Wu Yi Co. Ltd of China has begun a second stage of works on improving the road connecting the capital of Timor-Leste, Dili, to the city of Ainaro, Xinhua reports.

The Chinese government-run news agency says the World Bank is lending the money for the work, one of the main projects currently being carried out in the archipelago.

The government of Timor Leste said in a dispatch last year that the contract awarded to Wu Yi is worth US$17.86 million.

The improvement work will take 30 months, and afterwards the contractor will maintain the road for four years, the government said.