World Bank delegation in Lebanon; loans, reform projects on agenda

A World Bank (WB) delegation is currently in Lebanon, where it was received on Monday by Lebanese President Joseph Aoun and Parliament Speaker Nabih Berri, with whom it discussed the loans and projects awaiting finalization in Lebanon and the reforms required by the international community to release aid.

Lebanon, amid a socio-economic and financial crisis since the summer of 2019, has committed for years to implementing economic and judicial reforms to restore confidence in the state, but many projects related to these reforms are on hold.

Since Aoun acceded to the presidency and the formation of Prime Minister Nawaf Salam's cabinet in early 2025, various laws have been adopted, such as those on judicial independence and banking secrecy.

However, the major task of banking sector reform, among others, is still being reviewed by parliamentary committees and continues to be debated.

During the meeting in Baabda, Aoun discussed with the WB's vice president for the Middle East and North Africa, Ousmane Dione, and regional director Jean-Christophe Carret, the “projects approved by the board of directors” of the international institution, which “are still awaiting adoption by Parliament,” according to a message on X from the presidency.

Among these projects are a $250 million loan granted by the International Bank for Reconstruction and Development (IBRD, affiliated with the WB), intended to support the reform of the electricity sector in Lebanon, and another for the Greater Beirut Water Supply, valued at $257.8 million.

The participants also emphasized “the importance of accelerating the implementation of banking sector reforms, given their direct impact on creating favorable conditions for the WB board of directors to approve the reconstruction loan” of Lebanese regions destroyed by Israeli bombings during the months-long war between Hezbollah and Israel, from October 2023 to November 2024.

Last week, Aoun and Salam agreed to open an extraordinary parliamentary session, as normally it'd be "closed" until October.

The WB estimates the total cost of the damage in regions affected by Israeli bombings in Lebanon to be 11 billion dollars. It has presented the government with a $1 billion project, including a $250 million loan to fund the initial stages of reconstruction.

In Ain al-Tineh, the meeting revolved around projects and loans “under negotiation” between Lebanon and the WB, according to a press release from Berri's office. “Parliament is ready to finalize the laws and approve the necessary bills agreed with the government, after receiving and discussing them according to the rules, especially loans for energy, water, agriculture and reconstruction,” the head of the Legislative stressed.