Dili, 14 July 2000
JAPANESE DONATION FOR REHABILITATION OF INFRASTRUCTURE

Six project funding agreements worth US$27.5 million were signed today between the Government of Japan, UNTAET and the United Nations Development Programme.

This is the largest contribution made so far for the rehabilitation of infrastructure in East Timor.

The projects include the rehabilitation and improvement of the water supply system to give the population in the Dili region access to safe drinking water; the rehabilitation of the road between Dili-Ainaro-Cassa, which will improve the distribution of humanitarian and other supplies and boost economic recovery; the rehabilitation of irrigation in Manatuto, which will further increase agricultural productivity and enhance food security; the restoration of navigation aids and the fender system in Dili port and the rehabilitation of power stations and distribution networks in Dili and 13 rural areas.

Only hours before the signing, the Japanese Cabinet met in Tokyo to give the final approval for the release of funds for these much needed projects.

The signing of the contracts was made possible after a series of survey missions by Japanese technical and governmental officials to East Timor, and a consultative process involving CNRT, UNTAET, UNDP and the United Nations Office for Project Services, UNOPS.

The agreements were signed by Mr. Koji Tsuruoka from the Japanese Embassy in Jakarta, SRSG Sergio de Vieira de Mello and Finn Reske-Nielsen from UNDP, in the presence of Mr. Joao Carrascalao from the NCC.

REGULATION ON NATIONAL COUNCIL APPROVED

A regulation on the establishment of a National Council was adopted by the National Consultative Council (NCC) yesterday, 13 July.

This follows the approval of another ground-breaking regulation yesterday, On the Establishment of a Transitional Cabinet.

Minor modifications were done to the draft regulation on the council, inclusive of a name change from the originally proposed National Legislative Council (NLC) to National Council (NC). It was agreed that this would emphasize the consultative nature of the body.

The current 15-member NCC, a quasi-cabinet and quasi-legislative body, will be dissolved at the first session of the National Council.

The NC will consist of 33 East Timorese members from the political, religious and private sector.

The SRSG will have the final say in the approval of any draft regulation proposed to the cabinet by the NC.

UNTAET’S CHIEF OF STAFF MEETS WITH AITARAK LEADER

UNTAET’s Chief of Staff Parameswaran Nagalingam met with the former militia leader of the Aitarak group, Eurico Guterres, last Tuesday.

The meeting in Kupang, West Timor, also included six other pro-autonomy leaders from the FPDK (Forum for the Unity of Democracy and Justice) and BRTT (Front for the People of East Timor).

The seven leaders indicated through UNTAET’s Chief of Staff that they were interested in a “come-and-see” trip to Dili.

UNTAET is currently working with CNRT to facilitate the trip and UNTAET’s Kupang office is in close liaison with Indonesia’s West Timor Commander Major-General Kiki Syahnakari in this process of reconciliation.

Security details are being worked out by UNTAET and no date has been fixed for the visit as of yet.

Meanwhile, Kiki Syahnakari has called on the East Timorese to put last year’s violence behind them and welcome back the refugees, including former militia members.

The Major-General said he believed that thousands of refugees in West Timor wanted to return home but feared for their security.

Kiki Syahnakari was speaking in Oecussi on 12 July where he had been meeting with the commander of the Peacekeeping Forces in East Timor, Jaime del los Santos on the refugee problem and issues regarding border security.

SMALL LOANS FOR BUSINESSES ANNOUNCED

Yesterday, UNTAET announced the names of 20 applicants from Dili who have been granted loans under the Small Enterprises Project.

The Small Enterprises Project is a program from the World Bank administered Trust Fund for East Timor, for which the Portuguese bank BNU (Banco Nacional Ultramarina) is the implementing agency and UNTAET does the overall facilitation.

The range of business projects which these loans will finance vary from transport business, carpentry shops, to a boutique and a guesthouse, among other things. Totally, they will create jobs for some 250 people.

The 20 loans are worth a total of US$307,000. On average the loan size is about US$15,000. Ten of these loans are going to female entrepreneurs.

There is US$307,000 available for all 13 districts. Dili is the first one to have its results announced.

Overall, the small loans project was a success. More than 2,100 applicants all over East Timor submitted applications for loans, totaling over US$31 million.

At present, there is US$4 million available, but additional funds will hopefully be released, about US$7 million, in September.


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