August 18, 2026

The Vice Prime Minister, Coordinating Minister for Economic Affairs and Minister of Tourism and Environment, Francisco Kalbuadi Lay, delivered a presentation to the Budget Review Committee (KRO) on the 2027 General State Budget. The session was held at the Ministry of Finance, Aitarak-Laran, Dili, on Tuesday, 18 August 2026.
In his presentation, the Vice Prime Minister outlined the strategic priorities, programmes, and budget requirements of the Coordinating Ministry for Economic Affairs (MCAE) and the Ministry of Tourism and Environment (MTA), with the aim of ensuring that the 2027 budget supports national development goals and promotes economic growth, with a focus on the International Convention Centre project and preparations to host the ASEAN Summit in 2029.
The KRO discussion also focused on programmes and activities that have a direct impact on the development of the economic, investment, tourism, and environmental sectors, including the Government’s efforts to increase productivity, promote investment, and create economic opportunities for the people.

At the presentation, the Vice Prime Minister was accompanied by the heads of the supervised institutions, who provided technical input and outlined the programme priorities of their respective institutions.
The budget review process is a key step in preparing the 2027 General State Budget, ensuring the efficient and transparent use of public resources in line with Government priorities.
In the presentation, the Vice Prime Minister stressed that budget planning must be results-oriented and deliver concrete positive impacts on national development.
During the deliberations on Government Plan Priority (PPG) 8 and the 2027 State Budget Policy Review, Prime Minister Kay Rala Xanana Gusmão, Vice Prime Minister for Social Affairs and Rural Development Ir. Mariano Assanami Sabino, and members of the 2027 State Budget Policy Review Committee recognized the investment in the International Convention Centre as a strategic priority for Timor-Leste’s future development.

Narrative of the Discussions on the Government Priority Plan
The Vice Prime Minister, Coordinating Minister for Economic Affairs and Minister of Tourism and Environment, Francisco Kalbuadi Lay, stated during the discussions on Government Priority Plan (PPG) 8 that the Government prioritizes sustainability and investment in the International Convention Centre (ICC) and ASEAN 2029.
‘’The vice Prime Minister said that “As we know, Timor-Leste will host a regional ASEAN event in 2029. This presents a significant opportunity not only to welcome an international event with dignity, prestige, and national pride, but also to promote Timor-Leste globally, advance tourism and the MICE sector (Meetings, Incentives, Conferences, and Exhibitions), generate employment, and accelerate economic diversification. Therefore, the infrastructure we develop must adhere to international standards, be environmentally sustainable, and deliver long-term benefits for the nation”.

The Government has allocated US$360,000,000 for the construction of the ICC. Of this amount, US$278,141,098.42 is allocated for construction works and US$13,119,104.17 for design, BOQ, and consultancy services, bringing the total to US$291,260,202.59. The remaining balance from this allocation is US$68,739,797.41.
This balance should be managed prudently, transparently, and efficiently, with priority given to activities that directly support the ICC’s preparation and operational sustainability.

From this balance, MKAÉ proposes the following priorities:
● ICC Management and Operations proposed allocation of US$13,000,000 for complementary activities, comprising:US$2,000,000 for the acquisition of two recreational vessels, each with a capacity of up to 25 passengers, and US$9,000,000 for training in hospitality, hotel management, tour guiding, protocol, capacity development, and ICC management. An additional US$3,000,000 is also proposed for IP11, subject to government needs and priorities (may or may not be allocated under this budget).
● Also proposes a total budget allocation of US$38.8 million for the Ministry of Tourism and Environment to support priority programmes for 2027–2030, including sustainable tourism, MICE, the blue and green economy, destination development, international promotion, MSME support, and job creation. Through this integrated approach, the ICC can serve as a catalyst for the growth of the tourism sector and the private sector, rather than operating as a standalone facility.
● A total of US$13,939,797.41 is proposed for allocation to other national priority programs that warrant funding, in accordance with State needs, strategic priorities, and fiscal availability.

𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧:‘The ICC must be viewed as a strategic investment in the future of Timor-Leste. We are building the ICC to host the ASEAN Presidency in 2029 with dignity, but we must ensure that after 2029, it continues to attract events, promote tourism, create jobs, support the private sector, and contribute to economic diversification.
During the meeting, the Vice Prime Minister, Coordinating Minister for Economic Affairs, and Minister of Tourism and Environment, stated that,” This is not just about an edifice, but to build economic opportunities. This public investment must be transformed into jobs, businesses, tourism, revenue, and a sustainable future for the people of Timor-Leste”.
Government Prioritizes Election Preparations and ICC Sustainability
According to the General Coordinator for Economic Affairs, Jorge Martins, ‘’Government Priority Policy No. 8 focuses on national policy pressures and needs that have not yet been allocated in the General State Budget’’.
‘’In the coming years, Timor-Leste will face important electoral processes, including the Presidential Election, Parliamentary Election, Municipal Elections, and Village Leadership Elections. Therefore, the Government needs to prepare and secure the budgetary requirements for the institutions that have direct responsibility in the electoral process’’ General Coordinator said.
PPG No. 8 also includes priority events and activities not yet allocated in the budget. It was decided during the discussion that STAE and MNEK will return to adjust their budget proposals before the final approval process. For the Coordinating Minister for Economic Affairs (MCAE), the main discussion included the costs and financial requirements related to the construction of the International Convention Centre (ICC).

The General Coordinator, Jorge Martins, stated that the Government has approved an increase to the budget for the construction of the ICC, including construction, design, and consultancy services. This amount includes the US$200 million allocation already approved by the Government for the construction of the ICC.
‘’The approval signifies that the ICC will indeed be established in accordance with the Government’s commitment that, by 20 May 2028, Timor-Leste will have infrastructure capable of maximizing returns from tourism, infrastructure development, and other complementary activities,” the General Coordinator stated.
‘’The ICC is not merely infrastructure intended to host international events. The Government views the ICC as an economic instrument capable of generating both direct and indirect returns for the State’ ’general coordinator said.