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On Tuesday, the Ministry of Telecommunications announced that it had received a Chinese donation of approximately $8.5 million in aid for Ogero. This donation is intended to equip the 383 central offices of the public fixed-line and internet provider with solar-powered systems to reduce fuel costs.
When contacted by This is Beirut, the caretaker Minister of Telecommunications Johnny Corm expressed great enthusiasm, stating, “This is the fulfillment of efforts undertaken in both Lebanon and China.” He further explained that this 8.5 million-dollar donation will enable the installation of solar-powered electrical systems across Ogero’s 383 central offices.
Corm also asserted that “this will help us minimize the use of generators, which will remain as a backup source, as expenses related to fuel purchases will decrease.” He pointed out that the power station issues are mainly related to electricity shortages.
“We will be able to ensure the sustainability of services,” he further said.
When asked about the project’s implementation, Corm explained, “The Ministry of Telecommunications will not have direct access to the funds. China will deliver all the necessary equipment, including panels, cables and supports, in the upcoming months. The installation process will be overseen by the Lebanese Center for Energy Conservation (LCEC), affiliated with the Ministry of Energy. The Ministry of Telecommunications will provide detailed project specifications.”
The Minister of Telecommunications also mentioned that a fundraising ceremony will be organized by the LCEC on Friday, September 22, “to gather and secure the funds required for the installation of this equipment.”
CEO of LCEC Pierre Khoury confirmed this account to This is Beirut, stating that they would “call on Lebanese and international sponsors.”
The project is expected to be completed in the summer of 2024. Meanwhile, the minister assured that, “as of late November, a portion of the Iraqi fuel, delivered to Lebanon as part of a bilateral agreement between the two countries, will be used to supply the telephone central offices with electricity”.
750 billion LBP for fuel purchase
The Minister of Telecommunications announced having received 750,000 billion Lebanese pounds on Wednesday, September 20, to purchase fuel, while power plants across the territory are shutting down one after another due to a fuel oil shortage.
This amount is equivalent to half of the 1.5 billion Lebanese pounds from the Treasury’s advance payment that Corm secured during last week’s cabinet meeting. The remaining amount will be released to ensure the maintenance and development operations required to maintain services, ensuring the operational functionality of power plants.
Ogero’s General Manager, Imad Kreidieh, had announced on Wednesday morning that “if the situation lingers, the sustainability of our services would be at risk.”
A new pricing structure for internet and fixed-line telephony has been put into effect on September 1, and bills reflecting the new rate schedule will be issued by the end of September.
However, Corm remains optimistic, stating, “We have a short, medium and long-term vision and work plan. The Telecom sector is poised to bounce back, and its services will return to a satisfactory level.”
Several million dollars in grants
Of note, this is not the first time China lends a helping hand to Lebanon. Since 1996, China has extended its economic support through grants and loans. During this period, it has allocated millions of dollars to Lebanon. As such, the Chinese company Huawei provided 3G equipment to the Ministry of Telecommunications free of charge, in addition to scanners donated to the Port of Beirut.
Also, the trade relations between China and Lebanon date back to the late 1950s. The first trade agreement with China was signed in 1955. Subsequently, other agreements and memorandums of understanding have been signed in various fields such as textiles, maritime transport, technology, investments and civil aviation, among others.
