The Electricité du Liban institution reported in a statement that the operators of the Zahrani and Deir Ammar plants, through letter number PSHQ/EDL/LTR/06072022/384 dated 06/07/2022, stated that they would cease operations due to not receiving their dues in hard currency (Fresh Dollar). This is in accordance with Cabinet decisions number 12 dated 14/04/2022 and number 171 dated 20/05/2022 regarding this matter. Consequently, the Zahrani plant, which is currently the only thermal plant producing electricity for the grid, will stop producing energy at 5 PM on Wednesday, July 6, 2022. It is worth noting that Electricité du Liban had completed all necessary administrative procedures and referred payments according to the Cabinet decisions for processing about a month ago; however, as of this date, the financial and monetary authorities concerned in the country have not disbursed these amounts.
The statement further noted that the two Cabinet decisions concerned have only allocated the Electricité du Liban institution a total of $60 million since the beginning of 2022 for all its contractors, and this amount is insufficient given the scale of work required to minimally operate public services.
In light of this situation, which is entirely beyond the control and responsibility of Electricité du Liban, the failure to disburse the specified amounts in hard currency (Fresh Dollar) to the contractors as per the Cabinet decisions will lead to the suspension of operations at the Zahrani and Deir Ammar plants, with no possibility of reintroducing them to the grid. This will inevitably result in a general and complete blackout throughout Lebanon, which in turn will force a halt to the supply to all essential vital services in the country (airport, port, water pumps, sewage, and basic state facilities).
Electricité du Liban pointed out that it had developed a production plan and taken a series of precautionary measures, previously announced in their earlier statements, to maintain minimal power production for as long as possible, especially during the Eid al-Adha holiday period. However, the issue that has arisen is beyond its capacity and authority to address, and it can only be resolved, even temporarily, by implementing the Cabinet decisions on the matter by the relevant financial and monetary authorities in the country.
