World Bank grants Lebanon $250 million loan to tackle power crisis
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Lebanon secures a World Bank $250 million loan to address power cuts and boost infrastructure recovery after the Israeli war on the country.
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Lebanon's Finance Minister Yassine Jaber and World Bank Regional Director Jean-Christophe Carret sign an agreement, which grants Lebanon a $250 million loan to help address chronic power outages (NNA)
The World Bank has granted Lebanon a $250 million loan to help address chronic power outages exacerbated by "Israel's" war on Lebanon last year, the country’s Finance Ministry announced on Thursday.
The funding aims to support urgent reforms in Lebanon’s electricity sector, which has long suffered from fuel shortages and poor infrastructure.
The World Bank estimates that the country will need approximately $11 billion for comprehensive infrastructure recovery and reconstruction.
Even before the war, Lebanon struggled with outdated energy systems and limited access to imported fuel. The devastation caused by the war has highlighted the need for accelerated reform and external support to stabilize the power sector and broader economy.
'Finally making real strides'
Lebanon had said that it received preliminary approval to increase the World Bank loan from $250 million to $400 million as part of a wider reconstruction funding program valued at $1 billion. The remaining funds are expected to come from international aid partners.
Finance Minister Yassine Jaber and World Bank Regional Director Jean-Christophe Carret signed the landmark agreement, describing it as a crucial step toward addressing Lebanon's power crisis.
"This loan represents a strong boost to the structural reforms Lebanon is implementing in the electricity sector," Jaber said, emphasizing the long-awaited establishment of regulatory frameworks and oversight mechanisms.
"We are finally making real strides toward transforming how this sector is managed."
Carret hailed the agreement as a “turning point” in the World Bank’s relationship with Lebanon, noting it is the first International Bank for Reconstruction and Development (IBRD) loan dedicated to the country’s power sector.
Solar energy development to support Lebanon’s power crisis
The loan will fund key projects, including the development of a national control center, improvements in accounting and billing at Electricity of Lebanon, and the construction of scalable solar energy farms. The first phase of the solar project is expected to generate 150 megawatts and save $40 million annually in fuel costs.
"The loan will help deliver cleaner, more reliable, and financially sustainable electricity services," Jaber indicated, highlighting its alignment with broader government reform efforts.
The minister expressed gratitude to the World Bank and its partners for their support during Lebanon’s ongoing recovery efforts, stating that the country urgently needs external assistance to stabilize and rebuild.
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