Author: PPD Team Date: 29/04/2025
Lebanon has secured a USD250 million loan agreement with the World Bank to address long-standing issues and modernise the country’s energy infrastructure.
The loan will help establish a national control centre, improve accounting and billing systems at the state-run Electricity of Lebanon, and develop scalable solar energy farms. The first phase of solar projects is expected to generate 150 MW, saving Lebanon around USD40 million annually in fuel costs.
This agreement marks the first loan from the International Bank for Reconstruction and Development to Lebanon’s power sector, highlighting the international community’s support for the country’s energy transition. Lebanon has struggled with severe electricity shortages for decades, but the situation worsened following the economic crisis that began in late 2019. In addition, the 14-month Israel-Hezbollah conflict that ended in November 2023 caused significant damage to Lebanon’s electricity infrastructure.
The deal was signed in Washington by Lebanon’s Finance Minister Yassin Jaber and Jean-Christophe Carret, the World Bank’s regional director. Lebanese officials, including Economy Minister Amer Bisat and central bank governor Karim Souaid, are in Washington for the Spring Meetings of the World Bank and the International Monetary Fund.