EIB investing €151 million for better and safer road networks in Lebanon
The European Investment Bank (EIB) and the Council for Development and Reconstruction (CDR) signed a financing agreement of €151 million for the rehabilitation and safety improvements of 900 km of existing primary, secondary and tertiary roads in the 25 districts in Lebanon.
The EIB financing which comes under the Economic Resilience Initiative (ERI) will contribute to creating substantial direct and indirect jobs, lowering vehicle operating costs, and improve road safety and maintenance costs.
“I am pleased to sign a new project that supports strategic infrastructure in Lebanon. Reliable and safe road networks are essential for trade and access to markets. It is an essential component of the overall business environment in the country. EIB is keen to support Lebanon through the provision of resilient infrastructure to foster economic growth and employment,” commented Dario Scannapieco, Vice President of the European Investment Bank on the signature.
The project will benefit from a €1.8 million grant under the Economic Resilience Initiative trust Fund (ERIF) to support CDR in the implementation of the proposed project.
An investment grant of €20 million from the EU’s Neighbourhood Investment Platform (NIP) was approved in the first semester of 2019 to make the financial package even further concessional.
The Bank’s financing, which is covered by the EU Guarantee under the ELM 2014-2020, covers 36% of the overall project cost. The project is co-financed with the World Bank.
The project is a continuation of EIB’s engagement in the road sector. EIB signed two operations totaling €135m to improve high road networks in Lebanon; Lebanese Highways I and Lebanese Highways II (A1 enlargement).
The European Investment Bank (EIB) is one of the leading development finance players in the Mediterranean region. The Bank’s goal is to support economic and social development by improving people’s living conditions. The EIB aims to establish a tangible presence in the partner countries, focusing on the economic and social priorities of the beneficiary countries to which it not only contributes its financing capacity but also adds value in project implementation and modernisation of public policies through its technical and financial expertise and advisory services.
The EIB’s Economic Resilience Initiative (ERI), approved by the EU Member States in 2016, consists of an integrated package of loans, concessional finance and innovative instruments designed to enable financing of an additional EUR 15 billion of investments on top of schemes already planned up to 2020.
Economic Resilience Initiative Trust Fund (ERI TF), The Economic Resilience Initiative Trust Fund (ERI TF) aims to support resilient and inclusive growth in Europe’s Southern Neighbourhood and the Western Balkans. Donor contributions help unlock investments that can create new opportunities in the regions, especially for vulnerable groups, including young people and women.