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.



Aoun Wants Formation of ‘Consensual’ Lebanese Govt Representing All Components

Lebanese President Joseph Aoun.
Lebanese President Joseph Aoun.
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Aoun Wants Formation of ‘Consensual’ Lebanese Govt Representing All Components

Lebanese President Joseph Aoun.
Lebanese President Joseph Aoun.

Lebanese President Joseph Aoun is advocating the formation of a government of “consensus” that includes representatives from all political factions.

Meanwhile, Prime Minister-designate Nawaf Salam has requested that parliamentary blocs submit non-partisan nominees for ministerial positions, emphasizing that they must not belong to any political party.

Aoun stressed on Tuesday that all components of society have the right to be represented in the government, parliament and public administration, as this is already practiced in the army.

“We have significant opportunities that we hope to seize by uniting all elements of Lebanese society—civil, spiritual, and political. Together, we can rebuild our nation,” he declared.

Highlighting the importance of meeting international expectations, Aoun hoped for the rapid formation of a government to achieve political, economic, and security stability, which would allow citizens “to live with dignity, not merely in relative comfort.”

During meetings with professional delegations at the Presidential Palace, Aoun said: “We are at a crossroads. Either we take advantage of the current circumstances and rise above sectarian, religious, and political divisions, or we head in a different direction and bear full responsibility for failing to fulfill our duties.”

Negotiations between Aoun, Salam, and political factions over the formation of a government are ongoing. The discussions, which kicked off last week, have reportedly made progress, with efforts directed toward expediting the government formation process, issuing decrees, preparing a ministerial statement, and securing its vote of confidence from lawmakers.

While the Shiite duo of Hezbollah and the Amal Movement appear to have finalized their proposed nominees for the government, disagreements over the ministerial statement remain.

MP Waddah Sadek, who is backed by the opposition, firmly rejected the inclusion of the “Army, People, Resistance” term in the statement. He declared: “No ‘blocking third’ in the government, and no unconstitutional gimmicks. The slogan of the new phase in Lebanon should be: the ‘Army, People, and State.’”

The Kataeb Party echoed this stance, stressing that Lebanon, emerging from a devastating war between Hezbollah and Israel, must align with the Aoun’s inaugural speech and Salam’s remarks by ensuring the ministerial statement exclusively underscores the state’s monopoly over arms and the defense of the nation.

“The government must act decisively, dismantle militias, strictly enforce the ceasefire, and uphold its provisions across all Lebanese territory,” it demanded.

The Kataeb Party also urged Aoun and Salam to resist the “great extortion” by Hezbollah and Amal to secure specific ministries or positions, in violation of the inaugural speech, calling instead for the application of uniform standards to ensure the government’s success.

Meanwhile, Hezbollah adopted a more confrontational tone.

MP Hussein Hajj Hassan, a member of Hezbollah’s parliamentary bloc, commented: “To those betting on Hezbollah’s weakness or the weakness of the Hezbollah-Amal alliance, what will you say when the government is formed? What will you say when you realize the strength of Hezbollah, the alliance, and the resistance’s supporters across all segments of Lebanese society? What will you say when you see the unwavering determination and unity of the resistance at every critical juncture?”