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The November 2022 issue argued that Lebanon's water resources, among the most favourable in the region thanks to heavy rainfall and spring snowmelt, had been left to waste by decades of under-investment and political interference. It reviewed the institutional set-up around the Ministry of Energy and Water, the Council for Development and Reconstruction, four regional water establishments and the Litani River Authority, and summarised the shared findings of earlier studies: rain and snow water improperly captured, a network designed for at most two million inhabitants and never upgraded, obsolete lump-sum tariffs, no storage culture, no wastewater recycling for agriculture, contaminated rivers and staff largely appointed on political grounds.
The authors set five priorities: retaining rain and snow water, guaranteeing non-stop supply to households and industry, cutting agricultural waste through recycled water, building dams that also generate power, and selling surplus water to neighbouring countries. With the state unable to fund investment, they proposed long-term concessions run by an experienced operator, with ownership and net profits remaining with the state, in preference to immediate privatisation or BOT contracts.
The issue gave municipalities a central role, citing their record in waste collection and alternative power during the crisis, and recommended full due diligence on the regional utilities and special purpose entities issuing non-recourse project bonds as the financing channel.
Key findings
- Agriculture accounted for 60% of water demand, domestic use for 27% and industry for 13%.
- At the time of writing, supply was rationed in much the same way as electricity, averaging only 24 hours a week.
- A developed water network and hydro-based power were estimated to have the potential to yield US$2–3 billion a year to the state.
- The issue recommended concessions of at least 25 years, and preferably closer to 40, rather than BOT structures in which the state receives only tax revenue.
Archive: written in Nov 2022; figures and assessments reflect conditions at the time of writing.Summary of the paper; the full analysis is in the PDF.