October 10, 2021
USAID Launches $29 Million Energy Project
Iranian Foreign Minister Visits Beirut
Lebanon Resumes Talks With the IMF
USAID Launches $29 Million Energy Project
The US Agency for International Development has launched a $29 million project to deliver energy across Lebanon through a contract with IMC Worldwide, Inc. The project is designed to increase the supply of electricity generation at the community level in a cost-effective and reliable way while strengthening capacities for renewable energy. [US Embassy Beirut]
RESPONSE
“USAID energy projects at the local level offer the Miqati government a unique and clean energy opportunity if they move to unbundle electricity generation, transmission, and distribution services and allow independent and local producers access to the grid. Two things are important: protecting an independent Tenders Board to allow for the transparent bidding of electricity generation; and a law that allows local solar projects to sell excess generation to the country’s electric grid. USAID has undertaken an important step to help communities across the country with their electricity demand. The Miqati government should take advantage of this opportunity and partner with USAID.”
-ATFL President Edward M. Gabriel
Iranian Foreign Minister Visits Beirut
This past week Iranian foreign minister Hossein Amir-Abdollahian met with Lebanese officials in Beirut. In a discussion with Parliament Speaker Nabih Berri, FM Amir-Abdollahian discussed ongoing talks between Iran and Saudi Arabia and their “positive effects.” He also blamed regional instability on foreign troops based in the Middle East. [AP] He further expressed Iran’s willingness to rebuild Beirut’s port and that Iranian firms are ready to build two power plants in Lebanon within 18 months. [Naharnet] On Friday the foreign minister announced that Iran will continue to send fuel shipments to Lebanon through coordination with Hezbollah and that Tehran is ready to send essential items, including medicine. [Naharnet]
RESPONSE
“In what can only be seen as direct challenges to US policy in the region and to Prime Minister Miqati’s new government, Iran and Hezbollah have promised to continue bringing fuel oil to Lebanon. The US doesn’t want to be seen as an obstruction of sorely-needed fuel imports to Lebanon. However, with transit being handled through Syria without official approval by the Lebanese customs authority, and Caesar Sanctions hovering unless waivers are applied, a resolution is unclear. This is a good opportunity for the new government to demonstrate its resolve to maintain its sovereignty by finding better options with its friends to meet the country’s energy needs.”
-ATFL Policy Director Jean AbiNader
Lebanon Resumes Talks With the IMF
Lebanon’s Finance Minister announced the resumption of talks with the International Monetary Fund and in the coming days, Lebanon and the IMF are set to hold technical discussions. The major issue in the talks that halted negotiations last year with the Diab government is who will be responsible for covering the Banque du Liban’s losses. [Al Jazeera]
RESPONSE
“Some analysts are concerned that Lebanon’s IMF negotiators will drag on the process until the March elections to avoid deciding how the banking sector’s debt will be allocated among its depositors. PM Miqati has said that he intends to exempt those with less than $100,000 in foreign currency accounts. There are several legitimate proposals on the table but, without the support of the bankers, who resist haircuts and restructuring, there may likely be another stalemate. The Prime Minister has asked Lazard for advice as they have already done this for the Hariri and Diab governments. A more resolute and transparent assessment must be completed soon and remedies assigned to lift the burden of restricted access to private accounts.”
-ATFL Policy Director Jean AbiNader
Disclaimer: The views and opinions expressed are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.