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An AIFFP grant and loan package is enabling the Government of Timor-Leste to upgrade a range of operational and public-facing ground facilities at its main international airport.

Redeveloping Timor-Leste’s international airport Presidente Nicolau Lobato International Airport is the main gateway airport of Timor-Leste.

Redeveloping Timor-Leste’s international airport

Dili, Timor-Leste

Approved

Type:
Airports
Investment:
AUD89.8 million

Delivery partners

Democratic Republic of Timor-Leste
Asian Development Bank
International Finance Corporation
Japan International Cooperation Agency
Australian Government’s Partnerships for Infrastructure program

We’re proud to work with the Government of Timor-Leste to facilitate upgrades to Presidente Nicolau Lobato International Airport in Timor-Leste’s capital, Dili.

The works include a new cargo terminal building, an animal and plant quarantine facility, upgrades to surrounding access roads and footpaths and the renewal of the terminal carpark and drop-off zones.

The airport upgrades will facilitate expanded passenger capacity and experience and compliance with critical international safety and security standards.

Support for 13 critical infrastructure components

Complements Asian Development Bank and Japan International Cooperation Agency projects

With the airport a main international gateway and key to driving further economic opportunities for Timor-Leste, the project is a key development priority for the Government of Timor-Leste.

Australia’s investment complements additional work being undertaken at the airport by the Asian Development Bank and the Japan International Cooperation Agency.

Our financing includes a loan of AUD57.1 million and a grant of AUD32.7 million, with additional funding from the Australian Government’s Partnerships for Infrastructure program.

280 jobs created

by project completion

AIFFP contribution

AUD89.8 million

  Amount
(AUD million)
Amount
(USD million)
Variable interest rate Tenor
Loan $57.1 $40.0 SOFR + 1.23% 25 years
AIFFP grant $32.7 $22.9 n/a n/a
Bilateral grant $7.9 $5.5 n/a n/a

Exchange rate of AUD/USD = 0.70, exact AUD amount depends on exchange rate at disbursement. SOFR is the Secured Overnight Financing Rate.

Impact

The airport works will support increased economic growth and connectivity with the region, create local jobs, and achieve a key development priority for Timor-Leste.

Beyond the project delivery phase, the investment will facilitate increased tourism flows by expanding passenger capacity and experience, as well as through compliance with critical international safety and security standards. In turn, opportunities for local employment and economic growth will be created in the local tourism industry.

Similarly, the redevelopment will deliver new facilities to improve capability for cargo and quarantine management, which will provide long-term growth opportunities for Timor-Leste’s important agricultural sector, particularly the live fisheries industry.

With more Australians than any other nationality travelling to Timor-Leste by air, the investment will also deepen the close relationship between the people of Australia and Timor-Leste.

Latest updates:

  • It is expected that the Project Management Supervision Consultant will be contracted in early 2024; with the Design and Build Contractor expected to be released to tender to the AIFFP Panel in early 2024 and contracted by Q3 2024.
  • Works are expected to be phased over a multi-year period and completed by 2027.