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Accessibility to water supply and adequate access to sanitation remains low, and very low for the poorest quintile of the population.

Most sanitation systems consist of simple pit latrines and poor-quality septic tanks usually directed to the stormwater or drainage system or the waste is directly plumbed there. Waste faecal solids are disposed of unsustainably. Only one existing septage treatment plant is in operation, but others are planned.

Existing infrastructure for drainage is in general considered inadequate as accentuated by the recent major flooding. Surface water drainage is contaminated by the sullage (the overflow) from the on-site sanitation systems. Flash flooding in Dili is exacerbated by watershed degradation up-stream.

Key bottlenecks that currently impede the water and sanitation sector relate to institutional capacity and absence of technical support services, accountability and incentives for sustaining services. There are no user fees for the provision of water and related services in the urban sector and a lack of funding to pay for water supply operations and no clear strategy to effectively support operations and maintenance in the rural sector. Future climate changes are likely to further exacerbate the current strain in the existing WSS&D systems by lower water tables reducing the potential water supply, potential contamination of bore waters by storm surges, and increased likelihood of flash floods. These all call for more and better designed WSS&D infrastructure and stormwater management, revision of water quality and environmental regulations and standards, and enhanced government and community strategies. Better wastewater treatment would also stop some of the microplastics that end up in the oceans every year.

Solid waste and its current inadequate treatment are identified as a growing concerning issue and threat to the environment and public health across Timor-Leste. Waste and its inadequate management constitute a serious problem in itself, and there are strong links to other areas of concern: Drainage and stormwater pollution and drainage channels blockages, leading to flooding and dangerous levels of pollution.

Also, waste taken to the ocean by surface water and sewer systems constitutes a serious problem not only when it is washed up on the beaches but also endangering wildlife, in particular marine life and ecosystems, threatening estuaries, coral reefs, fish and millions of families that rely on the oceans. The Clean Ocean Initiative by EIB/AFD/KfW targets this. The demand of an urgent and long-term solid waste management system is pressed by the fact of the ever-growing population and increase in domestic and commercial activities which have been significantly contributing to the augmentation of waste generated and its composition, particularly in the urban areas of the country.

Alarmingly, the forest cover of Timor-Leste is decreasing at 1.7% annually, a rate which is among the highest in Asia. Large contiguous areas of any one type of forest are rare, and over half the total lands

in the country are called ‘mosaic land use’, with settlements dispersed throughout the landscape, and a mixture of dense forest, swidden agricultural fields, regenerating forest fallows and grasslands used by villagers for sustaining their livelihoods.

Rural communities comprise over 70% of Timor-Leste’s population and they remain highly dependent upon forests for fuel, construction wood, food, traditional medicines, and many non-timber forest products. All citizens of Timor-Leste depend on wood for fuel and housing: fuelwood supply and consumption are issues of national significance, representing an important part of the national energy budget and associated links with food security, nutrition and health and forest management.

At the same time, the current sawn wood demand is met through imports from Indonesia or through unsustainable harvest from old plantations of species such as teak and mahogany. Very few native forests in Timor-Leste remain accessible for commercial production of wood. An expanded resource of commercial planted trees is needed to meet domestic needs for wood and offer opportunities for exports to regional markets. The existing wood processing industries remain basic and are mostly small and inefficient.

Forestry has been described as a “forgotten” sub-sector in Timor-Leste yet the sector has the capacity to increase employment of rural people (especially youth), restore the environment, increase rural incomes and in the longer term earn export income from tree products and timber. Despite the availability of land and the suitability of growing conditions, there has been, to date, no concerted effort to implement a significant, nation-wide, planted forests project based on partnerships between smallholders at the aldeia-level, Government and the private sector. Such a partnership needs long-term vision, with a horizon of at least 30 years. In addition, opportunities have emerged to grow trees in inaccessible areas to sequester carbon which might be marketed on global carbon markets. Fortunately, all interviews and consultations with stakeholders with an interest in forestry have been uniformly positive, welcoming potential EIB support to the sector.