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Title: IMC Meeting


1
PRESENTATION
Infrastructure and Privatization
Inter-Ministerial Committee Progress Report
4
Beirut, Lebanon January 30, 2008
2
Todays objective is to update your Excellencies
on progress to-date against Commitment Documents
of the respective stakeholders
Meeting Objectives
  • Brief on the status of issues raised in the
    previous IMC and on progress to-date of GR PCO
    planning and monitoring activities
  • Following the last IMC dated August 24, 2007 8
    main issues were raised regarding the Power,
    Telecom and Transport Sectors, and the CDR
  • To-date, 2 issues were resolved, 1 is in
    progress, and 5 are delayed
  • Highlight progress and status of implementation
    of short-term programs in each sector (where
    available)
  • Monthly Progress Report against programs charted
    in commitment documents
  • New and Emerging Issues

3
Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

4
The Paris III implementation planning process is
generally on track, except for the Power Sector
which is delayed, and the Transport Sector, which
is still at the initiative identification phase
Natural Owner Identification of Initiatives Prioritization of Initiatives Program Charters Development KPI Setting Progress Report Commitment Document Immediate Next Steps
Ministry of Telecom ? ? ? ? ? ? Commitment document (no financial requirements) signed by MoT
HCP ? ? ? ? ? ? Commitment document for Telecom and Power signed by HCP
TRA ? ? ? ? ? ? Commitment document signed by TRA
Ministry of Energy and Water / EDL ? ? ? ? (Targets missing) ? ? Finalize KPIs for EDL Commitment document for Power signed with no KPIs
Ministry of Transport 50 50 Not Applicable Not Applicable Not Applicable Not Applicable Discuss Airport privatization roadmap and ports strategy development plan with Prime Minister/Minister of Transport and HCP SG
CDR ? ? ? ? ? ? Commitment document signed by CDR
5
Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

6
Monthly progress reports will highlight the
status of each program defined in a commitment
document along implementation, budget, and KPI
dimensions
Program Status and Budget Performance Definitions
Budget Performance Budget Performance
Initial Budget Budget endorsed during an IMC
Revised Budget Budget adjusted using a Program Change Request Form endorsed during an IMC
Actual Spent Amount spent until date of reporting
Remaining Budget Requirements Estimate Estimate of the remaining budgetary requirements for the program
7
Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

8
Program Dashboard
Program Overall Status
Program Title
TEL-001 Establish the Telecom Regulatory
Authority
Natural Owner
Minister of Telecom/TRA
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • Transfer of qualified staff from MoT completed
  • New
  • TRA budget approved but not transferred yet
  • Second advanced payment approved but not
    transferred as of January 18th, 2008
  • Review and approval of Ministry of Finance for
    financial procedures still pending
  • Carried Over from Previous IMC
  • Need to complete the process in transferring
    documentation and information from MoT to TRA
  • Numbering assignment database
  • RF planning and studies (ATDI, and other) carried
    out to the benefit of MoT
  • Transfer of Satellite licensing information
  • Transfer of RF management equipment

Budget Performance Budget Performance
Initial Budget 13,500,000
Revised Budget N/A
Actual Spent 2,000,000
Remaining Budget Requirements Estimate N/A
Status N/A
KPI Baseline Current Value Target (Closest Date) Status
Transfer of Regulatory Functions from MoT to TRA 15 75 100 (April 08)
Broadband licensing 0 40 Process launched (June 08)
Note () Defined in the legend
9
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Program Dashboard
Program Overall Status
Program Title
Tel-002 Corporatize and Privatize Liban Telecom
Natural Owner
Minister of Telecom
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • MoT launched on IP TV pilot project
  • MoT is proceeding with its national project
    providing broadband services
  • New
  • None
  • Carried Over from Previous IMC
  • Need to appoint Liban Telecom Board of Directors
    or alternative governance structure

KPI Baseline Current Value Target (Closest Date) Status
Liban Telecom Board appointment Delayed Delayed Completed (Dec. 2007)
Percentage of employee migration from Ogero to LT 0 0 Completed (Jul. 2008)
Percentage of asset migration from Ogero to LT 0 0 Completed (Dec. 2008)
Percentage of customer migration from Ogero to LT 0 0 Completed (Dec. 2008)
Percentage of vendor migration from Ogero to LT 0 0 Completed (Dec. 2008)
Budget Performance Budget Performance
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate N/A
Status N/A
Note () Defined in the legend
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Program Dashboard
Program Overall Status
Program Title
TEL-003 Privatize mobile telecom
Natural Owner
Secretary General of HCP and TRA Chairman
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • Review and finalizing of the 4 regulation issued
    for consultation (Interconnection, SMP, Consumer
    Affairs, and Quality of Service and Key
    Performance Indicators)
  • Issue Type approval regulation for consultation
  • Finalize request for application
  • Finalize information memorandum
  • Launch of the mobile licensing process
  • Opening of the online data room along the auction
    website
  • Finalize the mobile draft license
  • Finalize all related document (due diligence
    reports)
  • Finalize draft transaction document (SPA)
  • New
  • None
  • Carried Over from Previous IMC
  • None

KPI Baseline Current Value Target (Closest Date) Status
Regulations Issued by the TRA 4 5 12 (June 2008)
Mobile licensing process completion 0 85 100 (May 08)
Budget Performance Budget Performance
Initial Budget 13,500,000
Revised Budget N/A
Actual Spent 2,000,000
Remaining Budget Requirements Estimate N/A
Status N/A
Note () Defined in the legend
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Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register
Issue ID Issue Level Issue Description Raised by Date Assigned to Actions Needed Deadline Status
TEL-001 H Need to speed-up the process in transferring documentation, information, and employees (e.g., Radio Frequency, Licensing Authorizations, Studies) from MoT to TRA TRA Chairman 05/07/2007 MoT/ TRA MoT/ TRA Minister of Telecom MoT/ TRA MoT/ TRA MoT to transfer frequency data to TRA MoT and TRA to develop a detailed schedule for the transfer of documentation, information, and employees Minister of Telecom to approve schedule MoT and OGERO to transfer selected staff to TRA, after issuing an internal memorandum Transfer to be completed by October 1st, 2007 (Expected completion date April 30, 2008) 17/07/2007 27/07/2007 03/08/2007 20/08/2007 01/10/2007 Completed Completed Completed Completed Delayed
TEL-002 H Need to appoint Liban Telecom Board of Directors or alternative governance structure Minister of Telecom / HCP SG / BAH 15/05/2007 Minister of Telecom MoT to assign PMO Members, who will report to the Steering Committee Appoint Liban Telecom Board 18/05/2007 30/06/2007 Delayed Delayed
TEL-003 H Need to finalize the decision on whether to sell or lease the mobile assets when issuing new licenses TRA Chairman / HCP SG / BAH 15/05/2007 Dept. of Legal Legislation Matters (MoJ) HCP SG Minister of Telecom to transfer the file to the Department of Legal and Legislation Matters (DoLLM) at the Ministry of Justice DoLLM to decide if the assets can be sold under the current Privatization Law HCP/TRA to proceed and accelerate development of tender documents in coordination with Citigroup/JP Morgan 16/07/2007 31/07/2007 On-going Completed Completed (Assets can be sold) Completed
16
Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

17
Program Dashboard
Program Overall Status
Program Title
POW-001 Strengthen Sector Policy-Making Capacity
Natural Owner
Minister of Energy and Water
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • Recommendations for the Generation segment will
    be submitted on 17 February 2008
  • Recommendations for the Transmission segment
    will be submitted on 17 April 2008
  • Integrated report will be submitted on 17
    July 2008
  • Public Expenditure Review Completed
  • New
  • New variation order for NCC (New financing
    required)
  • Carried Over from Previous IMC
  • None

Budget Performance Budget Performance
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate N/A
Status N/A
KPI Baseline Current Value Target (Closest Date) Status
National Control Center implementation In Progress In Progress Completed (Oct. 2008)
Master Plan for generation and transmission development On Track On Track Completed (Jul. 2008)
Note () Defined in the legend
18
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NS
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Program Dashboard
Program Overall Status
Program Title
POW-002 Improve EDL Operational Efficiency
Natural Owner
Minister of Energy and Water
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • Viability report for Zouk Power Plant submitted
  • Tender was issued for Zouk and Jieh to perform
    feasibility study
  • Audit of 2002 accounts issued in draft form
  • New
  • EDL to provide KPIs
  • Finalize Audit for 2002 account
  • Signature of Natural Gas agreement with Egypt
  • Proceed with Audit of financial statements from
    2003 to 2006
  • Carried Over from Previous IMC
  • Need to formalize KEPCO contract
  • EDL to follow up with consultants on the
    preparation of a technical report on the
    viability of Jiyyeh power plant
  • Advisors hired for MoEW, EDL and HCP have
    submitted their first deliverables Decon
    contacted Azorom Advisors should coordinate
    with IFC

KPI Baseline Current Value Target (Closest Date) Status
Non-Technical losses N/A N/A N/A N/A
Bill collection rate N/A N/A N/A N/A
Average number of electricity hours per day (Country-wide) N/A N/A N/A N/A
Percent distortion in electricity distribution between regions N/A N/A N/A N/A
Budget Performance Budget Performance
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate N/A
Status N/A
Note () Defined in the legend
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Program Dashboard
Program Overall Status
Program Title
POW-003 Corporatize and Privatize EDL
Natural Owner
Secretary General of the HCP
Period
Jan 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • EDL restructuring kick off was end of September
    2007
  • Sector strategy presented to the PM and IMC
    committee in January 2008 and approved
  • New
  • Need for law 462 amendment regarding certain
    issues

KPI Baseline Current Value Target (Closest Date) Status
Asset registry 0 10 Completed (Dec. 2008)
Legal due diligence Not Started Not Started Completed (Apr. 2008)
New EDL launch plans Not Started 50 Completed (Mar. 2008)
EDL Corporatization 5 20 Completed (March. 2009)
Establishment of additional production capacity through IPPs 10 15 Completed (Dec. 2009)
Collection Management and Metering 15 55 Completed (Jun. 2008)
Budget Performance Budget Performance
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate N/A
Status N/A
Note () Defined in the legend
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Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register
Issue ID Issue Level Issue Description Raised by Date Assigned to Actions Needed Deadline Status
POW-001 H Need to formalize KEPCO contract EDL 05/07/2007 EDL Stakeholders to agree on a solution to provide credit line to KEPCO EDL to revise submitted offer of KEPCO 24/07/2007 Delayed
POW-002 H Lack of consensus on approach regarding CRA issue (1.2 million meters vs. 16,800 pilot meters) BAH 05/07/2007 Minister of Energy and Water / EDL / HCP Agree on clear assignment of roles and responsibilities pertaining to the CRA contract, including the number of meters to be installed in both the short and long terms 24/07/2007 Completed 16,800 by MoEW and 1.2M by HCP (incl. funding) with support from MoEW
POW-003 M A technical report on the viability of Zouk and Jiyyeh plants should be developed IMC 05/07/2007 EDL EDL to follow up with consultants on the preparation of a technical report on the viability of Zouk EDL to follow up with consultants on the preparation of a technical report on the viability of Jiyyeh 31/07/2007 31/07/2007 Completed Delayed
POW-004 M No stakeholder assigned to undertake EDL asset registry EDL 05/07/2007 HCP HCP is working on retrieving consultant to undertake EDL asset registration 01/10/2007 Delayed
POW-005 M Need to shift focus of auditors to EDLs 2005-2006 accounts (or have them work in parallel on 2002-2004 and 2005-2006 accounts) HCP 05/07/2007 EDL/MoF EDL Need to quickly secure funding for Grant Thornton Audit of 2002 in final form Audit for 2003 onwards not started 31/07/2007 20/08/2007 Completed Delayed
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Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register
Issue ID Issue Level Issue Description Raised by Date Assigned to Actions Needed Deadline Status
POW-006 H MoEW could consider the LNG option as an alternative to Natural Gas Minister of Energy and Water and CDR President 05/07/2007 HCP and CDR HCP and CDR to request from their consultants to include the assessment of the supply of LNG to the Beddawi plant within their scope of work 20/08/2007 Completed
POW-007 H Advisors hired for MoEW, EDL and HCP might have different orientations, which could create conflicts or inconsistencies among their recommendations Minister of Finance 05/07/2007 Minister of Energy and Water / EDL / HCP Current Infrastructure Privatization IMC Sub-Committee (PM, MoEW, EDL, HCP, MoF) to steer the work of all advisors The scope of work of EDL advisors should be channeled toward preparing for the set form corporatization, once sector strategy is agreed Reinforce the Sub-Committee with some Technical Assistance 31/08/2007 Completed
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Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

29
Airport privatization roadmap and ports
privatization approach were developed by the GR
PCO consultant, and need to be discussed with the
Minister of Transport and HCP Secretary General
Transport Sector Progress
  • Following the request of the Prime Minister and
    the Minister of Transport during the IMC meeting
    on 5/7/2007, the GR PCO consultant developed the
    following
  • Air Transport Detailed roadmap for the
    privatization of the Beirut Rafic Hariri
    International Airport (BRHIA)
  • Maritime Transport Approach to privatizing the
    different ports, including quick-wins
  • These proposals need to be discussed and
    finalized with the Prime Minister, the Minister
    of Transport and HCP Secretary General

30
Table of Contents
  • Air Transport
  • Maritime Transport

31
The aviation sector liberalization Law 481 calls
for the set up of an Aviation Authority and an
Airport Company, and clearly defines the roles
and responsibilities of each
Planned Institutional Structure of Civil Aviation
in Lebanon
Key Roles
Entity
Government Responsible Agency
Ministry of Public Works and Transport (MPWT)
  • Propose CAA Board appointment or termination for
    the Council of Ministers
  • Set compensation and rules for Board Directors
  • Provide guidelines and approve overall aviation
    policy

Planning and Regulation
Civil Aviation Authority (CAA)
  • Propose aviation policy and key initiatives
  • Develop and enforce safety and economic
    regulations for airports, airlines and air
    traffic control
  • Propose development project for existing and new
    airports
  • Negotiate international agreements and ensure
    close cooperation with ICAO and other
    international and regional organizations

Operations
Beirut Rafic Hariri International Airport
Corporation (BRHIAC)
  • Plan and manage airport operations in
    coordination with government agencies
  • Plan and decide on subcontracting service
    providers for airport activities, and ensure
    supervision and coordination of all providers
  • Provide air navigation, communication, and
    metrological observation services

Source Law 481, Other Regulations
32
The CAA is the safety and economic regulator,
while BRHIAC is the company that is fully
responsible for running the Beirut Airport
Allocation of Selected Key Aviation
Responsibilities
Minister of Transport
CAA
BRHIAC
Aviation Policy
  • Set guidelines, approve policies, and submit for
    CoM (where needed)
  • Develop draft policy and laws in consultation
    with stakeholders
  • Contribute / Propose own plans

Safety Standards
  • Develop and Enforce safety standards and rules
    for airport, airline, and ATC
  • Fully comply with all safety standards

Accident / Incident Investigation
  • Accident Investigation office under Minister
    leads investigations
  • Contribute to accident and incident investigation
  • Contribute / participate

Licensing Personnel, Equipment and Flights
  • License personnel, aircrafts and airline flights
    in line with safety and bilaterals
  • Ensure personnel, aircraft and flights admitted
    are licensed

Bilateral Agreements
  • Review and process for approval as per Lebanese
    law
  • Conduct negotiations and implement provisions
  • Provide input

Airport / Airline Tariff
  • Approve aviation tariff and/or refer to CoM as
    per aviation laws
  • Set fees for services by CAA
  • Review and approve aviation tariff
  • Collect airport fees and fares

Airport developments / investments
  • Review plans for compliance with safety and
    economic regulations
  • Plan and submit studies for airport development
    and investment initiatives

Outsourcing Contracts and Tenders
  • Review compliance with regulations and safety
    guidelines
  • Develop tender and approve winners in compliance
    with laws

Operations Management, Outsourcing Supervision
  • Review compliance with regulations and license
    personnel and equipment
  • Plan and manage operations and supervise all
    service providers

Airport Planning and Budgeting
  • Review and submit budget for government approval
  • Develop and propose airport plans and budgets

Source Law 481, Other regulations
33
The GoL postponed the creation of the CAA and
BRHIAC despite the enactment of the aviation Law
and the CAA decree since 2002 and 2003
Civil Aviation Institutional Structure Status
of Implementation
Current Organization of the Directorate General
of Civil Aviation
Current Status
Director General
  • In August 2003, the CoM issued decrees defining
    and creating the organization of the CAA, as well
    as incorporating the BIAC
  • Since then, studies have been prepared for
    detailed organization and manpower of the new
    institutional set up
  • However, the GoL has delayed implementation of
    the decrees, without providing a revised timeline
  • To-date, the CAA Board is not appointed and no
    progress have been made in setting up BRHIAC

Research and Studies
Airports
Air Transport
Aviation Safety
Meteorology
Technical Affairs
Airport Studies Directorate
Air Navigation Directorate
Beirut Airport Presidency
Equipment Maintenance Directorate
Air Communication Directorate
Technical Installation Directorate
Source Directorate General of Civil Aviation
34
The new CAA organization is planned to have two
core functions focused on safety and economic
regulations
Proposed Civil Aviation Authority Organization
Structure(1)
CAA Board of Directors
Secretariat of the Authority
Performance Quality Control
Air Transport Directorate
Civil Aviation Safety Directorate
Administrative Directorate
Environment Meteorology Directorate
Lebanese Civil Aviation Training Center
Airworthiness
Intl Agreements Authorizations
Meteorology
Financial Affairs
Promotion Development
Flight Operations
Economic Studies Financial Revenues
Environment Climate
Human Resources Technology Transfer
Legal Affairs
Licenses
Personal Affairs Supplies
Aerodrome
Information Technology
Air Traffic
Public Relations
Safety and Economic Regulatory Functions
(1) Proposed as part of a study on the
organization, job descriptions and manpower plans
of the new CAA and BRHIAC Source Directorate
General of Civil Aviation
35
Most of the Beirut Airport activities are
currently managed by MEA subsidiaries or private
companies
Beirut Rafic Hariri International Airport
Privatized Activities
Government
MEA Subsidiary
Privatized through Concession
Comments
Infrastructure provision site management
?
  • Managed by Directorate General of Civil Aviation
    (DGCA)

Asset / Facility Management
?
  • Managed by Directorate General of Civil Aviation
    (DGCA)

Free Zone
?
  • Managed by Directorate General of Civil Aviation
    (DGCA)

Asset / Facility Operation and Maintenance
?
  • Operated and maintained by Middle East Airports
    Services (MEAS)

Airport parking
?
  • 15-year BOT concession won by Al-Khorafi of Kuwait

Retailing
?
  • 15-year concession won by Phoenicia-Aer Rianta
    Company

Catering
?
  • 15-year concession awarded to Abella

Fueling
?
  • 15-year concession won by a consortium of 5 local
    companies

Cargo
?
  • Cargo handled by Middle East Airlines Ground
    Handling (MEAG)

Ground Handling
?
?
  • Ground handling by MEAG, LAT, ASAS, EAS, Flying
    Carpet, and Beirut Wing

Aircraft Maintenance
?
?
  • Aircraft maintenance by Mideast Aircraft Services
    Company (MASCO), and TMA

Aircraft Catering
?
  • Aircraft catering by Lebanese Beirut Airport
    Catering Company (LBACC)

Note () MEA is organized as a private company
under the commerce code, but is 96 held by the
GoL and is under the financial responsibility of
BDL
36
However, four key requirements need to be
addressed upfront to enable the privatization
Beirut Rafic Hariri International Airport
Privatization Key Requirements
Description
Rationale
  • Appoint the Board of Directors
  • Fully develop the organization and build all
    requisite safety and economic regulations
    capabilities

CAA Set Up
  • Potential investors need to be reassured about
    the existence of an independent regulator, as
    such, they need to know who the regulator will be
  • Appoint the Board of Directors
  • Fully develop the organization
  • Transition all airport operating responsibilities
    and staff from DGCA to BRHIAC as per Law

BRHIAC Set Up
  • Potential investors need to be reassured about
    the split between the regulator and the operator
    of the airport
  • Ensure each government agency understands and
    accepts its mandate post-privatization
  • Ensure coordination and conflict resolution
    mechanisms between government agencies

Government Agencies Coordination
  • Unsupportive and uncoordinated work of government
    security and control agencies directly impacts
    negatively on airport operations and commercial
    services
  • Confirm the form of the privatization option and
    define the process timeline consider extending
    Lease term to more than 50 years
  • Determine a transaction timing with favorable
    growth prospects and political situation

Timing
  • The ability to attract investors and the value of
    privatization proceeds is heavily dependent on
    traffic growth prospects and political stability

37
As such, the privatization roadmap starts with
the establishment of the institutional structure
before developing the privatization scheme
List of Programs and Initiatives
PRELIMINARY
Sector Programs and Initiatives Sector Programs and Initiatives Sector Programs and Initiatives Stakeholders Preliminary Timeline Implem. Comments
1. Set up Institutional Structure Set up Institutional Structure
1a. Set-up the CAA and appoint the Board of Directors MPWT, CoM Q3 2007
1b. Develop CAA organization and capabilities (Safety and economic regulations) CAA Board Q4 2007
1c. Set-up BRHIAC and appoint Board of Directors MPWT, CoM Q3 2007
1c. Develop BRHIAC organization and transition responsibilities fro DGCA BRHIAC Board Q4 2007
1d. Plan and implement the transition of responsibilities, assets and staff from DGCA to BRHIAC BRHIAC Board Q4 2007
1e. Develop necessary laws and regulations for Free Zone / Airport City CAA, MPWT, CoM Q4 2007 Q2 2008
2. Develop Privatization Scheme and Process Develop Privatization Scheme and Process
2a. Confirm goals of privatization and establish priorities of key stakeholders HCP Q3 2007
2b. Evaluate privatization options against priorities, airport investment market and financial impact HCP, BRHIAC, CAA Q4 2007
2c. Select and approve preferred option CoM, HCP, MPWT, BRHIAC Q1 2008
2d. Draft Terms of Reference HCP, BRHIAC Q1 2008
2e. Detail full transaction process and timeline HCP Q1 2008
2f. Develop and secure official approval on coordination mechanism of government agencies at the airport CAA, BRHIAC Q1 2008 Q2 2008
38
The privatization can then be launched at the
right timing, targeting selected operators and
followed by a carefully planned transition
List of Programs and Initiatives
PRELIMINARY
Sector Programs and Initiatives Sector Programs and Initiatives Sector Programs and Initiatives Stakeholders Preliminary Timeline Implem. Comments
3. Implement the Privatization Process Implement the Privatization Process
3a. Identify potential local and international operators HCP, BRHIAC Q2 2008
3b. Short-list target operators against fit with privatization scheme and political sensitivities MPWT, HCP, BRHIAC Q2 2008
3c. Finalize Terms of Reference and Tender documentation HCP Q3 2008
3c. Decide on timing of the launch of process based on growth and political prospects MPWT, HCP, BRHIAC Anytime after Q2 2008
3d. Conduct roadshow to short-listed operators and formalize Expressions of Interest through consultative issue of tender documents HCP, BRHIAC Q4 2008
3e. Draft and issue final tender documents and schedule QA sessions HCP, BRHIAC Q4 2008
3f. Receive and evaluate bids against criteria HCP Q4 2008
3g. Select preferred bidder and ensure selection is certified through the right legal process HCP, BRHIAC, MPWT, CoM Q1 2009
3h. Notify bidders of outcome HCP Q1 2009
4. Transition to Private Operator Transition to Private Operator
4a. Sign contract and launch mobilization HCP, BRHIAC, CAA Q2 2009
4b. Plan and execute transition to new operators BRHIAC Q2 2009 Q3 2009
39
Table of Contents
  • Air Transport
  • Maritime Transport

40
Beirut and Tripoli Ports are currently operated
and managed by the GoL, except for the Container
Terminal activities of the Port of Beirut (PoB)
which are outsourced through a concession
agreement
Ports Components Privatization in Lebanon
Government
Privatized through Concession
Comments
Beirut Port
Infrastructure provision site management
  • Managed by Gestion et Exploitation du Port de
    Beyrouth (GEPB)

?
Asset / Facility Management
  • Managed by Gestion et Exploitation du Port de
    Beyrouth (GEPB)

?
Asset / Facility Operations and Maintenance
  • Operated and maintained by Gestion et
    Exploitation du Port de Beyrouth (GEPB)

?
General Cargo Operations
  • Managed and operated by Gestion et Exploitation
    du Port de Beyrouth (GEPB)

?
Container Terminal Operation
  • POB subcontracted container terminal operation to
    Beirut Container Terminal Consortium (BCTC) in
    February 2005
  • POB signed a partnership contract with MSC
  • CMA-CGM also established a hub at POB

?
Tripoli Port
Infrastructure provision site management
?
Asset / Facility Management
?
Asset / Facility Operations and Maintenance
?
All Cargo and Container Operations
?
Note () Mediterranean Shipping Company (MSC)
41
Three key requirements need to be addressed
upfront to enable the privatization of Beirut and
Tripoli Ports
Beirut and Tripoli Ports Privatization Key
Requirements
Description
Rationale
42
Maritime Sector Privatization Roadmap
PRELIMINARY
Sector Liberalization
Ports Privatization
Sector Policy
Preliminary Targets
2008
2011
1/9/2007
2009
2010
I.1
Assess Market Demand and Economics
Restructure and Corporatize Functional Areas
(when applicable)
Develop Strengthen Regulator Capability
I.2
Develop Maritime Sector Strategy
Commercialize Administrative, Human Resources and
Internal Services
Develop Port of Beirut by Increasing the Holding
Capacity of the Container Terminal
I.3
Define Liberalization and Commercialization
Options and Timelines
Commercialize Service Provision
Complete Development Work of the Port of Tripoli
I.4
Develop Regulatory Structure, Methodologies, and
Phased Regulations
II.1
II.3
Determine Implications and Critical Improvements
for Infrastructure Model
Develop Privatization Plan for Commercial
Maritime Assets
I.5
Develop Maritime Sector Privatization Law
II.2
II.4
Determine Socio-Economic Implications by Region
Develop Port and Port-related Business Strategies
Source () Lebanon Maritime Transport Policy ,
May 2006
43
As such, the privatization roadmap starts with
the development of a sector strategy and
establishment of the institutional structure,
before developing the privatization scheme
List of Programs and Initiatives
PRELIMINARY
Sector Programs and Initiatives Sector Programs and Initiatives Sector Programs and Initiatives Stakeholders Preliminary Timeline Implem. Comments
1. Set up Institutional Structure Set up Institutional Structure
1a. Develop Maritime Sector Strategy (Policy) MPWT Q4 2007
1b. Develop Maritime Sector Privatization Law HCP, MPWT, CoM, Parliament Q4 2007
1c. Establish the Maritime Transport Authority (MTA) and appoint its Board of Directors MPWT, CoM Q1 2008
1d. Develop MTA organization and capabilities MRA Board Q2 2008
1e. Transfer regulatory responsibilities to the MRA MPWT, MTA Q2 2008 Q3 2008
1c. Setup Port Company, and appoint its Board of Directors MPWT, CoM Q4 2008
1c. Develop Port Company organization and plan transition of responsibilities from GEPB PBC Board Q1 2009
1d. Plan and implement the transition of responsibilities, assets and staff to Port Company PBC Board Q1 2009
2. Develop Privatization Scheme and Process Develop Privatization Scheme and Process
2a. Confirm goals of privatization and establish priorities of key stakeholders HCP Q3 2008
2b. Evaluate privatization options against priorities, airport investment market and financial impact HCP, MTA Q4 2008
2c. Select and approve preferred option HCP, CoM, MPWT Q1 2009
2d. Draft TORs, and design full transaction process and timeline in details HCP Q1 2009
2e. Develop and secure official approval on coordination mechanism of government agencies at the ports MTA Q1 2009 Q2 2009
Note () In light of Sector Strategy and
Privatization Law outcome
44
Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register
Issue ID Issue Level Issue Description Raised by Date Assigned to Actions Needed Deadline Status
TRA-001 H Strategy relating to privatization of other public entities (e.g., airport, ports) still under development Minister of Transport / Minister of Finance 15/05/2007 GR PCO Minister of Transport/ HCP SG Develop transport sector privatization roadmap, within scope of current legislation Align transport sector stakeholders on privatization roadmap 31/07/2007 10/08/2007 Completed Delayed
45
Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

46
Program Dashboard
Program Overall Status
Program Title
CDR-001 Restructure CDRs capacity to undertake
investments
Natural Owner
President of CDR
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • Job Vacancies List Prepared
  • Consultants on contract basis hired (from foreign
    grants)
  • New Procurement Law endorsed by CoM
  • New
  • None
  • Carried Over from Previous IMC
  • None

Budget Performance Budget Performance
Initial Budget 2,000,000
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate N/A
Status N/A
KPI Baseline Current Value Target (Closest Date) Status
Percentage of vacant key positions filled 0 70 100 (29/02/2008)


Note () Defined in the legend
47
?
NS
NS
?
?
?
48
Program Dashboard
Program Overall Status
Program Title
CDR-002 Develop Public Investment Plan for
2009-2012
Natural Owner
President of CDR
Period
January 2008
IMC
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
  • Public Investment Plan submitted to Council of
    Ministers
  • New
  • None
  • Carried Over from Previous IMC
  • None

KPI Baseline Current Value Target (Closest Date) Status



Budget Performance Budget Performance
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate N/A
Status N/A
Note () Defined in the legend
49
?
?
50
Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register Sector / Natural Owner Issues Register
Issue ID Issue Level Issue Description Raised by Date Assigned to Actions Needed Deadline Status
CDR-001 H CDR needs to develop a Public Investment Plan aligned with Paris III requirements CDR 05/07/2007 CDR President, Minister of Finance, and Office of PCM A Task Force including the CDR, MoF and the Office of PCM to be created in order to oversee the development of the Public Investment Plan CDR and Ministry of Finance to coordinate the preparation of a preliminary Public Investment Plan to be ready for the next IMC CDR and Ministry of Finance to coordinate the development of a draft Public Investment Plan for 2009-2012 23/07/2007 20/08/2007 09/09/2007 Completed Completed Completed
51
Table of Contents
  • GR PCO Planning Monitoring
  • Monthly Progress Reports
  • Telecom Sector
  • Power Sector
  • Transport Sector
  • CDR
  • Next Steps

52
Next Steps
Actions Required
  • Telecom Sector
  • Appoint Liban Telecom Board in order to proceed
    with the corporatization process
  • Transfer relevant documentation and information
    from the Ministry of Telecom to TRA
  • Transfer TRA budget
  • Review and approval of MoF for financial
    procedures
  • Power Sector
  • Secure financing for the variation order of the
    NCC
  • Finalize 2002 audits and proceed with audit of
    2003 to 2006
  • Formalize KEPCO contract
  • Follow up with consultants on the preparation of
    a technical report on the viability of Jiyyeh
  • Sign the Natural Gas agreement with Egypt
  • Transport Sector
  • Align key stakeholders on a roadmap for
    implementing priority programs
  • Develop Commitment Document
  • CDR
  • Proceed with the recruitment of the key positions
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