May 2018

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May 2018, N°7
Here’s How We Made a Lasting Impact in May 2018
Lebanon Allows Private Sector to Produce Electricity
May 21, 2018 - Al Manar TV, Beirut, Lebanon
 
President of LIMS, Dr. Patrick Mardini expressed his satisfaction on the Hariri government’s decision to adopt the Build-Operate-Transfer (BOT) model at the new Deir Amar power plant—making J&P Avax the first privately-owned electricity company in Lebanon. Dr. Mardini explained that this new framework saves the government the cost of investment, operation, maintenance, and taxes. It also transfers part of the risk to the company and reduces the overall costs.

Click Here to Watch the Full Interview in Arabic.
Will Electricity Crisis Make Lebanon’s Summer Pitch Black?
May 21, 2018 - An-Nahar Newspaper, Beirut, Lebanon
 
Lebanon is already renting two powerships, stationed at the shore and supplying electricity as a transitional solution. For the past year, the ministry of energy has been trying to rent two additional powerships, bypassing the Tenders Department.  LIMS has been insisting on going through the Tenders Department, for more transparency, knowing the department will reject the project and save about $850 million for taxpayers. In a bid to convince the cabinet, the minister of energy compared the cost of powerships to importing electricity from Syria. He argued that powerships will save around $15 million compared to the Syrian option. Dr. Mardini considers the study as being incomplete, as the third option of allowing market entry for private companies, was not regarded. The government requested the minister, to go through the Tenders Department for the two extra ones, while renewing the contract of the existing ones.

Click Here To Read the Full Article in Arabic.
Cabinet Should Reject Powership Deal
May 21, 2018 - VDL Radio Station, Beirut, Lebanon

Dr. Mardini intervened on VDL’s morning news, before the cabinet meeting, saying BOT would have positive results, if certain conditions are met. However, he argued against renting additional powerships and insisted on the importance of transferring the file to the Tenders Department. He highlighted that the government asked the ministry to study all possibilities, including allowing private companies to build factories, but the ministry limited the study to powerships versus imports from Syria. Another study by the ministry shows, electricity made by powerships costs twice as much as private factories built on Lebanese soil!

Click Here to Listen to the Full Interview in Arabic.
Spikes in Oil Prices Might Lead to More Power Rationing
May 21, 2018 - Al Iktisad Online Magazine, Beirut, Lebanon

Dr. Mardini highlighted that the current electricity plan will lead to increasing costs on the Lebanese government. Given the spike in oil prices, the advance payment to Lebanon’s state-run electricity company, will not cover the electricity costs and once again, the government must decide to either ration or increase expenditures. He insisted that the best solution is to terminate electricity subsidies—which has been voted on, but not yet implemented —and allow the private sector to handle production and distribution.  Increasing production before handling those problems will be money wasted, he added.

Click Here to Read the Full Article in Arabic.
Ministry of Energy Blocks Entry into Electricity Sector for Private Companies
May 17, 2018 - An-Nahar Newspaper, Beirut, Lebanon
 
Dr. Mardini stated that despite the lack of electricity, the ministry of energy is limiting, rather than welcoming market entry, in a country suffering from daily outages. Whenever the ministry feels like increasing production, they open a call for bids, with restrictive tender conditions, guaranteeing a win for a specific company. To illustrate, the ministry could require exclusively floating generation—which only powerships can supply. Even if the tender was done properly, it would still be counterproductive, as just a single company will win the bid, keeping others out of the market.

Click Here to Read the Full Article in Arabic.
Public Hospital Employees Strike: Asking for More, While Providing Poor Services
May 9, 2018 - VDL Radio Station, Beirut, Lebanon

Dr. Mardini criticized the public hospital employees strike, accusing them of taking patients as hostage. In private hospitals, patients get good service, because employees know the patients are covering their salaries, while for public hospitals, the government, is paying, causing possible patient mistreatment to happen, he noted. Dissatisfied patients can move to private hospitals for their treatment, however, they will still be paying for public hospitals' employees through their taxes. Failure is rewarded, by the government pumping more taxpayer money into the mismanaged state entity.

Click Here to Listen to the Full Interview in Arabic.
Achieving Lebanon’s Full Technological Potential
May 2, 2018 - Jardins De L’Agdal Hotel, Marrakech, Morocco
 
During a workshop organized by the Arab Center for Social Research and Humane Studies in Morocco, LIMS Senior Policy Analyst Majdi Aref, highlighted how Lebanon is not achieving its full technological potential, due to the slow and expensive internet services. The country’s internet speed is ranked third last worldwide, as per Speedtest Ookla. Lebanon’s governmental price-setting policy prohibits it from fully exploiting the internet capacities it currently owns. For internet services, freeing the market from government boundaries and allowing its infrastructure to grow, would benefit businesses and individuals.
Fostering Inclusive Economic Growth in the MENA Region
May 2, 2018 - Jardins De L’Agdal Hotel, Marrakech, Morocco
 
Mr. Aref, attended a conference on the importance of inclusive economic growth in the MENA region. Social entrepreneurs from across the region shared their successful experiences and the measures they took to accomplish them. Outstanding results were achieved in empowering women and children, despite the limited amount of resources available to the entrepreneurs, who shared their success stories at a conference, held by the Arab Center for Social Research and Humane Studies in Marrakesh, Morocco.
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