On June 19, the Japan International Cooperation Agency (JICA) signed a project finance loan agreement with Manatuto Renewables Power S.A., a special-purpose company established to construct and operate a large-scale solar power plant and energy storage system in the Democratic Republic of Timor-Leste, a project finance loan agreement of up to approximately 12.2 million U.S. dollars for the country’s first solar power project equipped with battery storage. Additionally, a groundbreaking ceremony was held on July 23 in Manatuto District, attended by President Ramos-Horta, Prime Minister Gusmão, and other officials.
Scenes from the Groundbreaking Ceremony
This loan is being provided as a syndicated loan in collaboration with the International Finance Corporation (IFC) and the Asian Development Bank (ADB). Of the ADB’s loan amount, approximately 10.6 million U.S. dollars will be provided through the “Asia Infrastructure Partnership Trust Fund 2 (‘Leading Asia’s Private Infrastructure Fund 2’: LEAP 2) in which JICA is a contributor, and approximately US$10.6 million of the ADB loan will be provided through the “CANPA (Canadian Climate and Nature Fund for the Private Sector in Asia: CANPA),” in which the Government of Canada is a contributor.
The sponsors of this project are I-Environment Investments Pacific PTY. LTD, a subsidiary of Itochu Corporation, and EDF Power Solutions S.A., a subsidiary of Électricité de France (EDF), which will be responsible for the development and operation of the power plant.
East Timor, which gained independence in 2002, is the newest country in Southeast Asia and an island nation located near the equator with a landscape characterized by steep mountains. Since approximately 99.8% of the country’s electricity generation relies on imported diesel fuel, it is highly susceptible to external factors such as fluctuations in international oil prices and transportation costs, creating vulnerabilities in terms of energy security. Consequently, developing new power sources and diversifying the energy mix to reduce dependence on imported fuel have become critical challenges.
Against this backdrop, this project involves the construction and operation of related facilities, including a solar power plant (73.7 MW) and a battery storage system (80.2 MWh), in Manatuto District, East Timor. This project is the first IPP (Independent Power Producer) project in Timor-Leste and is also the country’s first grid-connected solar power project equipped with battery storage. It is expected to contribute to reducing dependence on fossil fuels and cutting greenhouse gas emissions, while also accelerating the adoption of renewable energy in the country.
Furthermore, as part of its support for the judicial sector in Timor-Leste, JICA has been working in collaboration with the International Cooperation Division (ICD) of the Institute of Legal Research under the Ministry of Justice since 2009 to assist in the development of the legal system. One result of these efforts was the enactment in 2025 of the “Law on the Management and Use of State-Owned Real Estate,” which made it possible for private companies to utilize state-owned land. This project is also being implemented in accordance with that law. As the country continues to improve its investment environment through such legal reforms, further promotion of private investment is anticipated in the future.
Through its participation in this project, alongside Japanese companies serving as sponsors, JICA aims to contribute to the sustainable development of the country’s electricity sector and further deepen its cooperative relationship with the country.
JICA will continue to contribute to the realization of a sustainable environment and society while collaborating with private-sector companies in developing countries and regions.
The business overview is as follows.
・Borrowers/Investees
Manatuto Renewables Power S.A.
・Country (Target Region)
Democratic Republic of East Timor
・Loan Amount (Maximum) / Investment Amount
Approximately 12.2 million U.S. dollars
・Project Name
East Timor Solar Power Project
・Business Objectives
This project aims to reduce East Timor’s reliance on fossil fuels through the construction and operation of a solar power plant (73.7 MW) and related facilities, including battery storage (80.2 MWh), in Manatuto District, thereby contributing to the reduction of the country’s greenhouse gas emissions.
・Business Overview
Construction and operation of solar power plants (73.7 MW), battery storage systems (80.2 MWh), and power transmission and distribution facilities, among others.
・Contributing to the SDGs
Goal 7 (Affordable and Clean Energy for All)
Goal 13 (Take concrete action on climate change)
Goal 17 (Let’s Achieve Our Goals Through Partnership)
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