Caretaker Minister of Energy Walid Fayad took the opportunity of his participation in the ADIPEC conference, which brought together the global energy industry in the United Arab Emirates, to try to find a donor other than the World Bank to finance the import of gas from Egypt and fuel oil from Jordan.

The World Bank is expected to finance these operations, on condition that Lebanon carries out radical structural reforms in the electricity sector. It estimates that around 46% of Lebanon’s public debt accumulated since 1992 (over $100 billion) is attributable to transfers from the Treasury to the public electricity company, EDL, which has cost public finances around $45 billion since 1993.

Fayad held talks on the sidelines of the conference with the Egyptian Minister of Petroleum, Tarek El-Molla, and the Jordanian Minister of Energy, Saleh Al-Kharabsheh, on the issue of bringing Egyptian gas and Jordanian electricity to Lebanon.

These agreements are ready to be implemented, but the delay is due to a lack of funding.

In June 2022, Lebanon signed a final agreement to import natural gas from Egypt via a pipeline that crosses Jordan, Syria and Lebanon, in order to reduce the daily power cuts that the Lebanese have suffered from for over 40 years. The renewable 10-year contract provides for Egypt to export 700 million cubic meters per year. Implementation of the agreement is financed by the World Bank, which has linked the release of funds to certain conditions.  Similarly, the United States must guarantee that Beirut will not be subject to the sanctions provided for under the “Caesar” law against entities, companies, and individuals that support the Syrian regime and establish commercial or economic relations with Damascus, including in the energy sector.

However, more than a year later, the conditions required by the World Bank have not been fulfilled, notably the creation of a regulatory authority for the energy sector, which is the financial institution’s main demand.

In a press release issued by the office of the Minister of Energy, it is stated that it has been agreed to propose alternative solutions to facilitate the implementation of this project, such as direct financing from EDL, “since the company is able, through the collection of bills, to pay for electricity from Jordan and gas from Egypt through its accounts at the Central Bank.”

The text stresses, however, that financing from the World Bank remains welcome.

The issue will be discussed again next month when the Jordanian and Egyptian ministers take part in the oil and gas conference to be held in Beirut on November 24.

Fayad also met a number of ministers and business leaders involved in the energy sector.

It should be noted that the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) is organized by the Abu Dhabi National Oil Company (ADNOC). It is a meeting place for oil, gas and energy professionals.