Lebanon

Mikati Farewell: They Deliberately Obstructed the Electricity File

Mikati Farewell: They Deliberately Obstructed the Electricity File

Today, President Michel Aoun is chairing the last session of Najib Mikati's government, likely marking the end of his term as the government enters a "coma" stage of caretaker duties. Mikati had previously called for a government session for an expired government in 2013 to pass decisions related to parliamentary elections. All estimates suggest that the governmental vacancy may continue for a while, especially if it is followed by a presidential vacancy similar to that which occurred after the term of President Michel Suleiman.

The agenda for the final government session is filled with over a hundred items (133 items) covering various financial matters, loans, budget transfers (45 items), miscellaneous concerns, employment matters, university affairs, international relations, real estate issues, donations, travel, and licenses for extending construction deadlines (14 licenses). An additional appendix was added to the agenda yesterday.

However, several decrees have been withdrawn recently (most notably raising cellular fees) that are specifically related to the energy sector. This came after Minister of Energy Walid Fayad submitted them to the Cabinet General Secretariat but later requested the withdrawal of some, while other items were dropped. Among the items that remain on the agenda pertaining to the energy sector is the Ministry of Energy and Water's request to authorize the minister to sign two agreements: one for purchasing natural gas from the Arab Republic of Egypt and another for gas transfer and exchange with the Syrian Arab Republic, along with a draft law aimed at amending Article 7 of Law No. 462 dated September 2, 2002 (regulating the electricity sector).

It is worth mentioning that the aforementioned draft law was supposed to be advanced before granting licenses to 11 companies to build solar energy production plants. This was done under the "exceptional approval" process due to the expiration of Law No. 288 on April 30, which allowed the Cabinet to grant licenses in the absence of the regulatory authority. It states, "Temporarily, for a period of two years, until the regulatory authority members are appointed and undertake their functions, production permits and licenses are granted by a decision of the Cabinet based on proposals from the Ministers of Energy and Water and Finance." Law No. 129 dated April 30, 2019 reinstated the provisions of Law No. 288 for an additional three years, which expired on April 30.

Thus, the government resorted to exceptional approval in the last session to grant licenses, and the Minister of Energy is now presenting a draft law to amend Article 7 of Law 462 "to close any legislative gap that prevents increasing electric production from renewable energy at the national level."

More crucial than these two items is what was removed from the agenda in recent days at the request of the Minister of Energy. Among these items was a contract proposal with Electricité de France to prepare specifications and bidding documents for the establishment of two new electricity production plants in Zahrani and Deir Ammar. Additionally, there was an item related to creating gasification stations to enhance gas energy production. It is known that the minister requested authorization to sign the gas transfer agreement with Egypt but later withdrew the project for building gasification stations.

It should be noted that Prime Minister Najib Mikati was relying on achieving a significant accomplishment for his government regarding the energy sector. He repeatedly tried with the Minister of Energy and the Aounist team to make breakthroughs, whether by tendering for the construction of two new plants or by contracting with a global company in light of attractive offers made to him, of which he informed the Cabinet. However, he constantly faced opposition from the Aounist team under the banner of "either the Salaita plant or no electricity."

Therefore, Mikati believed that the last government session might provide an opportunity to pass final decisions that could contribute to advancing this file towards achieving some operational steps, especially since global companies insist on a publicly acceptable specifications document. Hence, the recourse to Electricité de France for preparing this document, noting that the Ministry of Energy had previously spent millions on drafting specifications that ended up gathering dust.

However, the Aounist team's opposition prevented these two items from being included on the agenda, as the required specifications document is for the establishment of plants in Zahrani and Deir Ammar, meaning the Salaita plant is not considered due to the revised resolution No. 30 dated April 14, 2022, which stipulates that "in preparation for launching the public tender, the Ministry of Energy and Water is authorized to begin negotiations with leading global manufacturers of electricity production units to study the possibility and willingness of these companies (either independently or through forming a consortium of companies) to secure the necessary financing and establish two plants in Zahrani and Deir Ammar according to the design, supply, construction, financing, operation, and maintenance formula, and to establish the necessary transmission lines and distribution sub-stations."

Consequently, these two items were withdrawn, which frustrated the Prime Minister, who did not spare the Aounist team from his criticisms during a farewell session he held for the ministers a couple of days ago. He expressed clearly that a specific team has obstructed all electricity projects. When asked about the identity of this team, he looked at Antoine Shuqair (the General Director of the Presidency) and jokingly said, "Antoine is the one who obstructed them."

Clair Chokr - Nidaa al-Watan

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