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Lebanon Power Sector Emergency Action Plan (English)

Lebanon's power sector has long been at the center of the country's economic and fiscal challenges as it adds to the high fiscal and trade deficits, requiring significant government subsidies due to inefficient costs and underpricing. The power sector has been unable to secure adequate supply to electricity consumers, severely impacting economic and social development, and creating a public trust deficit that goes far beyond the technical and fiscal challenges. Solutions to the sector's challenges have been extensively studied and largely agreed on at a technical level, but political will remains the key missing ingredient in progressing these solutions. Prior actions in the sector amounted largely to crisis management, prioritizing speed over addressing the structural issues and sector sustainability based on proper planning and timely decision-making that are at the heart of sector woes. The new Government should expeditiously confirm its own sector program initially through a vision statement, which this paper and the following suggested timeline are intended to inform, that would later be expanded to a full plan after extensive public consultations to ensure public support. Communication, public consultations, and information disclosure are vital to regaining public trust in the sector. Increasing the sector's transparency and accountability requires implementing the long-stalled vision of Law 462 for more private sector participation in the distribution and generation sub-sectors. A clear and timebound plan for putting this vision into effect is urgently needed.

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Citation

Lebanon Power Sector Emergency Action Plan (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/500281593636676732/Lebanon-Power-Sector-Emergency-Action-Plan