April 2019

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Victory at Last: Lebanon Allows Private Production of Electricity
The Lebanese parliament finally amended Article 288 of 2014, to allow private companies to fund, build, and operate power plants. This reform will save taxpayers the cost of further investments in the failed national electricity company, EDL.

Three years ago, when LIMS suggested allowing private companies to produce electricity, nobody in Lebanon had even considered such an option. We produced the policy proposition, raised the awareness of public opinion, and encouraged policymakers to make the right choice. Today, private businesses are expected to build five new power plants and replace three old ones making the share of private electricity around 75%.

The electricity campaign is not over yet. Some decision makers will inevitably try to favor crony electricity producers on the expenses of competition; but we won’t allow them. LIMS will monitor the process, keep on producing ideas, and counter dubious schemes.

LIMS will keep you updated every step of the way.
Updating Lebanon’s Electricity Plan for Maximum Efficiency
April 5, 2019 –VDL Radio Station, Beirut, Lebanon
 
In an interview with VDL, Dr. Mardini was asked about the failure of the current distribution service providers (DSPs) to improve the service. He explained that the DSPs’ contract does not provide enough incentive, since the losses due to uncollected bills and an outdated network are born by government. He recommended changing the contract to electric distribution companies (EDCs), which would buy electricity production as a wholesale price and sell it in the retail market. DSPs would then have the incentive to collect bills and fix the network, or else, they will be losing their own money. This system would also allow the independent power producers (IPPs) that will be entering the electricity market soon, to sell their production directly to the private distributors without going through the state-owned and operated EDL.
Click Here to listen to the Interview in Arabic
Engaging Private Sector Would Cut Government’s Deficit  
April 30, 2019 – MTV News, Beirut, Lebanon
 
In a bid to reform government finance, the government of Lebanon proposed postponing the investment in some infrastructure projects, mainly roads and water dams. In an interview on prime-time news, Dr. Mardini argued that placing these costs on private companies would allow the projects to happen, while relieving government from the costs associated with them. Toll roads would allow private companies to invest in new roads and fix existing ones. The same applies to water, as water companies could build dams at their own expense without requiring taxpayers’ money.
Click Here to watch the Interview in Arabic
7 Deadly Mistakes in the 2019 Budget draft  
April 28, 2019- An-Nahar Newspaper, Beirut, Lebanon

Dr. Mardini identified 7 flaws in the 2019 budget draft currently being discussed by the cabinet.  (1) Increasing taxes and fees while Lebanon is on the wrong side of the Laffer Curve, (2) monetizing debt, which would lead to devaluation and inflation, (3) maintaining over-employment in the public sector, (4) maintaining government finances for infrastructure projects, while most of it can be privatized, (5) perpetuating subsidies, (6) sustaining the current underfunded social security and retirement system and (7) tampering accounts. He stated that by doing so, Lebanon is following Greece’s footsteps towards a sever default coupled with a massive recession.
Click Here to Read the Article in Arabic
Promoting Transparency in Government Budget
April 15-16, 2019- Radisson Blu Hotel, Beirut, Lebanon

In a 2-day workshop, 7 non-governmental organizations gathered to shed light on the importance of transparency and accountability in the process of developing the government’s budget. LIMS’ Policy Analyst Mrs. Eliane Badawy, stressed the importance of convincing government to decrease spending instead of increasing taxes in the upcoming 2019 budget. She also explained how the lack of details in the budget does not reflect the transparency of the government and may mislead public opinion.

Click Here to View Photos
LIMS Leaders' Academy #LLA2019
  • LLA101: Connect to Prosperity
    Registration Closed
     
  • LLA201: Economic Foundations of a Free & Prosperous Lebanon
    June 15 - 16, 2019 - Workshop in Beirut
     
  • LLA301: Shaping Public Policy
    July 20 - 21, 2019 - Workshop in Beirut
     
  • LLA401: Policy Fair
    Date TBA - Event
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