BOT for 800 MW
gas electrical plant

Joe Saddi outlines roadmap for his ministry

The Ministry of Energy and Water (MoEW) has launched a comprehensive roadmap to tackle the deepening electricity and water crises, committing to long-delayed reforms, expanding power production, and pursuing regional partnerships to secure fuel and gas supplies.

In a press interview, Minister Joe Saddi said that the government has begun implementing Law 462/2002, which mandates the restructuring of the electricity sector and the formation of an independent regulatory authority. The ministry has received 341 applications for the five-member body, which will play a central role in sector reform. Shortlisting and interviews are expected to conclude within five weeks under the supervision of OMSAR and the Civil Service Board.

New gas-fired power plants via BOT
Lebanon currently produces only 1,200 MW of electricity—far below demand. To bridge the gap, MoEW is moving to build modern power plants powered by natural gas, a shift away from expensive and polluting fuel oil.

“We need at least two new gas-powered plants,” Saddi said. “We will begin with one facility, built through a Build-Operate-Transfer (BOT) model in partnership with the private sector.” A single 800 MW plant is estimated to cost $800 million. The law allows BOT arrangements, and MoEW is coordinating with the World Bank to revise terms and conditions for upcoming tenders.

Two gas delivery solutions are under review: reactivation of the Arab Gas Pipeline, which connects Egypt to Lebanon via Jordan and Syria, and the deployment of Floating Storage Regasification Units (FSRU) to import and re-gasify liquefied natural gas offshore.

Huge losses at EDL
Electricité du Liban (EDL) collects just 60 percent of expected revenues. Saddi attributes ten percent of losses to technical inefficiencies caused by an aging power grid, and a further 30 percent to illegal connections and electricity theft.

MoEW has requested that EDL present a mitigation plan and has informed the President and Prime Minister. “Tackling electricity theft will require security support across multiple regions,” Saddi said, noting discrepancies in the level of illegal use between areas.

Electricity tariff relief tied to production reform
With the electricity tariff at 27 cents/kWh for high-usage households—among the highest globally—reducing production costs is a strategic priority. “Old, inefficient fuel-powered plants are a major factor behind high tariffs,” Saddi said. “Investing in solar plants generating 100–150 MW and transitioning to gas will bring costs down.” Only through concurrent investment in solar, gas, and infrastructure modernization can the government reduce tariffs for consumers and industries.

In the works: Partnerships with Qatar and Iraq
Saddi revealed ongoing discussions with Qatar over potential energy collaboration, including undisclosed initiatives still in early phases. Meanwhile, a recent trip to Iraq, alongside the Minister of Financer, aimed to secure continued fuel supplies despite outstanding arrears of $1.2 billion.

Payments are being facilitated through a Central Bank mechanism, in which Lebanon repays in local currency in exchange for services such as healthcare. Three contracts were signed, including one in 2021 covering $500 million. The two governments are studying the viability of reviving an old pipeline linking Iraq to Tripoli via Syria, pending a technical and financial assessment.

Hazardous waste and oil refinery oversight
The Ministry is currently addressing hazardous materials stored in the Zouk, Tripoli, and Zahrani plants. Samples have been sent abroad for safe disposal, and further details will be shared at an upcoming press conference.

Talks with Iraqi officials will soon begin regarding Lebanon’s long-defunct refineries, with a technical committee to explore the feasibility of reviving pipeline and refining infrastructure.

Soon: Offshore drilling report from TotalEnergies
The Ministry expects a report from TotalEnergies and its consortium partners (Italy’s Eni and QatarEnergy) within weeks regarding exploratory drilling in offshore Block 9. “Once we review the findings, we will determine the next steps,” said Saddi, who is already in talks with the consortium.

Looming water crisis
Facing a dramatic 50 percent drop in rainfall this year, a water crisis is looming. MoEW has requested an emergency plan from regional water authorities, which includes public awareness campaigns and conservation strategies. On groundwater regulation, it is reviewing licensing procedures for private wells, which have proliferated without oversight and affected agricultural water access. It is working with the American University of Beirut (AUB) and aims to expand the number of certified firms eligible to issue drilling reports, ending the current market duopoly.

Saddi said that reforms in electricity and water sectors are long overdue. “What we are initiating now should have been done 15 years ago,” he said. “But better late than never.”