01/11/2024
Pelican Paradise Clarifies Funding Requirements and Government Partnership for Timor-Leste Project
Dili, Timor-Leste, 1 November 2024—In response to recent speculation regarding the funding of Pelican Paradise Phase One, Pelican Paradise would like to provide clarity on this matter.
Pelican Paradise is not seeking additional funding from the Government to fund this project.
We have a signed term sheet with our funding partner for USD825 million, ready, willing and able to be deployed for the ex*****on of the project. The documented proof of the availability of these funds has been forwarded to the relevant Government authorities. All information about the funder, including their track record, has been shared with the Government. The terms of the fund have also been shared to ensure everything is above board.
Over the past 16 years, Pelican Paradise has demonstrated unwavering dedication to this project, despite substantial delays caused by government processes. The scale of Pelican Paradise requires extensive infrastructure and regulatory support, including the provision of water, electricity, and the timely issuance of permits, visas, and other essential approvals. These requirements, outlined in the Special Investment Agreement, are responsibilities that only the Government can fulfill.
The Government’s cooperation and support is imperative for the success of this project. In light of the countless delays over the past 16 years, the request for the USD180 million deposit from the Government is to ensure the Government’s commitment to this project. Our funder has requested for this deposit to be held in a non-depleting, interest-bearing account at 4% per annum in favour of the Government. This deposit will be held for a period of 60 months during the construction and maintenance period and is meant to ensure all the Government’s obligations are met, specifically in regulatory stability and infrastructure provisioning. This includes critical areas such as water, electricity, and the timely issuance of permits and licenses, all of which are essential to the smooth construction of the project.
This deposit request by the funder, while not part of the original Special Investment Agreement signed between Pelican Paradise and the Government, is intended to reinforce Government commitment that aligns with the project’s scale and long-term goals. The deposit reflects the critical assurance from the Government to create a reliable environment for foreign investment, vital for attracting large-scale projects and for positioning Timor-Leste as an emerging investment destination. Without such assurance from the Government, it is highly unlikely that a project of this magnitude can be completed successfully.
Pelican Paradise’s vision remains steadfast: to develop a world-class, sustainable tourism destination in Timor-Leste that will serve as a global model for responsible development and create opportunities for future generations. We are grateful for the cooperation of the Government of Timor-Leste, whose partnership is essential to achieve the infrastructure support necessary for realizing this project and boosting the nation’s economic growth.
