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(Haitham Al-Mousawi)
As a result, after the formal but non-binding MOU is approved, discussions should start with companies. Then the real conditions will appear, beyond simple concern. Those conditions, if acceptable to Lebanon, begin the current stage, that is, to negotiate factory construction contracts.
Are we getting to that stage? The Minister of Energy himself stated after the meeting of the Parliamentary Works Commission, that he is subject to the availability of funds, indicating that the funds before the crisis were up to 85 percent, provided that the state ensures the 15 percent. At the meeting, the discussion was based on the possibility of financing reaching 100 percent, in light of the deficit that the Lebanese state has under its weight, although no one has guaranteed that the companies are still in their commitment. One of those interested in the archive seems pessimistic about the possibility of reaching an agreement that guarantees the establishment of the laboratories. Companies that have already shown interest in investing in factories, especially General Electric and Siemens, have not issued any new signals, other than their agents’ indication that interest continues. As for the new conditions, they are not yet timely. Hopes linked to the possibility of obtaining financing with the guarantee of the German governments (for “Siemens”) and the French governments (for “General Electric”) are not the same. Last week, there was information about the withdrawal of Siemens, whose offer had been described as more serious, than any future negotiation. Ghajar says he heard about this news, but officially nothing changed, as no message was sent to the ministry.
Roma achieve memorandum of understanding in preparation for state-to-state negotiations
Followers of the file say the problem is related to ensuring the state’s commitment to pay the debts required to establish the factory. Someone says: How is it possible that Germany refinances the state, while being one of the creditors whose debts have been defaulted? More than that, if obtaining a sovereign guarantee from the state or the Bank of Lebanon is sufficient in the past, then this is no longer the case. No one relies on bankruptcy guarantee. The Minister of Energy recognizes himself: the terms of financing and payment are increasing, but they cannot be precisely determined before the memorandum of understanding is signed and what the companies have.
Despite all this, there are those who announce today that they are ready for adventure. From the Far East, Chinese companies are interested in investing in the sector. That interest is not new, since CMC had participated in the qualifying stage last November. But what’s new is the company’s claim that interest continues. More importantly, these companies appear to be the only ones capable of securing financing, as the “Bank of China” is ready to do so. This is what Gypsies relies on, but nevertheless did not negotiate with the interested Chinese company, because “negotiating with him is outside the framework of the Cabinet mandate, which limits communication with turbine manufacturers, and China is not one from them”. But China already makes the turbines, although this manufacturing is specifically aimed at the domestic market, in addition to the fact that China also makes turbines for international companies. Rome understands this and consequently does not rule out the possibility of negotiating with China from its “GE” turbine manufacturing portal, for example. Just as it happens that we negotiate France because American turbines are made in French factories, it can also be repeated with China, says Rome.
This means that dealing with China is not limited to buying turbines. Basically, the turbine market is open in the world. Each contractor can buy the turbines from any company. This is also the case for Chinese companies. The only difference is that operating the plant on Chinese turbines could save about $ 100 million in construction costs.
The start of the “energy” that was opened to Chinese offers was reportedly the reception of the Minister of Energy before CMC agent Sarkis Chalhoub, after the latter met with the Prime Minister, reiterating the willingness to China to invest in the construction of power plants. In addition, Al-Akhbar learned that the Chinese company’s management had contacted the Prime Minister and the Minister of Energy, announcing their interest in participating in a tender for the construction of power plants in each of Zalata and Zahrani and Deir Ammar, in accordance with the BOOT system (construction, ownership and administration of the factory and then transfer it to the state after the end of the Contract Duration). The last message arrived at the Ministry of Energy on May 6.
The Chinese company CMC will present its offer to the Prime Minister and Minister of Energy
Most importantly, knowledgeable sources confirm that the company is ready to secure financing without obtaining a sovereign guarantee from the state. The company understands that said guarantee no longer has international value. What you are requesting is just a letter from the Ministry of Energy confirming your willingness to buy all the energy produced. This is evident, since the electricity produced will eventually go to the EDL.
But why can the Chinese company make such an offer? The source says China is not hiding its interest in the region. He is ready to improve his presence, and may be the most capable in the world to finance infrastructure projects now. Of course, in the end, you are involved in a long-term investment project, so you calculate that if Lebanon is difficult today, will it remain difficult for twenty years? So this may be Lebanon’s opportunity to build power plants after years of losses, or at least that’s its chance to let the competition deviate from any pressure, be it from the west or the east.
