EDL requests $62 mln from BDL for gas oil shipment

Out of the $300 million that Banque du Liban (BDL) had purchased and was supposed to lease to the benefit of Elecricité du Liban (EDL), BDL has requested to open a credit amounting to 62 million dollars to bring in two shipments of gas oil for EDL's benefit. This is subject to EDL paying BDL in Lebanese pounds at the Sayrafa exchange rate plus 20 percent.

The company that won the gas oil auction—Coral DMCC, registered in Azerbaijan—will not import these two shipments; the Vitol company that won the fuel oil auction will do so.

This change was made because Coral DMCC insisted on receiving its dues within a month, even though the book of conditions calls for a 6-month deadline. Therefore, due to Vitol's acceptance of the 6-month deadline, the gas oil auction was subsequently transferred to them.

The story was not over yet. Vitol required a letter of financial guarantee.

The Energy Ministry is attempting to secure this letter from BDL. Still, in return, the latter is asking EDL to deposit monies equal to the first credit's value, meaning 62 million dollars, which EDL does not currently have.

The Energy and Finance Ministers met to discuss this issue and came up with a draft solution that will be looked at by the Energy Ministry and EDL, whose board of directors is scheduled to meet on Tuesday.

EDL administration will also discuss how to handle BDL's decision to sell EDL the dollar at the Sayrafa exchange rate plus 20 percent and how that choice will affect how much a citizen will pay for a pound. However, it is also aimed at technical requirements and maintenance.