The Asian Development Bank (ADB) has approved a US$135 million loan to help Timor-Leste expand the country’s gateway airport. The project includes extending the runway and constructing a new air traffic control tower with reconfiguration of relevant facilities on the airside. 

The expansion is aimed at boosting the safety of the airport and attracting more airlines, which will result in more passenger and cargo traffic.

“The Presidente Nicolau Lobato International Airport Expansion Project will provide safe and efficient air transport, enhance the country’s connectivity and economic ties with neighbouring Asia and Pacific countries, and improve trade, investment, and labour movement,” ADB transport specialist Chaorin Shim says. “It will expand tourism and help the country diversify its economy.”

The project is in line with the government’s 2011–2030 Strategic Development Plan, which prioritizes infrastructure development to bolster economic growth and reduce inequality. Timor-Leste is seeking to diversify its economy as oil fields make up more than half of its gross domestic product. In 2020, the country’s non-oil economy contracted 7.9% amid the Covid-19 pandemic. Better infrastructure can support private sector development and economic diversification.

The airport in Dili is the main gateway to Timor-Leste, with 90% of its passengers from overseas. Its short runway has limited the number of direct flights in the region, and the airport is connected to only three countries: Australia, Indonesia, and Singapore. The current runway does not meet the safety requirement of the International Civil Aviation Organization, forcing airlines to significantly limit the number of passengers and adopt extra safety measures to avoid penalties.

The project will extend the airport’s existing runway to 2,100 metres from 1,850 metres and build a new air traffic control tower, taxiways, and aprons, as well as an aeronautical ground lighting system. The project will meet international safety standards, which will help pave the way for Timor-Leste’s accession to global and regional organizations, such as the World Trade Organization and the Association of Southeast Asian Nations (Asean).

The operation and maintenance of the airport are expected to be taken over by the private sector. The government is exploring options, with assistance from the International Finance Corporation. The project will also involve US$30 million in government financing for civil works, land acquisition, and resettlement costs, among other expenses.