Lebanon Businessnews News

Government pays $50 million
in arrears to contractors
Remaining $150 million

awaiting 2018 budget

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Contractors have started to receive financial dues related to infrastructure projects they have executed since 2011, according to Maroun Helou, Chairman of the Syndicate of Public Works Contractors.

Helou said: “Public administrations, ministries, and the Council for Development and Reconstruction (CDR) have scheduled several payments and have paid us $50 million so far.”

Contractors are still owed $150 million in arrears.

“We have asked the Ministry of Public Works and the CDR to schedule the remaining arrears as of 2018,” he said.

Youssef Fenianos, Minister of Public Works, said: “We will work hard to put these allocations on next year’s draft budget.”

Public projects are divided into two parts: Some follow the tender protocol as per the fourth edition of International Federation of Consulting Engineers (FIDIC). This edition includes price references.

Other projects are subject to a tender protocol model followed by ministries, which is 80 years old. These do not include price references and are subject to price fluctuation, which escalates the problem.
Reported by Yassmine Alieh
Date Posted: Dec 21, 2017
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