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The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report Part I: Current Condition

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The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report Part I: Current Condition Ministry of Planning and Strategic Investment Democratic Republic of Timor-Leste The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report Part I: Current Conditions October 2016 Japan International Cooperation Agency (JICA) Nippon Koei Co., Ltd. Pacet Corp. EI JR 16-132 Ministry of Planning and Strategic Investment Democratic Republic of Timor-Leste The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report Part I: Current Conditions October 2016 Japan International Cooperation Agency (JICA) Nippon Koei Co., Ltd. Pacet Corp. CONVERSION RATE (As of September 2016) 1 USD = JPY 102.13, 1 JPY = USD 0.00979 Source: JICA Website Location Map The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report PART I: ANALYSIS OF CURRENT CONDITIONS EXECUTIVE SUMMARY 1. INTRODUCTION 1.1 Dili is the capital city of Timor-Leste and comprises six administrative posts, 31 sucos and 241 aldeias. The Dili Municipality accommodates a population of 234,026 (2010 Census) with annual population growth rate at 4.1% which is far above the national average growth rate (2.45%). The urban population is expected to share 30% of the national population in 2020. 1.2 There has been no overarching countermeasure undertaken against such rapid growth of urban population. Various urban issues are arising such as uncontrolled urbanization, traffic congestion due to rapid increase in number of vehicles, higher risks of natural disaster, degraded sanitary condition due to underdeveloped sewerage and solid waste management facilities. These issues have further obstructed the economic activities. 1.3 In this background, the Government of Timor-Leste (GoTL) requested the Government of Japan to prepare the development vision that will enhance sustainable economic growth, and to formulate the integrated Dili urban master plan. In response to the request, the Ministry of Public Works and the Japan International Cooperation Agency (JICA) signed the Record of Discussion for the implementation of “the Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste (hereinafter referred to as "the Project") in October 2013. (Ministry of Public Works has been reorganized as Ministry of Public Works, Transport and Communications (MoPWTC) after government reform in February 2015.) After the government reform in February 2015, the executing agency for this project was changed from MoPWTC to the Ministry of Planning and Strategic Investment (MPSI). The minutes of meetings for the Amendment of the Record of Discussions was signed in July 2015. 1.4 The Project aims to formulate the integrated urban master plan that will facilitate sustainable development in Dili Metropolitan Area (DMA). Transferring participatory planning method through collaborative work with the counterpart and involvement of stakeholders in the planning process are also some of the objectives of the Project. Moreover, to ensure its feasibility by obtaining approval of the formulated master plan by the GoTL is also one of the crucial components of the Project. Both the counterparts of the GoTL and the JICA Project Team (JPT) have worked and conducted the study together. 1.5 The Steering Committee (SC) functions as the decision making body on project operation and output. The Working Group (WG) is working with the project members to examine the technical aspects of the projects as well as donor coordination. 1.6 This final report consists of three volumes as follows. Dividing the report into three volumes is helpful for the readers to easily refer to the overall outputs of the Project. Volume I: Current Conditions Volume II: The Master Plan Volume III: Appendix 2. CURRENT SETTING OF THE PROJECT AREA Population and Demography 2.1 Timor-Leste accommodates some of one million population over the country, where nearly NIPPON KOEI CO., LTD. PAC ET C ORP. ES I-1 The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report identical proportions of male/female are structured at 51% to 49%. In the 2004 Census, 26% of the national population was accounted for urban population, which has grown rapidly reaching 30% in six years in 2010. Dili Municipality accommodates a population of 234,026 (2010 Census) with annual population growth rate at 4.77% which is far above the national average growth rate (2.4%) during 2004-2010. 2.2 The table below presents population, land area, population density, and average household size by administrative post (suco for Liquica Municipality) for the project area. Dom Aleixo accommodates the largest population, followed by Cristo Rei Administrative Post. Average household size in the project area is estimated at 6.7 persons per household. Outline of the Current Population by Administrative Posts in the Project Area Avg. Land Area Pop. Density No. of Municipality Sub-dist./Suco Pop. 2010 Household (ha) (Person/ha) Household Size Dili Vera Cruz 34,015 3,280 10.4 5,318 6.4 Dili Nain Feto 26,592 520 51.1 4,015 6.6 Dili Dom Aleixo 105,154 3,310 31.8 15,896 6.6 Dili Cristo Rei 54,936 6,530 8.4 7,505 7.3 Liquica Tibar (Suco) 3,096 4,220 0.7 429 7.2 Project Area (Est.) 223,793 17,862 12.5 33,163 6.7 Source: Highlights of the 2010 Census Main Results in Timor-Leste and Timor-Leste 2010 Population and Housing Census Vol. 4 - Suco Report 2.3 Male population in the project area is 53%, while female is 47%. The age group of 15-64 that is potential working group accounts for 63% of total population in the project area. The young population under age 29 is prominent in the project area. Socio-economy and Industry 2.4 The level of national education has a low record at 34% of students aged above 6 years old who never attended school, as of 2010. Due to the historically conflicting era, the rate of no schooling was higher for the older population in general. However, recent attendance rate of primary school for the children has significantly improved from 37% in 2004 to 73% in 2010. For Dili Municipality, 86% of the population aged above five years old has attended at least primary school in the project area, while 14% population still presents without any school attendance. 2.5 Dili Municipality accommodates most of the university students accounting for 76% of the national total number of university students. This implies that Timorese most likely need to move to Dili in seek of higher or post-secondary education. In fact, Migration Monograph of Census 2010 has revealed that education purpose is one of the most popular reasons for migration to Dili. 2.6 The literacy rate by the regions and four languages indicates that Dili Municipality has the highest literacy rate at 86%, while it is much lower at 46% for the rural areas, which dominates 70% of the national population. Thus, the national average is substantially lowered to 58%. The literacy rates of Tetun, mother tongue, Portuguese and English have been substantially improved during the inter-censual period. The literacy rates will continue to increase as the government invests more on education and the youth generation grows. 2.7 Potential working population (age 15-64) has substantially grown almost 1.5 times since 2004. Overall unemployment rate in Dili Municipality has declined from 26.9% to 17.4% in 2010, while the labor force participation rate has also declined. This result implies that the economically inactive population such as housewives and students has grown more rapidly than the economically active population. Unemployment rate for the age under 30 in Dili Municipality has recorded remarkably higher than that of the national level. It is implied that a substantial number of the youth has entered into the labor market in Dili. Due to the great potential number of youth population, it is apparent that the working population will NIPPON KOEI CO., LTD. PAC ET C ORP. ES I-2 The Project for Study on Dili Urban Master Plan in the Democratic Republic of Timor-Leste Final Report substantially increase for at least the next 15 years. Therefore, further job creation in Dili is the urgent issue to be concerned in order to absorb such increasing working population. Primary industries including agriculture, forestry and fishery are still large sector of employment even in the urban area. However, it is slightly smaller than government employment. The largest labor force absorbing industry is tertiary industry at 44%, including various service industries such as wholesale, retailer, hotel, restaurant, and transportation. Service industry and government employment dominate more than 65% of labor distribution, while secondary industry represented by manufacturing and construction remains to have minimal shares of labor distribution. 2.8 GDP in Timor-Leste recorded approximately 1 billion USD in 2011 (2010 constant price), performing at an average growth rate of 12.1% in the last five years. Although agriculture, forestry, and fishery are the predominant industries employing the largest share (67%) of national labor force, its GDP share has remained very small. Manufacturing, construction, and other mining industries have been growing rapidly in the last five years. Major growth contribution comes from construction sub-sector supported by the increasing government infrastructure investment. Manufacturing sub-sector has remained at only 3.6% of share to the GDP in 2011. According to “The Data Collection Survey on Industrial Development for the Republic of Timor-Leste” conducted by JICA in 2014, however, there are growing small-scale manufacturing industries such as cannery and mineral water bottlers. The business model of mineral water bottling is quite similar to the export processing in which raw materials (pet bottle) are imported, bottled domestically, and its partial amount of products are exported to Singapore.
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