Electricity crisis: Iraq's role in Lebanon's energy sustainability

News Bulletin Reports
2023-12-27 | 10:09
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Electricity crisis: Iraq's role in Lebanon's energy sustainability
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2min
Electricity crisis: Iraq's role in Lebanon's energy sustainability

One group in the Zahrani power plant currently supplies electricity to vital facilities, including the airport and the port of Beirut.

However, this situation is expected to change only with the arrival of a ship carrying 25,000 tons of gas oil.

Upon the arrival and unloading of this ship, four hours of power supply will be secured. The number of hours is anticipated to increase to six after mid-January, the potential arrival date of a shipment of 60,000 tons of gas oil.

These shipments result from an agreement with Iraq and have faced no obstacles.

Lebanon is not expected to pay for these shipments in cash but with goods and services.

Nevertheless, with Lebanon delaying payment, Iraqis insist that no fuel will be provided unless Lebanon opens and earmarks financial credits for each shipment, ensuring the funds are used later by the Lebanese government to purchase goods and services for the benefit of Iraq.

This step required approval from the Banque du Liban (BDL). Still, as the central bank refuses to finance the state, it has refused to open and earmark these credits until the government assures it has no responsibility if it fails to meet its obligations to Iraqis.

Regarding cooperation with Iraqis and increasing the quantity of fuel they supplied, Walid Fayad emphasizes securing funds to purchase fuel for power plants, remaining an old-new problem for Lebanon's electricity.

According to sources, invoices will be issued in dollars starting from May. Discussions continue converting the electricity bills in Lebanese lira held in the BDL into dollars, amounting to approximately $30 million.

The Électricité du Liban (EDL) also has bills with government departments and institutions totaling around $125 million from November 2022 to the end of this year.

Therefore, payment would provide significant liquidity for EDL.

Lebanon News

News Bulletin Reports

Middle East News

Electricity

Crisis

Iraq

Role

Lebanon

Energy

Sustainability

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