Australia and UNTAET, on behalf of East Timor, signed today the approval of a development plan for gas recycling that will be explored in the joint zone of the Timor Gap area. The Investment is of USA$1.4 billion and is the biggest ever made in the country.

The agreement was signed in Perth, Australia, by Peter Galbraith, the head of the Political Office of UNTAET, as the acting executive director of the Joint Authority on behalf of UNAET/East Timor, and Robert Mollah, the Australian executive director.

According to the Agreement, called Byun Undan Gas Recycling Development Plan, Philips Petroleum, from the United States of America, will lead the consortium of six companies from Australia, United Kingdom, and Japan.

The agreement states that Philips Petroleum will train East Timorese and that the potential jobs shall be split as long as it is practical.

The exploration is expected to be mainly of liquid gas, such as propane and butane gas.

This is the biggest investment ever made in East Timor, and probably the largest private sector deal ever signed by the United Nations.

The exploration, however, is only expected to start in January 2004, and the first proceeds are likely to take even some more time.

Byun Undan is an area that has never been explored.

Mr. Shigemitsu Sugisaki, Deputy Managing Director of the International Monetary Fund (IMF), has outlined the roles the IMF is to play in the rebuilding of East Timor in a press conference at the Governor’s Office in Dili today.

Though "at this moment, we can not provide direct financial assistance," said Mr. Sugisaki, "we will maintain a continuous presence here". He pointed out that the IMF "will coordinate international experts on payment, banking supervision, tax and treasury management, custom registration, procurement," and so forth. "We will certainly fulfill our commitment," he added.

He made the remarks at the end of his two-day visit to East Timor during which he met with a wide section of leaders of East Timor, including SRSG Sergio Vieira de Mello, members of NCC, CNRT President Xanana Gusmao, Bishop Carlos Bello, NGOs, and leaders of the donor community.

Mr. Sugisaki said his visit enabled him to see "the evidence of the most tragic event in the wake of the referendum of August last year," and pointed out that the task ahead id "to ensure to the sacrifice of the people of East Timor is now translated into a vibrant democratic society."

"In such a society we need to establish basic human rights, the rule of law and setting up an administrative machinery to govern East Timor. The role of the IMF is to contribute to this vast task," he added.

The International Force in East Timor (INTERFET) was formally replaced today by the UNTAET Peacekeeping Force, after SRSG Sergio Vieira de Mello, INTERFET commander Major General Peter Cosgrove, and Peacekeeping Force commander Jaime de los Santos signed a declaration on the replacement of INTERFET.

At 12 noon (Dili time), INTERFET legally ceased to exist, and the ship carrying Major General Cosgrove left to Australia.

"Many have taken the secure environment that INTERFET rapidly established for granted," said the SRSG after signing the transfer document. "That is the best, if somewhat unfair, tribute paid to INTEFET."

"It is also rare that a United Nations force succeeds a multinational force. The planning and execution has been exemplary."

And, "it is not often that the Secretary-General is able to report back to the Security Council that one of its resolutions has been fulfilled as is the case here: peace and security were restored in East Timor."

To General Cosgrove, CNRT President Gusmao said: "We thank you personally from our hearts. When the children of our nation learn of the sacrifices made by all of our martyrs, they will learn also of the role of INTEFET."

After the ceremony at the Governor’s Office, General Cosgrove said at a press conference that INTERFET had been lucky to have achieved its task with relatively little violence. His favourite memory of the assignment is of the moment when he saw an INTERFET "soldier playing with local children at the tenth day, when the situation was very tense."