2 Message from the President CDR OCTOBER 2015 MESSAGE FROM THE PRESIDENT In 2014, the Lebanese Government and the Lebanese public institutions combined their efforts to improve the level of public services and to with- stand the repercussions of the Syrian crisis which placed huge strains on the economic and social activity and increasingly overburdened the in- frastructure and public services. The Lebanese Government called upon the international community to scale up its support to help the Lebanese public entities in assuming their responsibilities which greatly outweighed humanitarian and rescue interventions and entailed significant develop- ment challenges. The Council for Development and Reconstruction (CDR) and the Ministry of Social Affairs endeavored to seek funding to finance development pro- grams and projects, as well as to integrate sectorial programs into plans and strategies aimed at addressing the negative impacts of the Syrian Cri- sis on Lebanon. On the other hand, the CDR continued to implement the previously sched- uled programs and to prepare for future projects. In 2014, new contracts were awarded across all sectors with emphasis on the water and wastewa- ter sectors. Indeed, many contracts were awarded to outsource the repair, construction and installation of water and waste water systems across dif- ferent Lebanese regions, noticeably a US $200 million contract funded by the World Bank to supply areas of Greater Beirut with drinking water from the Awali River. In a parallel course, preparations have been underway to launch the project on the construction of the Bisri Dam, considered as a second phase of the project aimed at increasing water supply to Greater Beirut. With regard to financial assistance, the total value of foreign funds secured in 2014, reached around US$ 824 million (90% loans) and (10% grants) as detailed out in this report. One of the major funding agreements signed in 2014 is the loan agreement pertaining to the construction of the Bisri Dam and its annexes, estimated at US$ 474 million inclusive of US$ 155 million for land expropriation. The value of the foreign funds allocated in 2014, reflects the continuous support to Lebanon by the Arab and international institutions, despite the fact that the Lebanese Government has not yet completed a number of necessary legal and administrative procedures to activate these funds. We hope that the constitutional institutions will shortly resume their regu- larity, which will normalize the cycle of infrastructure and social and eco- nomic development projects. 4 General Overview of the Sectors CDR OCTOBER 2015 GENERAL OVERVIEW OF THE SECTORS The activities of CDR cover various eco- underway. These contracts are distrib- nomic sectors. However, the extent of uted among sectors according to the fol- these activities varies from sector to lowing ratios: sector in accordance with the Govern- ment’s directives and Lebanon’s free Sector % enterprise economic system. The role Electricity 12 of the State is limited to the sup- port and promotion of the private sec- Transportation 25 tor. CDR works in conjunction with the Water supply and 15 various ministries concerned by imple- Wastewater menting investment projects and pro- Telecommunications 7 viding them with technical assistance. and Post Solid waste 18 Operation and maintenance of com- pleted infrastructure projects remains Education 10 the responsibility of the relevant min- Public Health 3 istries. However, CDR manages and Other sectors 10 implements operation and maintenance services that may be requested by the Government. The charts that follow provide an over- view of the distribution of contracts over CDR is active in the following four main the main sectoral groups, as well as the sector groups: distribution of contracts over the specif- 1- Physical infrastructure: Electricity, ic sectors that make up these sectoral telecommunications and transportation; groups. 2- Social infrastructure: Education, pub- lic health, social and economical devel- opment, land use and environment; 3- Basic services: Water supply, waste- water, solid waste management; 4- Productive and other sectors: Agri- culture, irrigation, sovereignty services, tourism and others; The total value of contracts signed by CDR between 1992 and the end of 2014 was about US $ 12,491.30 mil- lion. About US $ 7,991.80 million of the projects were completed, while works valued at about US $ 4,499.51 million is CDR OCTOBER 2015 General Overview of the Sectors 5 Total value of contracts awarded from the 31st of December 1992 till the 31st of December 2014 in millions of dollars Sectors Total Con- Contracts In Contracts Foreign funding tracts (U.S. progress (U.S. Completed (U.S. (U.S. dollars) dollars) dollars) dollars) Physical Infrastructure Electricity 1,471.87 52.05 1,419.82 1,283.02 Telecommunications, 798.49 0.00 798.49 33.26 Posts Transportation 3,059.81 993.31 2,066.50 1,087.37 Social Infrastructure Education 1,263.01 262.47 1,000.54 538.63 Public health 335.46 46.85 288.61 218.39 Environment and Re- 103.74 55.73 48.01 82.17 gional Planning Social and economical 66.63 19.07 47.56 24.30 affairs Basic Services Water Supply 1,082.59 383.05 699.54 719.95 Wastewater 837.86 492.30 345.56 469.41 Solid Waste 2,206.80 1,692.42 514.38 33.60 Productive sectors and other sectors Agriculture and Irriga- 476.30 376.04 100.26 276.94 tion Sovereign services 163.55 31.13 132.42 10.28 Other Sectors 625.19 95.08 530.11 239.30 Grand Total 12,491.30 4,500 7,992 5,017 Note: In case an addendum is signed and is part of a completed project, the value of the com- pleted project will be moved to the section of projects in progress. 6 General Overview of the Sectors CDR OCTOBER 2015 Contracts awarded $12,491 million Distribution by sector 1,265 Productive sectors & Other sectors 4,127 Basic services 1,769 Social infrastructure 5,330 Physical infrastructure 0 1,000 2,000 3,000 4,000 5,000 6,000 Physical infrastructure $5,330.31 million Social and Economic sectors $1,768.85 million Social and Land-Use & Economic Environment Electricity 6% 28% development 4% Public health 19% Transport 57% Post & Telecom 15% Education 71% Basic services $4,127.25 million Productive sectores & Other sectors $1,264.89 million Solid waste Water supply 54% 26% Agriculture & Other sectors Irrigation 49% 38% Waste water 20% Sovereign services 13% CDR OCTOBER 2015 General Overview of the Sectors 7 Contracts completed $7,992 millions Disdribution by sector Productive sectors & Other sectors 763 1,559 Basic services 1,385 Social infrastructure 4,285 Physical infrastructure 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Physical infrastructure $4,285 million Social and Economic sectors $ 1,385 million Land-Use & Social & Environment Economic 4% development Electricity 3% 33% Transport 48% Public health 21% Post & Education Telecom 72% 19% Basic services $1,559 million Productive sectors & Other sectors $763 million Agriculture Solid waste & Irrigation 33% 13% Water supply 45% Soveregn services 17% Other sectors 70% Wastewater 22% 8 General Overview of the Sectors CDR OCTOBER 2015 Contracts in progress $4,499 million Distribution by sector 502 Productive sectors & Other sectors 2,568 Basic services 384 Social infrastructure 1,045 Physical infrastructure 0 500 1,000 1,500 2,000 2,500 3,000 Physical infrastructure $1,045 million Social and Economic sectors $ 384 million Land Use & Electricity Social and Environment 5% economical 15% development 5% Education Public health 68% 12% Transportatio n 95% Basic services $2,568 million Productive sectors & other sectors $ 502 million Water supply 15% Other sectors 19% Wastewater 19% Sovereign services 6% Solid waste Agriculture & 66% Irrigation 75% CDR OCTOBER 2015 General Overview of the Sectors 9 Contracts awarded $ 12,491.30 millions (completed & in progress) Distributed by sector 993 52 1400 in progress Completed 1200 262 1000 1,692 383 0 800 2,067 1,420 600 492 95 1,001 376 400 798 700 47 530 514 200 346 289 31 26 56 132 100 60 48 0 CDR OCTOBER 2015 Introduction 3 INTRODUCTION This report presents an overview of CDR’s activities dur- ing 2014. It contains discussion of significant achievements from 1992 to 2014, development during 2014 and the main projects in preparation. Each sector includes three tables: • The Sector Overview table lists projects that are complete or that are in progress. It includes the following information for each project: - The number and total value of contracts awarded up to 31 December 2014 (the value 0.0 indicates that the amount is less than US$ 50,000); - The number and total value of completed contracts; - The number and total value of contracts in progress and the percentage of completion for each project (averaged across the live contracts related to each project) • The Contracts Awarded in 2014 table lists the contracts awarded during the past year. • The Contracts in Preparation table presents details of in- dividual work packages or studies that are expected to be launched by CDR during the year 2015 and after. The report deals essentially with CDR work. For complete- ness of information, reference is made, where appropriate, to the activities of Ministries and other public bodies. The tables, however, include information related to CDR activi- ties only. 18 Physical Infrastrucurea CDR OCTOBER 2015 POST AND TELECOMMUNICATIONS A group of contracts was award- cation Presentation (CLIP), voice struction of 185 new buildings in ed to foreign and local firms for messaging services and 13376 all Lebanese regions; the rehabilitation of the Public Integrated Line Services Digital - Installation of the Wireless Lo- Switched Telephone Network Network (ISDN) lines.