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US$2.5 million to Stabilize Timor-Leste’s Electricity Supply Services

Press Release No:2007/503/EAP

Contacts

In Washington: Elisabeth Mealey (202) 458 4475, emealey@worldbank.org

In Sydney: Sue Spencer: +61 2 9235 6551 or +61 409 740 725, sspencer@worldbank.org

 

WASHINGTON, June 28, 2007--The World Bank Board of Executive Directors today approved a US $2.5 million International Development Association (IDA) grant for the repair and maintenance of electricity supply services in Timor-Leste.

 

The grant will finance urgently needed investments for the emergency repair of the Comoro power station and for rehabilitation and upgrading of the power distribution system in the capital, Dili. It will also support the distribution of energy efficient light bulbs, Compact Flourescent Lamps (CFLs), to replace traditional incandescent light bulbs and which will result in substantial power bill savings for households. In addition technical assistance and training will be provided for project implementation and for institutional and policy strengthening of the power sector.

 

“Without adequate remedial measures, there is a real risk that electricity blackouts will occur in key areas of the capital,” said Mr Nigel Roberts, World Bank Country Director of Timor-Leste. “As we know, reliable power is important both for economic development and for personal security. This project will reverse the decline in quantity and quality of power supply and help stabilize the power services in Dili.”

 

To address the pressing concern of erratic power supply in the country, the World Bank has been assisting the government in improving power supply services. Earlier energy projects were financed by the Trust Fund for East Timor (TFET) grants including i) the Power Sector Priority Investments Project that financed a new power generator that was recently commissioned; and ii) the Gas Seep Harvesting Project that will supply electricity to new customers in the rural communities in Aliambata, Babula and Borolalo.

 

The Energy Services Delivery Project is the first IDA grant financed energy project in Timor-Leste. It is also the first operation processed under the Bank’s new policy on Rapid Response to Crisis and Emergencies. This has added speed, simplicity and flexibility in project processing to enable a timely response that is essential to halting the deterioration in power services, during the ongoing crisis in the country.

 


For more information, please visit the Projects website.



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