Lebanon: Gas Import Agreement from Egypt Disrupted by Unsecured WB Financing

Électricité du Liban building (Asharq Al-Awsat)
Électricité du Liban building (Asharq Al-Awsat)
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Lebanon: Gas Import Agreement from Egypt Disrupted by Unsecured WB Financing

Électricité du Liban building (Asharq Al-Awsat)
Électricité du Liban building (Asharq Al-Awsat)

An agreement to transport Egyptian gas to Lebanon via Syria is currently disrupted by Lebanon’s failure to meet the conditions for obtaining a World Bank loan and Washington’s reluctance to give an official approval confirming that the deal is not affected by the Caesar Act, sources told Asharq Al-Awsat on Tuesday.

They said Lebanon continues to suffer from a severe crisis in electricity supply, while concerned officials are only offering temporary solutions to the problem, either by renewing a contract to import fuel from Iraq or searching for other sources from Algeria and Kuwait to secure fuel.

“There is a failure in revealing the main reasons behind the delay to benefit from importing gas from Egypt and electricity from Jordan, even though Lebanon had signed an agreement with the governments of both countries in this regard,” the sources said.

Last June, Lebanon signed a deal with Egypt to import gas to a power plant in northern Lebanon through Syria.

The sources, who spoke on condition of anonymity, said they fear the deal would remain ink on paper, and that Lebanon’s alternative would remain the reliance on illegal private generators that are treated as a fait accompli.

The political sources then accused some ministers, specifically caretaker Energy Minister Walid Fayad, of colluding with the owners of generators and providing them with official protection on the pretext that they cover the government’s inability to provide electricity to the Lebanese.

“The Egyptian government may be forced to explain to the Lebanese the facts related to the gas file at the appropriate time,” the sources said, accusing the Energy Ministry of conspiring with influential people who control the generator mafia to keep the electricity situation as it is.

Meanwhile, they revealed that the delay in benefiting from the use of Egyptian gas awaits US “clearance” from sanctions that penalize anyone dealing with the government in Damascus, and also awaits financing from the World Bank.

US ambassador Dorothy Shea had repeatedly announced that Washington does not stand against the deal.

But, the sources asked why the US Congress has not yet sent a letter to Egypt and Jordan confirming that both countries will not be subject to sanctions.

They affirmed that Cairo has nothing to do with this delay.

“The problem is limited to the US administration that is hesitant in sending a message to both Egypt and Jordan clearing them from being penalized by the Caesar Act,” they said.

Moreover, the deal with Egypt is linked to the failure of the Lebanese government and Fayyad to approve a list of reforms in the power sector, which the WB has set as a precondition to financing the deal.

Lebanon has failed to revamp the electricity sector by increasing power supply and then raising prices in an effort to close the state-run electricity company's deficit amid a crushing economic crisis.



Iraq Urges Trump to Strengthen Security Coordination

Iraqi Prime Minister Mohammed Shia al-Sudani (Government Media)
Iraqi Prime Minister Mohammed Shia al-Sudani (Government Media)
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Iraq Urges Trump to Strengthen Security Coordination

Iraqi Prime Minister Mohammed Shia al-Sudani (Government Media)
Iraqi Prime Minister Mohammed Shia al-Sudani (Government Media)

Iraqi Prime Minister Mohammed Shia al-Sudani congratulated US President Donald Trump on returning to the White House, while the Shiite-led Coordination Framework ignored the occasion.

Instead, Coordination Framework officials focused on calls for a ceasefire in Gaza and domestic issues.

In his message on Tuesday, al-Sudani’s gesture seemed to clear the way for Iraq to move past the arrest warrant issued for Trump in 2021 over the 2020 killings of Qassem Soleimani and Abu Mahdi al-Muhandis.

The Iraqi judiciary stated at the time that the arrest warrant was based on Article 406 of the Iraqi Penal Code and that investigations into other individuals involved, whether Iraqi or foreign, would continue.

This week, Iraqi activists shared an image of the judicial decision, sparking debate on social media about the fate of the arrest warrant now that Trump has returned to the US presidency.

Some argued that the warrant would remain a point of embarrassment for those who pushed for its issuance.

Nevertheless, Sudani congratulated Trump, expressing Iraq's interest in strengthening ties with the US through the Strategic Framework Agreement, focusing on mutual interests.

He emphasized the importance of promoting regional and global stability, security, and development.

Sudani reiterated Iraq’s commitment to its strategic relationship with the US and expanding cooperation in security, economics, culture, technology, investment, and sustainable development, while respecting sovereignty and avoiding interference in domestic affairs.

President Abdul Latif Jamal Rashid also congratulated Trump on his re-election, affirming Iraq’s support for security and stability in the region and the world, and for enhancing bilateral relations to benefit both nations.

In contrast, the Coordination Framework refrained from mentioning Trump in its statement following a meeting held in Baghdad on Monday night into Tuesday, coinciding with the inauguration ceremony in Washington.

Instead, the coalition congratulated the Palestinian people on the Gaza ceasefire and urged the international community to ramp up efforts to rebuild war-torn areas, assist displaced people, and address the destruction of infrastructure, particularly hospitals and schools.

The Coordination Framework also highlighted consensus among the Iraqi parliament’s leadership, calling for support for provincial governors in fulfilling their duties.

While praising the government's successful foreign visits, Coordination Framework officials emphasized the importance of maintaining Iraq’s balanced foreign policy.