Mikati to Visit Iraq Amidst Electricity Sector Financial Dispute

A report by Bassam Abou Zeid, English adaptation by Nadine Sassine


In the coming days, caretaker Prime Minister Najib Mikati is expected to head a ministerial delegation to Iraq to meet with Iraqi Prime Minister Mohammed Shia' Al Sudani. 

The sole topic of discussion will be how Lebanon can settle its financial dues to Iraq, amounting to $164 million, resulting from Iraq supplying Lebanon with fuel oil, which was exchanged for gas oil for the benefit of Electricité du Liban (EDL).

Caretaker Prime Minister Mikati had hoped to go to Iraq with at least the law project related to paying these dues having made its way towards approval in the Lebanese Parliament. However, the joint committee session that was mentioned to convene for this purpose did not materialize.

Therefore, the most Mikati can propose is to request more time for the law project to be approved or to reschedule the $164 million into smaller installments that EDL might be able to pay.

Available information suggests that the reason for not discussing and approving the law project concerning Iraq's dues in Parliament is the ongoing political tug-of-war, particularly between Speaker Nabih Berri’s team on one side and the Free Patriotic Movement on the other.

In this context, sources revealed that some are demanding that EDL pays for the Iraqi fuel since it increased the tariffs on the basis that it aims to achieve financial balance. Consequently, Parliament should not be legislating funds for this purpose and should not be held responsible for any failure of the institution in this regard.

The second reason, according to the information, is the non-establishment of the regulatory authority for the electricity sector, a fundamental demand by Speaker Berri and other parties as part of electricity sector reform. Some parties have requested the Ministry of Energy to establish this authority as quickly as possible, even if its powers under the Electricity Sector Regulation Law are not amended.

It's worth noting that the Free Patriotic Movement insists on the amendment and also mentions technical obstacles that prevent the appointment of the authority currently.
In Lebanon's electricity crisis, the only one paying the price from his pocket, environment, and health is the citizen. None of the concerned parties considers the citizen's interest, as their interests take precedence over everything, even if the citizen remains without electricity and all the essential life needs related to it.