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The financing of the European Investment Bank will range between two and three billion (Hussein Beydoun / Al-Araby Al-Jadeed)
Two sources said Germany will present to Lebanese authorities next week a billions-of-dollar plan to rebuild Beirut’s port as part of efforts to urge the country’s politicians to form a government capable of preventing a economic collapse.
Last August, the chemical explosion in the Beirut port killed 200 people and injured thousands, destroyed entire neighborhoods in the Lebanese capital and plunged the country into its worst political and economic crisis since the 1975-1990 civil war.
According to two diplomatic sources familiar with the plan, Germany and France seek to lead the reconstruction effort. On April 7, they said, Berlin will present a proposal that the European Investment Bank agreed to help finance, according to which the area would be evacuated and the facilities rebuilt.
One of the sources estimated that the EIB financing would be between two and three billion euros.
A senior Lebanese official confirmed that Germany would submit a comprehensive proposal to rebuild the port.
Neither the German Foreign Ministry nor the consultant Roland Berger, who according to the two diplomatic sources had drawn up the plan, did not immediately respond to requests for comment. No comment was available from the European Investment Bank.
The two sources said that the political elite in Lebanon must first agree to form a new government to reform the budget and root out corruption, a condition that donors, including the International Monetary Fund, insist on implementing before releasing billions of dollars. in aid.
One of the sources said: “This plan will not come without conditions … Germany and France first want to see a permanent government committed to implementing reforms. There is no other way than that, and this is good for Lebanon.”
Eight months after the port disaster, many Lebanese who lost their families, homes and businesses are still awaiting the results of the investigation into the causes of the explosion. Lebanon is on the brink of collapse, as shoppers fight over products, protesters block roads and businesses close their doors.
The two sources said that the political elite in Lebanon must first agree to form a new government to reform the budget and root out corruption, a condition that donors, including the International Monetary Fund, insist on implementing before releasing billions of dollars. in aid.
Foreign donors said the new government should have a strict mandate to implement economic reforms, including central bank scrutiny and power sector reform.
However, Prime Minister-designate Saad Hariri and President Michel Aoun were unable to agree on the cabinet alignment. The interim government, which resigned after the explosion, continues to carry out its functions.
The International Monetary Fund said there had been no discussions about the programs with Lebanese officials and that it had only provided technical assistance to the Finance Ministry and some state-owned companies.
Proposal from Germany
In addition to the port itself, the German proposal will address the idea of remodeling a surrounding area with an area of approximately one million square meters, in a project that the two diplomatic sources said would be similar to the reconstruction of downtown Beirut. after the war.
Like the post-war plan, the proposal includes the establishment of a publicly traded company similar to the Lebanese Company for the Development and Reconstruction of Downtown Beirut (Solidere), which was founded by the late Prime Minister Rafik Hariri in the 1990s and is still listed on the Lebanese Stock Exchange.
The two sources estimated the cost of the project at between $ 5 billion and $ 15 billion, and said it would create 50,000 jobs.
The Lebanese official said France and the CMACGM Ports and Container Shipping Group are also interested in the reconstruction project.
One of the diplomatic sources indicated that France sent several missions, including one in March, which included the group “CMACGM”, during which it showed its interest in participating in reconstruction operations. But he added that the mission focused more on specific cleanup operations than on broader renovations.
The French Foreign Ministry declined to comment immediately. CMACGM declined to comment.
The Lebanese official indicated that the decision to start the implementation of the project will depend on the agreement of the Europeans on who will lead the matter. He said: “This is a European decision at the end of the day, because they have to decide it among themselves. And when it is done, the Lebanese government can move on.”
The two diplomatic sources said that Germany wants to work closely with France in this regard, but Paris is continuing its own initiatives for the time being.
One said: “The irony of all this is that, on the one hand, the Europeans are talking about putting pressure on the political class (in Lebanon) and, on the other hand, they are arguing among themselves about possible contracts when it comes to a get a piece of the cake. “
(Reuters)
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