Lebanon and Iraq plan to exchange about $200 million worth of heavy fuel for in-kind services, including medical expertise, caretaker energy minister Raymond Ghajar told The National on Sunday.
The deal, which has been in discussion for “two to three years”, involves Lebanon buying 500,000 tonnes of heavy fuel from Iraq, currently worth roughly $200m, Mr Ghajar said.
The Lebanese government will deposit the money in a special account at Lebanon’s central bank for Iraq to spend locally on “any type of service, like health services”, said Mr Ghajjar.
“It’s not up to us, it’s up to them to decide what to do with the money,” he added.
Since the beginning of Lebanon’s worst-ever economic crisis in mid-2019, local banks, including the central bank, restricted access to foreign currencies.
As a result, the local currency’s value has dropped by around 85 per cent on the parallel market despite remaining officially pegged at 1,507 Lebanese pounds to the dollar.
Depositors with dollar accounts – locally dubbed as Lebanese dollars or “lollars” – can withdraw cash at the rate of 3,900 Lebanese pounds to the dollar. They cannot transfer funds overseas.
In practice, this means that Iraq will spend Lebanon’s fuel payment in “lollars” or in Lebanese pounds,” said Mr Ghajar.
On Friday, Lebanese state media reported that caretaker Health Minister Hamad Hassan and his Iraqi counterpart signed in Beirut a preliminary agreement to trade medical expertise for fuel supplies.
Lebanon's state-run electricity company faces dire cash shortages.
Oil-rich Iraq, which has seen Covid-19 cases soar in recent weeks, suffers from a chronic lack of drugs and medical care as decades of war and poor investment have left its hospitals in bad shape.
"The two parties are currently working on the details of the framework agreement," a source at Lebanon's Health ministry told The National.
Mr Ghajjar had previously announced the deal during a visit to Iraq in late February, telling Iraqi state-run newspaper Al Sabah that the heavy fuel oil will be exported to Beirut from the port of Basra.
Nothing has changed since, Mr Ghajar said. “The [Lebanese] Health Ministry will benefit after we strike our deal,” he said.
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The Lebanese and Iraqi prime ministers are expected to sign it at a date that is yet to be determined. Lebanon’s energy minister and Iraq’s oil ministry will agree on the quantity and price.
“The contract will be between myself and SOMO,” said Mr Ghajar, in reference to Iraq’s state organisation for marketing of oil.
In March, Mr Ghajar had warned that Lebanon would plunge into "total darkness" by the end of the month if no money was secured to buy fuel for power stations.
Last week, Lebanon's parliament approved $200m in emergency funding to keep the lights on.
Electricity cuts have increased from three hours a day in Beirut to around 20 hours a day in the past weeks.
Because of chronic underinvestment in the sector, production never met demand since the end of 1975-1990 civil war.
Locals must pay for private generators to have electricity 24/7.
Lebanese energy experts previously told The National that the high sulphur content of Iraqi fuel could damage local power plants in addition to harming the environment.
Mr Ghajar acknowledged that Iraqi fuel cannot be used directly by Lebanese power plants.
“We propose that once the agreement is signed, we swap the fuel for fuel with the specifications we want,” he said.
Lebanese power plants rely on three types of imported fuel that they burn to produce electricity: grade A heavy fuel, grade B heavy fuel and gas oil.
“We can take the heavy fuel from Iraq and swap it with any of the three,” said Mr Ghajar.
Lebanon does not have the capacity to refine fuel. Sending the 500,000 tonnes of Iraqi fuel to refine abroad is “not worth it”, said Mr Ghajar, because the quantity is small.
Lebanon needs 2 million tonnes of heavy fuel oil a year.
It currently relies on spot cargo imports, which involve buying fuel in one-off transactions for near-time delivery.
A corruption scandal over tainted fuel ended its five-times renewed 15-year contract with Algerian oil company Sonatrach in late 2020.
Late February, Lebanon’s public tenders’ department launched a bid for a one-year contract to import grade A heavy fuel, grade B heavy fuel and gas oil.
The opening of bids will take place on three consecutive days between April 19 and April 21.
Mr Ghajar said that the spot cargo system was working well, and that electricity output should increase in the coming weeks.
He explained the recent surge in power cuts by the blockage of the Suez Canal last week by a giant container vessel.
This delayed the arrival of a ship that is expected to unload Sunday.
Additionally, two cargoes had a specifications issue with German conglomerate Siemens, which manufactured turbines that are used in two Lebanese power plants in the northern coastal town of Deir Ammar and in the region of Zahrani, near the southern city of Saida.
“There is a disagreement between the laboratory and the original equipment manufacturer about how to test for gum content,” said Mr Ghajar, in reference to a certain kind of residue found in gas oil.
“This is a technical issue they are trying to resolve,” he added.
Energy consultant Jessica Obeid warned that the Energy Ministry’s decade-long strategy of relying on expensive imported fuel and temporary solutions is unsustainable.
“The key problem is that the country is running out of foreign currency reserves necessary to import fuel,” she said.
“There has been no willingness for reform so far.”
Emirates Cricket Board Women’s T10
ECB Hawks v ECB Falcons
Monday, April 6, 7.30pm, Sharjah Cricket Stadium
The match will be broadcast live on the My Sports Eye Facebook page
Hawks
Coach: Chaitrali Kalgutkar
Squad: Chaya Mughal (captain), Archara Supriya, Chamani Senevirathne, Chathurika Anand, Geethika Jyothis, Indhuja Nandakumar, Kashish Loungani, Khushi Sharma, Khushi Tanwar, Rinitha Rajith, Siddhi Pagarani, Siya Gokhale, Subha Srinivasan, Suraksha Kotte, Theertha Satish
Falcons
Coach: Najeeb Amar
Squad: Kavisha Kumari (captain), Almaseera Jahangir, Annika Shivpuri, Archisha Mukherjee, Judit Cleetus, Ishani Senavirathne, Lavanya Keny, Mahika Gaur, Malavika Unnithan, Rishitha Rajith, Rithika Rajith, Samaira Dharnidharka, Shashini Kaluarachchi, Udeni Kuruppuarachchi, Vaishnave Mahesh
Company%20Profile
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French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
The%20Genius%20of%20Their%20Age
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Results
Female 49kg: Mayssa Bastos (BRA) bt Thamires Aquino (BRA); points 0-0 (advantage points points 1-0).
Female 55kg: Bianca Basilio (BRA) bt Amal Amjahid (BEL); points 4-2.
Female 62kg: Beatriz Mesquita (BRA) v Ffion Davies (GBR); 10-2.
Female 70kg: Thamara Silva (BRA) bt Alessandra Moss (AUS); submission.
Female 90kg: Gabreili Passanha (BRA) bt Claire-France Thevenon (FRA); submission.
Male 56kg: Hiago George (BRA) bt Carlos Alberto da Silva (BRA); 2-2 (2-0)
Male 62kg: Gabriel de Sousa (BRA) bt Joao Miyao (BRA); 2-2 (2-1)
Male 69kg: Paulo Miyao (BRA) bt Isaac Doederlein (USA); 2-2 (2-2) Ref decision.
Male 77kg: Tommy Langarkar (NOR) by Oliver Lovell (GBR); submission.
Male 85kg: Rudson Mateus Teles (BRA) bt Faisal Al Ketbi (UAE); 2-2 (1-1) Ref decision.
Male 94kg: Kaynan Duarte (BRA) bt Adam Wardzinski (POL); submission.
Male 110kg: Joao Rocha (BRA) bt Yahia Mansoor Al Hammadi (UAE); submission.
Chris%20Jordan%20on%20Sanchit
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The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Company%20profile
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Indika
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%2011%20Bit%20Studios%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Odd%20Meter%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%205%2C%20PC%20and%20Xbox%20series%20X%2FS%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
Naga
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EMeshal%20Al%20Jaser%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3EAdwa%20Bader%2C%20Yazeed%20Almajyul%2C%20Khalid%20Bin%20Shaddad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206-cylinder%203-litre%2C%20with%20petrol%20and%20diesel%20variants%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20automatic%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20286hp%20(petrol)%2C%20249hp%20(diesel)%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E450Nm%20(petrol)%2C%20550Nm%20(diesel)%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EStarting%20at%20%2469%2C800%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
AGL AWARDS
Golden Ball - best Emirati player: Khalfan Mubarak (Al Jazira)
Golden Ball - best foreign player: Igor Coronado (Sharjah)
Golden Glove - best goalkeeper: Adel Al Hosani (Sharjah)
Best Coach - the leader: Abdulaziz Al Anbari (Sharjah)
Fans' Player of the Year: Driss Fetouhi (Dibba)
Golden Boy - best young player: Ali Saleh (Al Wasl)
Best Fans of the Year: Sharjah
Goal of the Year: Michael Ortega (Baniyas)
Results
6pm: Dubai Trophy – Conditions (TB) $100,000 (Turf) 1,200m
Winner: Silent Speech, William Buick (jockey), Charlie Appleby
(trainer)
6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m
Winner: Island Falcon, Frankie Dettori, Saeed bin Suroor
7.10pm: UAE 2000 Guineas Trial – Conditions (TB) $60,000 (Dirt)
1,400m
Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer
7.45pm: Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m
Winner: Desert Fire, Hector Crouch, Saeed bin Suroor
8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m
Winner: Naval Crown, William Buick, Charlie Appleby
8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m
Winner: Al Tariq, Pat Dobbs, Doug Watsons
9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m
Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor
