Powering up: EDL's quest for funding and BDL's support

The Ministry of Energy and Banque du Liban, specifically Electricité du Liban (EDL), strive to open a new chapter between them, particularly in securing funds, especially for purchasing fuel for power generation facilities.

In this context, a meeting was held between BDL Acting Governor Wassim Mansouri and the caretaker Minister of Energy, Walid Fayyad.

During this meeting, Mansouri affirmed that he will not take any step that compromises the reserves and the current monetary stability.

He said he would carefully study the electricity dossier before deciding on any steps that could be taken without causing monetary harm.

Consequently, he will not rely on the previously used mechanisms for financing electricity under Riyad Salameh. Sources suggested that Mansouri might later consider converting minimal amounts of the Lebanese pounds collected by EDL into dollars, ranging from one to two million dollars at most.

From his side, the Energy Minister is keen to grant BDL sufficient time to agree on a working mechanism to secure funds.

Fayyad also explained to Mansouri how securing funds for EDL and ensuring higher supply hours at the expense of generators could lead to a trade balance savings of around $2.5 billion.

An initial test of the relationship between the Central Bank of Lebanon and the Energy Ministry accompanied these discussions. 

However, EDL has obtained approval from the Ministry of Finance to open a $ 58 million credit to purchase 66,000 tons of gas oil. EDL is awaiting BDL's response to this request.

Furthermore, the payment for these funds is deferred for six months and is part of the $300 million previously agreed upon with the former governor, Riyad Salameh, to be allocated for EDL.