Lebanese Finance Minister Yassine Jaber signed a 250 million U. S. dollars loan agreement with the World Bank, aimed at alleviating Lebanon’s long-standing electricity crisis.
The signing took place during high-level meetings in Washington on the sidelines of the International Monetary Fund (IMF) and World Bank spring meetings, a statement by the ministry said on Thursday.
Jaber also announced that Lebanon had secured preliminary approval to increase the value of this loan to 400 million dollars, as discussions continue with World Bank Vice President Ousama Wieden.
The Lebanese government had failed to provide the country with a sustainable electricity supply in recent decades.
Much of the country relies on diesel generators as power from the state-owned utility is delivered at irregular intervals and is sometimes available for only two hours a day.
The 250 million dollars loan would focus on overhauling the struggling electricity sector, with emphasis on rehabilitating transmission networks and improving service reliability.
This component is part of a wider electricity reform effort that also includes structural governance changes and investments in clean energy infrastructure.
The loan is part of a broader reconstruction programme expected to total one billion dollars which is to be financed through additional international aid.
The loans would be offered on concessional terms, with repayment periods of up to 50 years.
Jaber emphasised that these funds would support Lebanon’s recovery and reform agenda, highlighting recent legislative momentum and international engagement.
