The Asian Infrastructure Investment Bank set up by China is helping pay for a US$60 million redevelopment project in the East Timorese capital, Dili, the Nikkei Asian Review reports.

The Japanese magazine says the bank is funding Chinese companies taking part in the project.

The report says Chinese and East Timorese companies are building housing, schools, shops and other facilities on a 10-hectare site in Dili.

China is stepping into the shoes of Japan, the United States and Australia – the countries that have been the customary providers of aid to East Timor, the Nikkei Asian Review says.