Timor Leste still needs investment to build Port Fisheries

1

In april 2011, the World Bank informed ADB’s Special Office in Timor-Leste that $1
million from the Second Agriculture Rehabilitation Program (ARP II) had been set aside for the
rehabilitation of Hera fishing port, located around 16 kilometers east of Dili. ADB was requested
to execute this particular Project given its experience in fisheries projects in small countries inthe Pacific region.

Fact-finding mission took place in the period 10-23 april 2011 and on 17 October 2011
the Project was approved and was subsequently declared effective on 27 October 2001. Due to
limited capacity within the Fisheries Division, the procurement officer from ARP II was included
in the Project Management Unit. Tender documents were issued to the shortlisted firms in
December 2011, and after additional information and clarification had been submitted to
shortlisted firms, the deadline for submission of proposals was extended until end of March
2012 An ADB consultant in Manila undertook a special evaluation of the technical proposals
and contract was awarded to Wakachiku Construction Co. pending rectification of the quantities
of the required steel H-piles.
An additional $77,000 has been allocated from the Consolidated Fund for East Timor
(CFET) money to cover new construction of navigation lights, storage tanks, an.

3. Cost, Implementing, and Executing Arrangements
Total costs for civil works, goods and related services, and supervisory consultancy
services are estimated at $766,000 and contingencies at $132,000. The Ministry of Agriculture,
Forestry and Fisheries is the executing agency, and a Project Management Unit within the
Division of Agriculture Affairs oversees the implementation of the Project. Weekly site meetings
are held between the contractor, the supervisory engineer, ADB representatives from its Timor-
Leste office, and the Department of Fisheries.The civil works was contracted at a price of $733,933. The original quantities of scope of
work have all been within the contract amount. However, the delayed project implementation
caused further erosion of some harbor structures, and additional and/or improved civil works
have necessitated three variations to the original contract. The extra amounts have been
covered from the contingencie

2. Environmental Impacts
As the Project was a rehabilitation project, no adverse environmental issues are
associated with the actual harbor structures. During implementation, the Project has taken
prudent steps to minimize noise and dust, and accidentally spilled aggregates on public roads
by the project-hired lorries were on every account cleaned up. Dredged material from the harbor
basin has been used as landfill within the harbor perimeter and subsequently graded and
compacted, thus increasing the useable area of the harbor.
The longer-term environmental impact of the Project is clearly to reverse the
unsustainable fishing of the inshore resource and also achieve a sustainable fishery for the
smaller offshore resources.

3. Impacts on Capacity Building
The many unskilled workers employed by the Project have received useful training in the
special requirements for marine structures construction. This should ensure a certain level of
sustainability for the maintenance work of the harbor in the future. Also the operators of
machines involved to place the heavy armor rock as the outer protection on the breakwaters
should ensure that skills have been developed for future projects or maintenance involving
coastal erosion or harbor development.

F. Continuing Needs and Investment
Experience from other smaller countries has clearly shown that the Government’s role in
fisheries should be regulatory and at the same time provide the necessary infrastructure for the
best result of a private sector led industry. With the completion of Hera port, the most urgent
issue is to formulate the Fisheries Act and its Regulations.
The various facilities to support the industry should all be operated by the private sector
and Hera port has ambient space for this to happen. A key role for the Government at this
juncture is to carefully screen the taxation environment governing the fishing industry in order to
bring it on par with regional comparativeness.
Except for possible credit facilities to promote the particular offshore fisheries targeted
with this Project, there is at present no need for further investment by the Government in the
sector. Once Timor-Leste achieves an enabling, but controlled business environment for its
fisheries, the local private sector should be very able to invest themselves

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