Lebanon is scheduled to sign a deal with Egypt in Beirut on Tuesday to import gas for electricity generation but the contract needs to be examined by the US Treasury to determine whether it breaches sanctions before Cairo opens the taps.
The 10-year contract is part of a US-backed arrangement to supply electricity to power-starved Lebanon. The deal with Egypt, which is expected to allow Lebanon to generate four more hours of electricity a day, is due to be followed in the near future by a second contract to purchase electricity from Jordan.
But US sanctions on Syria, with whom Lebanon shares its only open land border, have complicated the deal.
Anyone working with Syria is subject to US sanctions under the Caesar Act, enacted in 2019 in an attempt to force Syrian President Bashar Al Assad to find a political solution to his country’s 11-year-long civil war.
“The US special energy envoy asked the Lebanese Energy Ministry to finalise the details of the contract so that it can decide on a sanctions waiver,” said Marc Ayoub, an energy policy researcher at the American University of Beirut’s Issam Fares Institute for Public Policy and International Affairs.
Mr Ayoub was referring to statements made by US global energy envoy Amos Hochstein during his recent two-day visit to Beirut.
“We've given pre-approval for the project and as soon as Egypt and Lebanon can agree on the terms, which hasn't happened yet, then we can evaluate the project” for compliance with the sanctions regime, Mr Hochstein said on Wednesday in an interview with US-based Al Hurra TV.
Assuming the deal is in compliance, “then I believe we will be in a place where we can say it doesn't violate the Caesar sanctions and have the gas finally flow”, he said.
An employee at the commercial office of the Egyptian embassy in Beirut said they were unable to confirm plans for the signing of the deal.
Lebanon’s Energy Minister Walid Fayad did not answer a request for comment. In a policy statement released in March, the ministry said Egypt would export 650 million cubic metres of gas a year to Lebanon.
The gas will not flow directly between the two countries.
Mr Fayad previously told The National that he expects Egypt to send the gas to Syria, which will distribute it internally and then export gas from its own fields to Lebanon.
Syria will send to Lebanon slightly less gas than it receives as a form of in-kind payment. Direct cash payments to Damascus may trigger US sanctions.
Three years into Lebanon’s worst-ever economic crisis, the state-run supplier Electricite du Liban (EDL) currently provides only about two hours of power a day.
Gas imports from Egypt are expected to be financed by a World Bank loan worth $300 million. The bank has reportedly attached stringent conditions to the loan’s disbursement, including a highly unpopular increase of EDL's tariffs, which have been frozen since 1994, and an audit of the utility.
The National reported last week that an auditor was appointed but will not start working before the World Bank and Lebanon agree on the loan.
The gas deal between Lebanon and Egypt is not expected to be enacted immediately after the signing ceremony. It remains unclear how much time the US Treasury needs to examine the contract.
“Signing the agreement with Egypt doesn’t mean anything. It’s buying time,” said Mr Ayoub.
Mr Fayad signed a deal in January with Jordan for electricity exports via Syria equivalent to 200MW but little has moved forward since.
The minister — as well as his predecessor — has been working on purchasing gas from Egypt and electricity from Jordan since last summer.
In an attempt to explain delays in the contract's implementation, Mr Fayad said on Tuesday that they occurred “due to financing from the World Bank”.
“The World Bank had said that they would enter negotiations about financing at the same time as we negotiated the contract’s signature,” he said.
“The World Bank then changed [its position] and said that we need to decide on the contract before we talk about financing.”
Mr Fayad said in April that the World Bank was “still studying the political feasibility of the project”.
A World Bank representative did not answer a request for comment.
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
HAJJAN
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UAE currency: the story behind the money in your pockets
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
FA CUP FINAL
Manchester City 6
(D Silva 26', Sterling 38', 81', 87', De Bruyne 61', Jesus 68')
Watford 0
Man of the match: Bernardo Silva (Manchester City)
COMPANY%20PROFILE
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
57%20Seconds
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Profile of VoucherSkout
Date of launch: November 2016
Founder: David Tobias
Based: Jumeirah Lake Towers
Sector: Technology
Size: 18 employees
Stage: Embarking on a Series A round to raise $5 million in the first quarter of 2019 with a 20 per cent stake
Investors: Seed round was self-funded with “millions of dollars”
RESULTS
1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)
2pm Handicap (TB) Dh 84,000 (D) 1,400m
Winner Karaginsky, Tadhg O’Shea, Satish Seemar.
2.30pm Maiden (TB) Dh 60,000 (D) 1,200m
Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.
3pm Conditions (TB) Dh 100,000 (D) 1,950m
Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.
3.30pm Handicap (TB) Dh 76,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
4pm Maiden (TB) Dh 60,000 (D) 1,600m
Winner Bladesmith, Tadhg O’Shea, Satish Seemar.
4.30pm Handicap (TB) Dh 68,000 (D) 1,000m
Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.
