Zahle Electricity Model on the Table at World Bank and IMF in Washington

Information indicates that Lebanon's electricity file occupied a central place in the meetings held by Prime Minister Nawaf Salam in Washington with senior officials of the World Bank and the International Monetary Fund, attended by Minister of Energy and Water Joe Sadi and Finance Minister Yassine Jaber, as part of discussions on required reforms and securing guarantees to attract investments to the energy sector.

According to the information, Minister Sadi elaborated on the reality of Lebanon's electricity sector, stressing that treatment begins with tariff reform, particularly adopting a moving kilowatt tariff linked to oil costs, which allows for financial sustainability of the sector, alongside addressing waste, violations, and electricity theft estimated at approximately 30 percent.

In this context, Sadi presented the Zahle electricity model as a practical example in ensuring electrical supply, improving collection, and reducing non-technical losses, noting that the institution's experience in managing distribution and collection could serve as one of the models benefiting from the electricity sector reform process in Lebanon.

The information suggests that World Bank officials expressed interest in this model, considering that the success of any model in controlling collection and limiting current theft and violations would enhance investor confidence and help provide the necessary financial guarantees for entering the sector, especially since private investments require a more stable legal and financial environment.

The presentation of the Zahle electricity model comes at a time when the Lebanese government confirms that electricity sector reform is not limited to increasing production but includes restructuring the sector, improving collection, reducing waste, and providing the framework that allows attracting new investments. The Ministry of Energy announced from Washington that securing private or friendly state investments requires financial guarantees, and these guarantees are linked to reforms including sector governance, law enforcement, improved collection, and addressing technical losses and violations.

Thus, it appears that the Zahle experience has become present in the international discussion on the future of electricity in Lebanon, not only from the perspective of ensuring supply but also from the perspective of collection, waste control, and securing the conditions needed by investors to enter the electricity sector.