PART TWO - THE RED CHUNK OF THE DONUT

Saving the Lebanese Treasury US$2 billion a year, or US$40 billion during the next twenty years, through the implementation of the 2009 Energy Plan

This second initiative that is likely to save our country's Treasury some $2 billion US dollars a year, amounting to $40 bullion US dollars over the next twenty years has been, contrary to the first one, the subject of numerous discussions in the press and on the small screens.

Furthermore, considering that the subject has been on the agenda of our politicians (governments, parliamentary commissions, and the Chambers of deputies) for the past two decades, one cannot but wonder why no action was taken during all this period to address this unforgivable negligence.

Some citizens and a number of knowledgeable local critics maintain the view that the two gas powered generating plants have not been built because of the opposition of the owners of private generators in Lebanon who stand to lose their investment in case these two plants are built and put into operation.

If that were truly the case then one would wonder how, in a "so-called" democratic system, a few hundred profiteers could hold an entire country hostage to further their narrow interests.

Our previous Minister of Eneergy, HE Gebran Bassil rightly pointed out in his Energy policy of 2009 that, once these two gas powered plants are built, this would save the Lebanese treasury over $2 billion US dollars a year.

However, in spite of all his endeavors, Minister Bassil was unable to execute any of the 25 different initiatives that were included in his 2009 Energy policy, with the possible exception of the 250 MGW that we receive yearly through the two Turkish barges.

As a consequence of this lamentable situation, we are now faced with a yearly loss of two billion USD for failing to build two generating plants that are expected to cost us some $2.3 billion US$ in all.

In other words we are liable to lose $40 US$ billion dollars over the next twenty years because we are somewhat "UNABLE" to build two gas powered plants that would cost $2.3 billion dollars.

Does it make any sense to anyone who reads this presentation?

Let me add a final remark to this somber outlook. In addition to the heavy costs of operating the current fuel powered turbines, the citizens have to contend with an inefficient and corruption riddled Administration at "Electricite du Liban". This institution can boast of never having had its accounts audited by international auditors since 2001. In addition, it is worthwhile mentioning  that the last international audit report of 2001 had mentioned that the accounts of the company were totally unacceptable because they were very badly kept and managed.

So we can conclude by stating that initiative number two would consist of building the two gas powered plants and introducing some basic reforms at "Electricite du Liban, EDL". The main actors who would be responsible for implementing these reforms would be the Minister of Energy, supported by the Council of Ministers, and the Minister of Finance who would be responsible for finding the 2.3 billion US$ that would be needed to fund these reforms.

But the Institutions who should be held responsible, in the first instance, for putting the project on rail, would be the parliamentary commission on energy and the parliamentary commission on finance who should work day and night to get the project approved in Parliament at the first available opportunity. In exchange for extending their mandate, the least they could do, would be to work hard to see these two vital projects executed by the government, as soon as possible.