USAID-ConocoPhillips/Bayu-Undan Alliance Seeks to Enhance Agricultural Productivity in Timor-Leste
(June 10, 2009)
The U.S. Agency for International Development (USAID) and ConocoPhillips signed today a memorandum of understanding to replicate the state-of-the-art greenhouse technology, currently showcased in Lequitura in the highland district of Aileu, in two more locations in Timor-Leste. This landmark agreement heralds a new era of partnership between the private and public sectors in Timor-Leste in support of the Government's goal to enhance agricultural productivity, which is in turn crucial for improving food security and providing livelihoods for rural Timorese.
The agreement follows a February 2009 visit by President José Ramos-Horta to the Lequitura Special Horticultural Area. The President noted that he had just visited similar facilities in Malaysia and was pleasantly surprised to find that USAID, through its Private Sector Development project, had already introduced the modern farming technology in Timor-Leste.
The greenhouse facilities and other agricultural technologies comprising the Lequitura Special Horticultural Area have enabled a group of farmer households to produce high-quality vegetables year-round. The annual incomes of households involved have nearly tripled since the program began.
"From what we have seen of the results of the Lequitura Special Horticultural Area, these new greenhouse facilities we are building with ConocoPhillips, linked to a strong marketing program, will enable Timorese companies to increase their share of the market for high-quality vegetables in Dili. The rural communities involved will benefit exponentially," USAID Representative Mark A. White said.
In addition to building new facilities, USAID and ConocoPhillips will also work together to help community-based companies effectively market increased volumes of fresh produce grown locally. "ConocoPhillips' venture with USAID on this agricultural program forms part of our commitment to investing in projects that will support and assist the sustainable development of the people of Timor-Leste," said Peter Smith, ConocoPhillips Country Manager, Timor-Leste.
"We believe that by providing funding to strengthen the capabilities of local farmers, businesses, and retailers to produce and market large volumes of fresh produce, we will increase the incomes of rural households, leading to a more sustainable agricultural industry."
The venture is part of USAID's Global Development Alliance (GDA) initiative, which matches U.S. foreign assistance dollars with the resources, expertise, and creativity of the private sector and other nontraditional partners to come up with innovative solutions to development challenges. Since 2001, USAID has developed more than 900 partnerships with 1,700 unique partners to implement innovative development programs worldwide.
Through this GDA between USAID and ConocoPhillips (as operator of Bayu-Undan), approximately $800,000 will be mobilized in support of building two more greenhouse facilities and developing community-based companies' marketing capabilities. This is USAID's second GDA in Timor-Leste. In early 2008, USAID entered into a GDA with Cooperative Business International, an Ohio-based trade and investment company, to support the creation of a joint venture financing, marketing, and management services company involving Cooperativa Café Timor.
About ConocoPhillips and Bayu-Undan
ConocoPhillips is an international integrated energy company and a leading supplier of energy to world markets, operating in more than 30 countries with headquarters in Houston, Texas with more than 30,000 employees worldwide. In Australia, ConocoPhillips' major producing assets are the Bayu-Undan gas condensate field in the Timor Sea and the Darwin Liquefied Natural Gas (LNG) Plant in the Northern Territory which are linked by a 500km sub-sea pipeline. ConocoPhillips is the majority interest holder and operator of the Bayu-Undan facility. The other joint venturers are Eni, Santos, INPEX, Tokyo Electric, and Tokyo Gas.
The U.S. Agency for International Development was created in 1961 to assist developing countries of Asia and the Middle East, Africa and Latin America in achieving modern levels of health, education and prosperity. Today, USAID works in more than 100 countries around the world and from the Agency headquarters at the Ronald Reagan Building in Washington. USAID has been working in Timor-Leste since late 1999 to help support the new country's transition to a stable, economically self-sufficient and sustainable democracy.
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