Author: Olivio

17^th August 2022: Today, the Third Project Steering Committee (PSC) meeting of the European Union (EU) funded and European Investment Bank (EIB) managed Project Preparation and Implementation Programme (PPIP)[1] was held at the Ministry of Planning and Territory.

The meeting was opened by His Excellency the Vice Prime Minister and Minister of Planning and Territory, Eng Jose Maria dos Reis who mentioned the following “The Ministry of Planning and Territory’s main role is to facilitate TL-PPIP team, relevant ministries and other key stakeholders to achieve a productive progress of the project. A decision was made during the second PSC meeting last February, where COWI Consultant should proceed to the pre-feasibility study phase with the provided and approved project fiches. In this 3rd PSC Meeting, we will discuss the studies encompassing all 3 sectors currently under development by COWI consultant throughout the pre-feasibility stage, and we shall come up with solutions and decisions.”

The Representative of the European Union to Timor-Leste, Head of Cooperation, Mr Ramon Reigada, mentioned that “the Government of Timor-Leste is working very hard with various big projects, such as the MCC project, ADB and WB projects, but I believe there is a place and scope for the European Investment Bank to invest in this country. EIB is a public institution, but unlike ADB and WB, the EIB, as the Bank of the European Union, has a different picture and approach. The EU delegation is looking forward to the result of this meeting.”

Mr Michael Jacobsen, COWI Project Director, provided a summary of the PPIP activities on the three sectors (namely Water, Forestry and Solid waste) as well as the expected outcomes from the Third project Steering Committee meeting. He introduced Mr Chris Manu as TL-PPIP’s new Team Leader, who will permanently reside in Dili, and Mr Jörg Albrecht as the new Forestry Key Expert.

The EIB Representative for the Pacific, Mr Benoit Cambier, commented that “I am pleased to be able to visit Timor-Leste and represent the European Investment Bank at the Third PSC meeting. The EIB has just opened an office in the Pacific this year and is now based in the region. I am happy to witness the progress since the second Project Steering Committee meeting in February 2022, when the committee selected six fiches for the Pre-feasibility Study. However, some issues need to be addressed, including the need for an alignment of the scope, timing, the processes and various initiatives in the three sectors, to look for synergies and complementarities and avoid overlaps of work. The EIB, the European Union’s bank, is one of the main instruments for cooperation and development when it comes to investment. Jointly with the EU, the EIB is looking forward to supporting the government of Timor-Leste in co-financing and implementing the future investment projects that the PIPP will deliver. Without any doubts, those projects will contribute to the development of the nation and the well-being of its citizens.”

Participants in the third PSC meeting

The Third PSC meeting welcomed the presence of Mr Benoit Cambier, Representative for the Pacific, European Investment Bank (EIB), for his first visit to Timor-Leste. This meeting was joined by Mr Michael Jacobsen, COWI Project Director and the PPIP Team Leader, Mr Chris Manu. The meeting was chaired by H.E., the Vice Prime Minister and Minister of Planning and Territory, Eng Jose Maria dos Reis. The meeting was attended by H.E. Mr José Maria dos Reis, Vice Prime Minister and Minister of Ministry of Planning and Territory; H.E. Mr Joaquim Amaral, Coordinating Minister of Economic Affairs; H.E. Mr Miguel Pereira de Carvalho, Minister of State Administration; H.E. Mr Rui Gomes, Minister of Finance; H.E. Dr Abilio Xavier de Araujo, Vice Minister of Agriculture and Fisheries; H.E. Mr Abel Pires da Silva, Minister of Public Works; Mr Ramon Reigada, Head of Cooperation, EUD to Timor-Leste; Mr Benoit Cambier, Representative for the Pacific, EIB; as well as other representatives from the Government of Timor-Leste, the EIB, the EU, and the PPIP Consultant COWI.

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[1] The Project Preparation and Implementation Programme for Timor-Leste is an EIB executed technical assistance operation which is financed from the European Development Fund, under the Investment Facility for the Pacific (IFP) and under the Cotonou Agreement.

Photos from the 3^rd PSC Meeting held 17th August 2022.

About the PPIP

The PPIP is an EU-funded and EIB-managed project to assist the Government of Timor-Leste in the identification, preparation and implementation of technically, financially, economically, environmentally, and socially sound investment projects in three sectors of Water Supply, Sanitation and Drainage; Solid Waste Management and Forestry. PPIP will identify potential fiches in the three sectors, conduct prefeasibility studies for six projects (two per sector) and then complete three feasibility studies (one per sector). At the end of the feasibility studies, it is envisaged that the Government of Timor-Leste will take out loans from EIB to fund the three investment projects.

About the project Steering Committee of the PPI Programme
The Ministry of Planning and Territory chairs the Project Steering Committee of the PPIP. The Government of Timor-Leste is also represented in the PSC by the Ministry of Foreign Affairs and Cooperation, the Ministry of Finance, the Ministry of State Administration, the Ministry of Public Works, Bee Timor-Leste, and the Ministry of Agriculture and Fisheries.

About the European Union
The European Union (EU) is a unique economic and political union between 27 European countries that cover much of the continent together. The predecessor of the EU – The European Coal and Steel Community – was created in the aftermath of the Second World War and was built on the understanding that countries that trade with one another become economically interdependent and, therefore, more likely to avoid conflict. In Timor-Leste, the EU is the second largest donor of development aid (grant funding). The EU is committed to supporting Timor-Leste’s 2011-2030 Strategic Development plan, which aims to transform Timor-Leste into an upper-middle-income country by 2030 based on rapid, inclusive growth enabling it to improve infrastructure, worker skills, education, training and health systems, and combat poverty and malnutrition. The EU assistance focuses on green and sustainable economic recovery and development, rural development, good governance for sustainable development and gender equality.

About the European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. Financing projects that help strengthen the economic, social and territorial cohesion of the European Union has been at the heart of EIB operations since its foundation in 1958.

EIB Global is the EIB Group’s new specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through its offices around the world, including in the Pacific.

For more information, please contact:

Mr Chris Manu, PPIP Team Leader

The Project Preparation & Implementation Programme for Timor-Leste (PPIP) Key Expert for Solid Waste Management, Mr Jan Skajaa, conducted a workshop on 3 June 2022 regarding the selection of sites for transfer stations and two regional sanitary landfills that are proposed to be established as part of the PPIP investment programme. The workshop was attended by representatives from the following municipalities Lautem, Baucau, Manatutu, Covalima, Ainaro, and Manufahi, in addition to representatives of National Directorate for Spatial Organisation under the Ministry of Planning and Territory (DNOE/MPO), and the National Directorate for Urban Organisation under Ministry of State Administration (DNOU/MAE), the National Authority for Water and Sanitation (ANAS I.P).

Mr Jan Skajaa provided an overview of the PPIP project mentioning that the project was currently in the prefeasibility stage. The PPIP Project Steering Committee has approved the following two sub-projects in the solid waste sector:

• Integrated Solid Waste Management collection, transport, and disposal for Timor-Leste outside of Dili;
• Healthcare Risk Waste Management for Timor Leste.

The focus of this workshop was the identification of two proposed suitable sites for the proposed regional sanitary landfills; one being in the east of the country and the other being in the south. As sanitary landfills are quite expensive to construct and operate, and the population of individual municipalities outside of Dili is too small to sustain individual landfills, therefore two regional sanitary landfills are proposed to supplement the existing new landfill at Tibar. The municipalities which will not have a sanitary landfill will be equipped with transfer stations to transport the waste to the sanitary landfill. Mr Jan Skajaa requested the participating municipalities to identify up to three possible locations for each of the two sanitary landfill sites, in addition to sites for transfer stations. The selection of the three locations for each of the two landfills will involve the municipal authorities in concert with MPO and then analysed by COWI which will then recommend one site for each landfill.

Two new regional landfills (to supplement the new landfill in Tibar):

1. Located near Baucau, covering the municipalities of Manatuto, Baucau, Lautem, Viqueque. The land area needed is 10-15 ha which will cover the need for 25 years.
2. Located near Ainaro, covering the municipalities of Manufahi, Ainaro, Covalima. The land area needed is 8-10 ha which will cover the need for 25 years

The existing sanitary landfill in Tibar will service the remaining municipalities.

Mr Jan Skajaa presented main considerations for selecting locations for landfills including:

• The distances to residential and recreation areas, waterways, water bodies, and other agricultural or urban sites
• The existence of groundwater, coastal water, or nature protection zones in the area
• The geological and hydrogeological conditions in the area
• The risk of flooding, subsidence, landslides, or avalanches on the site
• The protection of natural or cultural patrimony in the area.

Mr Jan Skajaa commented that the results of the workshop identified no opposition among participants regarding the concept of 1) local recycling stations, 2) municipal transfer stations, and 3) regional landfills. The municipalities announced that they were ready to discuss this further at local meetings with the COWI Consultants. Mr Jan Skajaa hopes that the selection of sites for landfills and transfer stations can be concluded quickly allowing for a quick evaluation and final selection of construction sites.

The Project Preparation & Implementation Programme for Timor-Leste (PPIP) Key Expert for Solid Waste Management, Mr Jan Skajaa, conducted a workshop on 2 June 2022 regarding the proposal for a Deposit Return Scheme (DRS) for Timor-Leste. The workshop was attended by representatives from MPO, DNOV/MAE, ANAS, NDPC, SEA, ANLA, Ministry of Health, and Ministry of Finance.

Mr Jan Skajaa presented the proposed DRS scheme for Timor-Leste. A DRS is a system whereby consumers buying a product pay an additional amount of money (a deposit) on top of the product price that will be reimbursed upon the return of the packaging or product to a collection point. A DRS will provide a very strong incentive for consumers to return the product/packaging to a collection point hereby reducing mismanagement or illegal dumping. Based on the principles of Extended Producer Responsibility, a DRS provides the means for a low-cost and highly effective collection system for target materials/products, which moreover is easily monitored and enforced.

Mr Skajaa provided two alternative options for the organisation of the collection, transport, and ultimate reuse/recycling/management of beverage containers.

In the first alternative, consumers take the empty containers back to the original vendor where the deposit is refunded in cash. The vendors are obliged to take back the empty containers and from them the containers are collected by a centrally established organization.

In the second alternative, consumers must take the empty containers to a designated Deposit Return Station, where the deposit is refunded via smartphone app or directly onto consumers bank account. A central organization maintains the Deposit Return Stations and collects and transport the containers for processing/recycling.

Both alternatives will require some regulatory adjustments and the establishment of a central organisation that will manage the system and process containers. This organisation may be a government-owned entity, or the operation may be tendered to a private concessionaire.

The expected main effects of introducing a DRS for Timor-Leste are that more than 100 million plastic bottles a year will be collected and managed properly – and therefore not contribute to the pollution of the environment. A DRS will also provide new jobs and business opportunities.

Financing of investments under the proposed DRS scheme is anticipated to take place by a combination of government grants and IFI loans/grants, including contributions from the EIB. Operational costs are to be covered by the industry and from revenues obtained from selling recyclable materials.

Details of financing and operation of the proposed scheme are to be developed under the current PPIP programme and presented in reports due by the end of 2022 and 2023.

The participants welcomed very much the presentation and acknowledged that actions are needed to battle plastic waste. The proposed system was seen as a good solution but there were concerns regarding the organization structure to manage the scheme and also the necessary legislation required. Further development of the proposed system is needed and presented in practical details and adapted to Timorese conditions.

On a final note, Mr Jan Skajaa noted that currently, 10 US states, Canada’s largest provinces, Australia, Germany, the Netherlands, all of the Nordic countries, some east-European countries, Israel, some pacific states, and other countries/regions have successfully implemented a deposit return scheme (DRS), mainly for beverage containers. He is confident that this scheme can be adapted to the Timor-Leste conditions and would be of great benefit to winning the battle against waste.

The Project Preparation & Implementation Programme for Timor-Leste (PPIP) recently took part in the Europe Day fair on the 27^th and 28^th May 2022 at the Timor Plaza. This 2-day fair event was organised by the European Union in Timor-Leste with the objective of show-casing the European Union and Timor-Leste cooperation and partnership for over twenty years. The President of the Democratic Republic of Timor-Leste, H.E. José Ramos Horta, jointly with the Ambassador of the European Union to Timor-Leste, H.E. Andrews Jacobs opened the two days fair. 

The event was a great opportunity to disseminate information about the PPIP to the general public and other interested organisations. Over 6000 people were reported to have attended the 2 day event, with many others joining via online streaming/facebook from the European Union Delegation in Timor Leste. 

The President of the Democratic Republic of Timor Leste, H.E. Jose Ramos Horta and the Ambassador of the European Union to Timor Leste, H.E. Andrew Jacobs also visited the PPIP stand. 

Promoting its green credentials, the PPIP provided visitors a paperless experience, namely a short presentation of the project provided on a large screen television. Furthermore, visitors could access the PPIP website by using smartphones and the QR code provided. 

On the 28^th June 2022, the PPIP Deputy Team Leader, Mr Kong Kiong Mu provided a 10 minute presentation of PPIP, and was supported in translation by PPIP Consultant, Mr Olivio Dos Santos.   

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