The European Investment Bank (EIB) and the Government of the Republic of Lebanon agreed the terms for a EUR 74m loan to the Greater Tripoli Basin Wastewater Networks project, targeting the extension of wastewater networks in Tripoli and surrounding areas. The financing will be signed shortly following Lebanese Council of Ministers approval.
As a tangible example of EIB capacity to deliver highly concessional financing packages for projects of high impact, the EIB loan will be complemented by a EUR 18.3m investment grant from the ERI Trust Fund (funded by Italy, Poland, UK, Slovakia, Slovenia, Lithuania, Luxembourg, Croatia) and a EUR 4m technical assistance grant to support project implementation, both of them also to be signed shortly.
“This project is an excellent example of EIB and donors joining forces to support Lebanon’s resilience and economic growth. It will have substantial environmental, economic and social benefits by improving sanitation infrastructure. Also it will contribute to regional development in Tripoli, Lebanon’s second largest city and the main urban centre in the Northern Governorate”, said Dario Scannapieco Vice President of the European Investment Bank.
The project will increase sewerage flow to the existing Tripoli waste water treatment plant (WWTP), which was previously financed by the EIB. It is part of a wider works programme launched by the Government of Lebanon to increase the wastewater service coverage in the Tripoli area and enable the plant, once commissioned, to operate at full capacity, The project will thus optimise wastewater services in the project area and the WWTP’s future use and performance. The project will also contribute to climate change mitigation through avoided GHG emissions.
The Bank’s financing, which is covered by the EU Guarantee under the ELM 2014-2020, covers 69% of the overall project cost.
The EIB has been a long-term partner of Lebanon since it started its activities in the country in the 1970s and has local presence in Beirut since January 2019, as a sign of further support to the country. The EIB, as one of the main IFIs in Lebanon, has financed over EUR 2.3bn worth of loans in support of investment projects over the years.
EIB in the region
The EIB’s Economic Resilience Initiative (ERI), approved by the EU Member States in 2016, consists of an integrated package of loans, concessional finance and innovative instruments designed to enable financing of an additional EUR 15 billion of investments on top of schemes already planned up to 2020.
Economic Resilience Initiative Trust Fund (ERI TF), The Economic Resilience Initiative Trust Fund (ERI TF) aims to support resilient and inclusive growth in Europe’s Southern Neighbourhood and the Western Balkans. Donor contributions help unlock investments that can create new opportunities in the regions, especially for vulnerable groups, including young people and women.