World Bank cancels loan to Lebanon for Bisri Dam Project over 'non-completion of tasks'

The World Bank reportedly cancelled $224 million loans to the Lebanon government for the proposed Bisri Dam Project as it failed to fulfil preconditions required before the funds were disbursed. According to reports, Lebanon failed to meet the deadline to finalise the Ecological Compensation Plan and to mobilise a contractor at the dam project worksite after which the World bank on September 4 decided to cancel the ‘undisbursed funds’. 

In a press note, the World Bank officials said, “The World Bank today notified the Government of Lebanon (GOL) of its decision to cancel the undisbursed funds under the Water Supply Augmentation Project (Bisri Dam Project) due to non-completion of the tasks that are preconditions to the commencement of construction of the Bisri Dam”. 

The press release further read, "The canceled portion of the loan is USD 244 million and the cancellation is effective immediately”. 

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The World bank informed that the Lebanese government also failed to finalise operation and maintenance arrangement by August 24. The officials have raised the aforementioned issues with Lebanon since January, however, as they failed to fulfil the preconditions, the World Bank decided to cancel the loan. 

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Bisri Dam Project

According to reports, the Bisri Dam project was approved by Lebanon’s government and parliament in 2015 and it has been funded through a $474 million loan by World bank. The dam is supposed to store 125 million cubic meters of water to provide a solution for chronic water shortages to Lebanese living in Beirut and Mount Lebanon. 

The cancellation of loan also comes after several activists reiterated their call to cancel the project, drawing a parallel between failed dam projects in Lebanon and the massive explosion on August 4. The World Bank has been heavily invested in mega-dam projects in developing countries. They have already paid around $320 million to Lebanon, including $155 million for expropriations of private land in the Bisri Valley. 

(With inputs from ANI) 

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