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# Aoun Reviews Electricity Reforms as Lebanon Faces Another Test of Its Ability to Deliver
- URL: https://beirutwire.com/aoun-reviews-electricity-reforms-as-lebanon-faces-another-test-of-its-ability-to-deliver/
- Published: 2026-10-22T04:35:16.000Z
- Updated: 2026-10-22T04:35:16.000Z
- Description: President Joseph Aoun has reviewed a new Electricité du Liban governance plan developed with the World Bank, calling for greater independence, transparency and difficult administrative reforms.
- Author: Beirut Wire
- Tags: Economy

President Joseph Aoun has reviewed a new governance reform plan for Electricité du Liban, declaring electricity a national priority as the country attempts to attract foreign investment into a sector that has consumed billions of dollars while failing to provide reliable power.

During an October 21 meeting at Baabda Palace, Aoun received EDL’s board of directors, headed by engineer Naseeb Nasr, to discuss a governance plan developed and approved by the board in cooperation with the World Bank.

The meeting focused on administrative reforms, institutional independence and several decisions expected to be submitted to Cabinet.

Aoun described electricity reform as a strategic priority that should transcend political and sectarian divisions.

He urged the board to operate independently, act transparently and make difficult decisions in the public interest.

The message is familiar.

The real question is whether Lebanon’s political leadership is finally prepared to implement it.

For decades, Electricité du Liban has been one of the country’s most expensive institutional failures.

Lebanon has spent enormous sums subsidizing the electricity sector while households and businesses continue relying heavily on private generators.

The economic consequences are visible everywhere.

Companies pay for electricity twice.

Factories operate with higher production costs.

Restaurants and supermarkets depend on expensive diesel.

Households face generator bills that consume a substantial share of their incomes.

And the country remains unable to provide one of the most basic services expected from a functioning state.

The problem is not simply insufficient electricity generation.

It is the institutional structure surrounding it.

EDL has long struggled with political interference, weak collections, technical losses, administrative inefficiency and an operating model that has repeatedly required public financial support.

Those problems have discouraged investment while imposing costs on the entire economy.

That is what the governance plan is supposed to address.

Although the full document has not been publicly released, the reforms are intended to improve EDL’s management, accountability and operational independence.

The board says it is working with ministries, parliamentary committees, regulatory bodies, employees and suppliers to overcome longstanding administrative obstacles.

Nasr told Aoun that restructuring the institution will require difficult decisions and stronger coordination across government.

But improving management is only one part of a broader transformation.

Lebanon is also moving toward opening its electricity sector to private investment.

A new sector policy approved earlier this year envisages transforming EDL from a conventional public utility into a commercially structured company and gradually reducing its monopoly over electricity generation.

The reform is rooted in Law 462 of 2002, which established a framework for electricity-sector restructuring but remained largely unimplemented for more than two decades.

That delay tells its own story.

Lebanon has known for years that its electricity sector requires independent regulation, private capital and structural reform.

What it has consistently lacked is implementation.

The Electricity Regulatory Authority has finally been established, and the government is beginning to move forward with changes that should have been introduced years ago.

But those reforms now face a much larger test.

Qatar has presented an ambitious investment proposal that could fundamentally reshape Lebanon’s electricity system.

The reported plan includes two 825-megawatt gas-fired power plants in Deir Ammar and Zahrani, major solar and wind projects, electricity imports from Syria and long-term natural gas infrastructure.

Together, the proposed domestic generation projects would represent approximately 2,890 megawatts of installed capacity, although actual output would vary depending on operational and weather conditions.

Qatar has proposed financing and operating projects through arrangements designed to avoid requiring upfront Lebanese Treasury investment.

The proposal remains subject to negotiation and government approval.

Its importance is nevertheless clear.

Lebanon may finally have access to the capital and expertise needed to rebuild electricity generation.

But Qatar cannot make EDL financially sustainable by itself.

Investors need credible payment arrangements.

They need enforceable contracts.

They need confidence that electricity bills will be collected.

And they need assurance that political interference will not prevent projects from operating commercially.

Those requirements explain why Aoun’s governance meeting matters.

Institutional reform and foreign investment are directly connected.

A new power plant is of limited value if the institution purchasing its electricity cannot reliably pay for it.

The same applies to transmission infrastructure.

Increasing generation without improving the grid, reducing losses and strengthening collections risks reproducing the financial problems that undermined the sector in the first place.

Energy Minister Joe Saddi has repeatedly raised these concerns.

Earlier this month, he announced that he would boycott Cabinet sessions until the government addressed overdue payments and exemptions affecting EDL.

He said Lebanon’s existing generation capacity covers only about one-third of national demand.

Saddi also revealed that 24 companies had expressed interest in electricity investment, but that financial and security guarantees remained major obstacles.

That is a revealing situation.

Lebanon is not necessarily suffering from a complete absence of interested investors.

It is struggling to provide the conditions those investors need.

Aoun’s emphasis on institutional independence is therefore particularly important.

EDL cannot operate commercially if every major decision becomes a political negotiation.

Appointments, procurement, financial management and operating strategy need credible oversight and clear responsibilities.

That requires more than announcing that the board should be independent.

It requires the government to respect that independence when decisions become politically inconvenient.

The same applies to accountability.

EDL should publish transparent financial information, establish measurable operating targets and clearly explain how reforms will improve electricity supply and reduce costs.

Public confidence cannot be rebuilt through assurances alone.

Citizens need to know when electricity hours will increase, what generation will cost, how losses will be reduced and whether future investments will impose financial obligations on taxpayers.

Those are the measures by which reform should be judged.

President Aoun told the board to allow its achievements to speak for themselves.

That is the appropriate standard.

Lebanese citizens have already heard decades of speeches about fixing electricity.

They have seen successive governments announce plans, commissions, investments and emergency solutions.

Yet the generator remains an unavoidable part of daily life.

The current government has an opportunity to change that trajectory.

There is a functioning regulatory framework beginning to take shape.

There is an EDL board pursuing governance reforms with World Bank cooperation.

There are international investors expressing interest.

And Qatar has placed a substantial electricity investment proposal on the table.

These developments could finally begin transforming the sector.

But the distance between preparing reforms and delivering electricity remains considerable.

The government must approve necessary decisions, establish commercial arrangements, strengthen EDL’s finances and ensure that foreign investment produces actual infrastructure.

Until then, governance reform remains a process rather than an achievement.

Lebanon’s electricity crisis is no longer a mystery.

Its causes have been studied for decades.

Its potential solutions have been repeatedly identified.

The challenge is whether political leaders will finally execute them.

Aoun is right to demand that achievements speak for themselves.

For Lebanese households and businesses, there is only one achievement that ultimately matters.

Electricity that works.