EUR 60 million loan for new roads in Lebanon
The Facility for Euro-Mediterranean Investment and Partnership (FEMIP) is granting a EUR 60 million loan for new roads in Lebanon. The loan covers the construction of two new primary roads: (1) the 11 km highway section between Taanayel and Masnaa on the road between Beirut and Damascus and (2) the 6 km Tripoli West Ring Road.
The finance contract was signed in Luxembourg by Mr. Philippe de Fontaine Vive, EIB Vice-President in charge of FEMIP, and Mr. Al-Fadl Chalak, President of the the Council for Development and Reconstruction (CDR).
Mr de Fontaine Vive commented: "A continuous and well-targeted development of the Lebanese road sector is essential to cope with the growing domestic population and economic needs for adequate public sector infrastructure, in particular in urban areas along the coast. Maintaining a well-functioning Lebanese road network is also essential to support the development of the private sector, as well as the regional economic transit activity and trade, where Lebanon plays a key role and continues to constitute a driving force for the region.”
The implementation of the road project works will be supported through a 3-year technical assistance programme extended under the FEMIP Technical Assistance Fund.
The loan is extended to Lebanon and will be administered by the CDR, which is also the beneficiary of the technical assistance programme.
The loan constitutes the second EIB operation in the Lebanese road sector loan, after the Northern Coastal Highway project signed in 1997 (EUR 20 million). Total EIB loans signed in Lebanon since 1993 amount to EUR 702 million mid-2005, for a total number of 22 loans.