Qatar Fund for Development recommitted its support to Lebanon following Qatar’s earlier aid to Lebanon’s healthcare sector and pledges to the military.
Amid Lebanon’s protracted energy and economic crisis, the Qatar Fund for Development (QFFD) has announced a $30 million fuel aid package for the Lebanese army.
This six-month arrangement underscores Qatar’s ongoing commitment to bolstering Lebanon’s beleaguered institutions and standing by the Lebanese populace.
Last year, QFFD extended its support to the Lebanese Ministry of Public Health, shouldering the fuel expenses for numerous hospitals and healthcare centres. The initial two shipments of aid accounted for around 991,000 litres of fuel, distributed to over 40 government-run hospitals and elderly care facilities.
Qatar had also pledged $60 million to the Lebanese military in 2022, amplifying the Gulf state’s financial commitment to its Levantine counterpart.
Lebanon has grappled with severe economic and energy turmoil for the past two years, with citizens battling daily power outages.
Human Rights Watch has claimed that the crisis is exacerbating poverty and inequality, accusing the Lebanese government of failing to secure the nation’s energy needs.
In 2021, the World Bank declared Lebanon’s economic collapse as one of the worst since the 1850s.
Decades of poor energy decisions by the government and the state electric company, Electricité du Liban (EDL), culminated in a critical fuel shortage.
Lebanon’s heavy reliance on foreign energy imports has been problematic, consuming approximately 20% of its import bill to meet more than 90% of its energy demands.
As recently as August 2022, EDL publicly declared its struggle to maintain power supply to key infrastructures including Beirut’s airport and presidential palace. The firm resorted to using Grade B gas oil for the summer months while the Lebanese government worked on securing more fuel from Iraq.
In a glimmer of hope for Lebanon’s energy landscape, Iraq has renewed its crude oil export agreements with Lebanon for another year.
Under a 2021 deal, Iraq is also expected to increase its heavy fuel oil exports to Lebanon by 50%, in exchange for healthcare services for Iraqi citizens.
Though the situation is far from stable, these multi-pronged efforts offer a semblance of hope for Lebanon’s troubled energy sector.
