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FIRST TIMOR GAP ROYALTY PAYMENTA settlement was reached on Saturday between UNTAET and 273 security workers who have been protesting since they were laid-off on 31 August.
East Timor has received its first royalty payment from the Timor Gap, worth over US$3 million. The money was deposited last Wednesday in an account of the Central Fiscal Authority with the Central Payments Office in Dili.The revenue comes from oil lifted from the only active oil field in the Timor Sea. The field is jointly shared by UNTAET, on behalf of East Timor, and the Government of Australia.
The figure represents half of the revenues collected from production sharing between 25 October 1999 and 25 September this year.
The revenue is better than expected. The field is, however, the only active oil field in the Timor Sea and no other oil fields will open anytime soon.
Due to the one-time nature of this windfall, this revenue is not expected to change the East Timorese budget in any significant way.
REHABLITATION OF IRRIGATION SYSTEMS AND ROADS
A project for a systematic rehabilitation of the irrigation system in Manatuto has been launched. Around 700 hectares have been lying fallow for three to four years in the district.
The project, worth US$3,36 million, is funded by the Japanese Government and the work is carried out by Dai Nippon Corporation. The project’s initial phase, which is a temporary alternative to the more permanent structure that will be built next year, is worth US$750,000.
The works will start by the end of this month and include the setting up of a pumping system to get water from the river into the canals and the rice fields. The whole project will last for two years.
In addition, over 40 contracts for minor irrigation projects in East Timor have been signed between UNTAET’s Agricultural Department and local communities in all 13 districts.
Urgent rehabilitation of irrigation canals and rural access roads have to be completed before the rainy season, which is due to start within five weeks. The projects, which include digging and silting of canal systems, cost US$344,600 and are paid for by the World Bank Trust Fund and carried out by the communities themselves.
Currently, 14 agricultural access roads – a total of 50 kilometers of roads leading to fields and farms – are being rehabilitated. The works are worth a total of US$96,600.
SETTLEMENT BETWEEN UNTAET AND FORMER SECURITY GUARDS
UNTAET and the security guards agreed to a settlement giving the guards 15 days of pay, based on the six months they had been employed by UNTAET.
A special panel of five from the Public Service Commission reviewed the staffing list and decided to keep 337 security staff and lay-off 273.
The decision to cut the staff was taken by the National Consultative Council in June when the budget of the Transitional Administration was approved. The compensation was decided on by the East Timor Transitional Cabinet in September.