issue number 130 |May 2013 NEW TRAFFIC LAW LEBANESE HIGH RELIEF COMMIttEE “THE MONTHLy” iNTERVIEWS YOUMNA MEDLEJ www.iimonthly.com • Published by Information International sal MECHANIC INSPECTION CENTERS FAVORING THE OPERATOR OR THE STATE? Lebanon 5,000LL | Saudi Arabia 15SR | UAE 15DHR | Jordan 2JD| Syria 75SYP | Iraq 3,500IQD | Kuwait 1.5KD | Qatar 15QR | Bahrain 2BD | Oman 2OR | Yemen 15YRI | Egypt 10EP | Europe 5Euros May INDEX 2013 4 MECHANIC INSPECTION CENTERS 7 NEW TRAFFIC LAW 11 Lebanon’s MunicipALITIES AND THEIR REVENUES 14 BETWEEN PUBLIC AND PRIVATE SCHOOLING 17 LEBANESE HIGH RELIEF COMMITTEE 18 THE 1968 LEBANESE PARLIAMENTARY P: 25 P: 41 ELECTIONS - SOUTH ELECTIONS 20 PRECEDENTS IN TERM-EXTENSION OF PARLIAMENT 21 RASHID KARAMI INTERNATIONAL FAIR 22 P ERNICIOUS ANEMIA: DR. HANNA SAADAH 23 THE MEANING OF REGENERATION IN KNOWLEDGE ECONOMY: ANTOINE BOUTROS 24 BETWEEN TODAy’s ARAB REVOLUTIONS AND THE AWAKENING OF THE 19TH CENTURY: SAID CHAAYA 25 INTERVIEW: YOUMNA MEDLEJ P: 28 27 FAREWELL MY COUNTRY 28 KUNHADI 30 POPULAR CULTURE 43 THIS MONTH IN HISTORY- ARAB WORLD 31 DEBUNKING MYTH#69: BEIRUT A HISTORICAL THE FIRST ARAB-ISRAELI WAR- MAY 1948 TRADE ROUTE LINKING EAST TO WEST? 44 THE SYRIAN CRISIS BEYOND BORDERS 32 mUST-READ BOOKS: THE ARABS IN THE TWENTY FIRST CENTURY 45 ARTISTIC PRODUCTION IN IRAQ 33 mUST-READ CHILdren’s bOOK: THE MOON - 46 OPERATION RED CARPET AND THE DREAMS “SALVAtion” oF ARAB JEWS 34 LEBANON FAMILIES: FAMILIES DENOTING 47 REAL ESTATE PRICES IN LEBANON - LEBANESE TOWNS (2) MARCH 2013 35 DISCOVER LEBANON: KASHLAK 48 FOOD PRICES - MARCH 2013 36 EXTENSION OF PARLIAMent’s TERM 50 DID YOU KNOW THAT?: IMPULSE SHOPPING 37 mARCH 2013 HIGHLIGHTS 50 BEIRUT RAFIC HARIRI INTERNATIONAL 41 THIS MONTH IN HISTORY- LEBANON AIRPORT - MARCH 2013 47 YEARS SINCE THE ASSASSINATION OF JOURNALIST KAMEL MROUEH 51 lEBANON STATS |EDITORIAL ENOUGH! The March 8 Forces have for a long time held their March 14 rivals accountable for the deplorable state of the country’s economy, education, medical services and infrastructure. The fingers were pointing since 1993 at each successive government, particularly those under the premiership of Rafik Hariri, Fouad Seniora and Saad Hariri. If the past were good, then why complain about it? And if it weren’t, then why persist in the same practices? The fact of the matter is that the March 8 Forces are reinforcing the lingering effects of the past they keep lamenting. Below are a few matters overlooked by the March 8 Forces: The majority of the now so-called Mach 8 Forces have given their parliamentary vote of confidence to all those governments they are supposedly slamming. None of the successive Parliaments have stripped the governments of that confidence. All successive Parliaments have ratified the corresponding budgets and approved of borrowing in Lebanese pounds then transferring debt to foreign currencies. March 8 Forces have accepted and taken advantage of the absence of public budgets since 2006. If we take a sample of the subjects of complaints, we find the following: Sukleen: Renewal of the same contract. Duty Free area: Renewal of the same contract. Roads: Half of Lebanon’s roads are sub-standard and continue to be unsuitable for driving. Coastal and riverside properties: Continuous encroachments. Solidere: Nothing has changed except that it has now what it could not obtain in the past. Public debt: Public debt increased from USD 2.9 billion in 1993 to USD 58 billion at the end of 2012. Mobile phones: Speak unreservedly! Public administration: Going downhill. Judiciary: Speak unreservedly, except for the action taken recently by the Judicial Disciplinary Committee against two judges. Taxation system: At the standstill and worsening. Electoral system: Now we mention it? Where were the March 8 Forces four years ago and why not stall a little more until the elections are only a few days away? If Sukleen squandered public funds without providing adequate environmental or practical solutions to Lebanon’s waste problems, why has it remained in operation? If the March 8 Forces were genuinely keen on public properties, why have they let sleeping dogs lie and turned a blind eye to encroachments, which some among the party have been part of? Why has borrowing continued despite the public debt having reached alarming rates? Why has spending persisted along the same lines of Seniora’s path, although a legal loophole was contrived? Have March 8 ministers fared any better in public management? Away from the rhetoric of March 8 and March 14 Forces and away from the accusations of treason or the acts of reverence, the time has come for each to take their share of the blame and make sure their hands are clean before pointing fingers at others. In this context, it is useful to recall the words of Imam Al-Hussein: “Keep away from doing that which you must excuse yourself for, for verily the believer neither commits a wrong nor makes excuses for himself.” 4 | LEADER MECHANIC INSPECTION CENTERS FAVORING THE OPERATOR OR THE STATE? The Lebanese government has signed over the past two decades numerous contracts known as B.O.T contracts whereby private companies build a number of public facilities, operate them and eventually transfer their ownership to the government. These facilities have included mobile phone operators, airport parking and vehicle inspection centers. Most of the time, the contracts have proved unfavorable to both the state and the Lebanese citizens, especially that the amounts invested in the projects have been trivial compared to the costs borne by the Lebanese in return of the services provided. Although ownership of the inspection centers was transferred to the state at the beginning of 2013, the government decided to extend its contract with the same company running the facilities for another 6 months until finding alternatives. What did the contract contain and what are the options on the table? Initial contract In August 2002, and after revising the proposals, the Lebanese Cabinet agreed to award the contract to the Saudi Fal Company1, a bidder with the lowest negotiated price, to design, construct, equip and operate vehicle inspection centers in Lebanon, granted that the stations would be transferred to the state by the end of 2012. It was agreed that the company would build 4 to 6 stations distributed over the Mohafazat. Beirut and Mount Lebanon: 1 or 2 North: 1 Beqa’a: 1 South and Nabatieh: 1 or 2 The company was later exempt from establishing 2 centers and built the remaining 4 on state-owned property. The operator was responsible for financing the project and had the right to collect the inspection fees in line with the prices set in the contract. However, not specifying the amount of those fees in the contract left the matter entirely to the operator’s discretion. According to the contract, a minimum of 7 lanes was to be set for the inspection of vehicles under 3.5 tons, with each lane performing 150 inspections per day against at least 1 lane for vehicles over 3.5 tons. The total number of staff including technicians and non-technicians stood at no less than 44. Inspection centers and number of testing lanes Center No. of lanes Car test lanes Truck test lanes Motorcycle test lane Hadath 22 16 4 2 Ghazieh 6 4 1 1 Mejdlaya 4 2 1 1 Zahle 4 2 1 1 Total 36 24 7 5 Source: Cabinet report 1 Saudi Fal Company is a company registered in Lebanon. issue 130 | The Monthly is published by Information International s.a.l. LEADER | 5 Supervision contract Along with the Saudi Fal contract, the Lebanese act as a guardian angel to protect this vital economic government signed a no-bid contract with Vivauto, activity. which was tasked with supervising the work at the centers and monitoring the quality of operations, Against the absence of alternate options, the in exchange for 2.75% of the profits, to be paid, government was forced to extend the contract by 6 unprecedentedly, by the Lebanese government months and called on the Ministry of Interior and instead of the service provider. This percentage was Municipalities to prepare a request for proposals reduced to 2.5% following the 6-month extension of handbook stipulating the construction of two Vivauto contract. inspection centers in Rashaya and Baakleen. The ministers of interior and finance were also assigned Demands of the operator to forge contracts with Fal to set up inspection centers The company reported that the profit estimation had responsible for testing second-hand cars entering the been exaggerated, stressing that they had incurred country through land or sea ports and to prolong the many losses and missed opportunities due to the laws, agreement with Vivauto for another 6 months for the decrees and other government measures that deprived same share of profits (2.5%). A new tender to award the company of substantial revenues. supervision contracts was also demanded from the USD 318.862 due to Law No. 519, which delayed Ministry of Interior and Municipalities. inspection commencement from January 7, 2003 to January 31, 2003. The proposition offered by the Ministry of Interior and Municipalities entailed extension of the contract by 5 USD 750 000 due to the government decision years that expires on December 31, 2017 according to suggesting the transfer of the North inspection the following stipulations: site from Ras Masqa to Mejdlaya, 10 months after Waiving all the previous demands and lawsuits the company had built the station and started its filed by the company during the past 9 years and activity in the former. worth USD 81.5 million (as mentioned earlier). Building, equipping and operating 6 additional USD 65 million due to lack of follow-up on the stations in Jbeil, Al-Kweikhat (Akkar), Tripoli, vehicles that avoid the inspection process.