BEIRUT, January 15, 2025 - The World Bank Board of Executive Directors approved a US$257.8 million financing to improve water supply services in the Greater Beirut and Mount Lebanon area. The Second Greater Beirut Water Supply Project (SGBWSP) will complete critical water infrastructure, improve water quality, reduce reliance on costly private water sources, and advance the implementation of reforms to enhance the water sector efficiency and long-term sustainability.
Despite having one of the highest precipitation levels in the MENA region, Lebanon faces shortages in water availability, due largely to the seasonal concentration of rainfall and insufficient surface water storage. Climate change may halve dry-season water by 2040 and intensify floods and droughts. Moreover, as a result of the multiple crises the country has faced over the past years, development and financial challenges have severely obstructed the effective planning, implementation, and maintenance of water infrastructure and hindered the sustainability of water services.
The SGBWSP builds on the progress achieved under the first Greater Beirut Water Supply Project. The Project will finance the completion of bulk water infrastructure initiated and significantly advanced under the first project, and repair water infrastructure that may have been damaged by the conflict. The project will also finance necessary add-ons to the Wardanieh Water Treatment Plant for improved water quality to manage increased levels of pollution expected at different times of the year. The project aims to increase water supply coverage for the 1.8 million people residing in the Greater Beirut and Mount Lebanon area, significantly reducing reliance on private water tankers, which are up to ten times more expensive. This infrastructure investment will boost surface water supply to meet on average 70% of the demand during the dry season, up from 24%.
"The Second Greater Beirut Water Supply Project reflects the World Bank's continued commitment to support Lebanon's long-term development needs, despite the recent conflict and recurrent crises," said Jean-Christophe Carret, World Bank Middle East Country Director. "The project aligns with the World Bank's strategic approach of engagement in Lebanon that prioritizes continued support to critical social protection and service provision, while concurrently supporting climate-resilient investments that strengthen Lebanon's public institutions, improve the reliability of essential services, and lay the foundation for economic recovery and sustainable growth."
The SGBWSP will also help advance the water sector reform agenda. The Ministry of Energy and Water has recently finalized its National Water Sector Strategy (NWSS) 2024-2035, finalized six water decrees to improve regulation of groundwater extraction, licensing, and enforcement; and has introduced tariff adjustments given currency devaluation. The project will help implement ongoing reforms efforts aligned with the NWSS. It will support the implementation of critical efficiency measures within the Beirut and Mount Lebanon Water Establishment (BMLWE): reduction of water losses, digitalization of processes, enhancing billing and collection systems, and improving operational management practices. These measures are expected to benefit all BMLWE customers indirectly. Reducing operational and commercial inefficiencies will support the financial recovery of the BMLWE and enhance the future reliability of public water services, ultimately contributing to the overall sustainability of the sector, which over time can help decrease reliance on external financing. Sectoral reforms will continue to be coordinated closely with development partners active in the water sector in Lebanon.
