Lebanon’s State Electricity Company: A Pawn for Political Corruption

Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)
Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)
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Lebanon’s State Electricity Company: A Pawn for Political Corruption

Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)
Lebanon is crippled by frequent power cuts as corruption keeps hindering the improvement of the country's energy sector. (AFP)

All year long, electricity is at the heart of the Lebanese people’s concerns. It is also at the heart of the country’s staggering $80 billion public deficit with the sector costing it $36 billion a year.

This reality can be blamed on political corruption that has for years plagued the sector.

Former Energy Minister Mohammed Abdul Hamid Baydoun told Asharq Al-Awsat: “It is part of political bribery.”

Politicians always set their sights on the Energy Ministry whenever a new government is being formed, heedless of the label of corruption that will follow them.

Lebanon’s electricity crisis began during the country’s 1975-90 civil war, which destroyed many of its power plants. The people had to contend with gas lanterns to compensate for their lack of power. Now, 28 years later, not much as has changed and the country still suffers from frequent power cuts. There appears to be no light at the end of the tunnel because politicians would rather fill their own pockets than tackle years of incompetence in such a vital sector.

Experts agree that the solution lies in modernizing laws linked to Electricite du Liban (EDL), the state-owned company that runs the sector. The current laws in place are outdated and a lack of coordination between the concerned ministries has rendered work in the sector inefficient and ineffective.

Baydoun said: “The company cannot be fixed.”

“When I assumed the energy portfolio, I managed to draft the privatization law that never materialized,” he continued.

“Current EDL director Kamal Hayek has proven that he cannot limit the losses in the firm. The situation at EDL has not changed since he assumed his post in 2002,” he told Asharq Al-Awsat.

Despite this 15-year failure, nothing has been done to change it, he stressed.

Dr. Mohammed Basbous, a leading member of the Progressive Socialist Party, told Asharq Al-Awsat: “The energy sector is the greatest source of waste in the Lebanese economy.”

There are vacancies in 50 percent of EDL and only two representatives remaining in a seven-member board of directors, he stated. A law was issued in 2011 to fill these posts and, yet, seven years later, nothing has been done.

Moreover, six months were given in 2011 to the formation of a regulatory authority, which has not yet seen the light, Basbous added.

The extension of the term of current officials at EDL are therefore all illegal, he noted.

Furthermore, vacancies, he said, are being filled with unproductive employees. The absence of a regulatory authority is also limiting interaction between the energy minister and any potential cooperation partner to just these two sides, meaning talks between them are not being monitored and violations go unchecked.

Unimplemented plan

Baydoun said that when current caretaker Foreign Minister Jebral Bassil served as energy minister, “he concocted a theory that regulatory authorities infringe on the minister’s privileges.”

On the contrary, “regulatory authorities are formed to protect general sectors from political meddling, to ensure the rights of the consumer and to put in place set prices,” he continued. “Politics must not impose such prices.”

An expert at a firm specialized in modernizing the energy sector told Asharq Al-Awsat: “Technically, we have a plan, but it has not been implemented.”

Speaking on condition of anonymity, he added: “The plan calls for the formation of a regulatory authority and separating the sector’s three main divisions: power plants, networks and distribution and tax collection.”

“EDL was supposed to be restructured and its rules were supposed to be modernized. The private sector was supposed to renovate power plants and take part in the distribution and tax collection process, while the state would keep control of the grid,” he explained. “The plan, however, was hindered by corruption and political disputes.”

Lebanon’s two most important power plants are the Deir Ammar plant in the North and al-Zahrani in the South.

Baydoun said: “They were constructed to work on gas, not regular diesel fuel, before a mechanism to import gas was even put in place. They have been operating on the most expensive kind of diesel fuel since 1996. Just imagine the waste.”

“Ironically enough, efforts are underway to import liquid gas when Lebanon is lying on a natural gas field,” he remarked bitterly. The import of gas requires the establishment of dedicated ports.

“Why are we even building ports? Syria, Iraq and Iran all lie on gas fields. Pipes to import them already exist, while we are paying billions of dollars to import liquid gas?” he asked incredulously.

That is not all.

Basbous said: “The main flaw in the energy sector is the massive amounts of waste. Technical waste in companies usually lies at around 10 to 15 percent in Lebanon. Non-technical waste, including illegal connections and tampering with electricity meters, has led to the waste of 40 percent of generated power.”

During the April CEDRE donor conference, the director General Electric declared that his company was ready to build within six months power plants that can meet all of Lebanon’s energy needs, at a surplus even, and operate them at costs less than what the country was paying. His proposal fell on deaf ears, said Basbous.

As for EDL’s financial deficit, it can be blamed on several reasons, such as government decisions to exempt some regions from the power bill for security and social reasons. Other regions have been exempted for political reasons, while influential powers do not pay their power bill.

Moreover, electrical meters are not added to new consumers, meaning they will use more power without even paying for it. An aging power grid also compounds the problem. Current consumers are also using less power and relying on their own generators.

More waste

Between 2012 and 2013, waste exceeded 51 percent, said Basbous. This figure dropped to 35 percent when private companies took over tax collection. However, they became complacent when they realized that no one was supervising them and they were not being held accountable for their work.

The CEDRE conference demanded that Lebanon reduce its deficit by 5 percent in five years, meaning 1 percent each year, he added. Some have proposed that energy taxes be increased to tackle the deficit, which is the laziest solution because it requires the least effort to implement.

Raising taxes will not put an end to the waste because some people are not even paying their bills or stealing electricity from the grid. So whether taxes are raised or not, only paying consumers will be affected, he explained.

“Such an unjust decision will only increase non-technical waste,” he told Asharq Al-Awsat.

Furthermore, Baydoun criticized power-generating ships that were brought in in 2010 when Bassil was energy minister.

“Such a method is only used during times of wars or major crises. They are short-term solutions, not ones that last eight years and counting,” he said.

A third ship is reportedly coming to Lebanon. It was said that it will offer 200 megawatts for free for three months, while Lebanon will cover fuel costs, ship maintenance and employee salaries.



Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
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Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)

The hustle and bustle of buyers and sellers has returned to Khartoum's central market, but "it's nothing like before," fruit vendor Hashim Mohamed told AFP, streets away from where war first broke out nearly three years ago.

On April 15, 2023, central Khartoum awoke to battles between the Sudanese army and the paramilitary Rapid Support Forces, who had been allies since 2021, when they ousted civilians from a short-lived transitional government.

Their war has since killed tens of thousands and displaced millions. In greater Khartoum alone, nearly 4 million people -- around half the population -- fled the city when the RSF took over.

Hashim Mohamed did not.

"I had to work discreetly, because there were regular attacks" on businesses, said the fruit seller, who has worked in the sprawling market for 50 years.

Like him, those who stayed in the city report living in constant fear of assaults and robberies from fighters roaming the streets.

Last March, army forces led an offensive through the capital, pushing paramilitary fighters out and revealing the vast looting and destruction left behind.

"The market's not what it used to be, but it's much better than when the RSF was here," said market vendor Adam Haddad, resting in the shade of an awning.

In the market's narrow, dusty alleyways, fruits and vegetables are piled high, on makeshift stalls or tarps spread on the ground.

- Two jobs to survive -

Khartoum, where entire neighborhoods were once under siege, is no longer threatened by the mass starvation that stalks battlefield cities and displacement camps elsewhere in Sudan.

But with the economy a shambles, a good living is still hard to provide.

"People complain about prices, they say it's too expensive. You can find everything, but the costs keep going up: supplies, labor, transportation," said Mohamed.

Sudan has known only triple-digit annual inflation for years. Figures for 2024 stood at 151 percent -- down from a 2021 peak of 358.

The currency has also collapsed, going from trading at 570 Sudanese pounds to the US dollar before the war to 3,500 in 2026, according to the black market rate.

One Sudanese teacher, who only a few years ago could provide comfortably for his two children, told AFP he could no longer pay his rent with a monthly salary of 250,000 Sudanese pounds ($71).

To feed his family, pay for school, and cover healthcare, he "works in the market or anywhere" on his days off.

"You have to have another job to pay for the bare minimum of basic needs," he said, asking for anonymity to protect his privacy.

For Adam Haddad, the road to recovery will be a long one.

"We don't have enough resources or workers or liquidity going through the market," he said, adding that reliable electricity was still a problem.

"The government is striving to restore everything, and God willing, in the near future, the power will return and Khartoum will become what it once was."


Trump Heads into Davos Storm, with an Eye on Home

FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
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Trump Heads into Davos Storm, with an Eye on Home

FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)

Donald Trump returns to the Davos ski resort next week after unleashing yet another avalanche on the global order. But for the US president, his main audience is back home.

Trump's first appearance in six years at the gathering of the world's political and global elite comes amid a spiraling crisis over his quest to acquire Greenland.

Fellow leaders at the mountain retreat will also be eager to talk about other shocks from his first year back in power, from tariffs to Venezuela, Ukraine, Gaza and Iran.

Yet for the Republican president, his keynote speech among the Swiss peaks will largely be aimed at the United States.

US voters are angered by the cost of living despite Trump's promises of a "golden age," and his party could be facing a kicking in crucial midterm elections in November.

That means Trump will spend at least part of his time in luxurious Davos talking about US housing.

A White House official told AFP that Trump would "unveil initiatives to drive down housing costs" and "tout his economic agenda that has propelled the United States to lead the world in economic growth."

The 79-year-old is expected to announce plans allowing prospective homebuyers to dip into their retirement accounts for down payments.

Billionaire Trump is keenly aware that affordability has become his Achilles' heel in his second term. A CNN poll last week found that 58 percent of Americans believe his first year back in the White House has been a failure, particularly on the economy.

Trump's supporters are also increasingly uneasy about the "America First" president's seemingly relentless focus on foreign policy since his return to the Oval Office.

But as he flies into the snowy retreat, Trump will find it impossible to avoid the global storm of events that he has stirred since January 20, 2025.

Trump will be alongside many of the leaders of the same European NATO allies that he has just threatened with tariffs if they don't back his extraordinary quest to take control of Greenland from Denmark.

Those threats have once again called into question the transatlantic alliance that has in many ways underpinned the western economic order celebrated at Davos.

- 'Economic stagnation' -

So have the broader tariffs Trump announced early in his second term, and he is set to add to the pressure on Europe in his speech.

Trump will "emphasize that the United States and Europe must leave behind economic stagnation and the policies that caused it," the White House official said.

The Ukraine war will also be on the cards.

Ukrainian President Volodymyr Zelensky is hoping for a meeting with Trump to sign new security guarantees for a hoped-for ceasefire deal with Russia, as are G7 leaders.

But while the largest-ever US Davos delegation includes Secretary of State Marco Rubio, special envoy Steve Witkoff and son-in-law Jared Kushner, who have all played key roles on Ukraine, no meeting is assured.

"No bilateral meetings have been scheduled for Davos at this time," the White House told AFP.

Trump is meanwhile reportedly considering a first meeting of the so-called "Board of Peace" for war-torn Gaza at Davos, after announcing its first members in recent days.

Questions are also swirling about the future of oil-rich Venezuela following the US military operation to topple its leader Nicolas Maduro, part of Trump's assertive new approach to his country's "backyard."

But Trump may also pause to enjoy his time in the scenic spot he called "beautiful Davos" in his video speech to the meeting a year ago.

The forum has always been an odd fit for the former New York property tycoon and reality TV star, whose brand of populism has long scorned globalist elites.

But at the same time, Trump relishes the company of the rich and successful.

His first Davos appearance in 2018 met occasional boos but he made a forceful return in 2020 when he dismissed the "prophets of doom" on climate and the economy.

A year later he was out of power. Now, Trump returns as a more powerful president than ever, at home and abroad.


Russia, China Unlikely to Back Iran Against US Military Threats

A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
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Russia, China Unlikely to Back Iran Against US Military Threats

A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)

While Russia and China are ready to back protest-rocked Iran under threat by US President Donald Trump, that support would diminish in the face of US military action, experts told AFP.

Iran is a significant ally to the two nuclear powers, providing drones to Russia and oil to China. But analysts told AFP the two superpowers would only offer diplomatic and economic aid to Tehran, to avoid a showdown with Washington.

"China and Russia don't want to go head-to-head with the US over Iran," said Ellie Geranmayeh, a senior policy expert for the European Council on Foreign Relations think tank.

Tehran, despite its best efforts over decades, has failed to establish a formal alliance with Moscow and Beijing, she noted.

If the United States carried out strikes on Iran, "both the Chinese and the Russians will prioritize their bilateral relationship with Washington", Geranmayeh said.

China has to maintain a "delicate" rapprochement with the Trump administration, she argued, while Russia wants to keep the United States involved in talks on ending the war in Ukraine.

"They both have much higher priorities than Iran."

- Ukraine before Iran -

Despite their close ties, "Russia-Iranian treaties don't include military support" -- only political, diplomatic and economic aid, Russian analyst Sergei Markov told AFP.

Alexander Gabuev, director of Carnegie Russia Eurasia Center, said Moscow would do whatever it could "to keep the regime afloat".

But "Russia's options are very limited," he added.

Faced with its own economic crisis, "Russia cannot become a giant market for Iranian products" nor can it provide "a lavish loan", Gabuev said.

Nikita Smagin, a specialist in Russia-Iran relations, said that in the event of US strikes, Russia could do "almost nothing".

"They don't want to risk military confrontation with other great powers like the US -- but at the same time, they're ready to send weaponry to Iran," he said.

"Using Iran as a bargaining asset is a normal thing for Russia," Smagin said of the longer-term strategy, at a time when Moscow is also negotiating with Washington on Ukraine.

Markov agreed. "The Ukrainian crisis is much more important for Russia than the Iranian crisis," he argued.

- Chinese restraint -

China is also ready to help Tehran "economically, technologically, militarily and politically" as it confronts non-military US actions such as trade pressure and cyberattacks, Hua Po, a Beijing-based independent political observer, told AFP.

If the United States launched strikes, China "would strengthen its economic ties with Iran and help it militarize in order to contribute to bogging the United States down in a war in the Middle East," he added.

Until now, China has been cautious and expressed itself "with restraint", weighing the stakes of oil and regional stability, said Iran-China relations researcher Theo Nencini of Sciences Po Grenoble.

"China is benefiting from a weakened Iran, which allows it to secure low-cost oil... and to acquire a sizeable geopolitical partner," he said.

However, he added: "I find it hard to see them engaging in a showdown with the Americans over Iran."

Beijing would likely issue condemnations, but not retaliate, he said.

Hua said the Iran crisis was unlikely to have an impact on China-US relations overall.

"The Iranian question isn't at the heart of relations between the two countries," he argued.

"Neither will sever ties with the other over Iran."