Lebanon: Energy Ministry to issue tenders for $1.2 billion electricity project
The Energy and Water Ministry will issue tenders in May for a $1.2 billion project to produce 700 additional megawatts of electricity, the National News Agency reported over the weekend. According to a statement issued by the ministry, the project will boost power supply at the Zouk, Deir al-Ammar and Jiyeh plants. It said the World Bank had recently approved the tender, which was set in accordance with international standards and requirements.
The tender to boost supply at the Zouk and Jiyeh power plants will take place Monday, May 14, while the bid to produce electricity at Deir Ammar plant will take place Monday, May 28, at 9 a.m. The ministry said interested companies can obtain a conditions document for the project starting Monday from the ministry’s tenders department.
The Cabinet approved last September a $1.2 billion plan to generate 700 MW of electricity and agreed last Wednesday over a memorandum of understanding with Iran to assist with the electricity sector. Iran has offered to sell Lebanon electricity at reduced prices as well as build additional power plants to help the country meet rising electricity needs.
Lebanon has long suffered from severe power outages. While power consumption exceeds 2,400 MW, production is estimated at 1,500 MW. In the short to medium term, leasing electricity boats is one of several options Lebanon is considering to boost production. The power generating boats will produce 200 MW to 300 MW. State allocations to Electricite du Liban increased sharply in 2011 on higher oil prices last year.
The Finance Ministry has said that its transfers to EDL between January and November 2011 soared by LL750 billion ($500 million) to LL1,598 billion. The ministry attributed the increase to hikes in fuel and gasoil prices.