“Public Private Partnership” in Lebanon
Lebanon Parliament finally passed the “Public Private Partnership” law on 16th August 2017. The idea of PPP in Lebanon is not a recent one though. There have been research papers way back in 2002–2004 by academics like Dina Jamali and Mutasem El-Fadel on PPP in Telecom and Solid Waste Management respectively. The first draft law on PPP was approved by the cabinet in 2007. Mr. Ziad Hayek the Secretary General of the Higher Council for Privatisation has been proposing the legislation since then.
The Law governs all PPP projects like telecom, power. The law will ensure transparency by involving all stake holders. There is a three level decision making process. For more information you can check the HCP website.
Lebanese Banks can play a big role
Lebanese Banking sector have always been one of the main pillars of the country’s economy. While other sectors have lagged in growth, Lebanese banks have weathered the slowing down. With bank assets of 360% of Lebanon GDP. Lebanon Banks can play a pivotal role in “Public Private Partnership” projects. The banking sector is stressed because of slow economic growth in the country. It is in the interest of our Banks to partner on PPP projects.
Dire need for PPP Projects
Many development projects are on hold due to budget constraints. Economic activity and GDP will grow as private investors partner in infrastructure projects. Large Projects are needed to generate employment and ease the crisis created by the refugee situation. PPP projects have been very successful in United Kingdom and transparency will ensure that they do well in Lebanon also. Private investors because of their technological prowess, operational efficiency can complete the project in time Also their long standing relationships with suppliers can reduce the procurement cost.
Energy Sector
Our most persistent problem has been shortage of electricity. 41% of the population in Tripoli and 32% of population in Sidon are dependent on private generators. Business lose a lot due to Power Outages. The underperforming energy sector is increasing the country’s public debt. Lebanon’s Power requirement is increasing while the generation capacity has plateaued.
Some of the notable PPP projects in the past
Solid Waste Treatment Plant in Saida -
IBC owns and operates the Municipal Solid Waste Treatment Plant in Saida. The project serves Saida and the 16 municipalities of the Saida — Zahrani area. Read more here
Jeita Grotto Project
Jeita received a prestigious award from the fifth Tourism Summits in Chamonix, France. Les Sommets du Tourisme recognized MAPAS’ efforts in restoring Lebanon’s most incredible, most unique, most breath-taking site. Read more here
Turkish power generating vessels
The two vessels that lie off the Zahrani and Zouk power plants generate about 380 megawatts. Read more here
Future PPP Projects
Wind Farm Project
The first wind farm project is expected to materialise soon. Hawa Akkar, a private company developing the first utility-scale project in northern Lebanon’s Akkar region. Read more here
Also there are talks about tenders opening up for Exploration and Production Agreement (EPA) in near future. Read more here
Have your been following the PPP news in Lebanon? Let me know your thoughts on the prospects of the same.
References
- https://www.thebusinessyear.com/lebanon-2016/about-the-money/re-view
- https://www.researchgate.net/profile/GrettaSaab
- https://lisaforum.org/2017/03/31/renovating-the-infrastructure-the-energy-sector-status-and-challenges-lisa-eighth-discussion-forum/