License problems: Lebanese government proposes fast-track solution for solar power project

Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi

The Lebanese government has informed TotalEnergies and Qatar Energy, two companies interested in implementing a 100-megawatt solar power project, about the fastest way to proceed. They suggested purchasing an existing license from one of the companies previously approved by the Cabinet in 2022 to establish a 15-megawatt solar power plant. 

The Cabinet would then increase the capacity of this license to 100 megawatts.

However, sources indicate that Qatar Energy is not enthusiastic about this solution and prefers obtaining a new license for the full 100 megawatts. Acquiring such a license presents significant challenges.

The Cabinet requires new legislation from Parliament to grant new licenses. 

Even with such a law, the Cabinet would need to open a tender process involving multiple companies, rather than exclusively awarding the license to Qatar Energy. This process would be overseen by the Public Procurement Authority, likely leading to competition among global companies, with the price per kilowatt being a key factor.

If the consortium does not purchase an existing license and the Cabinet does not receive authorization to issue new licenses, a direct contract will also be unfeasible. This is due to conflicts with public procurement laws, raising concerns about potential irregularities or undue benefits associated with the project.