Faktus Timor-Leste

Tuesday, July 2, 2019

Timor Gap’s $US 15.9bn China loan “incorrect”


By Raimundos Oki
DILI – The CEO of Timor GAP has rejected a widely – circulated report that Timor – Leste is about to borrow money from China to build the Tasi Mane Project.

Last Tuesday, the national daily The Australian Newspaper reported the Timor Gap was set to borrow $US 15.9bn from China’s state – owned Exim bank under a commercial loan, sparking alarm from some overseas observers over whether that would allowed a Chinese military presence just 500km from Darwin.  

The Timor-Leste government recently took majority ownership of the project after buying out its former partners – ConocoPhillips and Shell – with the aim of ensuring the gas is piped to its shores instead of Australia’s.

The Timor Gap CEO, Francisco da Costa Monteiro, said it is talking to China, but is also canvasing investors and financial institutions in the US, Australia and other countries about financing the Tasi Mane Project.

He said, The Australian news story specifically referred to Timor Gap being about to sign a $US10 to $US12 billion in loans from Exim Bank and has rejected an offer of US pension fund. 

“That statement is incorrect, that statement is in accurate because it is not right. We are indeed have a need to search finance for Tasi Mane Projects including the Greater Sunrise Development, particularly the Downstream and we have been approaching many investors, many financial institutions including from China and other countries such as US and Australia,” he said to the Tempo Timor in Timor Plaza, last Thursday. 

Although Timor Gap has negotiated with several investors in several countries, according to Monteiro that until now he has not wanted to mention which countries are willing to lend to Timor-Leste.

“This is a commercial sensitive matters, until all the financial discussion, negotiation and I don’t think to prefer to revealed it now. I think this stage what we can say is that what is now we working towards and developing the project, the Greater Sunrise. We approach many banks to borrow the money”.

He stated that Timor Gap had no special preference to borrow money from anywhere, whether from China or from any country that was not problematic.

“Whoever it’s doesn’t matter. It’s from China or US, Australia, Europe or Indonesia it’s doesn’t matter as long as they willing to loan us the money in a competitive terms of condition”.

On last Tuesday the Australian reported Timor Gap was set to borrow $15.9bn from China’s state-owned Exim bank under a commercial loan, sparking alarm from some observers over whether that would allow a Chinese military presence just 500km from Darwin.

The CEO Timor Gap, Francisco da Costa Monteiro told Tempo Timor it is talking to China, but is also canvassing investors and financial institutions in the US, Australia and other countries about financing the Tasi Mane project.

A version of this article appears in Tempo Timor Online on July 3, 2019 with the headline: Timor Gap’s $US 15.9bn China loan “incorrect”.

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