The Free Patriotic Movement’s deputies are seeking to secure a treasury advance of one billion dollars for electricity fuel to prevent Lebanon from falling into darkness, in a move that sparked criticism with the depletion of the Central Bank’s foreign currency reserves.
Minister of Energy in the caretaker government Raymond Ghajar warned on Thursday that Lebanon “may go into total darkness at the end of this month” if the state electricity company (EDL) is not granted a financial advance to buy fuel.
He stressed that the solution lies in the MPs “assuming their responsibility and signing an urgent bill subsidizing the EDL to buy the fuel that is necessary to secure electricity.”
A member of the Democratic Meeting parliamentary bloc, MP Hadi Abul-Hassan, criticized the demand, saying it “is in line with the party’s management of the Lebanese electricity file, which is based on the depletion of the state treasury and the absence of reform proposals.”
In remarks to Asharq Al-Awsat, Abul-Hassan said: “The FPM, which has monopolized this ministry for more than 10 years is using blackmail, proposing total darkness or the depletion of the state treasury.”
Last week, the FPM MPs submitted a draft-law to approve a treasury advance for electricity fuel at a value of 1,500 billion LBP (equivalent to USD 1.5 billion according to the official exchange rate), with the aim of settling the deficit in the purchase of fuel and paying interest and loan installments to EDL.
This advance, according to the FPM, is to be paid by deducting the dues owed by the United Nations administrations, public institutions and international organizations.
Abul-Hassan noted that with the increase in power rationing hours in the coming days, the parliamentary blocs may be forced to pass the law in order to prevent total darkness.
“Even if the law is approved… will it solve the electricity crisis, or will we return to rationing and need more advances?” he asked.
“The electricity file needs real reform that begins with forming a government capable of change,” he urged.
In the event that the advance law is passed, the Ministry of Energy can secure the fuel needed to operate the electricity plants until the end of 2021. But the matter is not guaranteed, as stated by the former Director General of Investment at the Ministry of Energy, Ghassan Baydoun.
“The amount of fuel that the law can provide and the period in which it can contribute to a better supply of electricity depends on the stability of the fuel price globally and the dollar price that the Central Bank will adopt for the advance,” he told Asharq Al-Awsat.
