Monthly Archives: January 2011



Dili, 27 January 2011

De facto Government MPs table proposal to increase budget by US$282
dodgy and non-transparent Infrastructure Fund. It was in turn accepted
without retort by the government, namely the de facto Prime Minister and
Finance Minister.

The increase in the budget is allegedly to pay for cost blowouts for two
power stations, substations and transmission lines, in turn a result of
the procurement fiasco that was the “second hand heavy fuel power
stations” from China.

The proposal increases the original budget for the electricity sector
investment from US$166.7 million to US$448.7 million. There were no
satisfactory detailed justification as to how this money would be spent.

This increase takes the budget in just one day, from US$985 million to
US$1.26 billion, an increase of 28% on the budget proposal, and nearly
twice in
excess of the 3% of the sustainable income estimate under the Petroleum

It also represents 18.3% of the balance in the petroleum fund as at
December 2010 of US$6.9 billion.

Without doubt this action has irretrievably eroded the petroleum fund’s

This breaches the section 9 of the Petroleum Fund Law:

*Article 9*

*Transfers Exceeding the Estimated Sustainable Income*

*No transfer shall be made from the Petroleum Fund in a Fiscal Year in
excess of the Estimated Sustainable Income for the Fiscal Year unless
the Government has first provided Parliament with:*

*(a) The reports described in paragraphs 8 (a) and 8 (b);*

*(b) A report estimating the amount by which the estimated Sustainable
Income for Fiscal Years after the Fiscal Year for which the transfer is
made will be reduced as a result of the transfer from the Petroleum
Fund of an amount in excess of the Estimated Sustainable Income of the
Fiscal Year for which the transfer is made;*

*(c) A report from Independent Audit certifying the estimates of the
reduction in Estimated Sustainable Income in paragraph (b) above; and *

*(d) A detailed explanation of why it is in the long-term interests of
Timor-Leste to transfer from the Petroleum Fund an amount in excess of
the Estimated Sustainable Income.*

This proposed withdrawal now exceeds the limit of the value that the
government is legally permitted to withdraw from the petroleum fund
without providing the detailed justification as set out above. None
has been provided.

There is no doubt whatsoever that this was done not just with the
knowledge but also at the initiative of the de facto Prime Minister, as
he accepted it without the usual retorts.

The fact that this was not ever included in the original proposed
budget law that came before the parliament, nor during the committee
hearing process. This is a blatant illustration of this government’s
incompetence in public finance management. As stated in a recent IMF
report evaluating Timor Leste’s public finance management, “fiscal and
budgetary policies lack a solid medium-term perspective,” and “the
Ministry of Finance lacks the time and capacity for adequate review of
rationale, costing and impact of public investment.” This raises a lot
of questions of this government’s programs and projects, especially in
the area of infrastructure development.

There are no alternatives to a legal challenge to this budget law when
the “majority” rubberstamps this budget law, as they will without
question or scruples.


Jose A. Fernandes Teixeira
Deputado da Bancada Parlamentar da FRETILIN
Parlamento Nacional da Rep. Dem. de Timor-Leste
Telemovel: +670 728 7080

Member of Parliament – FRETILIN
National Parliament of the
Democratic Republic of Timor-Leste
Mobile: +670 728 7080

Statement of Support from Tyneside East Timor Solidarity

Posted on January 13, 2011 by defencecampaign

Tyneside East Timor Solidarity fully supports the Defence Campaign of Mark and Patrick arrested during the peaceful demonstration on the 18th of December, and of Toby, arrested a few days later.

Members of Tyneside East Timor Solidarity joined about 200 demonstrators in an effort to raise awareness of the tax dodging antics of shops in the city centre. Despite a senior police officer stating the role of Northumbria Police was simply to ‘facilitate the demonstration’ it became obvious the police were more interested in protecting the interests of tax dodgers like Vodafone, HSBC, and Philip Green, the multi-millionaire head of the Arcadia Group. Police became enraged when demonstrators shut down the main doors of Marks and Spencer, from the inside, for about 15 mins. It was clear from then that in a effort to regain credos the police were going to arrest someone.

It is nothing new for protesters who are deemed politically active to be singled out for arrest; the police are acting for the state in an attempt to stop political dissent, but it is up to each of us to resist intimidation and support those arrested.

In Solidarity, Lidia Tindle – for

Hera power plant

Dear Readers.
The question everyone is asking however is for what price? It is apparent that it is for a much higher price given the urgent nature of the purchase after the total balls up with the second hand, over 20 year old Chinese heavy fuel generators. Perhaps the audit that has to be undertaken and delivered to parliament prior to 32 March 2011 will reveal the tortuous and very extensive path this has taken. This has been the single most tragic and avoidable case of utter procurement incompetence with all manner of legal implications for those involved. It must be fully audited, as the national parliament has resolved to seek the government do, and the results openly investigated in due course.
We await to see whether transparency really does reign in Timor-Leste as this de facto Gusmao government is prone to boast about, but which is far from reality.

Jose Teixeira
FRETILIN MP and spokesperson.

Subject: Media release: Wärtsilä receives major power plant order from Timor-Leste

Wärtsilä receives major power plant order from

Hugin (engl.)

| 10.01.2011, 11:00 | 94 Aufrufe

Wärtsilä Corporation, Press release, 10 January 2011, at noon

Wärtsilä, a leading global supplier of flexible power plants and services
to the decentralized power generation market, received an order in December to
supply engines and other equipment for a major power plant project in Hera in
the Democratic Republic of Timor-Leste, formerly known as East Timor.
Delivery of the project will commence immediately. In addition to this order,
Wärtsilä has also signed a contract for another power plant project in Betano, also in
Timor-Leste, for which the Notice to Proceed is expected in the first half of

The power plant order for Hera in the northern part of the country has
been placed by Puri Akraya Engineering Ltd, a company which is contracted by
the Timor-Leste government for the project.

Wärtsilä´s scope of supply includes seven Wärtsilä 18V46 generating sets
with a gross output of some 120 MWe, as well as generators, auxiliaries,
contro systems and various related equipment. The Betano site project, to
be delivered to the same contractor, includes eight Wärtsilä 18V46 generating sets
having a gross output of more than 135 MWe, as well as other related

The Hera Power Plant is expected to be fully operational in the first
quarter of 2012, of which 50 MW shall be operational by the end of 2011. The Betano
Power Plant is expected to be fully operational by the third quarter of 2012.
While initially the power plants will run on heavy fuel oil (HFO), it is
expected that they will be later converted to natural gas operation.

“The high overall efficiency and fuel flexibility of the Wärtsilä
engines was an important factor in the company being awarded these contracts, ”
comments Mr Dany Subrata, Director of Puri Akraya Engineering Ltd.

“Wärtsilä has long and extensive experience, and an outstanding
track record in providing effective power generating solutions in a variety of climates
and under the most challenging circumstances. This will enable us to
successfully deliver and commission the power plants, even though the sites are at
remote locations and the country´s infrastructure is rather challenging, ”
says Mr Suraj Narayan, Business Development Manager (Asia) at Wärtsilä Power

These power plant projects are an important part of the Timor-Leste
government´s modernisation programme. The aim is to improve the country´s
infrastructure and to achieve national electrification. This includes the construction of
power stations and the development of a national grid. Timor-Leste, with a
population of one million, is rich in natural resources and the development of oil
and gas production in its offshore waters has enabled the modernisation programme
to be initiated.

Further information, please contact:

Mr Suraj Narayan

Business Development Manager

Wärtsilä Power Plants Asia

Tel: +358 40 764 1009

Ms Tuula Franck

Senior Manager, External Communications

Wärtsilä Corporation

Tel: +358 400 267555

Source: Wärtsilä Oyj Abp via Thomson Reuters ONE