The German ambassador to Beirut said on Friday that several private companies would present a comprehensive proposal next week to develop Beirut port and nearby areas destroyed in last August’s massive explosion.
The statement came after Reuters reported that sources said Germany would next week present a multi-billion-dollar proposal to Lebanese authorities to rebuild the port as part of efforts to prompt politicians to form a government that can stop the country’s financial collapse.
The ambassador, Andreas Kindl, said the companies included HHLA, HPC, Roland Berger and Colliers, and that this was not a proposal presented by the German government.
A chemical explosion at the port last August killed 200 people, injured thousands and destroyed entire neighborhoods in the Lebanese capital, plunging the country deeper into its worst political and economic crisis since the 1975-1990 civil war.
According to two diplomatic sources with knowledge of the plans, Germany and France are vying to lead reconstruction efforts.
Berlin will on April 7 outline its proposal, which the diplomats said would in principle include support from the European Investment Bank (EIB), to help fund the clearing of the area and reconstruction facilities.
A senior Lebanese official confirmed that Germany was due to present a comprehensive port reconstruction proposal.
In his statement, Germany’s ambassador Kindl said Lebanon could only attract support from investors by enacting meaningful reforms.
Eight months after the port disaster, many Lebanese who lost family, homes and businesses are still waiting for the results of an investigation into the causes of the blast. Lebanon is on the verge of collapse, with shoppers brawling over goods, protesters blocking roads, and businesses shuttered.
Foreign donors have said the new government must have a firm mandate to implement economic reforms, including a central bank audit and an overhaul of the wasteful power sector.
Prime Minister-designate Saad al-Hariri and President Michel Aoun have been unable to agree on a ministerial line-up, however. The outgoing cabinet, which quit after the explosion, has stayed on in a caretaker capacity.
The IMF has said there have been no program discussions with Lebanese officials, only technical assistance with the Ministry of Finance and some state-owned enterprises.
