The new agreement supports wind energy development and private investment in Timor-Leste’s electricity sector.
The Government of Timor-Leste signed a technical assistance agreement with the International Finance Corporation (IFC), a member of the World Bank Group, in Dili on 6 October 2026. The agreement, involving the Ministry of Public Works and Electricity of Timor-Leste (EDTL, EP), aimed to develop wind power projects in Larigutu, Viqueque Municipality, and Oeleu, Bobonaro Municipality.
Under the agreement, IFC would provide technical assistance for project preparation, including feasibility studies and documentation for a public tender to attract private investors. Studies were already underway, with 100-metre-tall towers installed at both locations to measure and analyse wind conditions. Minister of Public Works Samuel Marçal said the projects would help diversify Timor-Leste’s electricity sources, reduce dependence on imported fuels and lower energy costs.
“We will be able to start using energy from the wind and the sun, thereby reducing the budget for electricity generation,” Minister Marçal said.
Chairman of the Board Directors of EDTL Paulo da Silva confirmed plans to launch the tender scheduled in 2027, with a Power Purchase Agreement (PPA) potentially signed by the middle or end of that year. The projects would follow the Independent Power Producer (IPP) model, allowing private companies to finance development, similar to the solar photovoltaic project in Laleia, Manatuto Municipality.
World Bank Group Representative in Timor-Leste David Freedman noted that the IFC’s assistance would support the country’s 2027–2030 Medium-Term Plan. The Government targeted project completion in 2028 or 2029, alongside efforts to increase EDTL’s financial autonomy and reduce its dependence on State subsidies between 2030 and 2031.
Source: Government of Timor-Leste
