€75 million from Italy for infrastructure. To co-finance first phase of industrial cities

A Framework Agreement was signed November, 16, to lend Lebanon 75 million euro ($80 million) in soft loans. The agreement was between the Council for Development and Reconstruction (CDR) and the Embassy of Italy. The loans will be used for wastewater, agricultural, and industrial projects.

The terms have been set at zero interest for 17 years with a five-year grace period.

Around 50 million euro ($54 million) will be used for wastewater systems in Hasbaya, Hermel, Bakhoun, and B...

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Agri-food exports to Europe surged 17 percent. Gain on Syria’s share

Exports of agro-food goods to the European Union (EU) increased 17 percent in the first half of the year reaching €58 million ($65 million), compared to the same period last year, according to the 'Strengthening EU-Lebanon Trade and Investment Relations' report issued by the EU.

Agro-food exports to EU reached €86 million ($100 million) last year, almost 60 percent up from 2010.

Mounir Bissat, Secretary General of the Syndicate of Lebanese Food Industries, said: "Industrialists t...

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Good national score in health and education. Survey also praised Lebanon’s market efficiency

Lebanon achieved a high score on the level of competitiveness of its health and primary education sectors, according to the recently released Global Competitiveness Report 2016–2017 by the World Economic Forum (WEF).

The WEF survey, to which InfoPro Research has contributed the Lebanon part of the survey, said that the country ranked 52nd out of 138 countries (including developed ones) in the competitive pillars of health and primary education. Its score was six on a scale of one to seve...

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Insurance premiums increase by three percent. Sales growth derived from price increase of hospitalization

The total value of written premiums went up three percent to reach $1.5 billion in 2015.

Around 70 percent of these premiums were recorded in non-life policies. Indemnities have risen nine percent to $823 million according to data released by the Association of Insurance Companies (ACAL).

In terms of premiums, life insurance saw a seven percent growth. It was the main growth driver. Morbidity and mortality are linked together. Many medical cases, cancer for example, can lead to de...

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World Bank approves $100 million for education. Program to increase enrollment and enhance quality

The World Bank has approved the 'Support to Reaching All Children with Education (RACE2)' program. One hundred thousand additional Lebanese and Syrian refugee children aged three to 18 years old will benefit from access to education through this program.

The program will provide the Ministry of Education and Higher Education with a $100 million funding by the International Development Association (IDA). RACE2 will be implemented in the coming five years starting from 2016.

The prog...

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Computerized municipalities have better collection rates. No connection between municipality size and collection rate

The collection rate of direct municipal taxes reached 62 percent in fully computerized municipalities, 58 percent in partially automated municipalities, and 38 percent in municipalities that are not automated.

According to a recent survey by Consultation and Research Institute (CRI), the collection rate is linked to municipalities' capability to track Rental Value Fee (RVF) payment, which is the number one direct income source for municipalities.

The survey was conducted as part ...

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Cement deliveries surge in first six months. Municipal elections fueled public works

Cement deliveries totaled 2.5 million tons in the first half of the year, increasing by ten percent compared to the same period of 2015, according to Central Bank statistics.

Cement deliveries had dropped 18 percent in the first six months of 2015 compared to the same period in 2014.

Adib Hashem, Commercial Director of Cimenterie Nationale, said that were three reasons for the increase:

Dry weather conditions in the first six months of the year encouraged people to build, ...

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Travel and tourism expected to rise five percent. Sector represents eight percent of GDP

The direct contribution of the travel and tourism sector to GDP in 2015 was eight percent, totaling $3.6 billion, according to the World Travel and Tourism Council (WTTC).

The contribution reflects internal spending by residents and non-residents, for business and leisure purposes, as well as the Government's 'individual' spending such as cultural or recreational spending.

Forecast to rise by five percent this year, the travel and tourism sector is expected to increase se...

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$1.4 billion from World Bank for local projects. Five-year framework program launches

The World Bank will launch on July 27 the Country Partnership Framework 2017-2022. The grand total of loans that will be part of the framework is $1.4 billion.

For the first two years of the framework, a $55 million loan will be granted through the International Bank for Reconstruction and Development (IBRD). The loan will be mobilized for the Lake Qaraoun Pollution Prevention Project.

Another $200 million will be directed at the Rural Roads and Employment Program over the years 2...

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New Jounieh port to attract thousands of tourists. Injection of $40 million expected

A new touristic port in Jounieh is to go ahead after the Council of Ministers approved works.

The new port will be located between the army base and the Portemilio beach resort in Kaslik. The first phase of the project will cost $8 million, with the overall costs expected to reach around $40 million.

"The port would attract mega charters able to transport 4,000 tourists," Fouad Boueri, member of Jounieh Municipality, said. The Council will now task the Council for Development and ...

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$571 per capita in health expenditure. Spending tops $3.3 billion

Healthcare spending was valued at $3.3 billion, accounting for 6.3 percent of Gross Domestic Product (GDP), according to Business Monitor International (BMI) Research.

Sleiman Haroun, Chairman of the Syndicate of Private Hospitals, said: "These figures are very logical in that they include expenditures inside and outside hospitals, in addition to laboratories, pharmacies, and physician clinics."

According to Haroun, healthcare spending as a percentage of GDP is constantly decreasin...

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IMF report recommends fiscal and financial reforms. Boosting public and private investments is needed

The International Monetary Fund (IMF) has released a report titled 'Investment and Growth in the Arab World - A Scoping Note'.

The report highlighted the importance of boosting public and private investment to spur economic growth and create new job opportunities. Private investment and foreign direct investment (FDI) in Arab countries was below that of their international peers and failed to significantly fuel economic growth.

The report provided several recommendations for Leb...

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Food trade relies heavily on imports. 170,000 people slip to poverty line due to Syrian crisis

Up to 80 percent of the market's food needs are imported, according to ESCWA's 'Strategic Review of Food and Nutrition Security in Lebanon' report, released this month.

Food accounts for 16 percent of the total import bill, second only to fuel. Consumed food items are distributed as follows: 35 percent for bread and cereals, 11 percent for milk and dairy, eight percent for meat and poultry, and 46 percent for other food products.

The food items for which the market is completely de...

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Corruption getting worse says watchdog group. Transparency International: Ordinary people can make a difference

Lebanon stands out in the MENA region as having the most negative corruption ratings, according to citizens who have been surveyed as part of a report published last week by Transparency International, under the title 'People and Corruption: Middle East & North Africa Survey 2016.'

People are particularly likely to think that corruption has risen, as 92 percent of the surveyed say that they think it has increased in the past year. It is the highest percentage compared to the other surveye...

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Projects worth $1.7 billion used IDAL incentives. Helped to provide 7,000 direct jobs in 15 years

The Investment Development Authority of Lebanon (IDAL) provided incentives and facilities to local projects valued at more than $1.7 billion in the past 15 years.

Fifty projects in the agro-industry, manufacturing, tourism, agriculture, information technology, communication, and media sectors benefited from IDAL's financial support. These sectors were identified by Investment Law No.360 as promising investments that have a beneficial socio-economic impact. IDAL said that only projects tha...

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$1.6 billion more funding by international donors. Grants and soft loans shared by Lebanon and Jordan

Eight countries and the European Commission have pledged a package of more than $1 billion to a World Bank-led financing initiative in support of Syrian refugees and host communities in Jordan and Lebanon, as well as recovery and reconstruction across the region.

The package is composed of $141 million in grants, $1 billion in soft loans, and $500 million in guarantees. "The new facility will be able to generate up to $800 million in concessional loans in the next year," according to a s...

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New power plant to replace the one in Jiyyeh. Estimated cost: $500 million for 450 MW

The Council of Ministers has approved a request by the Ministry of Energy and Water (MoEW) for funds to dismantle the existing power plant in Jiyyeh and build a new one.

The Council for Development and Reconstruction (CDR) was commissioned for the task. The estimated cost of the new plant is $500 million.

The ministry is in negotiation with Electricité de France (EDF) to conduct a feasibility study on the deconstruction and decontamination of the current plant, which genera...

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Industrial zones one step closer. Ministry appoints Indian firm for studies

The Ministry of Industry (MoI) has launched preliminary studies for the construction of four industrial zones in Baalbek, Terbol, Qousaya, and Jleiliyeh. The project is part of the Country Program Framework signed between the MoI and the United National Industrial Development Organization (UNIDO).

Industry Minister Hussein Hajj Hassan said: "UNIDO conducted an international tender in which 16 local, European, and international companies participated." As a result of the tender, Indian con...

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Property registry online next week. To provide real estate register, tracking, and fee calculation

The Ministry of Finance's Property Registry will launch three online services on Tuesday, one of them paid and the two others free of charge.

Georges Maarawi, Director General of the Registry, said: "The first service allows citizens to check the title register of properties (ifada ikariya) and print it out through a mobile phone or a computer." This service will cost LL7,500 ($5), and an additional LL1,000 ($0.66) for application submittal. Until now, the service has been available only ...

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World Bank provides $100 million for education. Funding to also help Syrian children access schools

The World Bank (WB) has approved a $100 million soft loan to support the Government's plan to improve the quality of education. It also aims to enroll Lebanese and Syrian refugee children in schools by the end of next year, said the WB's President, Jim Yong Kim.

This was an exceptional arrangement, as the financing terms had been previously reserved only for low-income countries, the WB said in a statement. The move is part of the WB's efforts to increase its assistance to Lebanon and Jor...

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$370 million by Islamic Bank for infrastructure projects. To develop roads, water, and wastewater projects

The Council for Development and Reconstruction (CDR) signed five agreements with the Islamic Development Bank (IDB) for a number of projects in the fields of transportation, water, and wastewater.

The funding agreements included one related to Bisri Dam valued at $128 million. The dam is part of a greater water augmentation project that consists of developing a 12-megawatt hour hydropower plant, a water treatment facility for 25,000 cubic meters of water a day, water, and wastewater netwo...

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Insurance premiums are still rising. Allianz SNA tops the list for the first time

The value of insurance premiums totaled around $1.6 billion in 2015, according to Al Bayan Magazine. Premiums are divided between $471 million in the life segment and $1.1 billion in the non-life lines of business. Premiums grew by 3.5 percent compared to 2014.

The top 20 performing companies in the insurance sector had consolidated revenues of $1.3 billion in 2015, representing more than 80 percent of the sector.

Allianz SNA, which was ranked third in 2014, moved up to first place...

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Fiscal deficit up by 30 percent. Decline in both revenues and expenditures

The public fiscal deficit widened by almost 30 percent to $3.95 billion in 2015, according to the Ministry of Finance (MoF).

The primary surplus fell by 45 percent to $724.6 million. The primary surplus is the deficit without factoring debt service.

Total revenues decreased by 7.5 percent to $9 billion, while total expenditure narrowed by 2.1 percent to $12 billion

Transfers to Electricité du Liban (EDL) plunged by $957 million or 46 percent, due to lower oil prices.<...

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Entertainment center in Baalbek. Part of a larger Lebanese-French cooperation agreement

The Union of Baalbek Municipalities has begun works on a 700,000 square meter entertainment center that will include sports fields, pools, conference halls, and a theater, at a cost of $2.4 million.

This project is part of a Lebanese French plan, within a cooperation protocol with Vallée de l'Hérault region in the South of France, signed in 2013. The 2015-2030 plan includes projects to activate tourism, improve agriculture, and integrate alternative energy.

Hussein A...

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Retail ends 2015 on a slump. Positive results in sports, F&B, and health

The Beirut Traders Association (BTA)-Fransabank Retail Index posted negative results for the fourth quarter of 2015, scoring 55.5 out of 100, falling by almost five percent, compared to the same period in 2014.

Nabil Hatem, General Director of the BTA, said: "The main reason behind the fall in retail activity is that the market is still in a deflationary mode, where prices have gone down." The decline in prices was not met by an increase in consumption.

The index, prepared and pub...

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Plan to triple funds to public hospitals. To develop services and increase beds

The Ministry of Public Health (MoPH) launched on Wednesday a new plan for developing and enhancing the performance of public hospitals.

The Ministry's plan suggests increasing the number of public hospital beds from 1,854 to 2,359. Around 280 beds were added last year towards a target of 2,700 in the next few years, according to Bahij Arbid, Advisor to the Minister.

The plan also proposed increasing the yearly funds provided to public hospitals from an average of $7 million for ea...

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Road projects in South and Jbeil. Financed by the Islamic Development Bank

The Council of Ministers has approved two road projects financed by loans from the Islamic Development Bank (IDB), for a combined value of $50 million.

The first project is for the completion of the South coastal highway. Overseen by the Council for Development and Reconstruction (CDR), the final phase of the coastal road will link Burj Rahhal to Abasiyeh. The construction of the three-kilometer road will cost over $30 million, to be provided by the IDB and Treasury advance.

The co...

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Balance of payments deficit doubles. Slowdown in cash inflow overtakes that of outflow

The deficit of the balance of payments doubled last year to $3.35 billion at the end of 2015 according to the Central Bank (BDL).

Roger Melki, Advisor to the Executive Board of Bemo Bank, attributed the widening of the deficit to the incremental effect of many factors, all leading to a waning in investor appetite.

The banking sector's capacity to attract capital has deteriorated due to higher systemic risk and domestic business opportunities have become fewer owing to the war of at...

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Valentine’s Day quintuples flower sales. Local production reaches $15 million per year

Valentine's Day is a boost to the market, as it comes in the middle of the slow winter season. Flower shops rely on this week as this product tops the list of Valentine's Day gifts.

Flower wholesalers have prepared themselves for this occasion, importing up to 800,000 red roses to meet demand. Traders generally import around 150,000 flowers per week. Red roses are imported from the Netherlands, India, Kenya, and Ecuador.

Imad Haddad, General Manager of Bonsai, a local producer, i...

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$50 million for garbage export. To spend over six months

The Council of Ministers approved today a Treasury advance of $50 million to start the garbage export process.

"In the first stage, garbage near households and water sources will be removed," said Nabil de Freij, State Minister for Administrative Reform. Trash removal is expected to start at the end of this month.

The company in charge of handling the export process, British Chinook Urban Mining, will remove at least 1,700 tons per day in order for it to be financially feasible. "E...

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Civil Defense contractors are now full time employees. No financial cost for the State Treasury

The Council of Ministers approved today a decree for turning Civil Defense contract workers into full-time employees.

Nabil De Freige, Minister of the Office of Ministry of State for Administrative Reform, said that turning Civil Defense volunteers into full-time employees still requires several procedures. Volunteers should undertake limited examinations at the Civil Service Council.

There are 681 Civil Defense contract workers. Volunteers total 3,316, according to the Civil Defe...

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Farmers registry by FAO. To provide farmers with social coverage and other benefits

The Food and Agriculture Organization of the United Nations (FAO) in cooperation with the Ministry of Agriculture (MoA) will launch a project to create a unified farmers registry by the end of this year. The target is to eventually allow farmers access to social, agricultural, and health services, among other objectives through unifying the data at the ministry.

Faten Adada, Social Protection Focal Point at FAO, said that the organization previously studied the strengths and weaknesses o...

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2,000 operating insurance brokers. Ongoing efforts to regulate the sector

There were 2,005 insurance brokers and agents until the end of June 2015, according to the Ministry of Economy's published guide at the Official Gazette.

More than 1,500 are agents affiliated with insurance companies. Around 140 are independent brokers and 330 are brokerage firms.

Elias Hanna, Chairman of the Lebanese Insurance Brokers Syndicate (LIBS) said that the number of brokers has grown due to increasing awareness among clients, persistent security problems, and recent educ...

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Traffic improves at Tripoli Port. Exports surge 136 percent this year

The activity of Port of Tripoli (PoT) improved last year compared to the year before.

Total goods reached 1.8 million tons. Exports jumped 136 percent to 439,000 tons. "We have started to export to Jordan, Saudi Arabia, and Iraq through Turkey, which helped spike exports," said Ahmad Tamer, PoT Director General.

Despite this significant climb, total revenues only rose by 25 percent to $14 million. Tamer said: "This is because the port mostly handles general cargo, which has a much...

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EDL deficit down 33 percent. Cost of energy led to $667 million in savings

Electricité du Liban's (EDL) fiscal deficit fell by 33 percent, by the end of 2015, compared to the year before.

Walid Mezher, member of the EDL board, said: "Deficit dropped by $667million this year to $1.4 billion."

The national power producer expects the number to go down even more by the end of this year. "We are expecting the deficit to reach $1.1 billion by the end 2016, if oil prices continue to drop," he said.

According to Mezher, EDL is still unable to invest...

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Trade balance deficit improves by 12 percent. Decrease in international oil prices contributed most to lower import value

The trade balance (exports minus imports) improved by 12 percent last year, reaching $15 billion compared to $17 billion in 2014, according to Customs.

Marwan Barakat, Head of Research at Bank Audi, said that the decrease in the trade is attributed to the drop in oil prices and the depreciation of some currencies, mainly the euro versus the dollar.

Imports dropped by 12 percent, exports by 11 percent. The drop in the value of exports was due to the insecurity of transport lines t...

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Universal health coverage program from World Bank. Around 150,000 poor people will benefit from health coverage

The Ministry of Public Health (MoPH) has launched the Universal Health Coverage project. Around 150,000 poor people will benefit from free healthcare coverage.

The project is financed by MoPH ($6 million) and the World Bank ($15 million).

Implementation of the project will start in the next few months and will last three years. The funds will be transferred to 75 accredited primary healthcare centers in various regions. The healthcare centers, in collaboration with NGOs and munic...

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Property sales continue to drop. Fares: Numbers are not so bad

The activity of the real estate sector dropped for the second consecutive year, according to figures published by the Real Estate Registry at the Ministry of Finance.

The number of transactions totaled 58,000, down by 15 percent compared to 2014. The value of transactions reached $7.6 billion, falling by 14 percent. "With everything happening around us, the drop in the numbers is not that bad," said Massaad Fares, Chairman of the Syndicate of Real Estate Association in Lebanon (REAL). Not...

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Price deflation for the first time. Decline in oil prices main driver

A 3.4 percent deflation was registered in 2015, for the first time in the post-war era. The Consumer Price Index (CPI) dropped to 95.92 in December from 99.29 in the same month of 2014, mainly due to lower fuel and transportation costs resulting from lower oil prices.

Prices of the water, electricity, gas and other fuels category plunged by18 percent over the period, according to the Central Administration of Statistics (CAS). This category, which has a weight of nearly 12 percent in the ...

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Record year at Port of Beirut. Cars and containers up

The Port of Beirut (PoB) continued to realize growth last year, with profits rising by 13 percent to $239 million compared to 2014.

Elie Zakhour, Chairman of the International Chamber of Navigation (ACN), said: "The two main reasons behind growth is the record number of imported cars and rising number of local containers."

The number of imported cars went up by 22 percent to 112,000 units. Port of Beirut is the only port to receive new cars. Other ports have stopped receiving cars,...

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Electricity consumption grows by seven percent. Consumption doubles in a ten year period

The Lebanese Center for Energy Conservation (LCEC) estimates demand for electricity to rise to 31,000 gigawatt hours in 2020.

Sorina Mortada, Technical Consultant to the LCEC, said: "We took 2010 as a baseline and found that energy consumption grows by seven percent on a yearly basis." Consumption was calculated over the period of 2005-2015, resulting in an average growth of seven percent per year.

Electricity consumption in 2010 was 16,000 GwH while production is estimated at 11,...

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Cleared checks down for first time since 2012. Fall driven by sluggish real economy

The value of cleared checks in lira and foreign currencies fell by 6.6 percent to a total of LL104,858 billion ($70 billion) last year compared with 2014, according to the Association of Banks in Lebanon (ABL).

The drop was 3.5 percent in terms of number of cleared checks, which totaled 12.5 million in 2015.

Marwan Barakat, Head of Research at Bank Audi, said this was the first drop since 2012 and is due to the sluggishness in the real economy, which was reflected in a weakening i...

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Construction permits down in number and surface. Mount Lebanon accounts for half of all new developments

The number of construction permits, which measures future construction activity, totaled 13,900 in 2015, dropping by 12 percent compared to the year before, according to the Orders of Engineers in Beirut and Tripoli. But the total area of these construction permits went down by only five percent and reached 12.3 million square meters. Around half of permits are located in Mount Lebanon.

The area per construction permit grew by around nine percent year on year, to 885 m2. In 2014 as well, ...

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Ministry is seeking to manage mobile networks. Temporary measure to last until tender process is completed

The Ministry of Telecom (MoT) is seeking to obtain the Council of Ministers' mandate to temporarily manage the two mobile networks until a new tender to select the permanent operators is completed.

Until this authorization is obtained, the MoT may extend the contracts of the two mobile operators, said a source at the MoT. Last week the contracts of the Kuwait-based Zain Group (operating Touch) and Egypt's Orascom (operating Alfa) were extended to the end of February. The extensions are oc...

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Tripoli vegetable market will bear fruit. Financing of $12 million by Saudi Fund

A wholesale fruit and vegetable market in Tripoli will be completed in six months on a Mina municipal land plot. It will replace the current Tebbaneh market, which caused extensive traffic jams.

Works include demolishing a building at the market's entrance. The contractor is Al Jihad for Commerce and Contracting. The market is composed of a large building with spaces to be rented by 164 traders registered under the syndicate of fruits and vegetable traders.

Toufic Dabbousi, Chairm...

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Top 15 stories in 2015. Positive performance in many sectors

Surprisingly, many sectors scored a positive performance during 2015. Some experienced a significant slowdown. Large investments entered the market in the health, industry, hospitality and tourism, as well as the retail sectors. Many firms expanded their operations, locally or abroad. Several public works and transport projects were launched. The Central Bank launched a $1 billion stimulus package to support several sectors including energy, environment, and ICT. Parliament approved financial la...

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Zahrani wastewater project gets $60 million. To benefit half a million people

The Council for Development and Reconstruction (CDR) signed a loan agreement with the Kuwaiti Fund for Arab Economic Development (KFAED) to finance wastewater networks and installations in Zahrani area.

The first phase of the project has a value of KD18 million ($60 million). It includes the construction of a primary wastewater treatment plant near the Zahrani power plant, as well as primary and secondary collection networks.

Wastewater networks will be installed in 62 villages, st...

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Retail: 15 percent increase from last year’s holidays. Foreign expenditure to improve five percent

The retail activity is currently witnessing an outstanding increase. According to Simon Khoury, CEO of CityMall, there is a 15 percent increase in the retail activity of the mall in December, compared to the same month last year.

This week, around 40,000 visitors have entered CityMall per day. "We are expecting to reach higher numbers during the holidays," said Khoury.

Jamil Rayyes, General Manager of Hamra Shopping & Trading Co, owner of Grand Stores, said: "Retail activity impr...

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Public works contracts $12.5 billion in 25 years. Transport, solid waste and water projects top the list

The total value of contracts awarded by the Council for Development and Reconstruction (CDR) since 1992 reached $12.5 billion. It rose by four percent in 2014. Foreign funding of contracts stood at $5 billion, up by $100 million.

No new contracts in physical infrastructure were awarded in 2014. Completed and ongoing contracts are still at $5.3 billion till end 2014. Transportation continued to be the largest consumer of contracts with $3 billion worth of projects in 25 years. It was follo...

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Government green lights export of garbage. Total cost $193 million per year

The Council of Ministers has agreed to export solid waste, after five months of acute crisis and two failed ministerial plans.

Agriculture Minister Akram Chehayeb, who was tasked with following up on the issue, said: "The Council for Development and Reconstruction (CDR) will be assigned to handle the garbage export process, according to local and international laws."

The CDR will sign contracts with Dutch firm Howa B.V and British firm Chinook Urban Mining International to transpor...

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