View of Beirut. (Credit: Ghassan Nehme/L'Orient-Le Jour)
Lebanon took a key step toward overhauling its failing power sector as Finance Minister Yassine Jaber and Energy Minister Joe Saddi signed decrees to unlock a $250 million World Bank loan.
The agreement, also signed by Electricite du Liban (EDL) Director General Kamal Hayek and Litani River Authority President Sami A. Alawieh, aims to develop renewable energy and strengthen the national grid. The signing took place in the presence of George Maarawi, director general of finance.
“After Parliament adopted a specific law related to the electricity sector, it is time to move to the execution phase," Jaber said. "The two institutions involved — EDL and the Litani River Authority — will be responsible for implementation, while the ministers will ensure monitoring and supervision.”
Last April, the International Bank for Reconstruction and Development (a World Bank affiliate) granted Lebanon a $250 million loan over 30 years, with an eight-year grace period, to support reform of the country’s struggling electricity sector.
The loan will finance projects to rehabilitate the network — parts of which were destroyed by Israel during its war with Hezbollah — as well as to expand renewable energy capacity. Plans include developing solar production up to 250 megawatts, rehabilitating three hydroelectric plants, boosting overall generation, and improving grid efficiency.
Jaber said the loan represents “added value” for a sector in deep crisis. “We hope that with this financing and the upcoming appointment of the regulatory authority as provided for by law, Lebanon will finally embark on restructuring its electricity system,” he added.
He also noted that Law No. 462 of 2002 lays the groundwork for greater private sector participation in distribution, billing, and power generation.
