The Grand Serail in Beirut, Feb. 13, 2024. (Credit: Philippe Hage Boutros/L'Orient-Le Jour)
BEIRUT — The Cabinet began its scheduled meeting at 3 p.m. Friday in the Baabda Presidential Palace, during which it is expected in particular to decide whether to extend the mandate of the company Solidere. The main issue will be whether to maintain the controversial special regime the company enjoys, having become one of the most powerful players in the real estate sector, or to take back more control over the development of the downtown area.
A government source told L'Orient-Le Jour that regarding Solidere's request to extend its forty-year mandate, the government is moving toward a decision to send the company a letter conditioning this renewal on several reforms. In particular, Solidere would be asked to pay the sums owed to the state and to commit to speeding up the urban development of downtown Beirut.
The Lebanese Company for the Development and Reconstruction of Beirut Central District (Solidere), created by decree in 1994 for a duration of 25 years under Law No. 117 of 1991, then extended by ten years by decree in December 2005, will see its mandate expire in May 2029.
Solidere's request for an extension until 2069, first placed on the government's agenda on June 25, was then referred to a committee made up of the Economy, Public Works, Finance and Culture ministers. If the extension is denied, Solidere will have to liquidate its portfolio and transfer the remaining land in its possession when the time comes.
Among other topics, the Cabinet will consider a request from Finance Minister Yassin Jaber, who is presenting a plan to amend Decree No. 7296 of Jan. 2, 2002, which details the procedures for applying the VAT law concerning taxpayers' obligations for tax declarations, invoicing and payment of the tax.
The government is also expected to rule on a request from Energy and Water Minister Joe Saddi to grant exceptional authorization for the unloading of shipments from all vessels carrying fuel intended for Electricité du Liban (EDL) power plants, due between August and October 2026, based on laboratory test results carried out at loading ports. This process would differ from the usual procedure, in which the fuel oil is generally analyzed upon arrival by the Veritas office in Dubai.
