Daijiworld Media Network- Beirut
Beirut, Apr 25: In a bid to breathe new life into its crippled electricity sector, Lebanon has signed a $250 million loan agreement with the World Bank, marking a crucial step in its long-awaited reform journey.
Lebanese Finance Minister Yassine Jaber and World Bank Regional Director Jean-Christophe Carret signed the agreement, describing it as a milestone that promises to transform Lebanon’s power infrastructure and governance mechanisms, reported Xinhua news agency.
“This loan represents a strong boost to the structural reforms Lebanon is implementing in the electricity sector,” Jaber stated, underlining the government’s renewed push for regulatory oversight and operational restructuring.
Labeling the agreement a “turning point” in bilateral cooperation, Carret highlighted that this is the first loan extended by the International Bank for Reconstruction and Development (IBRD) specifically for Lebanon’s power sector.
As per Lebanon’s state-run National News Agency (NNA), the loan will fund several critical initiatives — including the establishment of a national electricity control centre, modernization of accounting and billing systems at the state-run Electricity of Lebanon, and the development of scalable solar energy projects.
The initial phase of solar development aims to generate 150 megawatts of power and is expected to save the country an estimated $40 million annually in fuel costs.
Lebanon’s electricity sector has long been plagued by inefficiency, rampant mismanagement, and severe infrastructure degradation. In recent years, chronic fuel shortages and lack of foreign currency have pushed power production to historic lows, with nationwide outages becoming the norm.
At its peak, Lebanon produced between 1,600 to 2,000 megawatts daily. Today, due to economic hardship, that output has dropped drastically.
President Joseph Aoun and Prime Minister Nawaf Salam have vowed to tackle corruption and implement reforms to steer the country out of what the World Bank describes as one of the most severe economic crises globally since the mid-19th century.
In a parallel development, the Lebanese Parliament on Thursday passed a landmark law to lift decades-old banking secrecy — a key condition set by the International Monetary Fund (IMF) for initiating a long-anticipated bailout package.