Lebanon

Government Session in Baabda: Key Decisions

Government Session in Baabda: Key Decisions

The Council of Ministers, during a session held at the Baabda Palace under the chairmanship of President Michel Aoun, with the presence of Prime Minister Najib Mikati and the ministers, approved the Ministry of Energy and Water's proposal to grant licenses for the construction of solar power plants. They also approved a draft decree aimed at renewing expired passports for participation in parliamentary elections only, in addition to a loan agreement with the World Bank to implement an emergency response project for securing wheat supplies amounting to $150 million.

President Aoun emphasized that the current government will enter a caretaker period following the end of the parliamentary term, urging the approval of several necessary projects to be executed by the government that will be formed after the elections. He noted that the ongoing stagnation in the investigation into the Beirut port explosion has unjustly affected several detainees, some of whom may be innocent, stating, "If the matter is unresolved due to the work of the investigative judge being obstructed, efforts should be made to remove the current blockage."

The president renewed Lebanon’s absolute rejection of any talk regarding the "integration" of Syrian refugees into the communities they have fled to, insisting on their return to safe areas in their country, as there is no longer any justification for their stay in Lebanon. He also requested that the Ministers of Justice, Defense, and Interior emphasize the need to control bribery during the electoral process, particularly after reports of illegal financial expenditures, demanding necessary measures to maintain security in polling centers.

Prime Minister Mikati reiterated his call for voter participation, stating that it is impossible to criticize if we fail to fulfill our role as voters. He assured that the government does not wish to burden citizens with additional expenses, dispelling rumors that the exchange rate will face a surge after the elections, asserting that corrective measures are in place and the currency market will be relatively stable in the upcoming phase. He urged the speedy implementation of constitutional steps to designate a new Prime Minister and form a new government to avoid wasting further opportunities as the country faces numerous challenges.

Prior to the session, there was a meeting between President Aoun and Prime Minister Mikati to discuss the agenda items.

### Resolutions:

After concluding the session, Minister of Information Ziad Makari read the following statement: "The Council of Ministers held its weekly meeting under the presidency of the Republic and the presence of the Prime Minister and the ministers, with the absence of the Minister of Culture. At the beginning of the session, President Aoun mentioned that the country is two days away from parliamentary elections within the country after the completion of the elections abroad. Following the end of the tenure of the current parliament, the government enters a caretaker status that necessitates expeditious handling of several outstanding and essential issues during today’s meeting and the last meeting next week. The President called for the approval of many necessary projects to be implemented by the government to be formed after the elections. He also spoke about the investigation into the Beirut port explosion, indicating that the stagnation in this investigation has unjustly impacted a number of detainees, some of whom may be innocent. Therefore, the investigation should be expedited and necessary measures must be taken. He stated, 'As I said previously, if the matter is unresolved due to the obstruction of the investigative judge’s work, efforts should be made to remove the current blockage.'

Regarding Syrian refugees, he said: 'There is talk from time to time about the "integration" of these refugees into the communities they fled to.' He added, 'This issue is very grave, and we hear it from time to time. Lebanon categorically rejects any form of integration and reaffirms its steadfast stance on the return of Syrian refugees to safe areas in their country, as there is no longer any justification for their stay in Lebanon.' Regarding the electoral process, the President requested the Ministers of Justice, Defense, and Interior to emphasize the necessity of controlling bribery during the electoral process and to assign the relevant military and security agencies to assist in this matter, particularly after reports of illegal financial expenditures. The President also asked the Ministers of Defense and Interior to take necessary measures to ensure security at polling centers and their surroundings to prevent any actions that might disrupt the electoral process. He indicated that the security of polling centers is essential to facilitate the elections."

The Prime Minister then said: "At the outset, I congratulate the Minister of Foreign Affairs for the follow-up he conducted with the Minister of Interior regarding the elections for Lebanese citizens abroad, which were conducted properly and without flaws, although it was complicated and required significant effort. The number of voters was comparatively large compared to those registered, but we wished that the number of registered voters was higher. With three days remaining before the general elections, we hope they will also take place in a complete manner with integrity, transparency, and freedom. On this occasion, I reiterate my call for everyone to participate in the voting process and fulfill their national duty because we cannot return to criticism if we fail to perform our roles as voters."

He added: "We have noticed in the past period an attempt to spread negative sentiments among the people by claiming that the elections will not take place, and that there is no agreement with the International Monetary Fund. Today, we are beginning to hear that the next cabinet will be flooded with files that have been hidden until after the elections."

Mikati stated, "What we are doing in the government is the natural role of managing state affairs, knowing the size of the difficulties we are facing and the overall economic situation. We do not want to burden the citizen with any additional burdens, while at the same time, we want to continue managing public facilities properly. In this context, we hope for a swift assignment of a new Prime Minister and the formation of a new government."

The Prime Minister continued: "Rumors are being circulated that the exchange rate will face a surge after the elections; this is incorrect. Corrective measures are available, and the currency market will be relatively stable in the upcoming phase." He concluded: "Our government has been productive and has implemented its ministerial statement; it is concordant in every sense of the word for the purpose of saving the country from its current state, and thus our conscience is clear. With God's grace, things will remain under control, elections will occur, followed by the necessary constitutional steps to name a new Prime Minister and form a new government. The crafting of this government should not waste further opportunities for our country given that we have reached a critical juncture on all levels, and it has become difficult to rely on time or presumed changes to fulfill what is required of us."

Before starting to study the agenda, the Council of Ministers condemned the crime committed by the Israeli enemy in the assassination of journalist Shireen Abu Akleh from Al Jazeera. They offered condolences to Palestinian President Mahmoud Abbas, the martyr’s family, and the Arab and Palestinian media communities specifically.

After that, the Council of Ministers examined the agenda and, among the important items, approved:

- Approval of the draft tender conditions for launching a bid for postal services concessions and related documents.

- Approval of the Ministry of Energy and Water's proposal to grant licenses for the construction of solar power plants, which the Minister of Energy will explain in detail.

- Approval of a draft decree aimed at renewing expired passports solely for participation in parliamentary elections.

From outside the agenda:

- Approval of the loan agreement with the World Bank to implement the emergency response project to secure wheat supplies worth $150 million, with the Minister of Economy responding to questions related to this matter.

A dialogue took place between Minister Makari and journalists, clarifying in response to a question that renewing passports, as approved by the Council of Ministers, will be done at the General Security centers before the elections and not on election day. The centers are open, and the renewal is for one time only, with a statement to be issued regarding this matter. Answering a question about what basis currency markets will remain stable after the elections amidst talks of halting operations according to the platform by the end of the month, he responded: "This topic has not been discussed, and when the Prime Minister speaks about a specific matter, he has relevant information on that."

When asked about the Lebanese University issue, he responded that "it was unfortunately not raised in this session, although it is brought up in every session." He pointed out that next week there will be a large session as it will be the last session of the government.

He concluded by saying: "Regarding the parliamentary elections, we have signed a code of conduct with the disabled and the media. I wish in this context to cease the usage of terms related to disability as insults that undermine their dignity. This is required from candidates, voters, and media alike."

Minister of Economy Amin Salam stated: "In commitment to our national duty and fidelity to our promise as a government to maintain the livelihood of citizens, particularly concerning bread and wheat, the Ministry of Economy and Trade has been authorized since a couple of sessions ago to start urgent negotiations with the World Bank regarding a soft loan of $150 million to assist Lebanon in maintaining wheat supplies and keeping the price of bread stable. These negotiations have been successful, and we have been informed by the World Bank that this is the first loan it has granted in this manner so swiftly, especially after the Russian-Ukrainian crisis and its significant implications on the wheat situation in Lebanon, which imports between 80-90% from Russia.

The importance of this loan lies in it being a social safety net, as it addresses the wheat and bread issue for a country facing economic hardships, not an ordinary loan; it is soft and part of it is a grant, which facilitated its rapid approval. The aim of the loan is to secure wheat supplies, maintain the price of bread, and streamline the sector to better manage wheat imports during this difficult phase, ensuring that after the loan expires, the most needy layers for this material are available at state-subsidized prices."

With the United Nations declaring a poverty situation affecting around 80% of the population in Lebanon, indicating that this matter is urgent and necessary, we are delighted with the government’s approval of the loan, and I have been authorized to sign the agreement and send it to the Parliament. We hope that the new parliamentary council will promptly review the bill and approve it, as it is a social and humanitarian issue.

Then Minister Fayyad spoke, stating: "The session was fruitful for the Council of Ministers, where an agreement was reached to issue licenses for the companies, totaling 11, that won the contracts in past years to build solar power plants. Through the approval of the Council of Ministers, 11 licenses have been issued for them, with each company building a solar power station with a capacity of 15 megawatts. These companies have a period of one year to explore and find necessary funding methods. This represents an achievement for this government, aligning with the renewable energy track that forms part of the energy sector revival plan. I would like to remind you that in the recent period, we secured extensions for licenses of the companies that won production licenses through wind energy in the Akkar region. We are thereby establishing our focus and work on renewable energy projects and simultaneously issuing decrees that have been sent to Parliament to issue necessary laws concerning distributed renewable energy, which is extremely important as it allows those interested in investing in solar power plants of up to 10 megawatts to build stations in any area of Lebanon and use Lebanon's electricity network to transfer this production to the consumer or buyer, with prices later organized by the regulatory authority."

He added: "Today, the relevant ministers, in addition to the Prime Minister, signed the energy conservation draft law, which will be referred to His Excellency the President. This marks part of the achievements made by this government. In this short period, we have accomplished significant results concerning renewable energy. This sends a positive signal to the international community indicating that we have begun reforms in the energy sector by relying on clean energy. I remind you that the cost of solar energy sold by these companies is $0.057 per kilowatt in the Bekaa region and $0.063 in all areas outside of Bekaa. Therefore, you can see the difference between the cost of solar energy and fossil energy, which ranges between $0.10 and $0.15 without considering transmission, distribution, and wastage costs, which are high."

When asked about the lack of electricity all this time despite these achievements, he responded: "Correct, these are preliminary, structural, and foundational achievements, necessary. However, this does not prevent us from implementing short-term solutions that we need to pursue. They are based on energy imports from Jordan; contracts are signed and ready and only require financing from the World Bank with the US administration's approval to ensure there are no negative repercussions resulting from the Caesar Act. As for gas imports from Egypt, we finalized work, and it is imperative to reach the final contracts for the transportation and exchange of gas with Syria. In this context, I will be visiting Syria on Sunday to attend an event for renewable energy with Minister Zamil, my brother and friend, Minister of Energy, which will be on the sidelines of a long session to discuss the gas import agreement and its exchange with Syria, and I hope to resolve this matter during this visit. We still require financing from the World Bank and a positive signal from the US administration regarding the political feasibility."

He continued: "We hope to reach this stage, and we will see after the parliamentary elections if this matter will be easier." Answering another question, he clarified: "A representative from the Lebanese Institute for Energy Efficiency attended with us as a consultancy entity we rely on in renewable energy. This file has been in the works with significant consultancy participation from global energy companies since late 2017, where it began with a tender according to global standards inviting all interested companies to submit their proposals, as they must secure the necessary land, technology, and equipment to establish the plants, along with their financial and technical offers. 264 companies participated in the bidding, which was screened through evaluating their offers. After technical offers were reviewed, financial bids were opened, and the companies that presented the lowest financial offers were retained. Thus we reached the mentioned price in the Bekaa region, which is $0.057, and companies that offered a higher price were excluded. In areas outside the Bekaa, we could only reach $0.063 as the low price, due to productivity factors in the Bekaa, which is a flat area. Companies that accepted that price were retained. We ended up with 12 companies, after which negotiations were held to ensure that they adhered to all the conditions we set. One company declined to comply with the required guarantee, so it was excluded, leaving 11. Thus, the tender was won by these companies, and there is no exclusivity here. In the future, other interested companies will also have the opportunity to participate in tenders we will conduct. We will see how we manage these tenders and through what regulatory mechanism."

He mentioned that "these companies are Lebanese and have an international partner to ensure, initially, that global competencies are available to us, so we do not venture into projects whose competencies are not established." When asked if his visit to Syria would provoke a reaction from the American side, he replied: "On the contrary. I am now late. The US ambassador said to me: 'Every day counts, and we should go today rather than tomorrow.'"

He added: "Previously, they told us negotiations with the World Bank for financing would proceed alongside signing the contract, but now we must finalize the contract before entering negotiations for financing; this is what has changed recently with the World Bank. Therefore, there is nothing provocative about it; we are compelled to proceed. The Syrian side is ultimately a partner in this matter." He concluded by stating, "We are all working together transparently, and we hope to reach the necessary conclusions, adding that the 11 companies are distributed across all Lebanese regions as follows: 3 in Bekaa, 3 in the north, 3 in the south, and 2 in the mountains."

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