Prime Minister-designate Najib Mikati and Minister of Energy Walid Fayad hold meeting this morning. (Courtesy of a tweet from the Grand Serail)
BEIRUT — The Public Works, Transportation, Energy and Water Committee met Thursday to discuss the difficulties regarding electricity long-term and short-term reform plans, the possibility of providing cheaper electricity alternatives, and the extension of Lebanon’s Iraq fuel deal, MP Sagih Attieh, who is a member of the committee, told L’Orient Today.
On the same day, Caretaker Prime Minister Najib Mikati met with Minister of Energy and Water Walid Fayad at the Grand Serail Thursday, to discuss the outcomes of Fayad’s visits to Egypt and Iraq regarding two different potential energy deals.
Attieh stated Lebanon is trying to secure the final gas deal from Egypt and fuel from Jordan and Iraq before the end of July, if not Lebanon “would have to buy fuel, which will be more expensive for the citizens.”
Lebanon has yet to pay for the fuel it has received from Iraq under a contract signed last year, which will end in September.
“The contract is structured using a deferred payment which is scheduled for a period of twelve months. The first payment of $35 million for the first month of September 2021 is due in September 2022. The Iraqis are not expecting Lebanon to pay it all on the due date but would like to see it structured in a way to see payments (through services or otherwise) scheduled over a period of time,” Attieh told L’Orient Today.
Attieh stated that the committee also discussed legislating a law that would make it easy for investors to invest in solar panels and provide an electricity alternative “that does not burden the citizen with its high cost.” This comes at a time when preparations are underway for the launching of the solar energy loans, loans from LL75 million to LL200 million to be repaid over five years at an interest rate of 4.99 percent for Lebanese low-income citizens.
“The country has hundreds of hours of sunlight per year, therefore solar panels might be the best option in the current situation,” he said.
Mikati had urged the World Bank to secure funding for the Zahrani and Deir Ammar power plants so they could continue operating. On Thursday, the Zahrani power plant was briefly shut, as the state was in arrears in its fresh dollar payments to Primesouth, operator of Zahrani and Deir Ammar plants. Two hours later, the power was restored, after high level contacts were held to release part of the arrears.
Fayad assured Mikati that Egypt is ready to provide Lebanon with gas once the US gives the green light that there are no penalties due to the Caesar Act, and once Lebanon secures funding from the World Bank.
Fayad stated that a second visit is planned to Iraq, which could include Mikati and General Directorate of General Security Abbas Ibrahim to formulate and extend the new aspects of the agreement, and to show the Iraqi side that Lebanon is committed to paying the dues.
Fayyad also stated that Iraq had been providing Lebanon with 80,000 tons per month of fuel, but in this period the quantity is less due to the increase in the price of fuel,”so the quantity decreased to 40,000 tons, providing us with two hours of [power] instead of 4 hours.”
Fayad stressed that the Lebanese government's top priorities are to increase the hours of feeding Lebanon's electricity to become effective and regular by about eight to 10 hours in the near term.
This article has been updated with additional information regarding the status of Lebanon's payments to Iraq.