Lebanon approves plan to reform ailing electricity sector

The Turkish floating power station Karadeniz Powership Orhan Bey, which generates electricity to help ease the strain on the country's woefully under maintained power sector, is docked near the Jiyeh power plant, south of Beirut, Lebanon, Monday, April 8, 2019. (AP)
Updated 08 April 2019

Lebanon approves plan to reform ailing electricity sector

  • The decision is the most significant by the cabinet since it was formed in late January
  • Hariri on Monday said the cabinet unanimously approved the plan which would improve power supply, raise electricity tariffs

BEIRUT: The Lebanese government on Monday approved a plan to reform its electricity sector, vowing to provide power 24 hours a day from a grid notorious for blackouts.
The decision is the most significant by the cabinet since it was formed in late January and is a step toward unlocking billions in aid pledged to Lebanon in exchange for slashing public spending and overhauling the electricity sector.
Prime Minister Saad Hariri on Monday said the cabinet unanimously approved the plan which would improve power supply, raise electricity tariffs and reduce fiscal deficit resulting from government transfers to state-run Electricite du Liban (EDL).
“This plan satisfies the Lebanese people because it will bring them electricity 24/7,” he told reporters after the session.
“It will also reduce the budget deficit,” he said.
Hariri said implementation of the plan was “urgent” and “could not be delayed” because it was critical to Lebanon’s economy.
Energy Minister Nada Boustani, who first presented the plan last month, described the cabinet’s approval as a “positive step.”
The plan still needs to be approved by parliament.
A dated electricity grid, rampant corruption and lack of reform has left power supply lagging way behind rising demand since Lebanon’s 1975-1990 civil war.
According to the McKinsey & Company consulting firm, the quality of Lebanon’s electricity supply in 2017-2018 was the fourth worst in the world after Haiti, Nigeria and Yemen.
Government subsidies to state-run EDL have also worsened the cash-strapped government’s budget.
EDL receives one of the largest slices of the government’s budget after debt servicing and salaries.
According to the World Bank, government transfers to EDL averaged 3.8 percent of gross domestic product from 2008 to 2017, amounting to about half of Lebanon’s fiscal deficit.
Lebanon is one of the world’s most indebted countries, with public debt estimated at 141 percent of GDP in 2018, according to credit ratings agency Moody’s.
A conference dubbed CEDRE in the French capital in April pledged aid worth $11 billion (9.5 billion euros), promising to stave off an economic crisis.
At the Paris conference, Lebanon committed to reforms including slashing public spending and overhauling the electricity sector.
In exchange, the international community has pledged major aid and loans, mostly for infrastructure projects that need to be signed off by the new government.


Getting more women into leadership positions top priority: CEO

This June 23, 2018 photo, shows a general view of Riyadh, Saudi Arabia. (AP)
Updated 18 January 2020

Getting more women into leadership positions top priority: CEO

  • Saudi Arabia is focusing on the Business 20 (B20), making this one of the key engagement groups. Women in Business will be Saudi Arabia’s signature topic

RIYADH: The boss of one of Saudi Arabia’s biggest banks says that getting more women into leadership positions is a top priority.
Samba CEO Rania Nashar chairs the action council for Women in Business created by the Business Twenty (B20), which is the official G20 dialogue with the business community. It represents the global business community across all G20 member states and all economic sectors.
She said the council was set up to boost women’s particpation not only in business but also in global leadership positions.
During the launch of the B20 in Saudi Arabia this week, Nashar highlighted the under-representation of women in the economy.
“There is a gap of 27 percent between male and female workers; 75 percent of males are part of the labor force while only 48 percent of females are working,” she said.
She said it was important not to just talk about women as workers but as business owners.

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Saudi Arabia will host the 15th G20 Summit in Riyadh on Nov. 21-22, 2020.

“That’s why entrepreneurship is very fundamental to our task force,” she said.  “The majority of the finance development programs have incentives for giving loans to females; however, despite the fact that many large borrowers are females, the amount of loans granted to them is far below what is granted to males,” she added.
Nashar said that two-thirds of female business founders feel that they were not taken seriously by investors when they pitch for investments. They also feel that they are treated differently from their male counterparts.
Saudi Arabia will host the 15th G20 Summit in Riyadh on Nov. 21-22, 2020. The Kingdom is focusing on the Business 20 (B20), making this one of the key engagement groups. Women in Business will be Saudi Arabia’s signature topic.