Industry and microfinance
to get $50 million from IFC

Initiative includes advisory to

the government for a PPP gas-to-power project

Marking the first major post-crisis financing to the private sector by an international organization, the International Finance Corporation (IFC), a member of the World Bank Group, announced five new investments and engagements to expand access to finance and energy, support the growth of the manufacturing sector, and create jobs across Lebanon.

The initiatives were announced in the presence of the Prime Minister, and the Ministers of Economy and Trade and Social Development. The signings, on the sideline of the Beirut One conference, are part of the World Bank Group’s (WBG) broader strategy to support the country’s reconstruction and recovery and are fully aligned with the government’s new economic vision.

“Lebanon is at a critical juncture and the private sector lies at the heart of the country’s recovery journey. With this in mind, IFC’s new engagements aim to fuel private sector development and drive a sustainable, inclusive recovery, and create much-needed jobs,” said Aftab Ahmed, IFC’s Regional Director for the Middle East, Afghanistan, and Pakistan.

Five initiatives

Expand access to reliable energy: In close coordination with the WBG’s International Bank for Reconstruction and Development, IFC will serve as the lead transaction advisor to the Government, working closely with the High Council for Privatization and PPPs and the Ministry of Energy and Water to promote efficient power generation by structuring and implementing a gas-to-power project under a public-private partnership model. The agreement supports the development of a floating storage and regasification unit to import, store, and convert liquefied natural gas into fuel; and the modernization of the 465-megawatt Deir Ammar I power plant into a cleaner, more efficient, higher-capacity independent power producer. It also includes the construction of a new 825-megawatt combined-cycle gas turbine plant, Deir Ammar II, to boost generation capacity. Once completed, the projects will expand access to reliable electricity, support the country’s shift to more renewable energy, improve the efficiency of Lebanon’s electricity sector, reduce its reliance on diesel, and cut down the cost of electricity generation.

Al Majmoua and Vitas microfinance: IFC is providing a $10 million financing package divided equally between two leading microfinance institutions in Lebanon: the Lebanese Association for Development (Al Majmoua) and Vitas Lebanon, part of Vitas Group. The financing aims to expand access to finance to micro and small and medium enterprises (MSMEs) and women entrepreneurs with a focus on forcibly displaced persons and host communities. The loans will preserve and create jobs. The financing package includes a first-loss guarantee of up to $5 million provided through a blended finance facility under the Prospects Partnership (PROSPECTS), a program spearheaded by the Government of the Netherlands.

BCI chemical manufacturing: IFC is partnering with BCI Holding S.A. (BCI) to provide a loan of up to $40 million to support the company’s expansion in Lebanon and across the Middle East. The funds will enable BCI, a leading regional producer of polyester polyols, polyurethane systems, flexible packaging, and specialty adhesives, to drive job creation and small and medium enterprise (SME) development. As part of this growth, BCI will establish a dedicated R&D and Innovation Center and develop a back-office operations hub to strengthen its regional capabilities.

Matelec power-machinery manufacturing: IFC is partnering with Matelec, a leading regional manufacturer of power-machinery and electrical infrastructure solutions, with an investment of up to $30 million to support the company's upcoming infrastructure projects in Lebanon and the broader Middle East and North Africa region.