Public Private Partnership in the Lebanese energy sector

Abstract

Lebanon’s energy sector has been suffering for a long time due to shortage of energy supply, ageing assets, lack of experts and mismanagement of its allocated budget. In this dissertation, Public Private Partnership (PPP) is presented as a resort for the energy sector’s regulatory challenges when framed within a comprehensive legal framework to properly govern the sector. PPP is the intervention of the private sector in the public services that were initially managed and operated by the public sector. It is a significant method to be used in the developing countries that have budgetary constraints and an inefficient public sector. On the other hand, renewable energy is presented as a technical solution for the electricity sector in Lebanon. Unlike Lebanon, Jordan is leading the energy sector in the region although it has similar geopolitical and economical challenges and similar resource availability as the case of Lebanon. Two case studies were analyzed, presenting the first wind farm project in Lebanon, Akkar Wind Farm, and the first wind farm in Jordan, Tafila Wind Farm, to highlight the inefficiency of the energy sector in Lebanon and learn from Jordan’s success story. Jordan’s strength is mainly in its solid regulations that manage the energy sector and fairly involve the private sector. Jordan as well does not suffer from the political disputes that hinder the prosperity of all sectors. The Lebanese Government needs to establish a solid framework which governs the partnership between the public and private sectors in the energy sector while ensuring transparency, accountability, fair competition, clear duties of both sectors and zero political influence.