- Implementation Support Agency (ISA): World Bank
- Total project financing: $200 million
- Funding from GCFF: $45.4 million
- GCFF Financing Approval Date: 10/29/2016
- Project Closing Date: 06/30/2023
- % Disbursed: 57.1%
- Status: Under implementation
About the project
Lebanon faces stark and pressing development challenges, however, the reform efforts to improve the quality of institutions and promote growth have been limited. Meanwhile neighboring Syria is suffering the biggest conflict and the worst humanitarian and refugee crisis of the 21st century, with large regional and global ramifications and spillover effects. The Syrian refugee crisis has resulted in unprecedented social and economic challenges to Lebanon, putting further stains on its decaying infrastructure. As the first project Lebanon submitted to the MENA Concessional Financing Facility, it is designed to meet Lebanon’s developmental needs in the road sector while also stimulating the economy and creating jobs. To timely respond to these challenges and quickly inject much needed investments to stimulate economic growth and create jobs, this project was prepared and will be implemented according to paragraph 12 of the World Bank’s Operational Policy (OP) 10.00 (projects in situations of urgent need of assistance or capacity constraints).
Project Development Objective (PDO)
To: (i) improve transport connectivity along select paved road sections; and (ii) create short term jobs for Lebanese and Syrians.
Project Implementation Status
(As of December 31, 2022)
- The delays in project effectiveness were mainly due to the delays in the elections and the formation of the government. The list of roads was later approved by the Council of Ministers on June 27th, 2019. The project suffered since from the multiple crises that Lebanon went through, namely the social unrest, the financial and economic crises, intermittent nationwide COVID-19 lockdowns, the tragic explosion of August 4, 2020, and the lack of fuel and primary construction material in the summer of 2021. CDR’s resistance to move towards electronic procurement and the inability of the CDR Board to meet between September 2021 and March 2022, due to lack of quorum, also caused further delays. Nevertheless, the REP has been playing an important role amidst the current economic and financial crises in Lebanon by creating jobs for the Lebanese and Syrian, addressing food security risks, and stimulating the economy. Progress has been observed between May and November 2022. The update is as follows:
- 11 works contracts, out of 13, are currently under implementation. One contract is under termination by the Employer and should be relaunched by end of December 2022. The last contract has been signed but is awaiting the issuance of performance and advance payment guarantees with the Notice to Commence expected in December 2022.
- During the summer of 2022, progress was noted on most contracts with around 74 km of roads completed and 170 km of roads substantially completed (pending signing and marking) as of end of October 2022. Requests for additional road rehabilitation have been received and are being reviewed by the Bank with a key focus on urgency due to road safety hazard.
- 7 construction supervision consultants are currently overseeing the works under the 12 packages to ensure that the works are carried out to a satisfactory standard of workmanship and materials, as scheduled, within budget, in accordance with the specifications and drawings, and to acceptable environmental and social standards.
- Between the start of the works contracts and end of October 2022, around 466,000 labor days have been created under the project. The PIU was requested to closely monitor this indicator and ensure the intended results are reached, taking corrective measures if needed. Though not initially accounted for in the total target, the labor-days created under the farmers’ support component (3,354 as of end of October 2022) have been added to the total number of days generated by the Project.
- A technical auditor was recruited in January 2022 to conduct two site visits per week and ensure close oversight. The technical audits identified good practices and project requirements that are well implemented under the project. They also identified areas of weaknesses (social, OHS, road safety, and technical) and incidents which require further attention and capacity building.
- 4 packages of equipment were delivered between November 29, 2019, and July 27, 2020, including 15-wheel loaders, 10 snow blowers, 5 salt spreaders and 10 four-wheel drive vehicles.
- 26,687 small-scale Lebanese farmers have benefited from improved access to inputs. The final version of the Third-Party Monitoring Agent (TPMA) verification report is expected in December 2022. FAO will coordinate with the Council for Development and Reconstruction and the Ministry of Agriculture (MoA) to present to the Bank a revised list of eligible and ineligible expenditures.
- 6 million animal vaccine doses have been delivered and are now stored at the suppliers’ storage facilities due to power cuts at the Ministry of Agriculture’s facilities. Should the vaccination program not be completed by end of December 2022, the contract with FAO would need to be extended.
- A request to extend the project closing date has been received from the Ministry of Finance and is under consideration by the World Bank.
Relevant Documents: