Sydney – The 2 billion AUD (1.4 billion USD) Australian Infrastructure Financing Facility for the Pacific (AIFFP) is negotiating with Timor Leste on the financing of a gas pipeline worth 500 million AUD (350 million USD) that will connect with a gas plant to be built on the coast of the south Southeast Asian country.
The move took place at a time when Timor Leste is finding a new joint-venture for its 15.6 billion USD liquefied gas plant in Beacu.
The gas pipeline is an important part of Timor Leste's gas development scheme. However, according to assessments of the United Nations High-Level Advisory Board on Mediation last year, the project would fail to generate enough profit to meet investment standard of an international oil and gas company.
During a visit to Timor Leste in August 2019, Australian Prime Minister Scott Morrison announced that Australia will fund the building of a national Internet cable line and upgrade of an important naval base in the country.
Debut last year, AIFFP now has about 1.5 billion AUD (1.05 billion USD) used for preferential loans and 500 million AUD (350 million USD) for significant infrastructure projects in the region.-VNA