Road Network Upgrading Project (RRP TIM 45094)
SECTOR ASSESSMENT (SUMMARY): ROAD TRANSPORT
Sector Road Map
1. Sector Performance, Problems, and Opportunities
1. Timor-Leste comprises the eastern half of the island of Timor, the nearby islands of
Atauro and Jaco, and Oecussi, an exclave on the northwestern side of the island, within
Indonesian West Timor. The island of Timor is part of the Malay Archipelago and is the largest
and easternmost of the Lesser Sunda Islands. The terrain is dominated by Mount Ramelau,
which bisects the island from east to west. The coastal zones in many parts of the country are
narrow and mostly on steep hillsides.
2. Road is the primary mode of transport, carrying 70% of freight and 90% of passengers.
Land transport services in Timor-Leste are provided competitively by the private sector, with the
government limited to licensing and basic vehicle and road safety requirements. Passengers are
ferried by minibuses and taxis in the urban areas, and by minibuses and light to medium trucks
licensed to carry both passengers and freight in the rural areas, particularly where roads are
poor. A small number of heavy trucks transport containers and large equipment, but the narrow
roads and difficult terrain severely limit their coverage.
3. Timor-Leste has an extensive road network of about 6,000 kilometers (km), half of which
are undeveloped rural tracks. The core network comprises 1,400 km of national roads
connecting the capital, Dili, and 13 districts, and 900 km of district roads linking major population
centers to the national roads. About 80% (1,800 km) of core roads are (or used to be) paved. A
road survey conducted in 2008 found that only 8% of core roads were in fair condition, with the
remaining in poor (22%) or very poor condition (70%). 1 Almost the entire core road network now
needs to be rehabilitated to a maintainable standard, as many roads have prematurely
deteriorated. Rural roads are also generally in poor condition. Frequent landslides and road
closures caused by intense rainfall and geotechnical instability in mountainous areas compound
the poor condition of the roads.
4. The deterioration in the road network means that journeys take longer, vehicles cost
more to operate, and rural communities are more isolated. Significant income from agriculture
and other products is lost and social conditions are worsening. The poor transport links are
exaggerating the constraints to economic growth arising from Timor-Leste’s small and isolated
markets.
5. Road infrastructure must be preserved through routine and periodic maintenance. The
maintenance works should be programmed systematically to allocate limited resources more
efficiently and effectively over the entire road network. The required annual maintenance
expenditure for the core road network (about 1,600 km) in its condition as of 2009 was
estimated at $20 million–$30 million (in 2009 prices). 2 It was also estimated that improving the
roads to a maintainable condition could halve the required funding level. The funding need is
substantially above recent allocations for road maintenance; the 2011 budget provided
1
ADB. 2008. Technical Assistance to the Democratic Republic of Timor-Leste for Preparing the Road Network
Development Project. Manila (TA 7100-TIM).
2
ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Asian Development
Fund Grant to the Democratic Republic of Timor-Leste for the Road Network Development Sector Project. Manila
(Grant 0180-TIM).
2
$5.3 million for road maintenance, while annual expenditure averaged less than $2 million from
2004 to 2010. 3
6. The benefit of upgrading road infrastructure will be maximized when affordable,
accessible and safe transport services are provided. The private sector provides transport
services for passengers and goods. Passenger and freight transport between population
centers use minibuses and light trucks because of the narrow width of the roads and the difficult
terrain.
7. Road safety is another emerging issue of land transport in Timor-Leste. The Timor-Leste
National Police reported 1,656 cases of road accidents in 2008; of these, 50 resulted in fatalities,
215 in serious injuries, and 1,020 in other injuries. Many less serious, unreported cases were
not included, and the actual number of injuries and fatalities is believed to be higher. Human
error accounted for 60% of all reported accidents, 25% were attributable to road conditions,
10% to the weather, and 5% to mechanical failure. The potential for even higher accident rates
is great considering the rising number of vehicles associated with rapid economic growth—
many of them unprotected motorcycles carrying up to four people—and the increased vehicle
speeds that will become possible by road improvements.
8. Gaps in capacity of government agencies responsible for the road network also
constrain road development. Notably, the Directorate of Roads, Bridges, and Flood Control of
the Ministry of Infrastructure (MOI)—the line agency responsible for planning, developing, and
maintaining road infrastructure—has less than 20 engineers, only five of which are in regional
offices. Each regional engineer is assisted by a supervisor and three assistant supervisors. The
Directorate of Roads, Bridges, and Flood Control’s main weakness is a shortage of capable
staff in the districts to plan, administer, and supervise roadwork. The central agencies with
responsibilities for infrastructure including road projects—the National Development Authority,
the Major Projects Secretariat of the MOI, and the Procurement Commission—are all recently
established and are still putting in place the business processes and staff needed to undertake
their responsibilities.
9. National contractors are awarded projects of up to $1.5 million by the government, but in
some cases they lack the technical and financial capacity to implement the projects properly. A
lack of project management expertise and skills generally excludes national contractors from
taking the main responsibility for large projects. In 2010, the government initiated a contractor
registration system as a means for raising quality standards. Under the system, contractors will
be classified according to financial, technical, and management capacity, with the classification
linked to the size and type of contracts for which a contractor is eligible to bid.
10. Indonesia is the largest source of Timor-Leste’s imports and its third largest export
market. 4 National roads in the border region are main corridors to Indonesia, giving Timor-Leste
access to cross-border activities. To facilitate cross-border commercial or social activities,
Timor-Leste must improve its cross-border facilities and national roads in the border regions.
Improved connectivity in the border areas will create economic benefits, reduce poverty, and
promote the country’s engagement in international cooperation and integration.
3
ADB. 2010. Performance Evaluation Report: Emergency Infrastructure Rehabilitation Project (Phases 1 and 2) in
Timor-Leste. Manila. p. 23.
4
National Directorate of Statistics. Various Years. Trade Statistics. Dili.
3
11. Several lessons can be drawn from past and ongoing road projects in Timor-Leste:
(i) difficult terrain, geology, and weather conditions require more intensive routine and
preventive maintenance of the road network; (ii) the period of road construction is essentially
reduced by 4–6 months of rainy season every year; (iii) regular coordination is needed to
synchronize support and avoid duplication of investment because of the larger than normal
number of development partners; (iv) the capacity of national contractors must be developed
through actual works of appropriate size and well-targeted training; (v) the MOI still needs
support in implementing large projects, as do the new central agencies; and (vi) more effective
skills transfer from project consultants to government staff is needed.
12. The quality and sustainability of road infrastructure requires more attention. Past road
projects were aimed at restoring accessibility and centered on repairing only the damaged
sections of the road network. While Dili’s connection with most other areas of the country
improved, overall road conditions continued to worsen because the government could not meet
the maintenance needs. The road sector improvement project, recently completed with Asian
Development Bank (ADB) support, is the first attempt to move from emergency work to
comprehensive rehabilitation of the core road network. Higher quality road maintenance and
rehabilitation projects and periodic review of road sector plans are needed to ensure the road
network is effective. The improvement of the core road network, adequate road maintenance,
and community participation, including women, in rural road development must be integrated
and progressively expanded in the course of road sector development. To make road sector
investments sustainable, stand-alone maintenance contracts should be avoided. A functioning
road maintenance program, including institutional setup, policy framework, programming and
implementation capacity, and sufficient budget support, is essential.
2. Government’s Sector Strategy
13. The Strategic Development Plan (SDP), 2011–2030 was released in July 2011. 5
Implementation commenced with the 2011 budget. Road infrastructure development is
prominent in the plan. It commits to undertaking substantial and long-term investment in roads
to maintain the current road network, including a major program of road rehabilitation, repair,
and improvement. New roads are only to be built if they serve important economic or social
objectives. The SDP establishes the following targets: (i) rehabilitating or fully upgrading and
widening to international standard key national and district roads by 2015; (ii) rehabilitating all
local roads by 2015 using locally based contractors; and (iii) conducting an annual condition
monitoring survey on all improved roads to determine maintenance needs.
14. Infrastructure (electricity, roads and bridges, water and sanitation) has been identified as
the top development priority for 2011, as it was in 2010. Substantial funds have been set aside
in the 2011 budget for infrastructure (via establishment of the Infrastructure Fund), and the
government has committed to maintain funding for infrastructure at a high level to 2015.
3. ADB Sector Experience and Assistance Program
15. The 2005 Road Sector Improvement Project had initiated the transition of ADB support
for road transport beyond emergency work. 6 The project rehabilitated longer stretches of road
5
Government of Timor-Leste. 2011. Timor-Leste Strategic Development Plan, 2011–2030. Dili.
6
ADB. 2005. Report and Recommendation of the President to the Board of Directors: Proposed Asian Development
Fund Grant to the Democratic Republic of Timor-Leste for the Road Sector Improvement Project. Manila
(Grant 0017-TIM).
4
than previous projects and initiated labor-intensive maintenance and a larger role for local
communities. There was a greater focus on sector planning, with roadwork selected from
high-priority roads identified in a 5-year road strategy and program developed with ADB
technical assistance support in 2005 and adopted by the government in 2006. 7 A sector
approach allowed the government to expand its lead role and provided flexibility in the use of
ADB resources.
16. The 2009 Road Network Development Sector Project continued the transition (footnote
2). It was designed to initiate implementation of a 10-year plan for the core road network
developed with the support of ADB technical assistance (footnote 1). The project is addressing
a lack of sustainability in maintenance by facilitating a move from stand-alone maintenance
contracts. A road maintenance program will be established through the development of the
policy framework, and programming and implementation capacity. Funds are allocated for the
initial maintenance program. The project is also designed to address weaknesses in the
capacity of local contractors. It provides contract packages appropriate for small national
contractors and will train small contractors in road maintenance technology, bidding, contracting,
and project management. The project is complemented by the Our Roads Our Future Project. 8
This will establish a model for community participation in the rehabilitation and maintenance of
rural feeder roads and small-scale community infrastructure in areas supported by the Road
Network Development Sector Project.
17. Other major donors in the road transport sector include Japan and the European Union.
Since 2000, the Government of Japan has provided more than $35 million in grants for transport,
around half for road improvements and for project studies and training in the road sector. The
Japan International Cooperation Agency has funded technical assistance for capacity building in
road maintenance and for the preparation of guidelines and manuals for roads. The European
Union has provided more than $50 million through three rural development programs, each one
with a rural road rehabilitation component. The latest component, valued at approximately $20
million, will improve the conditions in about 200 km of rural roads (mainly in the western part of
the country, including Oecussi), and it will also assist in continuing to build small-scale local
road construction capacity. The International Labor Organization and the governments of
Australia, Ireland, and Norway are also active in the rehabilitation and maintenance of rural
roads. In May 2011, the World Bank approved a $20 million grant to commence rehabilitation of
national roads in the central region of Timor-Leste.
18. ADB support will continue implementation of the core road network. The ADB program
will progress from support of the rehabilitation of roads to the upgrade of key roads. The
program will emphasize investment projects of national significance that are instrumental to
efforts to fast-track development and provide an inclusive pattern of economic growth.
Supporting the road maintenance program and building the capacity of government agencies
and staff, and local and community-based contractors will remain a high priority. Investment
projects that demonstrate government leadership through cost sharing will be favored. A strong
emphasis will be placed on projects cofinanced by development partners.
7
ADB. 2001. Technical Assistance to East Timor for Transport Sector Improvement. Manila (TA 3731-TIM).
8
ADB. 2009. Proposed Grant Assistance to Timor-Leste: Our Roads Our Future—Supporting Local Governance and
Community-Based Infrastructure Works. Manila (Financed by the Japan Fund for Poverty Reduction, Grant
9142-TIM).
Problem Tree for Road Transport
Note: The problem tree is adapted from that prepared at the management for development results workshop, 19–20 July 2010, Dili. Participants included
representatives of government agencies, civil society, development partners, and the private sector. The workshop was funded by ADB. 2007. Technical Assistance for
Results-Based Project Management for Pacific Developing Member Countries. Manila (TA 6436-REG, financed by the Japan Special Fund).
Source: Asian Development Bank.
5
6
Sector Results Framework (Road Transport, 2011–2015)
Country Sector Outcome Country Sector Outputs ADB Sector Operations
Sector Outcomes Indicators with Sector Outputs
with ADB Targets and with ADB Indicators with Planned and Ongoing ADB Main Outputs Expected from ADB
Contributions Baselines Contribution Incremental Targets Interventions Interventions
Increased and At least 25% of Highway system The government will Planned key activity areas Planned key activity areas
more efficient total population established and rehabilitate or upgrade at National and district roads (90% of 180 km of national and district
movement of benefits from maintained least 500 km of highway funds) roads upgraded or rehabilitated
people and goods rehabilitated or and district roads by
upgraded roads Paved, 2015, based on strong Rural roads (5% of funds) Road maintenance program
by 2015
a all-weather domestic participation operational
roads linking all Sector policy and capacity
A minimum of 800 of the 13 The national road development (5% of funds) Pipeline projects
rural poor and districts of system on track for 50 km of national and district roads
Pipeline projects with estimated
vulnerable people Timor-Leste into completion by 2020 upgraded or rehabilitated
amounts
(at least 30% of a coherent road
them women) network Road Network Upgrading Sector Ongoing projects
receive training on Project ($8 million)
and participate in All-weather About 130 km of national and
roads that reach Road Network Upgrading Sector district roads improved to
community-based Project (Additional Financing, $8
road rehabilitation local maintainable condition
communities million)
and maintenance Annual maintenance implemented
by 2015 Infrastructure Asset Management on about 130 km of national roads
Cluster TA ($1 million)
About 80 national contractors
Ongoing projects with approved trained in contract administration
amounts and labor-based road maintenance
Road Network Development Sector At least 90 km of rural feeder roads
Project ($46 million) rehabilitated and maintained by
Our Roads Our Future–Supporting community workers
Local Governance and
Community-Based Infrastructure
Works ($3 million)
Infrastructure Project Management
TA ($15 million)
ADB = Asian Development Bank, km = kilometer, TA = technical assistance.
a
Population in subdistricts with rehabilitated or upgraded roads.
Source: Office of the Prime Minister. 2010. From Conflict to Prosperity: Timor-Leste’s Strategic Development Plan, 2011–2030. Dili.
