Germany to propose Beirut port reconstruction with 'strings attached' - sources | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Multimedia
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Monday
December 11, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Multimedia
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
MONDAY, DECEMBER 11, 2023
Germany to propose Beirut port reconstruction with 'strings attached' - sources

World+Biz

Reuters
02 April, 2021, 10:00 am
Last modified: 02 April, 2021, 10:03 am

Related News

  • German state: Citizenship applicants must support Israel
  • Israeli army intercepts target from Lebanon, Israel says
  • German Federal prosecutor declines to investigate Myanmar atrocities
  • US embassy in Lebanon hails '12 hours of calm' on border with Israel
  • US electric vehicle sales to hit record this year, but still lag behind China and Germany

Germany to propose Beirut port reconstruction with 'strings attached' - sources

A chemical explosion at the port last August killed 200 people, injured thousands and destroyed entire neighbourhoods in Lebanon’s capital, plunging the country deeper into its worst political and economic crisis since the 1975-1990 civil war

Reuters
02 April, 2021, 10:00 am
Last modified: 02 April, 2021, 10:03 am
FILE PHOTO: A view shows the site of the August 4 explosion at Beirut port, Lebanon February 18, 2021. REUTERS/Mohamed Azakir/File Photo
FILE PHOTO: A view shows the site of the August 4 explosion at Beirut port, Lebanon February 18, 2021. REUTERS/Mohamed Azakir/File Photo

Germany will next week present a multi-billion-dollar proposal to Lebanese authorities to rebuild the Port of Beirut as part of efforts to entice the country's politicians to form a government capable of warding off financial collapse, two sources said.

A chemical explosion at the port last August killed 200 people, injured thousands and destroyed entire neighbourhoods in Lebanon's capital, plunging the country deeper into its worst political and economic crisis since the 1975-1990 civil war.

According to two diplomatic sources with knowledge of the plans, Germany and France are vying to lead reconstruction efforts. Berlin will on April 7 outline a proposal that the European Investment Bank has agreed to help fund that would clear the area and reconstruct facilities, they said.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

One of the sources estimated EIB funding in the range of 2 billion to 3 billion euros.

A senior Lebanese official confirmed that Germany was due to present a comprehensive port reconstruction proposal.

Neither the German foreign ministry nor consultancy firm Roland Berger, which the diplomatic sources said put the plan together, immediately responded to requests for comment. The EIB was not immediately available for comment.

The two diplomatic sources said Lebanon's political elite first need to agree on the make-up of a new government to fix public finances and root out corruption, a condition which donors, including the International Monetary Fund, are also insisting on before they will unlock billions of dollars in aid.

"This plan is not going to come without strings attached," said one of the sources. "Germany and France want first to see a government in place committed to implementing reforms. There is no other way around it and this is good for Lebanon."

Eight months after the port disaster, many Lebanese who lost family, homes and businesses are still waiting for the results of an investigation into the causes of the blast. Lebanon is on the verge of collapse, with shoppers brawling over goods, protesters blocking roads, and businesses shuttered.

Foreign donors have said the new government must have a firm mandate to implement economic reforms, including a central bank audit and an overhaul of the wasteful power sector.

Prime Minister-designate Saad al-Hariri and President Michel Aoun have been unable to agree on a ministerial line-up, however. The outgoing cabinet, which quit after the explosion, has stayed on in a caretaker capacity.

The IMF has said there have been no programme discussions with Lebanese officials, only technical assistance with the Ministry of Finance and some state-owned enterprises.

Germany's proposal

In addition to the port itself, Germany's proposal would look to redevelop more than 100 hectares in the surrounding area in a project that the two diplomatic sources said would be along the lines of the post-war reconstruction of central Beirut.

As in that redevelopment, the plan would involve the creation of a publicly-listed company similar to Solidere, which was set up by former Prime Minister Rafik Hariri in the 1990s and remains on the Lebanon stock exchange.

The sources put the project cost at anywhere between $5 billion to $15 billion, and said it could create as many as 50,000 jobs.

The Lebanese official said France and French ports and container shipping group CMA CGM were also interested in the reconstruction project.

One of the diplomatic sources noted that France had sent several missions, including one in March that included CMA CGM, that showed an interest in playing a role in the reconstruction. That mission focused on specific clear-up operations rather than a broader redevelopment, however, the source said.

France's foreign ministry declined to comment immediately. CMA CGM declined to comment.

The Lebanese official put the onus for getting the project underway on the Europeans agreeing who would be the lead.

"This is a European decision at the end of the day, because they have to decide on it among themselves. Then when it comes to it, the Lebanese government can go ahead," the official said.

The diplomatic sources said Germany wanted to work closely with France on the issue, but that Paris was pursuing its own initiatives for now.

"The irony of all this is that on the one hand the Europeans are talking about putting pressure on the political class while on the other fighting each other over these potential contracts when the vultures are still circling," one said.

Germany / Lebanon / Beirut blast

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Representational image
    Any potential US sanctions likely political, not due to labour issues: Bangladesh apparel leaders
  • Representational Image. File photo
    Import onions from alternative markets if necessary: FBCCI president
  • Activists participate in a demonstration against fossil fuels, during the United Nations Climate Change Conference COP28 in Dubai, United Arab Emirates, December 5, 2023. REUTERS
    COP28: Future in balance as Saudi Arabia, Iraq refuse to phase out of fossil fuel

MOST VIEWED

  • Photo: Times of India
    Abir Hassan, first Bangladeshi to graduate from Indian Military Academy
  • 10m barrel oil, 300b cubic feet gas found in Sylhet
    10m barrel oil, 300b cubic feet gas found in Sylhet
  •  ZARA ATELIER. Collection 04; The Jacket. Photo: Collected
    When art imitates cruelty: Dissecting Zara’s latest shoot
  • Photo: euronews
    Apps that use AI to undress women in photos soaring in use
  • Two-thirds of LPG sellers hold on to bulk importers to stay afloat in dollar crisis
    Two-thirds of LPG sellers hold on to bulk importers to stay afloat in dollar crisis
  • BNP declares fresh round of blockade on Tuesday-Wednesday
    BNP declares fresh round of blockade on Tuesday-Wednesday

Related News

  • German state: Citizenship applicants must support Israel
  • Israeli army intercepts target from Lebanon, Israel says
  • German Federal prosecutor declines to investigate Myanmar atrocities
  • US embassy in Lebanon hails '12 hours of calm' on border with Israel
  • US electric vehicle sales to hit record this year, but still lag behind China and Germany

Features

Photo: Collected

Top budget-friendly geysers in the market right now

43m | Brands
Photo: Courtesy

Hazy Official: Scrunchies dipped in self-love

1h | Brands
Leaving the Desolation by Andrew Rogov via Pixels.

Delineating the depths of desolation…

43m | Features
Shashtho Chaka – Healthcare on Wheels has two buses, they plan to use one bus for the urban slums and another one for remote areas in villages.  Photos: Courtesy

Shashtho Chaka: Driving healthcare up to the doorstep of the poor

7h | Panorama

More Videos from TBS

Fraud is now at hand due to AI

Fraud is now at hand due to AI

3h | Tech Talk
Unemployment among Asian workers and Black men rises in November

Unemployment among Asian workers and Black men rises in November

3h | TBS World
Installation of 5% of target EFD machines in 3 years

Installation of 5% of target EFD machines in 3 years

3h | TBS Economy
Wealth and income of ministers and state ministers increased

Wealth and income of ministers and state ministers increased

19h | TBS Stories
EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]