Freid Belhaj, Vice President of the World Bank for the Middle East and North Africa, stated that Lebanon must audit the operations of its national electricity company among other reforms requested by the World Bank before considering funding for the decaying electricity sector in Lebanon. The provision of electricity in Lebanon has been limited since the civil war that lasted from 1975 to 1990, but it has deteriorated further over the past three years as the financial crisis has weakened the government's ability to secure fuel.
Lebanon had hoped to obtain funding from the World Bank, but Belhaj told caretaker Prime Minister Najib Mikati that Lebanon still needs to conduct an audit of Electricité du Liban, activate its recently announced electricity regulatory agency, and recover the costs of providing service through collection, according to a statement from Mikati's office, which did not have a comment from the Prime Minister.
The statement quoted Belhaj as saying, "There are three conditions that if implemented, the World Bank would be ready to reconsider funding for the electricity sector in Lebanon." Lebanon has signed agreements to secure electricity from Jordan and natural gas from Egypt, both to be obtained via Syria, which will add up to 700 megawatts to its grid and increase power supply by a few hours daily. The World Bank agreed to fund these agreements if Lebanon undertakes the long-awaited reforms in the energy sector.
Almost all government power plants are out of service, and decreasing fuel subsidies has led to a massive rise in the operational costs of private electricity generators. Human Rights Watch stated last week that neglect, mismanagement, and alleged corruption over decades have all hindered access to electricity for many in Lebanon, which in turn has exacerbated poverty and hampered people's access to food, water, and healthcare.
