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MINISTER OF ENERGY AND WATER ALAIN TABOURIAN: 'LEBANON'S PREDICAMENT IS THE RESULT OF THE ERRONEOUS POLICIES OF THE LAST FEW YEARS'
Monday Morning
http://www.mmorning.com/ArticleC.asp?Article=6672 &CategoryID=3
March 23 3009
Lebanon
At a time when global warming and the growing scarcity of water
resources are becoming matters of increasingly urgent concern, what
kind of national strategy does Lebanon have in terms of water supplies?
Ten years ago, the Ministry of Energy and Water defined a national
strategy. However, this strategy, which envisaged the building of 27
dams, has remained a dead letter, on the pretext that the Lebanese
state does not possess sufficient funds to implement it. Everything in
this regard has been stopped; only one dam has been built, thanks to
the pressure and insistence of former President Emile Lahoud. Work was
started on two or three dams, but it has since been halted because the
ministry lacks the necessary credits either to pay for the necessary
expropriations or to continue the work.
The Finance Ministry has effectively invalidated a law passed by
Parliament by neglecting to pay the sums required.
You have several times stated that work can begin this year on building
12 dams. Are the funds available for this?
The 45 billion Lebanese pounds available are not sufficient. The
technical studies for certain projects have been finalized and we're
only waiting for the money to start subcontracting.
That said, the studies done show that we need 90 billion pounds,
i.e. double the sum available, to begin work. We were surprised to
discover after three weeks that only 45 billions had been allocated for
these projects in the budget. When I contacted the Finance minister,
he told me that dams were expensive and that if they were to be paid
for out of this budget, it would be necessary to have recourse to
loans to pay for them.
The problem is that the Lebanese are paying three times as much as
they should for water. According to the World Bank, the Lebanese
are paying 300 million supplementary dollars a year because of the
inadequate distribution of water. It's clear to us that the dams,
however expensive, would resolve the problem once and for all.
Some observers think that the funds are being blocked by ministers
belonging to the opposition with the aim of discrediting the cabinet
and denouncing it before public opinion in the media. What is your
view?
I'm not going to indulge in petty political calculations and wonder
what this person or that is thinking. By the time the budget is
ratified by Parliament, we will be wholly preoccupied with the
general elections.
So this requires a political consensus?
The policies followed in regard to water and energy have been
erroneous. Unfortunately, in Lebanon it is only the temporary that
endures. No one is acting in accordance with a long-term plan, and
that's why no investment has been made in these two areas.
Our water reserves are running out, and we know that because of global
warming we will definitely have to build dams. Providing water for
agriculture by means of cisterns or wells is very costly, on both
the financial and environmental levels.
Isn't the ministry doing anything?
Everything is ready except the money. I have finalized and signed
several dossiers, so it cannot be said that the ministry is doing
nothing.
The lack of funds is blocking all projects Do you see a political
problem in this regard?
I've explained my position clearly. If they don't provide the funds
necessary to build the dams, I'll vote against the draft budget. I've
spoken directly with the prime minister and the minister of Finance,
and I think 45 billion Lebanese pounds represents even one percent
of the budget.
After you took up your ministerial post, you presented a report
and a reform plan. But so far there has been no improvement in the
matter of supplying electricity to the public or in the collection
of electricity bills. What about this?
Why don't we have electricity 24 hours a day? The reply is very
simple: the current that we produce is not enough to meet the
demand. We have the capacity to produce 1,500 megawatts during the
summer, while the demand varies between 2,200 and 2,300. The only
way to meet this demand is to build new power stations. Otherwise, we
face a disaster, since from year to year the demand increases, while
production regresses. Why is the Lebanon Electricity Authority losing
money? I say it clearly in my report: the heavy losses are due not
to theft or to failure to collect bills, but to the cost of producing
and distributing current. Wages and maintenance costs account only for
between 20 and 25 percent of LEA expenditure, while the cost of fuel
represents between 50 and 75 percent. If the country can be provided
with modern generating stations that function at a lower cost, and
if the fuel supply can be diversified, we can limit these losses,
and even transform the LEA into a profitable institution, despite
the thefts. It's very simple: we need to invest in the sector. But
the problem is that when we submitted our report, it was placed in
a filing cabinet and was not distributed till after its publication
in the press.
How did this happen?
Ask the one who put it in the filing cabinet.
Neither planning nor effective policies Do you think there is an
intention to sell the LEA at a low price?
I don't see how we could have spent billions on the LEA simply in
order to sell it for a few piasters. In my opinion, there are no real
policies or planning for the electricity sector.
For a partnership between the public and private sectors Would it
have been better if we had privatized the LEA over the past few years?
What they now call privatization is not that at all. If we really
want to privatize it, the market must be open and transparent, with
competitive bidding by prospective buyers. This isn't the case at
all now, and there's a risk that everything will end up as it did in
the past.
I personally favor a partnership between the public and private
sectors, with the state financing at a lower cost and the private
sector carrying out the task of construction. It must be done in a
rational and well-calculated way. I disapprove of indirect financing
on the Independent Power Producer (IPP) model, which is much too
expensive and without any real added value.
What about buying electricity from Egypt?
I think this is the best agreement we have reached during the last
few months.
Jordan, Syria and Lebanon will receive one third of the 450 megawatts
allocated by Egypt to the network, i.e. 150 megawatts, the equivalent
of two hours of additional supply of electricity. Nevertheless,
this agreement does not change anything in our situation, since the
problem is still there: we need 2,200 megawatts. All the proposal
amounts to is increasing the icing on the cake.
Should the Lebanese expect that the hours of supply in electricity
will be increasingly reduced during the coming months?
If draconian and exceptional measures are not taken soon, and
if we do not take things seriously by opting for rapid action to
solve this problem, it is clear that we are heading straight for
a disaster. Today, demand is increasing, while production is not
increasing. The gap is thus becoming wider. I repeat that if we do
not invest in this field, we will have nothing. Decisions in this
respect should have been taken five or six years ago.
As an ex-minister of Telecommunications, do you support the measures
taken by Minister Bassil? And are you satisfied with the way in which
the wiretapping dossier was closed?
Of course, I support all the measures taken by my
colleague. Nevertheless, as to the wiretapping issue, it is only a
political game, a pure charade. Those who want to listen or supervise
calls, either on mobiles or fixed phones, can do it without anybody
knowing about it.
I comply with electoral decisions by the Tashnag Party Will you be
a candidate in the legislative elections?
You should address this question to the Tachnag Party. Personally,
I am their representative in the cabinet and I have committed myself
to respect the decision of the party, no matter what it is.
And how about the negotiations with Michel Murr? Who will Tashnag
Party supporters vote for?
I think they have already expressed their opinion and clarified for
whom they have decided to vote.
It is said that there are divergences inside the party?
Some say also that there is quarreling among various factions. These
are all rumors.
As for the Armenian base, it's impossible for me to predict what
its attitude will be. Not all Armenian voters are committed to a
particular party.
It's my understanding that cadres of the Tashnag Party will comply
with the decision of the party leadership and will give their votes
only to Michel Murr.
Will we soon see a reconfiguration of the Armenian parliamentary bloc?
Yes, why not? In principle, it seems that there will be a battle and
we consider that we have a big chance of winning it. Remember that
the Armenian bloc has existed for a very long time, ever since the
Lebanese state was established.
No political party can dominate the others The opposition continues
to insist that after the legislative elections, it will be in favor
of entente and partnership between the various parties, while some
loyalists say they will reject any partnership with the opposition
if the latter wins. Who will carry the day, in your view?
I am very convinced that in Lebanon, no party can prevail over
the others. The country cannot improve if we exclude one of its
components. All the communities, from the biggest ones to the smallest,
are called to collaborate together. The Lebanese formula is based on
the principle of consensus and entente.
Do you fear the results of the vote?
Such talk is an attempt at political outbidding. I don't believe
anything will happen on the ground. Can a government be formed
that excludes any community -- the Sunnites, the Shiites, the
Christians? Impossible. Otherwise we'll see a repeat of the scenario
in which tents were set up in downtown Beirut, or something similar.
How do you evaluate your experience of the cabinet of national unity?
What I can say is that it's a matter of going through "growing pains",
as they say. We still haven't succeeded in achieving a certain
equilibrium. We're still learning.
The blocking third, a good thing Will the blocking third be maintained
in a new cabinet?
I believe the blocking third is a good thing. It ensures that no one
side can do what it would like without consulting with its partners
in the nation.
But it's a hybrid model. How long can we continue with an Executive
at cross-purposes with itself?
Unfortunately, in Lebanon nothing is advanced except by means of
blocking. I block here in order, in return, to obtain something else
there, and vice-versa. Some people aver that the Taef Agreement even
stipulates that the president of the Republic cannot form a government
if there is no blocking third!
Do you think the Taef Agreement is still valid?
There's no doubt that, after we've had experience of its application
over 20 years, some of its provisions need to be revised, for example,
the period of 15 days given to the president to promulgate a law. This
means that if the head of the state doesn't sign a bill passed by
Parliament or doesn't send it back to the Council of Ministers, the
bill automatically becomes a law anyway after a certain time, as if
the opinion of the president counted for nothing, in other words,
as if the president didn't exist. This is absolutely inadmissible.
What is your opinion of the centrist bloc that many suggest is
being formed?
I'm neither for it nor against it. If a completely independent bloc
exists that plays the role of arbiter and whose purpose really is to
bring viewpoints together and unite antipodes, then why not? But I
don't think such a thing is possible in Lebanon.
Monday Morning
http://www.mmorning.com/ArticleC.asp?Article=6672 &CategoryID=3
March 23 3009
Lebanon
At a time when global warming and the growing scarcity of water
resources are becoming matters of increasingly urgent concern, what
kind of national strategy does Lebanon have in terms of water supplies?
Ten years ago, the Ministry of Energy and Water defined a national
strategy. However, this strategy, which envisaged the building of 27
dams, has remained a dead letter, on the pretext that the Lebanese
state does not possess sufficient funds to implement it. Everything in
this regard has been stopped; only one dam has been built, thanks to
the pressure and insistence of former President Emile Lahoud. Work was
started on two or three dams, but it has since been halted because the
ministry lacks the necessary credits either to pay for the necessary
expropriations or to continue the work.
The Finance Ministry has effectively invalidated a law passed by
Parliament by neglecting to pay the sums required.
You have several times stated that work can begin this year on building
12 dams. Are the funds available for this?
The 45 billion Lebanese pounds available are not sufficient. The
technical studies for certain projects have been finalized and we're
only waiting for the money to start subcontracting.
That said, the studies done show that we need 90 billion pounds,
i.e. double the sum available, to begin work. We were surprised to
discover after three weeks that only 45 billions had been allocated for
these projects in the budget. When I contacted the Finance minister,
he told me that dams were expensive and that if they were to be paid
for out of this budget, it would be necessary to have recourse to
loans to pay for them.
The problem is that the Lebanese are paying three times as much as
they should for water. According to the World Bank, the Lebanese
are paying 300 million supplementary dollars a year because of the
inadequate distribution of water. It's clear to us that the dams,
however expensive, would resolve the problem once and for all.
Some observers think that the funds are being blocked by ministers
belonging to the opposition with the aim of discrediting the cabinet
and denouncing it before public opinion in the media. What is your
view?
I'm not going to indulge in petty political calculations and wonder
what this person or that is thinking. By the time the budget is
ratified by Parliament, we will be wholly preoccupied with the
general elections.
So this requires a political consensus?
The policies followed in regard to water and energy have been
erroneous. Unfortunately, in Lebanon it is only the temporary that
endures. No one is acting in accordance with a long-term plan, and
that's why no investment has been made in these two areas.
Our water reserves are running out, and we know that because of global
warming we will definitely have to build dams. Providing water for
agriculture by means of cisterns or wells is very costly, on both
the financial and environmental levels.
Isn't the ministry doing anything?
Everything is ready except the money. I have finalized and signed
several dossiers, so it cannot be said that the ministry is doing
nothing.
The lack of funds is blocking all projects Do you see a political
problem in this regard?
I've explained my position clearly. If they don't provide the funds
necessary to build the dams, I'll vote against the draft budget. I've
spoken directly with the prime minister and the minister of Finance,
and I think 45 billion Lebanese pounds represents even one percent
of the budget.
After you took up your ministerial post, you presented a report
and a reform plan. But so far there has been no improvement in the
matter of supplying electricity to the public or in the collection
of electricity bills. What about this?
Why don't we have electricity 24 hours a day? The reply is very
simple: the current that we produce is not enough to meet the
demand. We have the capacity to produce 1,500 megawatts during the
summer, while the demand varies between 2,200 and 2,300. The only
way to meet this demand is to build new power stations. Otherwise, we
face a disaster, since from year to year the demand increases, while
production regresses. Why is the Lebanon Electricity Authority losing
money? I say it clearly in my report: the heavy losses are due not
to theft or to failure to collect bills, but to the cost of producing
and distributing current. Wages and maintenance costs account only for
between 20 and 25 percent of LEA expenditure, while the cost of fuel
represents between 50 and 75 percent. If the country can be provided
with modern generating stations that function at a lower cost, and
if the fuel supply can be diversified, we can limit these losses,
and even transform the LEA into a profitable institution, despite
the thefts. It's very simple: we need to invest in the sector. But
the problem is that when we submitted our report, it was placed in
a filing cabinet and was not distributed till after its publication
in the press.
How did this happen?
Ask the one who put it in the filing cabinet.
Neither planning nor effective policies Do you think there is an
intention to sell the LEA at a low price?
I don't see how we could have spent billions on the LEA simply in
order to sell it for a few piasters. In my opinion, there are no real
policies or planning for the electricity sector.
For a partnership between the public and private sectors Would it
have been better if we had privatized the LEA over the past few years?
What they now call privatization is not that at all. If we really
want to privatize it, the market must be open and transparent, with
competitive bidding by prospective buyers. This isn't the case at
all now, and there's a risk that everything will end up as it did in
the past.
I personally favor a partnership between the public and private
sectors, with the state financing at a lower cost and the private
sector carrying out the task of construction. It must be done in a
rational and well-calculated way. I disapprove of indirect financing
on the Independent Power Producer (IPP) model, which is much too
expensive and without any real added value.
What about buying electricity from Egypt?
I think this is the best agreement we have reached during the last
few months.
Jordan, Syria and Lebanon will receive one third of the 450 megawatts
allocated by Egypt to the network, i.e. 150 megawatts, the equivalent
of two hours of additional supply of electricity. Nevertheless,
this agreement does not change anything in our situation, since the
problem is still there: we need 2,200 megawatts. All the proposal
amounts to is increasing the icing on the cake.
Should the Lebanese expect that the hours of supply in electricity
will be increasingly reduced during the coming months?
If draconian and exceptional measures are not taken soon, and
if we do not take things seriously by opting for rapid action to
solve this problem, it is clear that we are heading straight for
a disaster. Today, demand is increasing, while production is not
increasing. The gap is thus becoming wider. I repeat that if we do
not invest in this field, we will have nothing. Decisions in this
respect should have been taken five or six years ago.
As an ex-minister of Telecommunications, do you support the measures
taken by Minister Bassil? And are you satisfied with the way in which
the wiretapping dossier was closed?
Of course, I support all the measures taken by my
colleague. Nevertheless, as to the wiretapping issue, it is only a
political game, a pure charade. Those who want to listen or supervise
calls, either on mobiles or fixed phones, can do it without anybody
knowing about it.
I comply with electoral decisions by the Tashnag Party Will you be
a candidate in the legislative elections?
You should address this question to the Tachnag Party. Personally,
I am their representative in the cabinet and I have committed myself
to respect the decision of the party, no matter what it is.
And how about the negotiations with Michel Murr? Who will Tashnag
Party supporters vote for?
I think they have already expressed their opinion and clarified for
whom they have decided to vote.
It is said that there are divergences inside the party?
Some say also that there is quarreling among various factions. These
are all rumors.
As for the Armenian base, it's impossible for me to predict what
its attitude will be. Not all Armenian voters are committed to a
particular party.
It's my understanding that cadres of the Tashnag Party will comply
with the decision of the party leadership and will give their votes
only to Michel Murr.
Will we soon see a reconfiguration of the Armenian parliamentary bloc?
Yes, why not? In principle, it seems that there will be a battle and
we consider that we have a big chance of winning it. Remember that
the Armenian bloc has existed for a very long time, ever since the
Lebanese state was established.
No political party can dominate the others The opposition continues
to insist that after the legislative elections, it will be in favor
of entente and partnership between the various parties, while some
loyalists say they will reject any partnership with the opposition
if the latter wins. Who will carry the day, in your view?
I am very convinced that in Lebanon, no party can prevail over
the others. The country cannot improve if we exclude one of its
components. All the communities, from the biggest ones to the smallest,
are called to collaborate together. The Lebanese formula is based on
the principle of consensus and entente.
Do you fear the results of the vote?
Such talk is an attempt at political outbidding. I don't believe
anything will happen on the ground. Can a government be formed
that excludes any community -- the Sunnites, the Shiites, the
Christians? Impossible. Otherwise we'll see a repeat of the scenario
in which tents were set up in downtown Beirut, or something similar.
How do you evaluate your experience of the cabinet of national unity?
What I can say is that it's a matter of going through "growing pains",
as they say. We still haven't succeeded in achieving a certain
equilibrium. We're still learning.
The blocking third, a good thing Will the blocking third be maintained
in a new cabinet?
I believe the blocking third is a good thing. It ensures that no one
side can do what it would like without consulting with its partners
in the nation.
But it's a hybrid model. How long can we continue with an Executive
at cross-purposes with itself?
Unfortunately, in Lebanon nothing is advanced except by means of
blocking. I block here in order, in return, to obtain something else
there, and vice-versa. Some people aver that the Taef Agreement even
stipulates that the president of the Republic cannot form a government
if there is no blocking third!
Do you think the Taef Agreement is still valid?
There's no doubt that, after we've had experience of its application
over 20 years, some of its provisions need to be revised, for example,
the period of 15 days given to the president to promulgate a law. This
means that if the head of the state doesn't sign a bill passed by
Parliament or doesn't send it back to the Council of Ministers, the
bill automatically becomes a law anyway after a certain time, as if
the opinion of the president counted for nothing, in other words,
as if the president didn't exist. This is absolutely inadmissible.
What is your opinion of the centrist bloc that many suggest is
being formed?
I'm neither for it nor against it. If a completely independent bloc
exists that plays the role of arbiter and whose purpose really is to
bring viewpoints together and unite antipodes, then why not? But I
don't think such a thing is possible in Lebanon.