Timor-Leste transport sector outline of priorities and proposed sector investment program

The Government and community of Timor-Leste face substantial challenges in the transport sector. The international port and airport in Dili are operating satisfactorily, though the decline in demand that is expected to accompany the withdrawal of much of the international presence in mid-2004 will reduce demand at the facilities and hence their revenues. There is no domestic civil aviation, and formal domestic shipping services require a large annual subsidy. Timor-Leste has a substantial 6,000 km road network, though this is generally in poor condition. With only 19,600 vehicles in the country, including 6,500 motorcycles and 3,000 United Nations vehicles, the tax base for recovering the cost of providing roads from the community is small. This paper addresses the following areas: the setting for the transport sector, objectives for the transport sector, main issues and challenges, medium-term development program, expenditure programs and sources of funding, and managing uncertainty. The paper describes a ten-year vision for the road system to: bring the road network up to a sustainable condition where, with regular maintenance, life-cycle costs will be minimized, road closures will be reduced and manageable, and road access will be reliable; improve key roads to support a growing economy; and ensure effective capacity to manage the road system, comprising asset management systems (including risk management), use of the private sector for cost-effective delivery, and reliable funding and adequate cost-recovery from users.