Marc Ayoub

The report presents the role of transparency in curbing corruption in Lebanon and the risks associated with corruption in the power sector. It also gives an overview of the existing legal framework that governs transparency in the country and in the power sector specifically, and an assessment of the existing gaps and lessons learned using concrete examples along the power sector value chain, including the nascent O&G sector. The paper highlights two case studies from countries leading in… Show more

The report presents the role of transparency in curbing corruption in Lebanon and the risks associated with corruption in the power sector. It also gives an overview of the existing legal framework that governs transparency in the country and in the power sector specifically, and an assessment of the existing gaps and lessons learned using concrete examples along the power sector value chain, including the nascent O&G sector. The paper highlights two case studies from countries leading in low-level of corruption and high-power service delivery, and provides in its appendix an assessment of the Ministry of Energy and Water’s (MoEW) website to measure its commitment to the Right to Access Information Law No. 28/2017. Show less

Dysfunctional and corruption-prone power sectors are a persisting challenge in many developing countries. Drawing from the theoretical framework about corruption from Khan, Andreoni and Roy [1] and applying it to electricity, this paper explores the service provision model of Electricite du Zahle (EDZ), a decentralized local utility in Lebanon. Our analysis shows that although EDZ has succeeded in improving the service experienced by its customers, its approach has not reduced corruption… Show more

Dysfunctional and corruption-prone power sectors are a persisting challenge in many developing countries. Drawing from the theoretical framework about corruption from Khan, Andreoni and Roy [1] and applying it to electricity, this paper explores the service provision model of Electricite du Zahle (EDZ), a decentralized local utility in Lebanon. Our analysis shows that although EDZ has succeeded in improving the service experienced by its customers, its approach has not reduced corruption. However, despite its deviation from the “standard” model of power sector reform, the EDZ model has achieved a notable developmental outcome in a way that is consistent with the complex political settlement of the country. Our findings point to the possibility of extending similar – second-best, but politically feasible – approaches throughout Lebanon and, potentially, in many other countries where the implementation of centralized power sector reforms has not succeeded. Show less

Based on extensive interviews with stakeholders in the sector—both at the central level and within EDL, including energy experts in the field—this paper tries to understand EDL’s current organizational structure and operations, the challenges it is facing at several levels, and the impact EDL’s service can have on the overall operating model. At the same time, this study explores how it is possible to implement Law 462/2002 in its current form without any amendments. It also presents a… Show more

Based on extensive interviews with stakeholders in the sector—both at the central level and within EDL, including energy experts in the field—this paper tries to understand EDL’s current organizational structure and operations, the challenges it is facing at several levels, and the impact EDL’s service can have on the overall operating model. At the same time, this study explores how it is possible to implement Law 462/2002 in its current form without any amendments. It also presents a realistic timeline for its implementation. This is done through an in-depth legal assessment of the law’s sections, along with other laws and decrees that govern both the electricity sector and EDL. This implementation timeline, which would take almost a year, should parallel the launching of the unbundling process and the formation of at least three publicly owned companies that will manage the generation, transmission, and distribution. This should be accompanied by the involvement of the private sector in both the generation and distribution within a period of two years, and in up to 40 percent of the shares of the newly formed companies.

Finally, the paper draws on the lessons learned from other electricity utilities in the MENA and around the world and deduces what could fit for the Lebanese context. We find through our research that the main takeaways revolve around the importance of a regulator, policy incrementalism, the impact of a successful unbundling of an electricity sector, the flexibility and adaptability of an electricity sector, and the importance of a comprehensive regulatory framework targeting renewable energy.​ Show less

In Lebanon, the electricity sector’s dysfunction and inefficiency mask deeper political economy challenges, including rampant rent-seeking, captured institutions and a fractured state. Over decades, corruption and mismanagement in Lebanon’s electricity sector has contributed to the draining of public finances and has deprived the Lebanese people of their right to reliable and affordable electricity. When Lebanon witnessed an uprising in October 2019, electricity (or the lack thereof) was a… Show more

In Lebanon, the electricity sector’s dysfunction and inefficiency mask deeper political economy challenges, including rampant rent-seeking, captured institutions and a fractured state. Over decades, corruption and mismanagement in Lebanon’s electricity sector has contributed to the draining of public finances and has deprived the Lebanese people of their right to reliable and affordable electricity. When Lebanon witnessed an uprising in October 2019, electricity (or the lack thereof) was a focal point of public grievance and it remains a central concern amidst the economic crisis that the country currently faces.

Lebanon’s electricity performance is dismal. The state utility – Électricité du Liban (EDL) – covers only 63% of electricity demand, which results in rotating outages. These last longer as one moves away from Beirut’s central district, thus widening social and developmental inequalities. There are also high technical and non-technical losses in power, together amounting to a third of EDL’s total generation.

Amidst the poor general state of the sector, one area of Lebanon has managed to operate a private utility that provides a reliable and high-quality electricity service – Électricité de Zahlé (EDZ) – which covers the city of Zahle and 16 surrounding villages. EDZ’s technical losses stand at only 5%; it collects 100% of bills and is profitable while providing electricity at an overall cost no higher than that paid by households reliant on private generators to back up EDL’s supply.

Our study explores how it has been possible to establish EDZ’s functional, but problematic, service provision within the complex sectarian political context of Lebanon. We draw on a framework provided by Khan et al. (2019) to understand the rents and types of corruption in the sector and how the changes implemented by EDZ have been consistent with the nature of Lebanon’s political settlement. Show less

The deployment of Renewable Energy has a great potential to take part in resolving the dire state of Lebanon’s power sector through offering fast capacity addition, reduced financial burden and environmental and health benefits. This policy brief, authored by Iyad Boustani (LFRE) and myself, focuses on the financing side of a 300-Megawatts grid-connected Solar PV power plant located in the inland Tfail region in the Bekaa Valley and aims at exploring the cost range of such projects under… Show more

The deployment of Renewable Energy has a great potential to take part in resolving the dire state of Lebanon’s power sector through offering fast capacity addition, reduced financial burden and environmental and health benefits. This policy brief, authored by Iyad Boustani (LFRE) and myself, focuses on the financing side of a 300-Megawatts grid-connected Solar PV power plant located in the inland Tfail region in the Bekaa Valley and aims at exploring the cost range of such projects under realistic technical and financial limitations. Show less

Ni7.5/NaY catalysts were prepared using two different methods, the incipient wetness impregnation method and the “two-solvent” method. These catalysts were characterised by N2 sorption, XRD, TEM and TPR. Their activity and stability in the dry reforming of methane were tested at atmospheric pressure under an equimolar mixture of methane and carbon dioxide. Three different Ni species, very small, spherical, and layers of nickel silicate were observed by TEM. The preparation by the two-solvent… Show more

Ni7.5/NaY catalysts were prepared using two different methods, the incipient wetness impregnation method and the “two-solvent” method. These catalysts were characterised by N2 sorption, XRD, TEM and TPR. Their activity and stability in the dry reforming of methane were tested at atmospheric pressure under an equimolar mixture of methane and carbon dioxide. Three different Ni species, very small, spherical, and layers of nickel silicate were observed by TEM. The preparation by the two-solvent method led to a better dispersion of the active phase as well as to better activity and stability. These catalysts were promoted with small amounts (0.1 wt%) of rhodium. Rhodium facilitates the reducibility and greatly enhances catalytic activity. A complete conversion (100%) for CH4 and CO2 over the Rh promoted catalyst is achieved at 584 °C and 559 °C respectively, while for the non-promoted Ni7.5/NaY catalyst, only a 60% conversion rate for CH4 and CO2 is reached at the same temperatures. Show less