2 Message from the President CDR October 2012 We can’t possibly talk about 2011 without listing the tremendous facts and events witnessed by the Arab World during that year. Clearly, a long time will pass before the impact of these events on the political, economic and social situation in the countries affected by the repercussions of these events is perceived. Throughout 2011, Lebanon maintained a fair level of stability, despite its being in the eye of the storm, and was able to reduce the gravity of impending risks at all levels. And since promoting economic and social development is the most important action a government can take to immunize society and enable it to avoid severe crises in such circumstances, the CDR has doubled its efforts in this regard, in cooperation and coordination with all the public administrations and institutions and with the partners concerned with the development process. In addition to the implementation of its previously planned programs, the CDR launched in 2011 several vital projects in all sectors and covering all regions, and prepared draft financing agreements that were referred to the Council of Ministers in preparation to presenting them to the Parliament. Work progress on these activities, at the programming, implementation and financing levels, is detailed in a special report. We do believe that the best response to the challenges facing Lebanon, to which were added recently those due to the events in neighboring countries, lies in increased solidarity among the Lebanese, and in raising development levels, in addition to promoting individuals and society’s faith in the state and the institutions. CDR October 2012 Introduction 3 Introduction This report presents an overview The number and total value of of CDR’s activities during 2011. It contracts in progress and the contains discussion of significant percentage of completion for each achievements from 1992 to 2011, project (averaged across the live development during 2011 and the contracts related to each project) main projects in preparation. The Contracts Awarded in 2011 Each sector includes three tables: table lists the contract awarded during the past year. The Sector Overview table lists The Contracts in Preparation table projects that are complete or that presents details of individual work are in progress. It includes the packages or studies that are following information for each expected to be launched by CDR project: during the year 2012. The number and total value of The report deals essentially with contracts awarded up to 31 CDR work. For completeness of December 2011 (the value 0.0 information, reference is made, indicates that the amount is less where appropriate, to the activities than US$ 50,000); of Ministries and other public bodies. The tables, however, The number and total value of include information related to completed contracts; CDR activities only. 4 General Overview of the sectors CDR October 2012 General Overview of the Sectors varies from sector to sector in Physical infrastructure: Electricity, accordance with the Government’s telecommunications and transportation; directives and Lebanon’s free Social infrastructure: Education, public enterprise economic system. The role health, social and economical of the State is limited to the support development, land use and and promotion of the private sector. environment; CDR works in conjunction with the various ministries concerned by Basic services: Water supply, implementing investment projects and wastewater, solid waste management; providing them with technical assistance. Productive and other sectors: Agriculture, irrigation, sovereignty Operation and maintenance of services, tourism and others; completed infrastructure projects remains the responsibility of the The total value of contracts signed by relevant ministries. However, CDR CDR between 1992 and the end of manages and implements operation and 2011 was about US $ 10,662 million. maintenance services that may be About US $ 7,402 million of the requested by the Government. projects were completed, while works valued at about US $ 3,260 is CDR is active in the following four underway. These contracts are main sector groups: distributed among sectors according to the following ratios: Sector % Electricity 14 Transportation 25 Water supply and Wastewater 14 Telecommunications and Post 7 Solid waste 16 Education 10 Public Health 3 Other sectors 11 CDR October 2012 General Overview of the sectors 5 Total value of contracts awarded from the 31st of December1992 till the 31st of December 2011 in millions of dollars Sectors Total Contracts In Contracts Completed Foreign funding Contracts (U.S. progress (U.S. (U.S. dollars) (U.S. dollars) dollars) dollars) Physical Infrastructure Electricity 1,457.95 41.41 1,416.54 1,269.69 Telecommunications, 798.49 0.00 798.49 33.26 Posts Transportation 2,749.85 877.01 1,872.84 1,047.06 Social Infrastructure Education 1,121.66 258.00 863.66 509.91 Public health 313.11 28.96 284.15 215.19 Environment and 84.46 47.87 36.59 59.07 Regional Planning Social and economical 63.19 20.45 42.74 29.85 affairs Basic Services Water Supply 832.63 233.43 599.20 603.95 Wastewater 688.34 385.43 302.91 402.85 Solid Waste 1,669.16 1,155.35 513.81 33.58 Productive sectors and other sectors Agriculture and 114.73 18.46 96.27 87.08 Irrigation Sovereign services 162.45 40.17 122.28 10.25 Other Sectors 605.67 153.46 452.21 223.90 Grand Total 10,662 3,260 7,402 4,526 6 General Overview of the sectors CDR October 2012 Contracts awarded $10,662 million Distribution by sector Contracts awarded $10,348 million Distribution by sector ProductiveProductive sectorssectors && OtherOther sectorssectors BasicBasic services services SSocialocial infrastructureinfrastructure PhysicalPhysical infrastructureinfrastructure 00 1,0001,000 2,0002,000 3,0003,000 4,0004,000 5,0005,000 6,0006,000 Phys alic inffrr tas ruc ,5$erut 006 ilm006 lion ialSoc inffrr tas rrucuc ,1$eurt 82 m5 ilm lion aiacoS dnl Laandnd U &es iimoneco c ntenmorinvE tenmpoelevd %5 %4 yitictrcleE %29 rtopsnraT hlicbuP ae lt %55 %20 Edu ac tion Post & T moecel %16 %71 c sisaB errvv $cesi ,3 ilm190 llion victudorP s htO&esroecte err sect $sroect 833 nolliim uicrgA erltu & rri agI noita 13%13 etaW r s yuppl tesa wlidoS tesa 26% 5 erevoS ign escivers %18 reatwetWas %22 htO err sector 69% CDR October 2012 General Overview of the sectors 7 ContractsC completed $7,402 million Distribution by sector Contracts completed $7,200 millions Disdribution by sector 671 Productive sectors & Other sectors 1,416 Basic services 1,227 Social infrastructure 4,088 Physical infrastructure 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 PhysicalysihP infrastructurenilacysi ffrr erutcursta $ 3,9964,088,4 088 millioniolilm nio Social infrastructureinialocS ffrr utcurtas re $1,206$1,227$ ,1$ millionionlilm227 LandL UseUsaL &&end Electricity SocialSociall andandaiacoS nd Transport EnvironmentnvE ntenmoirnv 35% economiceconomicicmnooce 45% 3%%3 projectsprojectsproojejecctsts 4%4%%4 ElectricityleElecctrtr yitic TransportTrar opsn rt 3535%% 46% Public health PublicublP healthheic hlta 23%23%23 EducationEducaatiti no Post & 70%%70 TelecomPost &&tosP Telecom20% mcoeelT 19%%19 BasicBasic servicesc servicessasB ei rrvicevice $1,341 $1,416,1$s million millionionlilm416 ion ProductivetcuodrP ve sectors & OtherOt&sortcesi eh r ssectors $671$sortce millionionlilm671 Water supply WaterWater supplys yuppl Agriculture &&ertuulicAgr Solid wlioS wastetesad 42% 42%%42 IrrigationgIrri aatt noi 36%%36 16%%16 Solid waste 36% SoveregneroveS ggnn servicesescivers Wastewater 20%%20 OthertO ht er ssectorssroect 22% WastewaterreatwetWas 64%%64 22%%22 8 General Overview of the sectors CDR October 2012 Contracts in progress $3.260 million Distribution by sector ProductiveProductive sectors & Other sectors Basic services Social infrastructure Physical infrastructure 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Physica ilca n ffrara uctruts re $918 million Social iucturtsrafn re $ 355 million Education 73% Transpororrt 95% c yit Land-Use & %5 Public healthlth Environment Social a nd 8% 13% economic proojejects 6% $cesierv scisaB $cesierv ,1 774 million Productive sect o&rsoect ht er sectors $212 million reWat Agricu tu &erl yuppls ga notigairrI 13%%13 9% Sovereigngn Other secto rvicesces Wastewater 72% 19% 22% Sollid waste 65% CDR October 2012 General Overview of the sectors 9 Contracts completed $10.662 millions ( completed & in progress) Distribution by sector in progress 1400 Completed 1200 1000 880000 660000 400 200 0 10 General Overview of the sectors CDR October 2012 Electricity Electricity Sector Overview frameworks and whatever links Lebanon has become an important The electricity sector constitutes a them together. On the technical challenge for the Lebanese very sensitive infrastructure side, the production, transmission government in the foreseen directly linked to all the daily and distribution sub-sectors suffer perspective, particularly after activities of the citizens. from several accumulating pledging during Paris III to take All indicators in this sector reveal problems. They start with the necessary reform measures in order the importance of numerous and unavailability of capacity in energy to be able to transfer the sector from chronic problems that impede the production to supply the demand; a burden on its treasury and major works, threaten the sector, they transit through the existence of economy into an efficient and and inflict heavy damage to the obsolete and unreliable equipment sustainable sector, with positive national economy, making it and installations, as well as the repercussions on the growth of the impossible to be resolved unless a increase in technical and non- national income and consequently radical and gradual reform policy, technical loss levels; and they do on the economy. able to boost the sector, is adopted. not end with the decrease in collection levels and human It has now become clear that the Finance Ministry sources confirm resource problems.