Lebanon: EUR 125 million for highway and clean energy
- Release date: 27 December 2012
- Reference: 2012-213-EN
The European Investment Bank (EIB) announces the signing of two loans with the Republic of Lebanon, acting through the Council for Development and Reconstruction:
- EUR 75 million for “Lebanese Highways II” to finance the rehabilitation and widening of the A1 highway.
- EUR 50 million for “Lebanon Energy Efficiency & Renewables Global Loan” to support private sector investments in energy efficiency and renewable energy.
The loan of EUR 75 million, successor operation to Lebanese Highways I, involves the upgrading of 10.3km of an existing coastal motorway (the A1 connecting Beirut to Tripoli), between Nahr-El-Kaleb/Dbayeh (some 20km north of Beirut) and Tabarja. The project also entails the upgrading of two major intersections in the adjoining neighbourhoods of Beirut: the Kouarantina Westbound Exit Ramp (KWER) and the Ministry of Power and Water (MOP&W or El-Mawared) overpass.
The purpose of the project is to tackle the major congestion problems in North Beirut and Beirut city as the project corridor is the main entrance from the north and Mount Lebanon to the capital.
The Global Loan of EUR 50 million will support the financing of renewable energy and energy efficiency investments carried out by private companies in Lebanon. The EIB funds will be managed by the Lebanese Central Bank, Banque du Liban.
This project will support small scale investments by the private sector in the energy efficiency and renewable energy throughout Lebanon. By reducing consumption of conventional generated electricity and heat, the project contributes to the reduction of greenhouse gas (GHG) emissions and diversification of supply. AFD is expected to participate in the co-financing of the project. The project will benefit from existing incentives in this sector in Lebanon, including an existing Investment Grant from the EU. In addition, the project is expected to benefit from a grant of up to EUR 4m for Technical Assistance for project implementation and capacity building from the Neighbourhood Investment Facility (NIF) managed by the European Commission.
As a long-standing partner of Lebanon, the EIB has provided financing of more than EUR 1.27 billion in loans since the start of its activities in the country.