no flag regulationsfor Timorese vessels.

Theamount of flowof goodsand passengers are relatively not too largewith the mainform in imported-goods.The costof seatransport to and from Timor-Lestebecomes relatively more expensive, when comparedwith the countriesof SoutheastAsia. ,:.

3. Policyand Strategy

The Governrnentwishes to take full advantageof the potentialfor shipping servicesto suppoit the economicdevelopment of Timor-Leste.lt therefore wishesto investigatethe potentialfor formalshipping services to locationsin additionto the currentservices to Oecussiand Atauro, including the potential for internationalservices to the southcoast (which would avoidthe needfor freightto be carriedto and from Diliby road),the need for an commercial port at Tibar to replacethe current port in Dili, and domesticshipping servicesalong the northand south coasts.

A maritimesector development strategy would also identifythe associated need for developmentof additionalwharves and jetties in Timor-Leste, improvedregulation and managementof the maritimesector to meet major internationalconventions on maritimeoperations, including the 1988SOLAS (Safetyof Life at Sea)Protocol and the InternationalShip and Port Facility SecurityCode (lSP5Code), and the developmentof the rangeof services neededto supportthe maritimeindustry. The strategywill emphasizethe role of the privatesector in developingan efficientand sustainablemaritime sector.

Repiblico Democrotica De Timor-Leste The port of Dili has no sufficientspace for containeryards, open storages, transit sheds and parkingareas, as well as number of cargo handling equipments,which will becomemore and morecrucial for the operabilityof the oort.

a) TheDili port basin has maximum draft up to - 6 metersand some parts of the channelhave reduced to - 3.5meters due to sedimentation.

b) Shiprepair facilities are unavailable.

c) The relocationof presentports at the ggr-rtreof Dilito the new site at Tibarbay.

d) Thereare no flagtegulations for Timordsevessels.

Theamount of flowof goodsand passengers are relatively not too largewith the mainform in imported-goods.The cost of seatransport to andfrom Timor-Lestebecomes relatively more expensive, when compared with the countriesof SoutheastAsia.

3. Policyand Strategy

The Government.wishes to takefulf advantageof the potentialfor shipping servicesto supportthe economicdevelopment of Timor-Leste.lt therefore wishesto investigatethe potentialfor formalshipping services to locationsin additionto the cu.rrentservices to oecussiand Atauro, including the potential for internationalservices to the southcoast (which would avoid the needfor freightto be carriedto and from Diliby road),the needfor an commercial port at Tibar to replacethe current port in Dili, and domesticshipping servicesalong the northand south coasts.

A maritimesector development strategy would alsoidentify the associated need for developmentof additionalwharves and jetties in Timor-Leste, improvedregulation and management of the maritimesector to meet maJor internationalconventions on maritimeoperations, including the 1988SOLAS (Safetyof Lifeat Sea)Protocol and the InternationalShip and Port Facility Securitycode (l5PSCode), and the developmentof the rangeof services neededto supportthe maritimeindustry. The strategywill emphasizethe roleof the privatesector in developingan efficientand sustainablemaritime secror.

Reptblica Democrotico De Timor-Leste seatransporlauorrtransportation rrr trrE Thepolicy and strategy development ofTimor-Leste futurewith a stepby stepapproach is as follows:

forecastof the future traffic a) To providea market assessmentand traffic cargoand oatternwith respectto domesticand international issues; passengertraffic and to assesscommercial and organizational

of peopleand goods is a b) lmprovementand increasein circulation growththe sustainable fundamentalfactor to encouragethe economic developmentthroughout the entirethe country;

managedto provide an c) Ensurethat the ports are developedand andexporters' efficientservice to the populationand importers

to developwide sectorsof d) TheGovernment and Privatesector efforts andchemical industry' the economysuch as oil andgas industry' mining services' which have agriculture,forestry, fishery, commercial developmentin Timor- significantimpact on seatransportation service Leste;

sealiner companles; e) Adopta competitivesystem for the international

for sea transport services' With averagegroMh projected demand withinthe next 10 particu|ar|ytransportat|on of goodsby 15%per year, then equivalentto t 100'000 yearsit is estimatedthat freight demandwill be quitean internationalseaport in TEUS,then for all EastTimorese developed Manatuto'Caravela' Oecussi' Tibaras the mainport, while the otherports in transpon'projected at the Atauroand Comas a feederport For passenger growth rate of 10%annually' will time of the next 10 yearswith average be a minimumaddition of a reachl90,oo0 passengersper year' it should newferrv, with a capacityof 300passengers'

4. Programand Projects areas follows: Programsto developsea transportation in Timor-Leste

a) Policyand Regulation FrameworK

Developa codeof commercialmaritime law;

A" p,lA ti, o Democroticd De Timor-Leste to lmprovedregulation and managementof the maritime sector meetmajor international conventions on maritimeoperations'

b) Capacity

lmDrovethe skills and knowledge of APORTILstaff; provide Qualitv and professionalismof staff in order to administration,finance and harbour operation services'

c) Program:

Repair/renovateand increase'e.a ports in someregions to facilitate load/unloadand passenger transport and cargo; Establisha modern of port taxesand tariffs with effective enforcementcaPabi[itibs; lmproveport container,qndbulk handling while rqducing congestion

at Dili; '|,r,Y.i"'' the economic DevelopP for shippfu{..servicesto support developmentqt Tifficr.-Lfste; +; :, Deyglopinfrastru,4ure to'qtlp-port buil{renovate and increasesea ,portsirtsgme regioffi , -- Prepareinfrastructuri5 for supportingthe loadingand unloading of colYlmodities.

2O!5' The pro:iectsare plannedfor the short-termprogram until the Year of primarilyainred at the preparationof the masterplan studycompilation available' studiesand rehabilitationof the port of port facilitiescurrently port particularlythe port of Dili,as well assite selection study the transfer in port in the existingDili to Tibar,as well as studiespreparation of dry facilities One citv of Dili,in orderto anticipatethe flow of goodscontainer congestion' Manatuto' alsoprepared rehabilitation proiects in Diliport facilities, Caravela' areais also Oecussi,Atauro and Com.For the areaof the southerncoastal preparedprojects at Suaiport studiesand Beaco,especially to supportthe and facilities needs of logisticsand supply activities of exploration Sea' exploitationof gasfields and oil fieldsof the earthcracks of the Timor

have Theconstruction of newoort facilitiesin Tibarand Suai, is plannedto the startedin the third Yearof short-termprograms, so that at the endof planned short-termprograms are interoperable.For a while,naval facilities,

Repl bI i ca De m ocrdti co De Tim or-Leste at an earlystage will bebuilt Hera seaport, while the permanentfacilities will be preparedin the easternpart south coast, around Beaco. In the short-term programsare alsoprepared study preparation course seas Transportation sectorregulations, particularly those related to safetyaspects of shipping, operationand development of portfacilities, and security provisions referred to portprovisions issued by the internationalshipping organizations {lMO) or similar.In the shortterm, a totalfund of 5203,000,000is needed for the studyto constructiondevelopment phases.

Themedium-term programs are mainly targeted for the establishmentof a nationalshippinB company flagged East Timor, both to servethe transport of goodsand passenBers, domestic and international shipping, so it canbe more independentand less relianceon foreignshipping company, and the establishmentof port serviceenterprises, with more focuscommercial aspects,in orderto maintainoperational capability and investment financing on an ongoingbasis, with not dependentirely on the sourceof financingthe statebudget. One also prepared a proiectpioneering voyage to the newpath point to developdomestic shipping, in order to expandand supportthe developmentof regionaleconomy. In the mediumterm, a total fund of S588,000,000is needed for the studyto constructiondevelopment phases. The projectsare programmedin the mediumterm are as shownin the followingTable 6 andTable 7:

RepAblico Democratico De Timor-Leste Tabfe4.41 - EstimatedSea Transportation Sector Costs for 2OtO- 2O1S

No DESCRIPTION cosr ESTIMATToN{uss) 2010 2011 20t2 2013 2014 2015 A SEATRANSPORTATION FACITITY STUDY 1 DiliDryport Location Study 2 DiliSeaoort Rehabilitation 3 SuaiLocation and Master Plan Study 4 TibarSeaDort Location Studv 5 DiliDryport Master Plan Study 6 SuaiSeaport Design 7 HeraNavy Seaport Plan 8 TibarSeaport Design and Master Plan Study 9 ManatutoSeaDort Master Plan Studv 10 NawSeapon Location Studv ll ManatutoSeaport Design Study t2 BeacoSeaport Master Plan Study 13 BeacoSeaport Design Study t4 NawSeaport Master Plan Studv 15 NavySeaport Design Study .:.":, OecussL{aravela,Atauro & Com.&ports Master{ L6 L7 Oecussi,Caravela, Atauro & ComS@orts qe{ign B REGUI.ATIONFORMUI.ATION L Formulationof Sailins.@tvStandards 2 FormuIationof SqrgllffbfieftfornaIReguta.tjons - 3 Formulationof Sffirt Develi*furentResuhion6 4 Formulationof sea tcirt -secu ritvlteg u la t ions c 'J- seejiriiffitapacity'a-nd,{acility-e&mtif ication 2 seiEaJsportationsectgf.Basic bqla Development D sEAPtilh.fAcruw TMPffiS4EMENi 1 DiliseapdFt Rehabilitation di.El supervision 2 DiliDryport Cqrlstruction andf-trpervision 3 ManatutoSeaport Rehabilitation and supervision 4 SeaportOperationa[ UtilitieS-Fjocu rement 5 OecussiSeaport Rehabili,tation and Supervision 6 CaravelaSeaport Rehabilitation and Supervision 7 AtauroSeaport Rehabilitation and Supervision 8 ComSeaDort Rehabilitation and Suoervision E TIBAR& SUAISEAPORT DEVELOPMENT 1 TibarConstruction and Supervision stage-1 2 TibarConstruction and Supervision Stage-2 SuaiSeaoort Construction and SuDervision F NAVYSEAPORT DEVELOPMENT 1 HeraNavy Seaport Construction and Supervision NavySeaport Construction and Supervision on the 2 SouthernCoast Source: Colculotion Results

Repiblico Democrotica Timor-Leste ' 2O2O Tabfe4.42 - Estimated5ea Transportation secior Costs for 2OL6 eslruanon(us s) No DESCRIPTION cosr 2016 20L7 2018 20t9 2020 ESTABLISHMENT OF TIMOR.LESTE SHIPPING A COMPANY 1 Tim^r-r a

A Fr+.hli

4.4.6 AirTransportation

1. overview is the international PresidenteNicolau Lobato International in Dili with the other airport for passengerand cargo,connecting Timor-Leste countrvofthewor|dby|ndonesia,Austra|iaandSingaporewithanaverage 1) Navigationaids' passengervolume of 80,000passengers per year (Figure improved' groundguidance systems and the passengerterminal have been

Repibtica Democrotico De Timor-Leste Airservices are now provided weekly between Darwin and Dili by AirNorth (of Australia),typically using 3Gseat turbo-prop aircraft' Seven return services are madeeach week between Denpasar and Dili by Merpati{of Indonesia), generallyusing 8737. Silk Air operatestwice per weekfrom/to Singapore usingAirbus 319.

Domesticcommercial flight services on a regularbasis are not currently available,and there is currentlyno aircraftregistered under the state of Timor-Leste.Baucau airport (120 km from Dili), which was previously used by lndonesianmilitary and has a runwaythat i bfeof accommodating8747 andsimilar category aircraft at reduced weight;Suai (1,050 m sealed runway);oecussi (a gravel runway); anifujt*fufu at nu" other locations.

.'jii::.l. .",,_ The conditionsof the main.&.ffilescurrently arltilable of the Presidente NicolauLobato International aifport are asfollows:

A runwaywith a lengthof 1850m longand 30 m wide, Two normalexit taxiwaysand apronswith a sizeol 240 m x 100 m, whichuses an apronpavement structure, Onepassenger terminal buildirtg and separate WIP building, Onecontro-ftower and citrher operational buildings. Visualaids in the formof a DVORnavigation system Thepassenger terminal building has been repaired

Repiblica Democraticd De Timor-Leste Figure4,16 - PresidenteNicolau Lobato InternationalAirport in Dili

Thereare alsotwo regionalairports, Baucau airport (120 km from Dili)at the eastand Suaiat the south.Baucau airport, with a runwayof 2500m'is also designatedas countryentry/exit point, especiallyfor cargo planeswhich require a longer runway than the availablePresidente Nicolau Lobato lnternationalAirportinDili.However,bothoftheairportstogetherwith Oecussi,are unattendedand in usefor UN and internationalsecurity forces only.

2. Problemsand Constraints

The condition of all the facilitiesare generallypoor, and the PresidenteNicolau Lobato |nternationa| Airport of Di|i is the country,son|y internationalairport for passenBertraffic serving for connectingTimor-Leste with Indonesia,Australia and Singapore

The presentprofile of air traffic is quite low, with an averagepassenger volumeof 80,000passengers per year, and no availabledomestic commercial air transport.The growth in traffichas been noticedprimary because of the presenceof peacekeePers.

Thereis no aircraftregistered under Timor-Lesteaviation registration and marking.Timor-Leste has no bilateralAgreementsin regardto Air Transport with anyneighbouring States.

ReoAblicq Democrotica De Timor-Leste 3. Policyand Strategy

Thepolicy and strategy of Timor-Lesteair transport development isexecuted withthe following approaches and steps:

a) Tc prcvidea rnarketassessrnent and forecastof the futufe traffic patternwith respectto domesticand international traffic, passengers andcargo traffic, with an assessmentto commercial and organizational issues

b) lmprovementand increase in the circulationof peopleand goods is a fundamentalfactor to encouragethe economicgrowth the sustainable developmentthroughout the entir€ the country

Adopta competitivesystem for the internationalflight companies;

d) Capacitybuilding and techiiriealassis.tance: Training of staff in areas suchas aviatioqi.aad airport man4iement is needed.This training needs to fit in withthe scheduleof standirdregional courses. lt is desirable thatthis training be compbmentedwith a twinningarrangement with .-..i '-,.i. . 'fqrther-. anoth€r airport authority to assist with development of institution;fcapacity. .tt,[9 necessaryalso to cooperatewithin the countriesAsia Pacific Reg' on to conductsome agreement in terms of capacity

With a projectedaverage growth in demandfor air transportationservices of lOVoper year, wtthin the next10 years, it isestimated that passengerdemand will be equivalentto 1 210,000passengers. Thus, for the whole of Timor- Leste,only one internationalairport in Dili,as the main airport,should be developed.Meanwhile, the Baucauairport can serve as an alternativeairport for PresidenteNicolau Lobato InternationalAirport, in the event of operationalconstraints. The is needed to support future explorationand exploitationactivities by oil companiesoperating in Timor- Leste,both for domesticand limitedinternational flights. The Oecussi airport canonly fully functioned as a domesticflight airport.

To supportand promote governance and economic activity, particularly in the fieldof tourismas one of the importanteconomic potentials to be developed in the future, the increaseof facilitiesin the PresidenteNicolau Lobato

Repdblicd Democrotica De Timo r- Leste InternationalAirport - Dili,needs to be developedin sustainablestages in orderto accommodatethe operationsof largeraircrafts, such as the Airbus A33Oor the Boeing8787. The airport must meetthe minimumstandards provisionsof internationalcivil aviation organization ICAO or the equivalent, whichflight's can directly reach East Asian countries (China, Japan, Taiwan & Korea),South Asia (lndia & Pakistan),Southeast Asia (Kuala Lumpur, Bangkok and Manila),the entireregion of Australia& NewZealand and the Pacific countries(Vanuatu, Fiji, Papua New Guinea, etc.), with a potentialpopulation of morethan half of theworld's population.

4. Programsand Projects

Programfor the developmentof air transportationmodes in Timor-Lestein generalwill include:

a) PolicyFramework and Regulations:

Developinginternational & domesticcivil aviation law; lmprovingregulations and managementof the aviationsector to dealwith majorinternational conventions on civilaviation.

b) CapacityDevelopment:

lmprovethe abilityand knowledgeof airportstaff / ministryof infrastructure. Qualityand professionalismin managing the administrativestafi financialand operational services, security and flight safety.

cl Programs:

lmprove/renovateairport facilitiesto improvethe quality of passengerand cargo traffic services; Establisha modern system of taxesand tariffs for aviationservices with an effectiveenforcement ability; Efficientlyand economically increase the numberof currentaircraft trafficof passengersand cargo; Developthe airportmaster plan to accommodatethe demandfor thefuture flight services with gradual and sustainable investments; Establisha nationalairline to servedomestic and international flights;

Repiblico Democrdtica De Timor-Leste Establisha business entity in airportmanagement, with a focuson the commercialaspects in orderto maintainoperational capability andinvestment financing on anongoing basis; PromoteEast Timor airport services to internationaloperators and regionalairlines; Adoptinga competitivesystem for internationalairlines.

The plannedprojects for the short-termprogram until the year 2015is primarilyaimed at the preparationof the masterplan study, detailed design andrehabilitation of currentlyavailable facilties, particularly the Presidente NicolauLobato International Airport - Dili,in orderto anticipategrowth in demandfor futureflight services, as well as to rneetthe minimumstandards of lcAo. Preparationof the master?lanstudy proiects, detailed design and rehabilitationof airportfac $ies in Suai,Oecussi, and Baucauare also needed.

The construction facilitieslilFili and Suai,is plannedto already start in the third yeardf the Strort-termpfograms, so that at the end of the short-termprogram, thef are alreBatyready to operate.ln the short-term prograrn,a' pregarationstudy of air Transportationsector regulations, particula'rlythose r€latedtoi'aspects of aviation safety, operationaland airport developm,-enlfacilities, and security provisionsreferred to port provisionsissued'by the initernationalcivil aviation organization ICAO, IATA or similar organizations.In the Shortterm, a total fund of 5338,000,000is neededfor the studyto constructiondevelopment phases. The details of the plannedprojects short-term programs are as shown Table 4.

The medium-termprograms are primarilyaimed at establishinga national airline, both to serve the transportationof passengersand goods for domesticand internationalflights, so Timor-Lestecan be more independent and lessreliant on foreignairlines, as well as the establishmentof airport servicebusinesses, with more focus on commercialaspects, in order to maintainoperational capability and investment financing on an ongoingbasis, so that it will not dependentirely on the sourceof financingfrom the state budget.In the mediumterm, a total fund of 5633,000,000is neededfor the studvto constructiondevelopment phases. A projectto developnew aviation pathsin domesticflights can also be preparedin orderto expandand support

Repiblico Democrotico De Timor-Leste the developmentof the regionaleconomy. The projects programmed in the mediumterm areas shown in the followingTable 8 andTable 9:

Repiblico Democrotico De Timor-Leste Tabfe4.43 - EstimatedAir TransportationSector Costs for 2O1O- 2OLs

cost Estimation(Us S) Des€ription FacilityStudy for Air Transportation Overlayplanning and expansion of airport runway Masterplan study for Nicolau Lobato 2 InternationalAirport 3 Masterplan study for Suai Airport Detaileddesign for Nicolau Lobato 4 lnternationalAirport 5 Detaileddesign for Suai Airport 6 Detaileddesign for Oecussi Airport Masterplan study and detailed design for 7 BaucauAirport B RegulationFormulation 1 Formulationof aviation safety standards 2 Formulationof airport operational regulation Formulationof airport development 3 regulation 4 Formulationof airport safety c Preparationof BasicData for Transoortation 't ldentificationof airpqrtcapacity anil',facility Basicdata for the development of air 2 transportationseator i: D lmprovementof AirportFacifity Developmentof Nicolau Lobatg International L AirDort 1-&€vbrlay&.extension sf€xisting runway tr2 LandprocurerT'rent for rufiwayextensioh 1.3Construction for runwayextension 1.4PlociJrement of visua!navigational, telecomrnunicationsandmeteorology equipment 1.5Apron extension l-.6Construction of passenger& cargo terminal 1.7Construction of control tower & operationalbuilding 1.8Construction of access road for parking 1.9Construction of drainage & utilitynetwork 1.10Construction of inspection roads and airportfences 1.11Supervision and planning service 2 Developmentof Pioneer Flights 3 5ubsidyprogram for pioneerflights tickets 4 Advisoryand supervision program 5 Supervisionservice for Suai airport

Repiblica Democratico De Timor-Leste development Rehabilitationof Baucau airport Supervisionservice for Baucau airport rehabilitation Source : Colcu loti on Resu lts

Rep Abl i co Democroticd De Tim or- Leste Table4,44 - EstimatedAir TransportationSector Costs for 2016- 2O2O

costEstimation (Us S) No Description 20t5 20!7 20182019 2020 A Establishmentof Natiolal Airlines 1 Establishmentof Timor-Leste Airlines 2 Preparationand training of personnel 3 Procurementof airplanesand working capitai 4 Establishmentof headquarterand branch offices 5 Procurementof supportingheavy equipments 6 Airolanesmaintenance facilitv 7 Procurementof soareDarts 8 Supportingfacility B Establishmentof Airport OperatorEntity 1 Establishmentof airport operator entitv 2 Preparationand training of personnel Establishmentof headquarter and bran-cF..offices & 3 v workingcapital 4 Procurementof equipmentand operatioffi-t vehicles c Preparationof BasicData for Air Transporftion r ldentificationof airponcapimud facility Basicdata for the developmd$gifdrlransportatioh 2 't. secror . ,. .. u lmprovementof Airport Facility . ":. ProcurementoffftF'fallo n andtelelbmm unicatioli 1 equipment ., :.i . : 1.1Nicolau Loba-to Internatiqnal Airport 1.2Suai, Baucau*& Oecussi{rport 2

1.2Suai, Baucau & gecussiAit:port Prqcxrementof teFifrmmuniEations,visual and 3 naviga'tionalaids equfplhents for;qiH, Suai, Baucau & OecussiAirports Civilconstruction on Dili,Suai, Baucau & Oecussi 4 Airports 5 Planningand suPervision services E RoutineMaintenance Routinemaintenance for NicolauLobato international 7 airport Routinemaintenance for Suai,Baucau & Oecussi 2 internationalairDort t. Developmentof PioneerFliehts t Subsidyprogram for pioneerflights tickets 2 Advisoryand supervision program Source:Co lcu lotion Resu lts

RepAblico Democrdtico De Timor-Leste