Timor-Leste's First PPP Project Achieves Financial Close

The PPIAF funded Tibar Bay Port project achieved financial close. The transaction is the first PPP in the country’s history—with private financing estimated to be at least five times larger than any previous private investment outside the oil and gas sector.

A C3P mandate reached the commercial close in 2016 when a $490-million concession contract to design, construct, and operate the port for 30 years was won by Timor Port SA, (a company registered on Timor-Leste and owned by Bolloré). Since that time, C3P has provided ongoing post-transaction supports to the government so that financial close could be achieved. 

This financial close of a truly transformational port PPP transaction successfully concludes a series of four successive PPIAF support to establish the PPP framework in 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.

The port will be key to diversify the country's economy and boost economic growth. The new, modern, world-class port is estimated to have capacity to handle 350,000 TEUs annually. The PPP will mobilize US$150 million and create an estimated 500 local jobs.

Related Resources: PPIAF Supports Timor-Leste's First PPP Project