World Bank Approves Major Loan to Address Lebanon's Power Crisis

(MENAFN) Lebanon has secured approval from the World Bank for a $250 million loan aimed at addressing the country's ongoing electricity issues, announced Finance Minister Yassine Jaber on Thursday.

"This loan will give strong momentum for the reform steps taken by Lebanon to rehabilitate the (electricity) sector," Jaber stated.

"We are confident that this loan will be highly beneficial in advancing and supporting the reforms we are implementing in Lebanon's electricity sector," he further noted.

The loan agreement was formalized by Jaber and Jean-Christophe Carret, the World Bank’s country director for the Middle East.

Carret referred to the deal as "a pivotal moment in the Bank's partnership with Lebanon," marking a crucial step toward the essential reforms required for the country's power sector.

According to reports, the agreement will support initiatives such as establishing a national electricity control unit, enhancing the billing and accounting systems, and boosting solar energy development.

In recent years, Lebanon has faced escalating power outages due to the government's financial struggles, which hindered its ability to import fuel. Previously, Lebanon produced between 1,600 and 2,000 megawatts of electricity daily, but fuel shortages have drastically reduced output to historically low levels.

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