Dili, Aug. 12, 2026 (Lusa) - The Government of Timor-Leste approved, at a meeting of the Cabinet on Wednesday, a resolution ordering the return to the State of the land granted to Pelican Paradise Group Limited.
«Given that the Special Investment Agreement has ceased to have effect and that the company has been notified of its termination, the land granted under the investment must be returned to the State,» reads the statement from the Cabinet.
The resolution also instructs the deputy prime minister and minister for economic coordination, Francisco Kalbuadi Lay, to «promote and coordinate the necessary actions to ensure the return of the land to the State, which must be handed over free of people and property».
The Pelican Paradise project, led by a Singaporean businessman, began in 2009 but was cancelled in 2014; it was resumed in 2018 when the Government approved a proposal for a Special Investment Agreement (formally approved in 2021), valued at around $310 million (€268.7 million).
According to the non-governmental organisation La'o Hamutuk, in 2019 the scale of the project increased to around $700 million (around €606.7 million), covering the areas of Tasi Toli and Tíbar over a 558-hectare site to develop a tourist complex featuring a five-star hotel, a golf course and other infrastructure.
However, no significant progress has been made in implementing the project.
In 2024, an audit by the Timor-Leste Court of Auditors identified issues relating to the rent exemptions granted to Pelican Paradise.
Last year, the company requested a deposit of around $180 million (around €156 million) from the State, and in March this year, the Government announced its intention to cancel the project.
«This decision comes against a backdrop where the project has not progressed in a manner commensurate with its scale and initial promises, whilst also raising concerns regarding sustainability, corruption, violations of community rights, lack of transparency and financial risks,» argued La'o Hamutuk in April.
According to this Timorese non-governmental organisation, since the project's inception «there have been numerous warning signs» ignored by the developer and the government.
«Foreign investment is important, but it is essential to ensure that Timor-Leste maintains a stable, transparent and accountable system. Unclear or unsustainable projects can undermine the confidence of serious investors and increase the risk of international disputes,» added La'o Hamutuk.
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