Lebanon to use SDR funds for emergency electricity plan

The first phase of Lebanon’s emergency electricity plan, which will provide 8-10 hours of daily power supply in return for a tariff hike, is expected to move forward without obstacles after a recent solution was found, a media report said on Tuesday.

Asharq al-Awsat newspaper said the solution was found by caretaker PM Najib Mikati “in coordination and cooperation with Speaker Nabih Berri, Central Bank Governor Riad Salameh and caretaker Finance Minister Youssef Khalil.”

“The solution does not require passing through parliament and thus avoids the opposition forces’ rejection to hold any legislative session” amid the current presidential vacuum, the daily said.

The opposition has argued that according to the constitution, any parliament meeting should be exclusively dedicated to the election of a new president.

According to information obtained by Asharq al-Awsat, the solution calls for resorting to what’s left of the funds received by Lebanon from the International Monetary Fund under the Special Drawing Rights program.

Only $300 million remain from the initial amount of $1.135 billion and will be used to launch the plan, the newspaper explained.

Speaking to Asharq al-Awsat, ministerial sources said “this sum can only fund two months of the plan” and accordingly “it has been agreed to collect bills according to the new tariff in order to provide the central bank with funds for purchasing dollars that will be used to finance the additional four months of the plan.”

Mikati has meanwhile said that he will coordinate with caretaker Energy Minister Walid Fayyad to ensure strictness in the issue of collecting bills, noting that only around 60% of citizens have been paying their bills.

“According to the new plan, power supply will be cut off for those do not pay their bills whoever they may be,” Asharq al-Awsat quoted Mikati as telling a number of MPs.