Qatar plans to undertake
electricity sector recovery

Under an end-to-end BOT scheme

Following high-level diplomatic discussions in Lebanon between Qatari Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman Al Thani, and key Lebanese leaders—including President Joseph Aoun, Speaker of Parliament Nabih Berri, and Prime Minister Nawaf Salam—a bilateral agreement has been established to construct a comprehensive national energy framework for Lebanon.

Rather than deploying temporary stopgaps or constructing a single standalone power plant, the Qatari-Lebanese initiative targets the systemic overhaul of Lebanon’s energy generation, natural gas supply, and power grid infrastructure.

Mechanics of the BOT financing model

A central pillar of the energy plan is its structure under the Build-Operate-Transfer (BOT) framework. This structure addresses Lebanon’s severe financial constraints while facilitating large-scale infrastructure capital:

Zero upfront Treasury burden
Under the announced terms, Qatari entities will fund the entire project capital expenditure (CapEx). The Lebanese national treasury bears no initial capital cost or financial outlay, shielding the state budget while securing essential energy assets.

End-to-end execution and management
Qatari partners assume total responsibility for the project lifecycle:
• Build: Full financing, design, engineering, and construction of power generation facilities across multiple energy sources, alongside the modernization of transmission and distribution networks.
• Operate: Ongoing administration, maintenance, fuel supply procurement (including natural gas), and day-to-day operations by specialized Qatari entities to ensure maximum efficiency and grid reliability.
• Transfer: After an agreed-upon operational term—during which the capital investment is recovered through regulated energy sales—ownership of the fully functioning, modern energy infrastructure will be transferred back to the Lebanese state.

Economic rationale and commercial viability

• Lowered generation costs: By modernizing the technical infrastructure and switching to cheaper fuel inputs (such as direct gas supplies), the unit cost of electricity generation will drop compared to legacy diesel options.
• Commercial reciprocity: The cooperation model delivers dual value: it revives the broader Lebanese economy by restoring reliable electricity while offering a structured, commercially sound investment for participating Qatari companies.

Scope of energy and infrastructure initiatives

The energy plan covers three core functional areas:
• Multi-source generation: Incorporates diverse fuel inputs and energy production methods to avoid single-point dependencies and build long-term capacity.
• Gas supply integration: Secures consistent natural gas imports to power rehabilitated and new power generation plants efficiently.
• Modernized transmission infrastructure: Upgrades legacy distribution lines and grid hardware to stabilize power supply across all regions and mitigate technical line losses.