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Power Plant and National Electrical Grid 2010
Mega-project or mega-problem?

Sentral Eletrika no Rede Eletrisidade Nasional 2010
Projeito boot ka Problema boot?

Updated 26 September 2011

Atualiza iha 3 Junu 2011

This page includes information from 2010. Click here for 2008-2009 or here for 2011-12.
Pajina ida ne'e inklui informasaun husi tinan 2010. Click iha ne'e atu hetan informasaun husi 2008-2009 ka iha ne'e kona-ba 2011-12.

Skip down to project status in September or October 2010.

Since early 2008, Timor-Leste's government has been discussing and implementing an electric power system costing almost $400 million, based on used generators from China which will burn heavy oil. Prime Minister Gusmão promised to have electricity in every district by the end of 2009, based on a contract signed in October 2008 with Chinese Nuclear Industry Construction Company No. 22 (CNI22).

Throughout 2009, the project encountered growing criticism of its expense, design, environmental impacts, procurement procedures and legal processes. Work at the Hera generation site was suspended in August, with a major redesign undertaken. In November 2009, major "corrections" to the design were announced, and the cornerstone for the Hera site was laid on 15 January 2010.

This web page will be updated regularly as we obtain information. Click here to skip to sections below on:

Desde iha inisiu 2008, Governu Timor-Leste diskute ona no hodi implementa sistema eletrika ida ho kustu besik tokon $400, bazeia ba jerador uzadu husi Xina nebe sei sunu ho oleu pezadu. Primeiru Ministru Gusmão promete atu iha eletrisidade iha distritu tomak iha tinan 2009 nia rohan, bazeia ba kontratu ne'ebe asina iha Outubru 2008 ho Kompanha Konstrusaun Industria Nuklear No. 22 (CNI22).

Iha 2009 nia laran, projeitu neé hamoris kritiku kona ba nia gastus, desenho, impaktu ambiental, prosedementu aprovisionamento nian no prosesu legal nian. Servisu iha fatin eletrisidade Hera hetan suspende iha fulan Augustu 2009, hodi halo fila fali alterasaun bo’ot ba denzenho nian. Iha Novembru 2009, “koreksaun” bo’ot ba dezenho nian anunsia sai, no lansamento ba hatidin fatuk dahuluk ba fatin Hera halao iha 15 fulan Janeiru 2010.

Pajina web ida neé regularmente sei hetan atualizasaun wainhira ami hetan informasaun. Click iha neé atu hetan sesaun sira iha okos neé:

Click on map to see it larger in English.

Click mapa ida ne'e atu haree boot liu iha Tetum.

Documents and links (in chronological order)

Dokumentu no ligasaun sira

     

Construction

Land clearing began at the Hera power plant site in February 2009, and local residents were told to relocate. The work stopped in August, and resumed in November 2009 following the redesign of the project.

Ten months later, very little had been accomplished, and the project was far behind schedule. See below for more details.

Konstrusaun

Hamos fatin plan enerjia komesa ona iha Hera iha fulan Fevereiru 2009, no rezedente sira haruka ona atu muda husi sira-nia fatin. Aktivadades iha Hera hapara iha fulan Agusto, no hahu fali ha fulan Novembru 2009 depois projeitu ida ne'e hetan revisaun.

Hafoin tiha fulan sanulu, servisu oituan deit mak atinzi, no projeitu ne’e la'o dok husi orariu ne’ebe iha. Hare iha kraik atu hatene detailhadu.

2010 budget

See La'o Hamutuk's submission to Parliament on the 2010 State Budget for an analysis of how the budget for this project has been unrealistically slashed, but not cancelled. Although the project was still being described in early 2010 as costing $360 million, only $77 million has been appropriated for it in total.

Orsamentu 2010

Hare La'o Hamutuk nia submisaun ba Parlamentu iha Orsamentu Estadu 2010 ba analiza ida kona-ba oinsa orsamentu ba projeitu ida ne’ebe la realistiku ne’e tun maka’as, maibe la kansela. Maske projeitu ne’e sei nafatin lao iha inisiu tinan 2010 ne’ebe nia kustu tokon $360, maibe tokon $77 deit mak aloka husi total orsamentu hirak ne’e.

Project redesigned

On 4 November 2009, the Prime Minister wrote a letter to Parliament (Portuguese original) explaining problems with the project and indicating that a major redesign is in process. The new version will use new generators (rather than second-hand ones) which can be adapted to use  diesel or gas instead of heavy oil. It will have more generating capacity and longer, closed-loop, transmission lines.

Alterasaun ba projeitu

Iha loron 4 Novembru 2009, Primeiru Ministru haruka ona karta ba Parlamentu Nasional (Port.) (mos Ingles) hodi esplika problema sira ho projeitu oleu pezadu nian, no indika  katak  alterasaun boot iha prosesu laran. Desenho foun ne’e sei uza jerador foun (laos makina tuan), no bele uza kombustivel seluk, no sei aumenta kapasidade atu produz electrisidade, no hanaruk linha transmisaun nian.

Cornerstone laid

On 15 January 2010, the Prime Minister, President of the Republic, Minister of Infrastructure and President of Parliament, together with a few ambassadors, laid the cornerstone for the Hera generating project, attended by more than 100 Government officials and a few others, although nobody from civil society or the political opposition was invited.

Click here for photos, transcripts, translations and audio recordings of the event and the often defensive speeches.

The President's office issued a press release celebrating the ceremony, which was responded to by Fretilin and Luta Hamutuk.

Lansamento hatidin fatuk dahuluk

Iha loron 15 fulan Janeiru 2010, Primeiru Ministru, Presidente Republika, Ministru Infrastrutura no Presidente Parlamento, hamutuk ho Ambasador balun, halao lansamento hatidin fatuk dahuluk ba projeitu eletrika Hera, partisipa husi ema liu 100 husi ofisiais Governu nian, no sira seluk balun, maske besik laiha ema ida husi sosiedade sivil, ajensia internasional ka politikus opozisaun hetan konvite.

Click iha ne'e atu hare no rona foto, tekstu diskursu sira, no gravasaun husi ceremonia ida neé.

Komunikadu impresa (Ingles) husi gabinete Presidente Republika nian ba selebrasaun seremonia ne’e,  hetan responde husi Fretilin (Ingles) no Luta Hamutuk.

2010 Budget Rectification

In June and July 2010, Parliament enacted the Government's budget rectification, with increased expenditures in many sectors. The rectification added $10 million to the $50 million appropriated for this project for the year. La'o Hamutuk's submission explained that it will cost much more.

According to the September 2010 Budget Execution Report, $33 million of the allocated $60 million was spent during the first nine months of 2010.

Orsamentu Rektifikativu 2010

Iha fulan Junu 2010, Governo proposta Orsamentu Rektifikativu ba Parlamentu. Orsamentu foun aumenta alokasaun ba projeitu ida ne'e ho tokon $10 liu tokon $50 aprova ona ba tinan 2010. Submisaun La'o Hamutuk nian esplika katak projeitu ne’e nia kustu sei boot liu ida ne’e.

Bazeia ba Relatoriu Ezekusaun Orsamentu 2010 iha fulan Setembru, tokon $33 husi osan tokon $60 ne’ebe aloka ba projeitu ne’e gasta ona durante fulan sia primeiru iha tinan 2010.

September 2010: Project way behind, CNI22 loses power plant contract

This section of this web page is also available as a blog entry.

From the beginning, this project has been characterized by bad planning, dubious procurement procedures, incompetent contractors, illegal practices, poor oversight, and lack of transparency and accountability. La’o Hamutuk has written about this many times, and we are sad to report that reality is even worse than we had feared.

La'o Hamutuk has obtained the confidential, 133-page, September 2010 Monthly Progress Report from the Italian joint venture "Electroconsult and Bonifica, SpA” (EB) which the Government hired in July 2009 to supervise Chinese Nuclear Industry Company No. 22 (CNI22). The Government had contracted CNI22 six months earlier, and they were implementing the project without any clear specifications, valid tender, environmental impact analysis or public consultation. In response to criticism that the government was not managing the project effectively, Timor-Leste is paying EB $2 million per year as a consultant to oversee the project.

EB's September 2010 report describes an escalating disaster in performance, implementation, environment and safety, revealing that the Government has already re-assigned responsibility for the power stations to another company, nearly doubling the cost of the entire project.

The project is way behind schedule, and EB is very frustrated with the slowness and unresponsiveness of CNI22. EB says it “does not spare any effort” to press the Chinese company to speed up progress which they say is “below the satisfactory level required” to meet the 31 December 2011 completion date.

The power plants have been removed from CNI22’s responsibility, at great expense. During September, the only work done on the Hera generating station was applying asphalt on the area where oil tanks will be place. Virtually nothing has been done at Betano, although the project timeline says work was to have begun in June 2010.

The Government decided to “cancel" the Hera and Betano power plants "from CNI22’s contract.” Construction of these generating stations was re-contracted to “the Indonesian company Puri Akraya Engineering Limited” on 15 September 2010. La’o Hamutuk’s internet research on “Puri Akraya” turned up only that the name was newly registered with the Hong Kong Companies Registry on 4 August 2010. Five weeks later, Timor-Leste awarded them this huge contract to “do the supply, installation, commissioning and operation of 15 Generating Sets manufactured by Wartsila of Finland.”

Reassigning the contract for the generating stations, together with design changes, quadruples their cost from $91 million to $353 million. EB’s estimate of total project cost is now $629 million, nearly double the original $367 million CNI22 price. If schedule slippages continue and most of the transmission lines are also subcontracted, the costs will be far higher.

The Government has already been paid more than 20% of the original $367 million contract price to CNI22, although nowhere near 20% of the work has been done.

In June, as electricity in Dili remained unreliable and the timetable for the Hera project continued to slip, the Government opened a tender to upgrade the existing Comoro power station.  In September they announced a pending $30.9 million contract with  China Shandong International Company Ltd (CSI), which was signed two days before Christmas.

Setembru 2010: Projeitu la'o ba kotuk, CNI22 lakon kontratu ba planta eletrisidade

Hahu’u iha inisiu, projeitu ne’e karakteriza ho planeamentu ne’ebe fraku liu, prosedur aprovizionamentu ne’ebe hamosu duvida, kontraktor ne’ebe laiha kompetensia, pratika ilegais, monitorizasaun ne’ebe fraku, no transpransia no akontabilidade ne’ebe fraku mos. La’o Hamutuk hakerek ida ne’e dala-barak ona, no ami triste atu fo relatoriu katak nia realidade at liu tan ba buat ne’ebe ami tauk liu.

La’o Hamutuk hetan Relatoriu Progresu Mensal ba fulan Setembru 2010 konfidensial, ho pajina 133 husi kompania konsorsium husi Italia "Electroconsult and Bonifica, SpA” (EB) ne’ebe Governu rekruta iha Julho 2009 atu superviziona Chinese Nuclear Industry Company No. 22 (CNI22). Governu kontratu ona CNI22 fulan ne’en antes, no sira implementa projeitu sein spesifikasaun ruma ne’ebe klaru, laiha tenderizasaun ne’ebe validu, laiha analiza ba impaktu ambiental ka laiha konsultasaun publiku. Atu responde ba kritika katak governu la jere projeitu ho efektivu, Timor-Leste selu EB tokon $2 kada tinan-tinan nuar konsultan atu atu tau-matan ba projeitu.

Relatoriu EB ba Setembru 2010 hateten dezastre eskaladu iha projeitu ne’e nia lalaok, nia implementasaun, lalaok ambiental no salvaguarda nian, hateten katak Governu halo tiha ona mudansa responsabilide ba sentral eletrisidade nian ba kompania seluk, halo dupla projeitu tomak ne’e nia kustu.

Projeitu ida ne’e lao latuir orariu, no EB frustradu liu ho CNI22 ne’ebe tarde liu no laiha responsabilidade. EB hateten katak “koko buat hotu” atu fo presaun ba kompania atu halo lalais progresu ne’ebe sira hateten “la to’o iha nivel satisfasaun ne’ebe presiza” atu bele kompleta iha loron determinadu hodi finaliza projeitu iha loron 31 Dezembru 2011.

Responsabilidade ba sentral eletrika muda ona husi CNI22, ho folin karun. Durante Setembru, iha sental eletrisidade Hera, iha deit servisu hanesan tau aspal ba area ne’ebe tanki mina sei hatidin. Virtualmente laiha servisu ne’ebe halao iha Betano, maske orariu projeitu nian hateten atu hahu’u halao iha Junhu 2010.

Governu deside atu “kansela” sentral eletrisidade Hera no Betano husi “CNI22 nia kontratu.” Kontratu konstrusaun ba sentral eletrisidade rua ne’e fo fali ba “Kompania Indonezia Puri Akraya Engineering Limited” iha loron 15 Setembru 2010. Peskiza Internet La’o Hamutuk ba “Puri Akraya” fo sai deit katak kompania ne’e nia naran foin rejistu iha rejistu kompania Hong Kong iha loron 4 Agustu 2010. Semana lima depois, Timor-Leste fo ona kontratu boot ne’e ba sira atu “halao fornesimentu, instalasaun, tau-matan no operasaun ba jeradores 15 ho marka Wartsila husi Finlandia.

Mudansa kontratu ba sentral eletrisidade, hamutuk ho mudansa dezeinhu nian, nia kustu aumenta dala hat husi tokon $91 ba tokon $353. EB estima katak kustu total ba projeitu nian agora hamutuk tokon $629, aumenta dala rua ba presu orijinal kontratu nian tokon $367 ne’ebe CNI22 husu. Karik kontinua la tuir orariu no linha transmisaun sira ne’e mos subkontrata hotu, nia kustu sei sai as liu tan.

Governu selu tiha ona liu 20% husi presu kontratu original tokon $367 ba CNI22, maske nune’e laiha servisu 20% mak halao ona.

Construction of the national electric grid is going extremely slowly, with only 1.2% of the towers having been erected so far, nearly all between Hera and Dili. EB notes “As discussed many time, the Contractor must, in every single calendar day, complete a minimum of” four excavations, four concrete foundations, and four tower erections “including tightening of bolts.” Most of the routes have not even been surveyed, and land disputes have caused a number problems.

CNI22 hoped to sign a contract in early October with the DCP company from Surabaya to take over the Liquica-Maliana-Suai segment. CNI22 was also talking with PT Karya Logam Agung from Jakarta about Suai-Cassa-Betano-Viqueque, and the Government has asked them to find a third subcontractor for Viqueque-Lospalos.

Only one substation is being worked on. Although the foundation for the Dili substation is 80% complete, virtually no construction has been done on the substations planned for Manatuto, Baucau, Lospalos, Liquica, Maliana, Suai, Cassa and Viqueque.

Hardly any Timorese workers are employed. In January 2009, the Prime Minister told  Parliament that “this project will in itself create over 20,000 jobs already in 2009,” but by 28 May 2010, CNI22 had hired only 155 Timorese workers. The Government is “very unhappy” about this and has threatened to stop issuing visas to Chinese workers and to require that CNI22 employ four Timorese workers for every Chinese. CNI22 has asked EDTL to recruit local workers to be trained and employed by CNI22.

The company is not taking adequate measures to safeguard health, safety and environment, endangering both project workers and the local communities. EB observes that “the quality of workmanship is deteriorating” when EB is not on site, and that CNI22 does “no cohesive planning,” “safety practices are far below regulations” and acts with “environmental negligence.” EB’s September report lists 14 serious “issues of concern” and eight more “problems/issues,” but their recommendations to CNI22 are rarely implemented. Nothing is said about Government awareness or involvement in trying to improve the situation.

Konstrusaun ba linha transmisaun hare-ba lao ho tarde liu, iha deit 1.2% husi tore sira mak foin halo to ohin loron, barak liu mak entre Hera no Dili. EB nota “ hanesan diskusaun barak, Kontrator tenke, iha kada kalendariu loron, kompleta minimu eskavasaun hat, fundasaun konkretu hat, no hari ona tore hat “ inklui halo metin prafuzu sira.” Rute linha transmisaun nian barak mak la hetan survey, iha problema rai ne’ebe hamosu problema lubuk.

CNI22 espera atu asina kontratu ida iha inisiu Outubru ho kompania DCP husi Surabaya atu halo linha transmisaun husi parte Liquisa-Maliana-Suai. CNI22 mos koalia ona ho PT Karya Logam Agung husi Jakarta kona-ba parte Suai-Cassa-Betano-Viqueque, no Governu husu ona atu hetan subkontrator ba terseira parte ida atu halao parte Viqueque-Lospalos.

Iha deit substasaun ida mak foin iha servisu. Maske fundasaun ba substasaun Dili kompleta ona 80%, virtualmente laiha konstrusaun mak halao ona iha planu substasaun ba Manatutu, Baucau, Lospalos, Liqusa, Maliana, Suai, Cassa no Viqueque.

Timor-oan sira uituan deit hetan servisu ona. Iha Janeiru 2009, Primeiru Ministru hateten ba Parlamentu katak “projeitu ida ne’e rasik sei kria liu kampu servisu 20,000 durante 2009,” maibe iha 28 Maiu 2010, CNI22 fo deit servisu ba ema Timor-oan nain 155. Governu “la kontente” kona-ba ida ne’e no ameasa atu hapara hodi fo vistu ba trabalhadores Xineza sira no obriga CNI22 atu rekruta Timor-oan hat ba kada Xineza. CNI22 husu EDTL atu rekruta trabalhadores lokal atu treina no servisu iha CNI22.

Kompania la halao kalkulu ida ne’e adekuadu ba salvaguarda saude, salvasaun no ambiental nian, ne’ebe ameasa trabalhadores projeitu no komunidade lokal. EB observa katak “kualidade husi trabalhadores sira ne’ebe at liu” bainhira EB la ba iha fatin servisu, no CNI22 “laiha planu ne’ebe integradu” pratika ba protesaun nian dok husi regulasaun” no aktu “ambiental ne’ebe sabraut liu.” Relatoriu EB ba Setembru nian hateten “asuntu preokupadu” 14 ne’ebe seriu no liu “problema” walu, maibe sira nia rekomendasaun ba CNI22 dala barak la implementa. La mensiona Governu nia konsiensia ka involvimentu atu koko hodi hadiak situasaun.

Segment

Kilo-meters

Towers needed

Towers erected

Concrete foundations poured

Earth excavated

Status

Hera-Dili

10

30

23

27

28

Construction underway

Dili-Liquica

37

87

0

2

24

Excavation underway

Hera-Manututo

41

92

7

40

51

Construction underway

Manatuto-Baucau

50

131

0

24

46

Foundations underway

Baucau-Viqueque

64

96

0

0

0

Survey in process

Baucau-Lospalos

53

118

0

0

0

Survey being finished

Liquica-Maliana

63

112

0

0

0

Survey done, design in process

Maliana-Suai

n.a.

n.a.

0

0

0

Field survey started

Suai-Cassa-Betano

n.a.

n.a.

0

0

0

No work done

Betano-Viqueque

n.a.

n.a.

0

0

0

Survey done, design in process

Viqueque-Lospalos

n.a.

n.a.

0

0

0

Starting field survey

Total

630

2,400

30 (1%)

103 (4%)

149 (6%)

 

 

In March 2009, during the tender process for the consultancy that EB later received, La’o Hamutuk had asked, “What authority will the Consultant have to compel compliance?” We warned that “the Government will be more effective in securing the Contractor’s commitment [to implement mitigation measures] than a Consultant will be.”

Legally required environmental clearances, right-of-way access permissions, environmental baseline survey and tree-cutting permits have not been done. CNI22 has not prepared a single monthly environmental report, although they have been required since January 2010. Timorese workers receive less safety equipment than Chinese, and Chinese workers live in unsanitary, unsafe conditions. CNI22’s Health/Safety/Environment and Site Emergency plans “lack essential operational details” and need to be revised. The company has no formal process for complaints, has not replanted cleared areas, has no Solid Waste Management Plan, has not established buffer zones between residential and project areas, and has not complied with requirements for silt containment, oil and grease traps, sanitation facilities or waste treatment.

On 18 November, the Prime Minister misled Radio Timor-Leste listeners by telling them that La'o Hamutuk's information that the Government had cancelled CNI22's contract was incorrect, and then talked about transmission towers. The journalist talked about the purchase of Finnish generators weighing 250 tons, but neither he nor the Prime Minister mentioned that the Government had taken the generating station away from CNI22 and assigned it to Puri Akraya Engineering two months earlier.

La'o Hamutuk's report on this was picked up by the Sydney Morning Herald and other media, including the Timor Post.

Unfortunately, the responses from public officials have not been enlightening. Secretary of State for Electricity Januario Pereira was quoted in the Timor Post on 20 December defending CNI22's "right to subcontract" but not mentioning that this action was forced upon them by Timor-Leste's Government, at an additional cost of $250 million. The following day, a front page article in Suara Timor Lorosa'e  quoted the Prime Minister as saying that CNI22's work in Hera continues and will  be finished in November 2011, as the Chinese Prime Minister promised him last month. In the same article, Mr. Pereira accused NGOs of providing "lying information" ("informasaun bosok ten") and urged them (us) not to politicize information and confuse the public.  He said that 70 or 80 of the 2400 towers had already been erected.

In mid-December, Lao Hamutuk received the October 2010 monthly report from Electroconsult/Bonifica. It includes this "s-curve" graph showing the project status, which you can click on to see larger and updated. The green area is how much work needs to be done to meet the project schedule; the red is what has actually been done. Puri Akraya Engineering has not yet started on the generation stations, as they are waiting for an advance payment, but CNI22 is doing very little.

During the month of October, 11 more towers were erected, bringing the total to 41 (1.7%). At this rate, it will take until 2027 to finish the national distribution grid. Negotiations with Indonesian subcontractors to build parts of the transmission lines are ongoing, with no contract yet signed. EB reports that they are "constantly making pressure on CNI22 to speed up agreements with Indonesian subcontractors for transmission lines and Timorese subcontractors for the substations, but the result is always the same: promises over promises, the Contractor attitude remains stubborn."

EB is also concerned about the "deterioration of the quality of the work," especially when they are not on site. In addition to urging CNI22 to move faster, EB notes "The Contractor is WARNED once more that handling of the material, transporting, loading, unloading, storage continue to be UNACCEPTABLE, a lot of damages are caused."

However, the Government is making payments on schedule, although the contracted cost of the project is much more than Parliament has been told or what has been appropriated. Following are the totals the Government will pay CNI22 and its subcontractors each year, in millions of U.S. dollars, for building the generating stations and high-voltage national grid.

Iha Marsu 2009, durante prosesu tenderizasaun ba konsultasaun ne’ebe ikus mai EB hetan, La’o Hamutuk husu, "Autoridade saida mak Konsultan sei hetan atu obriga hodi halo tuir?" Ami fo kuidado katak “Governu sei efektivu liu atu asegura komitmentu Kontrator [atu implementa mitigasaun] duke Konsultan ida sei halo.”

Seidauk halo tuir rekerimente legal atu hetan lisensa ba ambiental, permisaun ba direitu asesu, laiha survey ba linha baziku ambiental no laiha lisensa atu tesi ai. CNI22 la prepara relatoriu ida ambiental kada mensal, maske husu kona ba sira atu halao iha Janeiru 2010. Trabalhadores Timor-oan hetan ekipamentu salvasaun ne’ebe menus liu duke Xineza sira, no Xineza sira ne’e moris iha kondisaun ida ne’ebe laiha sanitasaun, kondisaun la seguru. Planu Saude/Protesaun/Ambiental no Planu Emerjensia Fatin servisu ne’ebe nia “deitalhu operasional esensial ne’ebe falta” no presiza atu hadiak. Kompania laiha prosesu formal ba reklamasaun ka preokupasaun, la kuda fila fali ai horis sira ne’ebe sira tesi ona, laiha Planu Jestaun ba Foer Solidu, laiha zona atu tahan area sira entre area rezidente ba populasaun no projeitu nian, la halo tuir rekerimentu ba fatin foer, tahu, mina- no fatin atu kapta foer mina nia, laiha fasilidade ba sanitasaun ka tratamentu foer.

Iha loron 18 fulan Novembru, Primeiru Ministru halo konfuzaun ba rona-nain Radio Timor-Leste (bele rona radio ne’e iha ne’e, lian ne’e la hetan edit) hodi hateten ba rona nain sira katak informasaun La’o Hamutuk nian ne’ebe hateten Governu kansela ona kontratu ba CNI22 ne’e la los, no depois ne’e nia koalia kona-ba tore transmisaun nian. Jurnalista koalia kona-ba sosa jerador husi Finlandia ho nia todan toneladas 250, maibe jurnalista ne’e ho Primeiru Ministru la hateten katak Governu muda ona kontratu ba sentral eletrisidade husi CNI22 no fo ba Puri Akraya Engineering fulan rua antes.

La’o Hamutuk nia relatoriu ida ne’e Sydney Morning Herald no media seluk uza ba sira nia artigu, inklui Timor Post (klik imazem iha liman karuk atu le’e artigu iha Tetum husi 16 Dezembru).

Infelizmente, resposta husi ofisiais publiku sira ne’e la hetan atensaun. Sekertariu Estadu ba Eletrisidade Januariu Pereira ne’ebe kuota husi Timor Post iha Dezembru defende “direitu CNI22 atu fo subkontrata” maibe la mensiona katak asaun ida ne’e halao tamba hetan presaun husi Governu Timor-Leste, ho kustu adisional tokon $250. Loron tuir,artigu ida iha pajina oin Suara Timor Lorosa’e (klik imazem iha liman los) kuota Primeiru Ministru ne’ebe hateten katak CNI22 nia servisu iha Hera kontinua no sei finaliza iha Novembru 2011, hanesan Primeiru Ministru Xineza nian promete ba nia iha fulan ida antes. Iha artigu ne’ebe hanesan Sr. Pereira akuza ONG sira fo “informasaun bosok ten” no husu ba sira atu labele politiza informasaun sira no halo konfuzaun ba publiku nia hateten katak tore 70 ka 80 husi tores 2400 hari tiha ona.

Iha mediu Dezembru, La’o Hamutuk simu relatoriu mensal ba fulan Outubru 2010 husi Electroconsult/Bonifica. Relatoriu ne’e inklui grafika “kurva-s” iha liman karuk hodi hatudu projeitu nia statutu, ne’ebe ita bele klik atu bele hetan ho boot no atualizadu. Area matak ne’e hatudu servisu hira mak halao tiha ona atu tuir orariu projeitu nian, kor mean ne’e indika servisu ne’ebe atualmente halao ona. Puri Akraya Engineering seidauk hahu servisu ba sentral eletrisidade nian, no hein atu hetan pagamentu uluk, maibe CNI22 halo servisu oituan liu.

Durante fulan Outubru, tore 11 mak hari tiha ona, hodi aumenta tore sai ba 41 (1.7%). Iha numeru ida hanesan ne’e, sei presiza to tinan 2027 atu finalize rede distribuisaun nasional. Negosiasaun ho subkontratu Indonezia sira atu hari parte linha transmisaun lao dadauk hela, sein iha kontratu ne’ebe asina. EB reporta katak sira sei “halo presaun ne’ebe konstanta ba CNI22 atu halo lalais akordu ho subkontraktor husi Indonezia ba linha transmisaun no subkontrator Timor-oan atu halao substasaun sira, maibe rezultadu ne’e sei nafatin hanesan deit: promesa iha promesa nia leten, Kontrator nia hahalok nakar nafatin iha.”

EB mos preokupa kona-ba “kualidade servisu ne’ebe fraku liu” espesialmente bainhira sira la mai iha fatin servisu. Aleinde atu ezije CNI22 atu la'o lalais liu, EB nota katak “Kontrator hetan KUIDADO dala ida tan katak uza no hala'o material, trasportasaun, tula, hatun, rai sasan, kontinua LA ASEITAVEL, iha estragus barak mak akontese husi ida ne’e.”

Maske, Governu halao ona pagamentu tuir orariu, maske nune'e kustu kontratu ba projeitu nian boot liu ba montante ne’ebe hateten ba Parlamentu ka osan ne’ebe iha dotasaun. Tuir mai iha total kustu ne’ebe Governu sei selu ba CNI22 no nia subkontrator sira kada tinan ida, iha dolar Amerika, atu hari sentral eletrisidade no rede nasional ho voltazem as.

Year
Tinan

Contracted Sep. 2010
Asina molok Sep. 2010

Contracted Oct. 2010
Asina Out. 2010

Paid by Oct. 2010
Selu to'o Out. 2010

GSB 2008 rectified
OJE 2008 rektif.

GSB 2009
OJE 2009

GSB 2010 original
OJE 2010 orijinal

GSB 2010 rectified
OJE. Rektif. 2010

Draft GSB 2011
Proposta OJE 2011
 (Book 6)

GSB 2011
OGE 2011
(as promulgated)

2008

$10 million paid in Apr 2009 from the 2008 GSB is not included in EB's total.

Tokon $10 selu iha Abril 2009 husi OJE 2008 la inklui iha total EB nian.

10.0

10.0

10.0

10.0

10.0

10.0

10.0

2009

10.6

10.6

10.6

130.0

85.0
(reduced to 12.5
by  Pakote Ref.)
(Hamenus to 12.5
ba Pakote Ref.)

10.6

10.6

10.6

10.6

2010

115.7

124.7

46.9

130.0

160.0

50.0

60.0

60.0

90.0
[from transparency portal
husi portal transparansia]

2011

186.0

380.0

 

120.0

120.0

0

n.a.

163.7

445.7

2012

54.9

113.4

 

 

 

0

n.a.

261.3

261.3

2013

0

0

 

 

 

0

n.a.

111.0

111.0

2014

0

0

 

 

 

 

 

0

0

2015

0

0

 

 

 

 

 

0

0

Total

367.1

628.7

 

360.0

365.0

70.6

80.6

616.6

928.6

At the end of October, CNI22 employed 435 Chinese and 397 Timorese workers on the project, and EB's report includes their job titles. There was no significant change to the poor environmental performance that month.

According to ELC/Bonifica's November 2010 report, 156 more Chinese workers (mostly "skilled workers" for transmission lines) had arrived (totaling 591), but the number of Timorese working on the transmission lines had dropped by 44, and at the end of November CNI22 was only employing 353 Timorese workers. The November report includes a revised section on environmental compliance, which shows little improvement but, for the first time, reports on poor sanitary and housing conditions for workers building the substations around the country. The January 2011 report still shows 591 Chinese workers, but Timorese workers had declined further, to 331.

No work was done on the Hera or Betano generating stations during November. Eighteen new towers were erected for the power grid, a very slight improvement over the previous month, and workers began stringing wires on the Hera-Dili segment. Some construction work was done at the Dili and Manatuto substations, with initial site preparation at a few others. Negotiations with other Indonesian subcontractors for parts of the grid were still in process, with no contracts yet signed.

Six weeks after the contract was signed with Puri Akraya Engineering (PAE), the Indonesian company was still waiting to receive its initial advance payment, and had not started work, although they were organizing a "Kick Off Meeting". ELC/Bonifica's November report says that PAE will give "top priority" to the Hera power plant,  "with target of three generating sets to be operative by November 2011 and other four generating sets to be operative by March 2012." Work on the Betano power plant "will start during 2011, the target is to complete the installation of the eight generating sets within end of 2012 first half of 2013."  However, PAE's project schedule (click on image above) shows that three months for "Testing and Commissioning" will not begin until 16 months after the project starts -- that is, until April 2012 -- this schedule must be accelerated if the target is to be met.

The Deloitte audit report and the Procurement Portal (see blog and spreadsheet on contract awards) became accessible in 2011 and provide additional information about PAE and its $406 million contract, the largest in Timor-Leste's history. The Portal shows that six of the seven largest Government contracts over the last three years have been for the electricity sector (click on graphic at right).

Iha fin de Outubru, CNI22 fo servisu ba Xineza nain 435 no Timor-oan nanin 397 ba projeitu ne’e, no relatoriu EB nian inklui titulu ba servisu nian. Iha ne’eba laiha mudansa signifikante ba lalaok ambiental ne’ebe fraku iha fulan ne’eba.

Tuir ELC/Bonifica nia relatoriu iha Novembru 2010, liu ema nain 156 husi trabalhadores Xineza sira (barak liu mak “trabalhador ho skil” ba linha transmisaun) to ona iha Timor-Leste (total ema nain 591), maibe numeru Timor-oan ne’ebe servisu iha linha transmisaun nian redus ema 44, no iha Novembru nia rohan CNI22 fo servisu deit ba trabalhadores Timor-oan 353. Iha Relatoriu Novembru inklui mudansa ba sesaun reklamasaun ambiental, ne’ebe hatudu hadiak oituan, maibe, ba primeira vez, fo relatoriu kona-ba saneamentu ne’ebe fraku no kondisaun hela fatin ba trabalhadores sira ne’ebe hari substasaun sira iha Timor laran tomak. Relatoriu Janeiru 2011 hatudu nafatin trablhadores Xineza 591 maibe Trabalhadores Timor-oan menus tan, ba ema nain 331.

Laiha servisu ne’ebe halo iha sentral eletrika Hera no Betano durante Novembru. Tore 18 foun hari ona ba linha transmisaun, iha mudansa kiik liu duke fulan kotuk, no trabalhadores sira hahu dada fiu husi parte Hera- Dili nian, iha servisu konstruksaun balun halao ona oha substasaun Dili no Manatutu, ho preparasaun fatin inisial iha fatin balun. Negosiasaun ho subkontrator Indonezia seluk ba parte linha nian sei nafatin iha prosesu laran, no kontratu seidauk asina.

Semana ne’en hafoin asina kontratu ho Puri Akraya Engineering (PAE), Kompania Indonezia nafatin hein atu hetan pagamentu inisial antes, no seidauk hahu halao servisu, maske nia organiza ona “Enkontru Kick-off”. Relatoriu ELC/Bonifica ba fulan Novembru nian hateten katak PAE sei fo “prioridade masimu” ba sentral eletrika Hera, “ho tarjeitu ba jerador tolu sei bele halao operasaun iha Novembru 2011 no jerador hat seluk sei halao operasaun iha Marsu 2010.” Servisu iha Sentral eletrika Betano” sei komensa durante 2011, tarjeitu atu kompleta instalasaun ba jerador hat ne'e sei iha entre 2012 nia rohan no mediu primeiru 2013.” Maske nune’e, PAE nia orariu projeitu (klik iha imazem iha liman karuk) hatudu katak fulan tolu ba “testes no komisionamentu” sei la hahu to fulan 16 hafoin projeitu ne’e komesa — ne’e katak to Abril 2012 — orariu ida ne’e tenke aseleira bainhira atu hetan tarjeitu.

This table lists the largest contracts awarded between 2008 and 2010. More than 77% of over a billion dollars in contract awards was spent on the electricity sector; PAE and CNI22 are the two largest contracts. Click on the graphic to see it larger.

2011 State Budget

The proposed State Budget for 2011 allocated $166 million for this project for 2011 alone, comprising more than half a new Infrastructure Fund which will be difficult to oversee and can be carried over between years or moved between projects without Parliamentary approval. However, this is much less than the $380 million Timor-Leste is committed to pay for this project during 2011. See the table above for how its budgetary allocations and contractual commitments have changed over the years.

La'o Hamutuk asked the National Parliament not to "approve more money for the Heavy Oil project and national electric grid until the Government has provided accurate, comprehensive information about the project’s many problems, and until adequate consideration has been given to renewable sources of energy for Timor-Leste’s people."

We pointed out that "Timor-Leste spent nearly $100 million for this project in 2008-2010, and the total cost will be more than $600 million. The original promise to provide 24/7 electricity to all district capitals by the end of 2009 is long forgotten; it is clear that the current promise to complete the entire project by the end of 2011 will not be met."

In a follow-up letter, we explained the contradiction between the $166 million allocated for this project in the 2011 budget and its contractual obligations.

Orsamentu Jeral Estado 2011

Proposta  Orsamentu Jeral Estado 2011 aloka tokon $166 ba projeitu ida ne'e ba tinan 2011 deit, liu metade Fundu Infraestrutura ne’ebe sei difikulta atu tau matan no implemetan durante tinan barak ka muda ba projeitu seluk sein aprovasaun Parlamentar. Maske nune’e, montante ne’e menus liu montante tokon $380 ne’ebe Timor-Leste iha komitmentu atu selu ba projeitu ida ne’e durante 2011. Hare tabele iha leten atu hatene alokasaun orsamental no komitmentu kontraktual ne’ebe hetan mudansa durante tinan hirak ne’e.

La'o Hamutuk husu ba Parliamentu Nasional atu "La bele aprova orsamentu tan iha oin mai ba projeitu Oleu Pezadu no Linha Transmisaun, too Governu fo informasaun ne’ebe los no komprehensivu kona-ba projeitu ne’e nia problema sira, no too iha konsiderasaun adekuadu ba fontes enerzia renovavel ba povo Timor-Leste.”

Ami hato’o katak “Timor-Leste gasta ona besik tokon $100 ba projeitu ida ne’e iha 2008-2010," no total kustu sei liu tan tokon $600. "Ema barak haluha ona promesa Primeiru Ministru ba Parlamentu katak projeitu ida ne’e sei fo eletrisidade 24 oras ba kapital distritu tomak iha fin de 2009, no sei for servisu ba trabalhadores Timor-oan 20,000 durante konstrusaun. Ne’e klaru katak promesa dadaun atu kompleta projeitu ne’e iha fin de 2011 sei la bele akontese mos.”

Iha karta esplikasaun tan ba Komisaun C, ami esplika kontradisaun entre tokon $166 ne’ebe aloka ba projeitu ne’e iha orsamentu 2011 no projeitu ne’e nia obrigasaun kontraktual nian.

On 27 January 2011, during the plenary debate on the 2011 State Budget, Parliament increased the electricity project allocation by $282 million (to a total of $447 million in 2011). The following day, the Deputies increased the authorized withdrawal from the Petroleum Fund for this year to $1,055 million, a $321 million increase in excess of the Estimated Sustainable Income. Three-quarters of the $599 allocated to the new Infrastructure Fund for 2011 will pay for this one project.

Construction fraught with errors

ELC/Bonifica's November report said that the schedule for the power plants "is mainly dictated by the budget allocation restraint," and La'o Hamutuk has heard that Timor-Leste will pay extra money to Wärtsilä to jump the queue ahead of projects in other countries. Having more funds available in 2011 might enable the project to move faster -- or the legal wrangling about the unsustainable budget could create further delays.

During 2010, Timor-Leste spent $90 million of our people's money on this project, and $440 million more is allocated for 2011, with more than $370 million to follow. We hope the money turns out to be well spent.

Iha Janeiru 2011, durante debates plenaria nian kona-ba Orsamentu Estadu 2011, Parlamentu hasae alokasaun ba projeitu eletrisidade nian ho tokon $282 (total ba 2011 tokon $447). Hafoin loron ne’eba, Deputadus sira aumenta atu fo autorizasasun hodi foti osan husi Fundu Petroleu ba tinan ida ne’e ba tokon $1,055, liu tokon $321 ba Rendimentu Sustentavel Estimadu. Tres kuartus husi tokon $599 ne’ebe aloka ba Fundu Infraestrutura foun ba 2011 sei selu mos projeitu ida ne’e.

Relatoriu ELC/Bonifica nian ba Novembru hateten katak oraroiu ba sentral eletrisidade “prinsipalmente define husi retensaun dotasaun orsamental,”no La’o Hamutuk rona katak Timor-Leste sei selu osan ekstra ba Wärtsilä atu hakat liu projeitu sira iha nasaun seluk. Iha osan barak iha 2011 bele halo lais projeitu ida ne'e—ka kontradiksaun legal kona-ba orsamentu ne’ebe la sustentavel sei halo tarde tan.

 

The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua dos Martires da Patria, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
email: 
info@laohamutuk.org    Web: http://www.laohamutuk.org    Blog: laohamutuk.blogspot.com