y   Lebanon

Eligibility Ratified the Climate Change Convention

on 15 Dec. 1994

GEF Focal Area    Climate Change

GEF Programming Framework  Removal of Barriers
to Energy Efficiency and        Energy Conservation, Operational Programme
       Number 5

Summary

In 1992, after the end of 17 years of civil strife, the Government
of Lebanon launched an emergency rehabilitation and reconstruction plan
for the country. The most prominent component of this plan was the rehabilitation
of the countrys electricity sector, which to date has consumed 33%
of the reconstruction budget.  Investments increased power production
capacity from 600 MW in 1992 to 1400 MW in 1998 and a target of 2000
MW for the year 2000.  However, with an estimated yearly growth
rate of 4-6% in energy demand, interest in end-use energy efficiency
and conservation are being seen as a viable alternative to meet growth
in demand.

Lebanon, however, has no former experience with such endeavours and
lacks the mechanism and framework for the definition and undertaking
of end-use energy conservation schemes.  Consequently, a number
of critical barriers exist at present, which could prevent any intentions
at end-use energy conservation.  For measurable and sustainable
energy savings to be achieved a mechanism needs to be established and
barriers need to be removed.

The goal of this project is, therefore, to reduce GHG emissions in
Lebanon by improving demand side energy efficiency through the creation
of a multi-purpose Lebanese Centre for Energy Conservation and Planning.
The Centre, which is expected to be a soft and flexible institutional
set-up, will simultaneously undertake barrier removal activities and
provide energy efficiency services to the public and private sector
industries as a set in becoming an independent, commercially viable
private corporation. There will be a broad range of supporting activities
including information dissemination, awareness programmes, and policy
analysis and programme design.

3.  Cost and Financing (Million US$)   (US$ 1 = L. Pounds 1502)

GEF:        US$  
3.4 million 

COFINANCING:  UNDP (TRAC)    US$  
0.5 million

     MoHER (In
cash)   US$   0.5 million

MoHER (In-Kind)   US$  
0.5 million

EU (IPP)    US$  
0.5 million  

TOTAL
PROJECT COST     US$   5.4 million

Associated Financing (Million US$)   (US$ 1 = L. Pounds 1502)


National Control
Centre           US$ 26.00
million  


GIS mapping of
the transmission and distribution network  US$   3.00
million
Billing and revenue
collection modernisation   US$   0.34 million

5.  Operational
Focal Point Endorsement

Name:  Mr. Arthur Nazarian    Title: Minister of Environment

Organisation: Ministry of Environment Date: 14 January 1999

6.  Implementing
Agency Contact

Ms. Inger Andersen,
GEF Regional Co-ordinator, UNDP Regional Bureau for the Arab States

One UN Plaza, DC-1-2240,
10017, New York, NY, USA. Tel: (212) 906 5496 6199, Fax: (212) 906 6286,
e-mail: inger.andersen@undp.org

 

List of Acronyms / Abbreviations

ALIND Association
of Lebanese Industrialists

ALME  Association Libanaise
pour la Maitrise de lEnergie

CDR  Council for Development
and Reconstruction

EDL  Electricité du Liban

ESCO  Energy Service Company

EU-IPP European Union
Investment Planning Programme

GEF  Global Environment
Facility

GHG  Greenhouse Gas

GoL  Government of Lebanon

II  Industrial Institute

IRP  Integrated Resource
Planning

LCECP Lebanese Centre
for Energy Conservation and Planning

LIBNOR Lebanese Norms
Institute

MoE   Ministry of Environment

MoHER  Ministry of Hydro-Electric
Resources

MoP  Ministry of Petroleum

NCSR  National Council
for Scientific Research

UNDP  United Nations Development
Programme

UNFCCC United Nations
Framework Convention for Climate Change

TOR  Terms of Reference

 

I.  Background and Context

Seventeen years of civil strife and military occupation
left Lebanon (population 3.75 million) devastated.  During this
period (1974 1990) per capita GDP dropped from US $ 2,250 to 825. 
Moreover, damages to physical assets have been estimated at US $ 25
billion.  To adjust, the Lebanese Council for Development and Reconstruction (CDR) was
established as the body responsible for a 10-year emergency reconstruction
and rehabilitation plan launched in 1992.

Great strides have been taken since 1990 towards
improving the economy. According to Central Bank reports, GDP increased
from 9.1 billion US$ in 1994 to 13.7 billion US$ in 1997, and inflation
dropped from 10% in 1994 to 5% in 1997.

Improving the countrys energy situation took clear
priority to the Government of Lebanon for which 97% of its energy requirements
of fossil fuel are imported. Expenditures under emergency reconstruction
and rehabilitation plan have reached US$ 4 billion to date. Infrastructure
development, a main thrust of this plan, allocated a substantial portion
to the electricity sector, which to date has received about 33% of the
reconstruction budget.  The emergency Power Sector Master Plan for the years 1992-2002 launched by
CDR focused on the rehabilitation of the electric supply-side. 
Among its activities was, first the expansion of the power generating
capacity which increased from 600 MW in 1992, to a 1400 MW in 1998,
and second the rehabilitation of the transmission and distribution networks
(Annex D).  However, with an estimated yearly growth in demand
of about 4-6%, demand for power is expected to exceed supply already
in the year 2002, despite heavy investments in new generating facilities.
The situation is expected to especially exasperated as no end-use energy
conservation plans are put forth.

Given the emergency nature of the planning conditions
however, the Power
Sector Master Plan concentrated on the provision of reliable
electricity through construction and rehabilitation efforts.  There
were no efforts planned to ensure the existence of long term national
energy planing capabilities as well as any efforts to address the intricate