The International Finance Corporation (IFC), a member of the World Bank Group, announced on Thursday new investments and engagements to expand access to finance and energy, support the growth of the manufacturing sector, and create jobs across Lebanon.
The new initiatives are part of the World Bank Group’s (WBG) broader strategy to support the country’s reconstruction and recovery and are fully aligned with the new economic vision of Prime Minister Nawaf Salam’s government, IFC said in a statement.
“IFC’s new engagements aim to fuel private sector development and drive a sustainable, inclusive recovery, and create much-needed jobs,” said IFC’s Regional Director for the Middle East, Afghanistan, and Pakistan Aftab Ahmed.
The new initiatives seek to expand access to reliable energy. In close coordination with the WBG’s International Bank for Reconstruction and Development, IFC will serve as the lead transaction advisor to the Lebanese government, working closely with the High Council for Privatization and PPPs and the Ministry of Energy and Water to promote efficient power generation by structuring and implementing a gas-to-power project under a public-private partnership model, the statement said.
The agreement supports the development of a floating storage and regasification unit to import, store, and convert liquefied natural gas into fuel; and the modernization of the 465-megawatt Deir Ammar I power plant into a cleaner, more efficient, higher-capacity independent power producer.
It also includes the construction of a new 825-megawatt combined-cycle gas turbine plant, Deir Ammar II, to boost generation capacity.
Once completed, the projects will expand access to reliable electricity, support the country’s shift to more renewable energy, improve the efficiency of Lebanon’s electricity sector, reduce its reliance on diesel, and cut down the cost of electricity generation.
As part of supporting financial inclusion, the IFC said it will provide a $10 million financing package divided equally between two leading microfinance institutions in Lebanon to expand access to finance to micro and small and medium enterprises (MSMEs) and women entrepreneurs with a focus on forcibly displaced persons and host communities. The loans will help preserve and create jobs while supporting Lebanon’s long-term recovery and development plans.
The financing package includes a first-loss guarantee of up to $5 million provided through a blended finance facility under the Prospects Partnership (PROSPECTS), a program spearheaded by the Dutch government.
PROSPECTS aims to improve access to education, social protection, and decent employment for host communities and forcibly displaced populations across East Africa and the Middle East. These investments align with ongoing efforts by the Ministry of Social Affairs to promote economic inclusion among vulnerable populations through its national programs, including the AMAN Social Safety Net Program under the World Bank Group’s International Bank for Reconstruction and Development support to the social protection agenda in Lebanon.
In order to promote sustainable manufacturing, IFC is also partnering with BCI Holding S.A. (BCI) to provide a loan of up to $40 million to support the company’s expansion in Lebanon and across the Middle East.
The funds will enable BCI, a leading regional producer of polyester polyols, polyurethane systems, flexible packaging, and specialty adhesives, to drive job creation and small and medium enterprise (SME) development.
As part of this growth, BCI will establish a dedicated R&D and Innovation Center in Lebanon and develop a back-office operations hub to strengthen its regional capabilities. Through tailored chemical formulations, specialty adhesives, and technical support, BCI will help SMEs improve quality, reduce waste, and innovate to enhance competitiveness.
To boost industrial development, IFC will be partnering with Matelec, a leading regional manufacturer of power-machinery and electrical infrastructure solutions headquartered in Lebanon, with an investment of up to $30 million to support the company's upcoming infrastructure projects in Lebanon and the broader Middle East and North Africa region.
The partnership will reinforce Matelec’s contribution to industrial development and job creation, while enhancing the availability of high-quality electrical infrastructure solutions for municipal and industrial sectors across local and international markets.
