EAST TIMOR GOVERNMENT - AMP TO ELECTRIFY THE NATION

Dili, 24 October, 2008

East Timor to Electrify the NationThe Government Spokesperson, Mr. Agio Pereira, Secretary of State for the Council of Ministers, today announced the Government has kept it's promise to electrify the nation.

Pereira said, `The Government has reached a milestone in our development by committing to investing in vital core infrastructure that will transform every aspect of our social and economic fabric. We are responding to the urgent and critical needs of our people, many of whom have no access to electricity. '`If we have any hope to transform Timor-Leste from a developing nation to a developed nation, we must build the foundations that can ensure a better future. Electrifying the nation launches a new era in Timor-Leste and will mark the beginning of real progress.

"Today marked the official signing of the Government contract to build the Nation Wide Electrical Grid and power Plant. Construction is anticipated to be a two year multiphase process, with 13 districts having 24 hour power by the end of year one and by the end of year two, all sub districts in Timor-Leste will have access to 24 hour power.

Under the contract, two power plants will be built, one in Manatuto with a 120 megawatt capacity and one on the South Coast with a capacity of 60 megawatts. The total capacity was calculated to meet the forecasted growth catering for the development of a cross section of industries including, but not limited to, the budding petroleum industry, the tourism industry, trade, commerce and agriculture.

The three and half months tender process saw 15 international companies bid for the contract. One company failed to qualify because of late submission. From the final 14 companies, nine did not comply with the full proposal and five were shortlisted as satisfying terms of reference.

The shortlisted companies were submitted to a committee which included the National Procurement Director, one international advisor representing the Ministry of Finance, one international advisor representing the Ministry for Infrastructure and two electrical engineers commissioned as independent international consultants, one from Indonesia, and one from Singapore.

When evaluating responsiveness to satisfied criteria, two companies were ultimately considered meeting all outlined objectives, criteria, and terms of reference of the original tender. The awarded company is due to manage the facilities for a term of five years while training 150 Timorese on the management of the systems. After a five year period of capacity building, the Timorese will fully run operations.

A contract evaluation team of five, contracted from PLN Engineering, Indonesia, worked in tandem with the senior legal advisor from the MOF to negotiate the terms of the contract. The contract was awarded to Chinese Nuclear Industry 22nd Construction Company.

Pereira closed by saying, "This is a recognized dream led by the Prime Minister himself, Xanana Gusmo. He believed that the people of Timor-Leste deserved the rights afforded to other independent nations and that power was fundamental to our future livelihood."