Lebanon Businessnews News

Jbeil will generate its own electricity
Waiting for the certification
to launch the project
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Société Electricité de Jbeil Sal (EDJ), in collaboration with Byblos Bank, has submitted a request to the Ministry of Energy and Water (MoEW) start producing its own electricity through a new Heavy Fuel Oil (HFO) power plant, Under Law 288/2014 that certifies power production.

The plant will be established on a 30,000 square meter plot in Jbeil’s Rihaniyeh, Berbara area. Rihaniyeh is not residential and is near the Amchit Port, which is convenient for fuel supply. The land is leased through a long term contract for $500,000 per year.

The power generation capacity of the plant will be 64 MW in the first phase. The production capacity will reach 200 MW in the following phase. The surplus of power will be transferred to Electricité du Liban or to any of the electricity concessions that lack electricity coverage.

The project will cost $68.5 million, 30 percent of which will be funded through equities and 70 percent will be split between $38 million in long term loans and $10 million in working capital facilities. The plant construction period should take nine to 12 months, following the approval of the MoEW. It is expected to employ 25 employees.

This project will allow Jbeil to become fully independent in terms of power supply. Jbeil experiences a 50 percent blackout rate. The certification to generate power will save 36 percent in monthly electricity bills and $20 million, yearly. It will also improve the city’s industry and boost trade, tourism, and cash flow.

The expected plant capacity is sufficient to cover all the electricity power demand within the concession area. EDJ will exit the national grid, relying only on the electricity provided by the new plant.
Reported by Rana Freifer
Date Posted: May 05, 2015
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