LEBANON: Support to the Reconstruction Efforts of the Beirut Port
In August 2020, a devastating explosion tore through the Port of Beirut causing widespread destruction, claiming lives, and displacing thousands. This catastrophe prompted a collaborative effort led by the World Bank, United Nations, European Union, and other partners to assess the damage and needs of the affected area. The impact was staggering, with billions of dollars in damage to physical assets and significant economic losses.
Recognizing the urgency for both immediate action and long-term transformation, a Reform, Recovery, and Reconstruction Framework was developed. It aimed not just to rebuild but to create a modern, transparent, and efficient port system. This effort highlighted the crucial necessity of implementing reforms to combat corruption, ensure efficiency, and promote transparency in the reconstruction process.
A pivotal moment arose in October 2021 when the newly appointed government sought the World Bank's support for a state-of-the-art approach to reconstruct the Port of Beirut. Despite efforts, the slow recovery post-explosion exacerbated Lebanon's socioeconomic crisis, impacting the nation's position in the global trade landscape. The Bank mobilized substantial funds and directed strategic efforts toward a new governance framework, a comprehensive development plan, and an integrated vision for the port sector, aiming to lay the foundation for a transformed and resilient port system. Yet, challenges emerged, including political hurdles impeding the passage of essential laws and divergent views on the use of the blast area for reconstruction versus memorial purposes.
PPIAF supported technical assistance for recommendations of the terms of the new Port Sector Law so that it fits with both the existing legal environment and the overall architecture of the extended national port sector stakeholders' community. This work was co-funded by the Global Infrastructure Facility (GIF), which largely funded efforts in developing the Port of Beirut Master Plan. The engagement included the following deliverables, some of which were funded by other donors and MDBs:
- A diagnostic of the legal environment under which the port was managed over the years, an analysis of the surrounding legislations (public-private partnerships, public procurement, investment, industrial zones, land, transport, maritime, customs, fiscal, urban, environment, etc.)
- Recommendations for the main provisions to be inserted in a draft Port Sector Law, encapsulating the governance elements recommended by the World Bank and group of experts from the donor community and providing all the legal instruments required to formally set up the new sector institutional framework.
- Recommendations for interim measures to restore the functionality of the port in the short-term including review and benchmarking of existing contracts.
- Creation of the National Vision on Ports and the Port of Beirut Masterplan as a first-mover project under the vision.
- Mapping and consultations of the community of the port sector's stakeholders to ensure the new proposed institutional framework best reflects the needs and aspirations of the local economic community.
- Climate resilience considerations to be considered in the Port of Beirut Masterplan and investments.
The climate work included the identification of potential risks associated with climate change, specifically extreme weather events, and proposes measures for adaptation and decarbonization within the port sector. The report emphasizes the importance of integrating these measures into the port's planning, reconstruction efforts, and operational strategies for long-term sustainability and resilience.
The climate work included a comprehensive roadmap for the Port of Beirut to navigate climate change challenges, emphasizing the integration of adaptation and decarbonization measures into its planning and operations for a sustainable and resilient future.
In the near-term, the Port Sector Law should be approved by Parliament and the Master Plan for the Port of Beirut derived from the National Vision is expected to be approved and adopted.