Solidere's extension to be
negotiated with the government

Conditional on fulfilling obligations and milestones

The government has opened the door to extending SOLIDERE’s mandate beyond its current 2029 expiry, but has not yet approved the company’s request for a long-term renewal. Instead it proposed a performance-based framework centered on public projects, financial transparency, and a broader economic role for Beirut’s Central District.

The Council of Ministers has agreed to negotiate with SOLIDERE on the basis of an initial eight-year extension, with the possibility of a further six-year renewal subject to the company’s performance and fulfilment of agreed obligations. The government’s position falls well short of the extension sought by SOLIDERE. The company had requested a 25-year extension of its mandate. Other public discussion had envisaged an extension that could have kept the company operating until 2069.

The Cabinet’s decision does not constitute a final extension. It establishes the basis on which negotiations with SOLIDERE can proceed and sets conditions that the company would have to accept before a new mandate could be approved.

Independent audit
One of the principal conditions is an independent audit of SOLIDERE’s accounts. The audit is expected to provide the government with a clearer assessment of the company’s financial position and the assets and obligations associated with its continuing activities. Its findings could become an important element in determining the economic terms of any new mandate.

The government is also seeking a new framework governing the company’s future revenue-generating activities and projects, including an updated tax regime. This would allow the State to revisit the financial relationship with SOLIDERE as the company enters a new phase of development, rather than simply extending the existing arrangements.

Binding public projects obligations
The proposed extension would be linked to a defined program of projects with binding implementation deadlines and measurable performance indicators. Among the projects specifically identified by the government are works involving Beirut’s Corniche and Martyrs’ Square.

The emphasis on deadlines and performance indicators represents a significant shift from a simple extension of SOLIDERE’s operating period. Continued development rights would instead be linked to delivery of projects considered to be in the public interest. Substantial parts of the areas covered by the original development guidelines remain incomplete and that some obligations undertaken by the company toward the State have not been fulfilled. The government therefore wants any additional period granted to SOLIDERE to be accompanied by clearly defined commitments and mechanisms for assessing whether they have been met.

Broader role for Downtown Beirut
The proposed framework also seeks to change the economic and social profile of the Beirut Central District (BCD). The government wants future development to strengthen culture, heritage and urban cohesion, while encouraging greater participation by the middle class and small and medium-sized enterprises. The objective is to create a more economically and socially diverse downtown rather than focusing exclusively on high-value real estate development. This element could become particularly important in negotiations because it introduces a broader public policy objective into the future relationship between the State and SOLIDERE. The government is effectively seeking to use the extension not only to complete physical development but also to reshape the role of BCD as a commercial, cultural, and residential center.

Eight years first, six years later
The proposed structure gives SOLIDERE an initial eight-year period rather than the long extension requested by the company. A further six-year extension could subsequently be granted, but would be conditional on fulfilment of the agreed performance obligations. The arrangement would therefore potentially give SOLIDERE up to 14 additional years, taking its mandate beyond 2040 if all conditions are met. This performance-based approach is central to the government’s position. Rather than granting a long extension upfront, the State would retain the ability to assess whether SOLIDERE has delivered the projects and commitments agreed as part of the new arrangement.

Negotiations ahead
The terms could evolve as negotiations proceed. Among the issues likely to determine the outcome are the findings of the independent audit, the value and status of SOLIDERE’s remaining assets and development rights, the precise projects to be undertaken, their financing and deadlines, the tax treatment of future activities, and the mechanisms that would determine whether the company qualifies for the additional six-year period.

A new State-SOLIDERE equation
The Cabinet’s approach effectively changes the question from whether SOLIDERE should simply continue operating after 2029 to what the State should receive in exchange for granting the company additional development rights. The government appears to be seeking a new equation in which an extension is exchanged for measurable investment, completion of public projects, greater transparency, broader economic participation and additional fiscal revenues. The outcome of the negotiations will therefore have implications beyond SOLIDERE itself. It will help determine how the remaining development potential of BCD is managed and how the economic value generated by that development is divided between the company and the State.

Follow-up committee
A four-member ministerial committee has been formed to follow up on SOLIDERE’s future. The committee comprises the Minister of Economy and Trade Amer Bisat, the Minister of Public Works and Transport Fayez Rasamny, the Minister of Finance Yassine Jaber, and the Minister of Culture Ghassan Salameh. It was tasked with studying the proposed extension and reporting back to the government.