23 percent of expenditures

Electricity production cost treasury $1.75 billion in 2011

Treasury transfers to the energy company Electricité du Liban (EDL) totaled $1.75 billion in 2011, the Ministry of Finance said. Transfers to EDL constituted 23 percent of primary expenditures in 2011.

The breakdown of the payments was as follows: $1.67 billion in payments to KPC (Kuwait Petroleum Corporation) and Algeria’s Sonatrach, $36 million in payments to EGAS, the Egyptian gas company, and $67 million in debt servicing costs.

Treasury transfers to EDL in 2010 stood at $1.19 billion. The increase was driven by a $0.54 billion growth in payments for fuel and gas oil purchases in 2011 compared to the year before. The significant 49 percent increase in payments is mainly attributed to higher international oil prices.