World Bank warns some Lebanon projects may be canceled

A senior World Bank official has said that the Lebanese economy is "not doing great" and urged the country's leaders to approve some $1.1 billion worth of projects put forward by the international lender, saying otherwise they could be canceled, Lebanon's Naharnet reported Wednesday (August 1st).

Ferid Belhaj, the bank's vice president for the Middle East and North Africa, told reporters in Beirut that the economy is "in a state of fragility".

Lebanon should take steps to reform the electricity sector, where the state-owned provider operates on a $1.5 billion annual deficit, he said.

Belhaj said the World Bank has a portfolio of more than $2 billion of projects in Lebanon, including about $1.1 billion which is still "not converted into actual investment, meaning they are sitting with parliament and the council of ministers".

If the projects are not approved by the government and parliament they will have to be canceled, he said.

"This is not our preference, obviously. We would really want to have these projects move ahead as soon as possible," said Belhaj.

Saroj Kumar Jha, the World Bank's regional director for the Middle East, said the projects include improving roads in rural areas, building rapid bus transit across Beirut and improving the electricity sector.

Prime Minister-designate Saad al-Hariri has been trying to form a Cabinet since after the May 6th parliamentary elections, with no success due to political bickering.

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