A draft reform of Lebanon’s crippled power sector seen as vital to addressing its financial crisis envisages an “immediate” hike in electricity prices, for the first time in three decades, and $3.5 billion investment to secure 24-hour power by 2026.
The blueprint, dated February 2022 and seen by Reuters, was discussed by the government earlier this week, Reuters reported.
Energy Minister Walid Fayad has called for its approval by the government next week ahead of the first parliamentary election, in May, since a financial meltdown in 2019. He has previously said tariffs will be hiked when more power is added to the grid.
The International Monetary Fund, with which Lebanon is discussing a potential bailout programme, said last week preventing the sector’s drain on public resources was a key pillar of the country’s economic recovery. Two previous plans with similar goals have gone unimplemented however, due to political splits.
Lebanon has not had round-the-clock power since the 1990s and cash transfers to state-run utility Electricte du Liban (EDL) to cover chronic losses have contributed tens of billions of dollars to its huge public debt over three decades.