April 10, 2017

$300 million in finance for projects approved. Highways, water, wasterwater, Bisri dam

Parliament has ratified a number of financing agreements worth $303 million, to conduct infrastructure projects in a number of regions. The four financing agreements have been offered by the Islamic Development Bank (IDB).

Parliament approved a $26.7 million loan to execute part of the ‘South Coastal Highway’. The loan will be paid over a period of 12 years, with a three year grace period. It will cover the construction of a three-kilometer road between Burj Rahhal and Abbasieh. It includes the establishment of an overpass, an underpass, and an intersection.

Parliament also approved a loan of $87.5 million to increase the capacity of the Al Ghadir wastewater treatment plant. Capacity will increase to 140,000 cubic meters of wastewater from the present figure of 50,000 cubic meters. The plant will also be upgraded from its pre-treatment status to a primary treatment facility. The plant serves the area of Greater Beirut.

Approved loans valued at $128 million will cover part of the remaining cost to develop the Bisri Dam. Parliament had already ratified a World Bank loan to cover part of the construction last year. The dam’s construction includes a hydropower plant, and water and wastewater connections.

The final IDB loan agreed to by Parliament is for a project to supply Jabal Amel with potable water. The loan, valued at $61 million, will be used to install 8,000 household water connections, reduce waste from 52 to 20 percent, and supply over 300,000 individuals with all-day water supply. The project covers the areas of Marjayoun, Hasbaya, Bint Jbeil, and Tyr.

The financing cost of these loans is equivalent to between six months Libor plus 135 points and plus 155 points.