PRESENTATION
Infrastructure and Privatization
Inter-Ministerial Committee
Progress Report # 4
Beirut, Lebanon
January 30, 2008
0
Today’s objective is to update your Excellencies on progress to-date
against Commitment Documents of the respective stakeholders
Meeting Objectives
 Brief on the status of issues raised in the previous IMC and on progress to-date of GR PCO
planning and monitoring activities
– Following the last IMC dated August 24, 2007: 8 main issues were raised regarding the
Power, Telecom and Transport Sectors, and the CDR
– To-date, 2 issues were resolved, 1 is in progress, and 5 are delayed
 Highlight progress and status of implementation of short-term programs in each sector (where
available):
– Monthly Progress Report against programs charted in commitment documents
– New and Emerging Issues
1
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
2
The Paris III implementation planning process is generally on track,
except for the Power Sector which is delayed, and the Transport
Sector, which is still at the initiative identification phase
Natural
Owner
Ministry of
Telecom
HCP
TRA
Ministry of
Energy and
Water / EDL
Ministry of
Transport
CDR
Identification Prioritization
of Initiatives of Initiatives
✓
✓
✓
✓
✓
✓
✓
Program
Progress Commitment
Charters KPI Setting
Report
Document
Development
✓
✓
✓
✓
✓
50%
50%
Not
Applicable
✓
✓
✓
✓
✓
✓
✓
(Targets
missing)
✓
✓
✓
✓
Not
Not
Applicable Applicable
✓
✓
✓
✓
✓
✓
Not
Applicable
Immediate Next Steps
 Commitment document (no financial
requirements) signed by MoT
 Commitment document for Telecom and
Power signed by HCP
 Commitment document signed by TRA
 Finalize KPIs for EDL
 Commitment document for Power
signed with no KPIs
 Discuss Airport privatization roadmap
and ports strategy development plan
with Prime Minister/Minister of Transport
and HCP SG
 Commitment document signed by CDR
✓
3
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
4
Monthly progress reports will highlight the status of each program
– defined in a commitment document – along implementation,
budget, and KPI dimensions
Program Status and Budget Performance Definitions
Status

Implementation
KPI
Completed on Completed on Completed on
Time
Budget
Target
On Track
Could be
Delayed
Delayed
NS
Budget
Not Started
On Budget
Budget Performance
Initial Budget
Budget endorsed
during an IMC
Revised Budget
Budget adjusted using
a Program Change
Request Form
endorsed during an
IMC
Actual Spent
Amount spent until
date of reporting
Remaining Budget
Requirements
Estimate
Estimate of the
remaining budgetary
requirements for the
program
On Target
Potential Over Emerging
Budget
Issues
Over Budget
N/A
Off Target
N/A
5
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
6
Program Dashboard
Program Title:
TEL-001: Establish the Telecom
Regulatory Authority
Natural Owner: Minister of Telecom/TRA
Period:
January 2008
IMC:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Transfer of qualified staff from MoT completed
KPI
Transfer of Regulatory Functions from
MoT to TRA
Broadband licensing
Note: (*) Defined in the legend
Baseline
15%
0%
Program
Overall Status:
New:
TRA budget approved but not transferred yet
Second advanced payment approved but not transferred as of
January 18th, 2008
Review and approval of Ministry of Finance for financial
procedures still pending
Carried Over from Previous IMC:
Need to complete the process in transferring documentation
and information from MoT to TRA
– Numbering assignment database
– RF planning and studies (ATDI, and other) carried out to
the benefit of MoT
– Transfer of Satellite licensing information
Transfer of RF management equipment
Current Value
75%
40%
Target
Status
(Closest Date)
100%
(April 08)
Process
launched
(June 08)
Budget Performance*
Initial Budget
$13,500,000
Revised Budget
N/A
Actual Spent
$2,000,000
Remaining Budget
Requirements Estimate
N/A
Status
N/A
7
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
Workstep
Responsible
Start Date
End Date
Duration
23/07/02
30/11/07
281.8 w ks
03/01/05
24/08/07
139.6 w ks
1.b.iv Approve and transfer TRA budget
02/07/07
13/07/07
2 w ks
CoM, MoF
Budget approved and
transferred
1.b.vi Issue decrees for specific secondary legislation
02/07/07
24/08/07
8 w ks
CoM
Decrees issued
05/03/07
01/10/07
31.6 w ks
19/06/07
24/09/07
14.6 w ks
19/06/07
24/09/07
14.6 w ks
19/06/07
24/09/07
14.6 w ks
25/09/07
01/10/07
1.2 w ks
02/07/07
01/10/07
13.4 w ks
TRA Board /
MoT
TRA Board /
MoT
TRA Board /
MoT
TRA Board /
MoT
TRA Board /
MoT
05/06/07
30/11/07
26.8 w ks
TRA
1. Establish the Telecom Regulatory Authority
1.b Issue decrees to facilitate operations of the TRA
1.c Transfer regulatory responsibility to the TRA
1.c.iii Transfer all necessary documentation from MoT to TRA
(e.g., Radio Frequency, Licensing, Authorizations)
1.c.iv Transfer relevant equipment from MoT to TRA (mainly RF
management equipment)
1.c.v Migrate and appoint TRA staff
1.c.vi Finalize transfer of existing functions
1.c.vii Transfer international representation for Radio Frequency
and Standards to TRA
1.d Draft telecom policy outlining the liberalization path to be
follow ed

Completed
On Track
Could be Delayed
Delayed
Deliverable/ Milestone
Status
Documentation imported
Tools & equipment
transferred
Staff migrated
Regulatory functions
transferred
International
representation


NS Not started
8
Program Dashboard
Program Title:
Tel-002: Corporatize and Privatize
Liban Telecom
Natural Owner: Minister of Telecom
Period:
January 2008
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 MoT launched on IP TV pilot project
 MoT is proceeding with its national project providing broadband
services
New:
None
Carried Over from Previous IMC:
Need to appoint Liban Telecom Board of Directors or alternative
governance structure
KPI
Liban Telecom Board appointment
Percentage of employee migration from
Ogero to LT
Percentage of asset migration from
Ogero to LT
Percentage of customer migration from
Ogero to LT
Percentage of vendor migration from
Ogero to LT
Note: (*) Defined in the legend
Baseline
Current Value
Delayed
Delayed
0%
0%
0%
0%
0%
0%
0%
0%
Target
Status
(Closest Date)
Completed
(Dec. 2007)
Completed
(Jul. 2008)
Completed
(Dec. 2008)
Completed
(Dec. 2008)
Completed
(Dec. 2008)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
9
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
Workstep
Responsible
Start Date
End Date
Duration
04/01/05
15/10/09
251.4 w ks
04/01/05
01/07/07
131.4 w ks
01/05/07
01/07/07
9.4 w ks
02/07/07
07/09/07
10 w ks
2.b.i Appoint PMO director, task force leaders and teams
02/07/07
27/07/07
4 w ks
MoT/ LT Board PMO Staff appointed
2.b.ii Develop and approve w ork program
30/07/07
07/09/07
6 w ks
LT Board/ HCP Work program approved
02/07/07
15/11/07
20 w ks
2.c.i Develop LT Organizational Chart
02/07/07
24/08/07
8 w ks
LT Board
2.c.ii Appoint CEO and Level 1 Management Team
27/08/07
15/11/07
12 w ks
LT Board
10/09/07
20/03/08
28 w ks
10/09/07
24/01/08
20 w ks
2.d.ii Develop Accounting policies
10/09/07
01/11/07
8 w ks
2.e Capitalize LT by transferring budget
04/01/05
27/07/07
135.4 w ks
4/1/05
4/1/05
1 day
02/07/07
27/07/07
4 w ks
10/09/07
15/10/09
110 w ks
10/09/07
18/10/07
6 w ks
PMO
RFP sent
10/09/07
18/10/07
6 w ks
PMO
Website designed
2. Corporatize and Privatize Liban Telecom
2.a Issue decrees to establish LT and appoint governance
structure
2.a.ii Appoint LT Board of Directors or equivalent governance
structure
2.b Setup Program Management Office (PMO)
2.c Create LT organizational structure
2.d Set up provisional opening balance and prepare asset transfer
2.d.i Perform full asset survey and valuation as per a preapproved RFP
2.e.i Issue decree
2.e.ii Open bank account, define signature attorney, contract
execution pow er
2.j Create LT brand and establish w eb presence
2.j.i Launch Procurement process and Prepare TOR for TA
Consultant to develop a new brand for LT
2.j.vi Design LT w ebsite

Completed
On Track
Could be Delayed
MoT / CoM
Deliverable/ Milestone
Status
LT governance structure
appointed
Organizational Chart
created
CEO and Level 1
appointed
LT Board/ PMO/
HCP
Asset survey performed
Accounting policies
LT Board / PMO developed
CoM
Decree 13944 issued
Execution pow er
LT Board / MoF contracted
Delayed
NS Not started
10
Program Dashboard
Program Title: TEL-003: Privatize mobile telecom
Natural Owner:
Secretary General of HCP and
Chairman
Period:
IMC:
Infrastructure and Privatization
January 2008
Achievements Since Last Report
TRA
Program
Overall Status:
Key Issues
 Review and finalizing of the 4 regulation issued for consultation
(Interconnection, SMP, Consumer Affairs, and Quality of
Service and Key Performance Indicators)
New:
None
 Issue Type approval regulation for consultation
 Finalize request for application
 Finalize information memorandum
 Launch of the mobile licensing process
Carried Over from Previous IMC:
None
 Opening of the online data room along the auction website
 Finalize the mobile draft license
 Finalize all related document (due diligence reports)
 Finalize draft transaction document (SPA)
KPI
Regulations Issued by the TRA
Baseline
4
Current Value
5
Target
Status
(Closest Date)
12
(June 2008)
100%
Mobile licensing process completion
0%
85%
(May 08)
Note: (*) Defined in the legend
Budget Performance*
Initial Budget
$ 13,500,000
Revised Budget
N/A
Actual Spent
$ 2,000,000
Remaining Budget
Requirements Estimate
N/A
Status
N/A
11
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Start Date
End Date
1. Privatize mobile telecom
1.a Draft and issue regulations (e.g., Interconnection, Competition,
Consumer Guidelines, Universal Services, National Roaming)
13/12/05
14/01/08
111 wks
02/04/07
28/12/07
40 wks
1.a.i Draft mobile telecom regulations
02/04/07
30/11/07
35.8 wks
TRA
1.a.ii Publish draft regulations on TRA website for review
08/06/07
03/12/07
26.2 wks
TRA
Regulations drafted
Draft regulations
reviewed
1.a.iii Update draft regulations based on review
19/06/07
14/12/07
26.8 wks
TRA
Draft regulations updated
1.a.iv Issue telecom regulations
03/07/07
28/12/07
26.2 wks
TRA
Regulations issued
13/12/05
31/08/07
91.4 wks
1.b.iv Negotiate and sign contract with investment bank
14/07/06
06/07/07
52.6 wks
1.b.v Perform valuation of licenses
09/07/07
31/08/07
8 wks
13/12/06
12/09/07
40.6 wks
1.c.iv Negotiate and sign contract with consultant
23/04/07
13/07/07
12.6 wks
HCP
1.c.v Conduct statutory audit of MIC accounts (2005-2006)
02/04/07
31/07/07
18 wks
1.c.vi Reconstruct cash flows (2004-2006)
01/08/07
29/08/07
4.2 wks
1.c.vii Conduct vendor due dilligence
01/08/07
12/09/07
6.2 wks
HCP
HCP/ MoT
(OSB)
HCP/ MoT
(OSB)
06/12/06
25/09/07
43.4 wks
1.d.iv Negotiate and sign contract with consultant
1.d.v Present key findings from technical review and site visits
and status of KPI analysis
27/02/07
27/07/07
23 wks
HCP
Contract signed
01/08/07
21/08/07
3 wks
HCP
1.d.v Draft technical section for Information Memorandum
01/08/07
04/09/07
5 wks
HCP
Key findings presented
IM technical section
drafted
1.d.vi Undertake KPI analysis
01/08/07
04/09/07
5 wks
HCP
KPIs determined
1.d.vii Verify networks' asset register
01/08/07
25/09/07
8 wks
HCP
Asset register verified
1.d.viii Forecast CapEx over 12 month
01/08/07
25/09/07
8 wks
HCP
CapEx forecasted
1.d.ix Perform network asset replacement valuation
01/08/07
25/09/07
8 wks
HCP
Valuation performed
1.b Perform valuation of licenses
1.c Perform financial due diligence
1.d Perform technical due diligence

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Program/ Initiative/ Workstep
Deliverable/ Milestone
HCP
Contract signed
HCP supported Valuation report
by TRA
completed
Delayed
Contract signed
2005-2006 audit
conducted
2004-2006 cash flows
reconstructed
Vendor report submitted
NS Not started
Status
















12
Program/ Initiative/ Workstep
Workstep
Responsible
Start Date
End Date
1.e Perform legal due diligence
01/12/06
07/09/07
41.6 wks
1.e.iv Review compiled contracts
1.f Define and finalize the legal basis for the transfer of ownership of
mobile assets
26/03/07
07/09/07
25 wks
14/05/07
07/08/07
13 wks
1.f.ii Submit to Minister of Telecom for review
23/06/07
03/07/07
2 wks
1.f.iii Get legal advise from MoJ
04/07/07
31/07/07
4 wks
Minister of
Telecom
Minister of
Telecom
1.f.iv Submit to Council of Ministers for approval
01/08/07
07/08/07
1 wk
TRA; HCP; CoM Documents approved
02/07/07
07/09/07
10 wks
1.g.i Draft auction guidelines
02/07/07
03/08/07
5 wks
TRA; HCP
1.g.ii Draft rules and procedures related to assets lease/ sale
06/08/07
17/08/07
2 wks
HCP
1.g.iii Draft rules and procedures related to license sale
06/08/07
17/08/07
2 wks
TRA
1.g.iv Approve auction rules and procedures
20/08/07
24/08/07
1 wk
CoM
Auction guidelines drafted
Assets rules and
procedures drafted
License rules and
procedures drafted
Auction rules and
procedures approved
27/08/07
07/09/07
2 wks
TRA; HCP
Auction document finalized
31/08/07
02/11/07
9.6 wks
31/08/07
13/09/07
2 wks
TRA; HCP
14/09/07
14/10/07
4.6 wks
TRA; HCP
Criteria adopted
Technical proposals
received
01/08/07
11/12/07
19.4 wks
1.i.i Draft IM
01/08/07
14/09/07
6.6 wks
HCP; TRA
IM drafted
1.i.ii Adopt IM
17/09/07
28/09/07
2 wks
HCP; TRA
IM adopted


26/09/07
19/10/07
4 wks
HCP; MoT
Documents compiled

10/09/07
03/12/07
12.6 wks
1.j.i Draft transaction documents
10/09/07
28/09/07
3 wks
HCP; TRA
1.j.ii Provide comments on transaction documents
30/09/07
11/10/07
2 wks
HCP; TRA
Transaction documents
drafted
Transaction documents
revised


1.g Finalize auction rules and procedures
1.g.v Merge document and finalize it
1.h Publish Request for Applications (RFA), including pre-qualification/
qualification criteria, and review EoIs
1.h.i Adopt pre-qualification / qualification criteria
1.h.ii Publish RFA and receive technical bids
1.i Draft and distribute Information Memorandum (IM), and provide
dataroom access and site visits
1.i.iv Compile data room's documents
1.j Review transaction documents based on bidders’ comments, and
distribute revised documents

Completed
On Track
Could be Delayed
Duration
HCP
Delayed
Deliverable/ Milestone
Contracts reviewed
Documents revised
Legal advise received
NS Not started
Status










13
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
MoT/ TRA
MoT/ TRA
TEL-001
H
Need to speed-up the process in
transferring documentation,
information, and employees (e.g., TRA
Radio Frequency, Licensing
Chairman
Authorizations, Studies) from MoT
to TRA
TEL-002
TEL-003
H
H
Minister of
Telecom /
HCP SG /
BAH
TRA
Need to finalize the decision on
Chairman /
whether to sell or lease the mobile
HCP SG /
assets when issuing new licenses
BAH
 MoT to transfer frequency data to TRA
Deadline
Status
17/07/2007 Completed
 MoT and TRA to develop a detailed
27/07/2007 Completed
schedule for the transfer of documentation,
information, and employees
Minister of
 Minister of Telecom to approve schedule
Telecom
03/08/2007 Completed
05/07/2007
MoT/ TRA
MoT/ TRA
Need to appoint Liban Telecom
Board of Directors or alternative
governance structure
Actions Needed
15/05/2007
Minister of
Telecom
 MoT and OGERO to transfer selected staff 20/08/2007 Completed
to TRA, after issuing an internal
memorandum
 Transfer to be completed by October 1st, 01/10/2007
2007
(Expected completion date April 30, 2008)
Delayed
 MoT to assign PMO Members, who will
report to the Steering Committee
18/05/2007
Delayed
 Appoint Liban Telecom Board
30/06/2007
Delayed
Dept. of
 Minister of Telecom to transfer the file to
16/07/2007 Completed
Legal &
the Department of Legal and Legislation
Legislation
Matters (DoLLM) at the Ministry of Justice
Matters
(MoJ)
 DoLLM to decide if the assets can be sold 31/07/2007 Completed
15/05/2007
under the current Privatization Law
(Assets can
be sold)
HCP SG
 HCP/TRA to proceed and accelerate
development of tender documents in
On-going Completed
coordination with Citigroup/JP Morgan
14
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
15
Program Dashboard
Program Title:
POW-001: Strengthen Sector PolicyNatural Owner: Minister of Energy and Water
Making Capacity
Period:
January 2008
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Recommendations for the Generation segment will be
submitted on 17 February 2008
Recommendations for the Transmission segment will be
submitted on 17 April 2008
Integrated report will be submitted on 17 July 2008
 Public Expenditure Review Completed
New:
New variation order for NCC (New financing required)
Carried Over from Previous IMC:
None
KPI
National Control Center implementation
Master Plan for generation and
transmission development
Note: (*) Defined in the legend
Baseline
In Progress
On Track
Current Value
In Progress
On Track
Target
Status
(Closest Date)
Completed
(Oct. 2008)
Completed
(Jul. 2008)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
16
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Workstep
Responsible
Program / Initiative/ Workstep
Start Date
End Date
Duration
1. Strengthen sector policy-making capacity
1.b Appoint qualified advisors at the Ministry of Energy and Water
to support on strategic planning and evaluation of electricity policy
reforms
03/07/06
30/06/09
159.2 w ks
01/01/07
30/08/07
36 w ks
1.b.vi Undertake negotiations w ith selected applicants
12/06/07
19/07/07
6 w ks
CDR and MoEW Negotiations undertaken
1.b.vii Aw ard contract
20/07/07
23/08/07
5 w ks
CDR
Contract aw arded
1.b.viii Undertake formal signature
24/08/07
30/08/07
1 wk
CDR
Contract signed



01/03/07
28/12/07
45 w ks
PER report finalized

03/07/06
13/10/08
121.8 w ks
11/12/06
23/07/07
33.6 w ks
EDL
1.d.viii Collect data and produce FAT database & displays
15/12/06
27/09/07
42.4 w ks
EDL
1.d.ix Conduct end-to-end tests
1.d.x Install and integrate the system, and get FAT submittal and
approval
13/11/07
23/4/2008
23.8 w ks
EDL
05/03/07
24/10/07
35 w ks
EDL
HS/SW configuration
defined
FAT database and
displays produced
End-to-end tests
conducted
FAT installed and
approved
26/10/2007
16/01/2008
12 w ks
EDL
HW/SW shipped
17/01/2008
05/10/08
38.4 wks EDL
03/07/07
26/06/08
52.8 w ks
1.e.i Hire EDF to undertake Master Plan
03/07/07
03/07/07
0 w ks
1.e.ii Develop Pow er Sector Master Plan
03/09/07
26/06/08
44 w ks
1.c Complete Sector Expenditure Review w ith World Bank support
1.d Establish a National Control Center to properly dispatch EDL’s
generation and transmission system
1.d.vii Define the HW/SW configuration and prepare Purchase
Request and Procurement
1.d.xi Ship HW/SW
1.d.xii Backup and finetune the w hole system
1.e Hire consultants to develop a Master Plan for the Pow er
Sector

Completed
On Track
Could be Delayed
Delayed
Deliverable/ Milestone
Status

System fine-tuned
EDF hired
Pow er Sector Master Plan
developed

NS Not started
17
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
1.f Assess the feasibility of increasing hydro-electrical
production

Completed
On Track
Start Date
End Date
Duration
Workstep
Responsible
Deliverable/ Milestone
Status
08/01/08
30/6/2008
25.8 w ks
MoEW/CDR
Issue report
NS
Could be Delayed
Delayed
NS Not started
18
Program Dashboard
Program Title:
POW-002: Improve EDL Operational
Efficiency
Natural Owner: Minister of Energy and Water
Period:
January 2008
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Viability report for Zouk Power Plant submitted
 Tender was issued for Zouk and Jieh to perform feasibility study
 Audit of 2002 accounts issued in draft form
New:
EDL to provide KPI’s
Finalize Audit for 2002 account
Signature of Natural Gas agreement with Egypt
Proceed with Audit of financial statements from 2003 to 2006
Carried Over from Previous IMC:
Need to formalize KEPCO contract
EDL to follow up with consultants on the preparation of a
technical report on the viability of Jiyyeh power plant
Advisors hired for MoEW, EDL and HCP have submitted their
first deliverables – Decon contacted Azorom – Advisors should
coordinate with IFC
KPI
Target
Status
(Closest Date)
Baseline
Current Value
Non-Technical losses
N/A
N/A
N/A
N/A
Bill collection rate
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Average number of electricity hours per
day (Country-wide)
Percent distortion in electricity
distribution between regions
Note: (*) Defined in the legend
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
N/A
N/A
Actual Spent
Remaining Budget
Requirements Estimate
N/A
Status
N/A
N/A
19
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Workstep
Responsible
Program / Initiative/ Workstep
Start Date
End Date
Duration
2. Improve EDL operational efficiency
2.a Appoint consultancy team at EDL to perform operational,
financial, accounting, legal and contract management activities,
including coordinating and assisting the HCP and its advisory team
in the corporatization and privatization of EDL
01/02/06
31/12/09
207.2 w ks
01/01/07
30/08/07
36 w ks
2.a.vi Undertake negotiations w ith selected applicants
12/06/07
19/07/07
6 w ks
CDR and MoEW Negotiations undertaken
2.a.vii Aw ard contract
20/07/07
23/08/07
5 w ks
CDR
Contract aw arded
2.a.viii Undertake formal signature
24/08/07
30/08/07
1 wk
CDR
Contract signed
01/02/06
07/09/07
85 w ks
01/03/06
31/08/07
80 w ks
MoEW/EDL,
MoF and BDL
Conflict settled
2.b.iii Sign contract w ith KEPCO
2.c Aw ard contracts for the supervision of the KEPCO O&M
activities for Beddaw i and Zahrani plants
2.c.i Develop TOR for the supervision of the KEPCO O&M
activities
2.d Decide on the viability of the Zouk and Jiyyeh plants, and
rehabilitate viable existing pow er plants
03/09/07
07/09/07
1 wk
MoEW/EDL
Contract signed
03/09/07
08/04/08
32 w ks
03/09/07
12/02/08
24 w ks
MoEW/EDL
TOR for the supervision
of KEPCO
01/06/06
18/12/07
82.6 w ks
2.d.ii Develop short-list of interested companies
2.d.iii Open discussions w ith KEPCO on undertaking the study
for free
2.d.iv Undertake survey on the viability of Zouk and Jiyyeh
pow er plants
2.d.v Draft and submit report on viability of Zouk and Jiyyeh
pow er plants
2.e Complete the expansion and rehabilitation of the 220KV
transmission netw ork
2.f Complete the auditing of EDL financial statements from 2002 to
2006
01/01/07
18/12/07
52 w ks
02/07/07
01/08/07
4.6 w ks
03/09/07
07/09/07
1 wk
10/09/07
21/09/07
2 w ks
09/01/07
30/06/08
79.4 w ks
01/02/07
02/03/09
111.2 w ks
2.f.vi Prepare preliminary Audit Reports 2003
2.j Improve procurement process of fuel and gas oil, to ensure
better quality and reduce high premiums
02/07/07
28/09/07
65 days
01/08/07
19/12/08
74 w ks
2.j.i Organize stakholders' meeting to identify potential issues
2.m Complete the infrastructure needed for the Ksara station
(including 400 KV netw ork) to allow Lebanon’s integration into the
regional electrical netw ork know n as the “Seventh Joint”
08/01/07
22/10/07
12 w ks
01/01/07
31/03/08
66.4 w ks
2.b Formalize KEPCO contract
2.b.ii Settle conflict over the contract w ith KEPCO

Completed
On Track
Could be Delayed
Deliverable/ Milestone
Short-list of interested
MoEW/EDL
companies
MoEW/EDL and
HCP
Survey on the viability of
MoEW/EDL
Zouk conducted
Report on the viability of
MoEW/EDL
Zouk submitted
MoEW/EDL
2003 audit report
prepared
MoEW
Stakholders' meeting
Delayed
NS Not started
Status






20
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
2.l Commit the supply of Natural Gas to the Beddawi
plant
2.l.i Sign Natural Gas supply agreement with Egypt

Completed
On Track
Start Date
End Date
Duration
23/4/2007
23/7/2009
119.6 w ks
23/4/2007
23/4/2007
0.2 w ks
Could be Delayed
Workstep
Responsible
MoEW
Delayed
Deliverable/ Milestone
Status
Natural gas contract
signed with Egypt
NS Not started
21
Program Dashboard
Program Title:
POW-003: Corporatize and Privatize
EDL
Natural Owner: Secretary General of the HCP
Period:
Jan 2008
IMC:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 EDL restructuring kick off was end of September 2007
New:
Need for law 462 amendment regarding certain issues
 Sector strategy presented to the PM and IMC committee in
January 2008 and approved
KPI
Baseline
Current Value
0%
10%
Legal due diligence
Not Started
Not Started
New EDL launch plans
Not Started
50%
Asset registry
EDL Corporatization
5%
20%
Establishment of additional production
capacity through IPPs
10%
15%
Collection Management and Metering
15%
55%
Note: (*) Defined in the legend
Program
Overall Status:
Target
Status
(Closest Date)
Completed
(Dec. 2008)
Completed
(Apr. 2008)
Completed
(Mar. 2008)
Completed
(March. 2009)
Completed
(Dec. 2009)
Completed
(Jun. 2008)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
22
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
End Date
02/09/02
31/12/10
438 w ks
01/01/07
30/08/07
36 w ks
3.a.vi Undertake negotiations w ith selected applicants
12/06/07
19/07/07
6 w ks
CDR and MoEW Negotiations undertaken
3.a.vii Aw ard contract
20/07/07
23/08/07
5 w ks
CDR
Contract aw arded
24/08/07
30/08/07
1 wk
CDR
Contract signed
02/09/02
24/03/08
292.4 w ks
15/05/07
27/09/07
20 w ks
3.b.iv Appoint ERA Board
3.b.v Issue decrees to define ERA organizational and financial
structure, and compensation/ benefits
3.c Launch and aw ard tender for the installation and operation of
remote meters
3.c.v Develop and update CMM w ebsite for FAQ and source of
all documentation
3.c.vii Develop, issue and receive prequalification documents to
interested bidders
28/09/07
03/10/07
1 wk
MoEW
CoM, Minister
of Energy and
01/08/07
19/11/07
16 w ks
CoM
Decrees Issued
02/10/06
11/04/08
82 w ks
03/04/07
17/10/07
29.2 w ks
MoEW, HCP
03/04/07
07/07/07
14.4 w ks
MoEW, HCP
3.c.viii Present interested bidders list to PM and Minister of EW
3.c.ix Develop and issue the tender document to prequalified
bidders, and launch open data room
09/07/07
30/07/07
3.2 w ks
MoEW, HCP
CMM w ebsite developed
Pre-qualification
documents received
Interested bidders list
presented
09/04/07
16/08/07
19.2 w ks
MoEW, HCP
3.c.x Manage bidding process
17/08/07
29/09/07
6.2 w ks
MoEW, HCP
3.d Launch and aw ard tender for service contracts for distribution
3.d.v Develop and update CMM w ebsite for FAQ and source of
all documentation
3.d.vii Develop, issue and receive prequalification documents to
interested bidders
02/10/06
24/01/08
70.6 w ks
03/04/07
17/10/07
29.2 w ks
MoEW, HCP
03/04/07
07/07/07
14.4 w ks
MoEW, HCP
3.d.viii Present interested bidders list to PM and Minister of EW
3.d.ix Develop and issue the tender document to prequalified
bidders, and launch open data room
09/07/07
30/07/07
3.2 w ks
MoEW, HCP
09/04/07
16/08/07
19.2 w ks
MoEW, HCP
17/08/07
29/09/07
6.2 w ks
13/04/07
12/12/08
89 w ks
04/07/07
08/10/07
14 w ks
3. Corporatize and Privatize EDL
3.a Retain consultants to assist the HCP w ith the corporatization
and restructuring of EDL
3.a.viii Undertake formal signature
3.b Establish the Electricity Regulatory Authority and define its
financial and organizational structures
3.b.iii Undertake interview s w ith candidates
3.d.x Manage bidding process
3.e Develop additional generation capacity through IPP: Install
additional capacity in Deir Ammar w ith private sector participation
3.e.ii Retain specialized consultants to provide technical and
accounting advisory services

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Deliverable/ Milestone
Status



Interview s w ith
candidates
ERA Board appointed
Tender documents issued
Bidding documents
submitted





MoEW, HCP
Tender documents issued
Bidding documents
submitted





HCP
Contracts signed

Delayed
CMM w ebsite developed
Pre-qualification
documents received
Interested bidders list
presented
NS Not started
23
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program/ Initiative/ Workstep
End Date
1/10/07
2/3/09
75.4 w ks
3.f.i Develop and issue RFP
1/10/07
15/11/07
6.8 w ks
HCP
RFP developed and issued
3.f.ii Manage Bidding Process
16/11/07
16/12/07
4.4 w ks
HCP
Proposals received
3.f.iii Evaluate proposals and Select w inner
17/12/07
17/1/08
4.8 w ks
HCP
Advisor selected
18/1/08
1/3/08
6.4 w ks
HCP
Contract signed
3/3/08
02/03/09
53 w ks
HCP
Report submitted
3.f Undertake asset registration and valuation of EDL’s assets
3.f.iv Negotiate and sign contract
3.f.v Undertake asset registration and asset valuation

Completed
On Track
Could be Delayed
Duration
Workstep
Deliverable/ Milestone
Responsible
Start Date
Delayed
Status
NS Not started
24
Sector / Natural Owner Issues Register
Issue
ID
POW-001
Issue
Level
H
Issue Description
Raised by
Need to formalize KEPCO contract EDL
Lack of consensus on approach
regarding CRA issue (1.2 million
meters vs. 16,800 pilot meters)
POW-002
H
POW-003
M
A technical report on the viability of
Zouk and Jiyyeh plants should be IMC
developed
POW-004
M
No stakeholder assigned to
undertake EDL asset registry
POW-005
M
Need to shift focus of auditors to
EDL’s 2005-2006 accounts (or
have them work in parallel on
2002-2004 and 2005-2006
accounts)
BAH
EDL
HCP
Date
Assigned
to
05/07/2007 EDL
Actions Needed
 Stakeholders to agree on a solution to
provide credit line to KEPCO
 EDL to revise submitted offer of KEPCO
Deadline
Status
24/07/2007
Delayed
 Agree on clear assignment of roles and
24/07/2007 Completed
responsibilities pertaining to the CRA
16,800 by
Minister of
contract, including the number of meters to
MoEW and
Energy
be installed in both the short and long
1.2M by
05/07/2007 and Water
terms
HCP (incl.
/ EDL /
funding) with
HCP
support from
MoEW
 EDL to follow up with consultants on the
31/07/2007 Completed
preparation of a technical report on the
viability of Zouk
05/07/2007 EDL
 EDL to follow up with consultants on the
31/07/2007 Delayed
preparation of a technical report on the
viability of Jiyyeh
 HCP is working on retrieving consultant to 01/10/2007
Delayed
undertake EDL asset registration
05/07/2007 HCP
 Need to quickly secure funding for Grant
Thornton
31/07/2007 Completed
EDL/MoF
 Audit of 2002 in final form
 Audit for 2003 onwards not started
20/08/2007
EDL
05/07/2007
Delayed
25
Sector / Natural Owner Issues Register
Issue
ID
POW-006
POW-007
Issue
Level
Issue Description
Raised by
H
MoEW could consider the LNG
option as an alternative to Natural
Gas
Minister of
Energy and
Water and
CDR
President
H
Advisors hired for MoEW, EDL and
HCP might have different
Minister of
orientations, which could create
Finance
conflicts or inconsistencies among
their recommendations
Date
05/07/2007
Assigned
to
HCP and
CDR
Actions Needed
 HCP and CDR to request from their
consultants to include the assessment of
the supply of LNG to the Beddawi plant
within their scope of work
Deadline
Status
20/08/2007 Completed
 Current Infrastructure & Privatization IMC 31/08/2007 Completed
Sub-Committee (PM, MoEW, EDL, HCP,
MoF) to steer the work of all advisors: The
Minister of
scope of work of EDL advisors should be
Energy
channeled toward preparing for the set
05/07/2007 and Water
form corporatization, once sector strategy
/ EDL /
is agreed
HCP
 Reinforce the Sub-Committee with some
Technical Assistance
26
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
27
Airport privatization roadmap and ports privatization approach were
developed by the GR PCO consultant, and need to be discussed with
the Minister of Transport and HCP Secretary General
Transport Sector Progress
 Following the request of the Prime Minister and the Minister of Transport during the IMC
meeting on 5/7/2007, the GR PCO consultant developed the following:
– Air Transport: Detailed roadmap for the privatization of the Beirut Rafic Hariri
International Airport (BRHIA)
– Maritime Transport: Approach to privatizing the different ports, including quick-wins
 These proposals need to be discussed and finalized with the Prime Minister, the
Minister of Transport and HCP Secretary General
28
Table of Contents
Air Transport
Maritime Transport
29
The aviation sector liberalization Law 481 calls for the set up of an
Aviation Authority and an Airport Company, and clearly defines the
roles and responsibilities of each
Planned Institutional Structure of Civil Aviation in Lebanon
Entity
Government
Responsible
Agency
Ministry of Public
Works and
Transport
(MPWT)
Key Roles
 Propose CAA Board appointment or termination for the Council of Ministers
 Set compensation and rules for Board Directors
 Provide guidelines and approve overall aviation policy
 Propose aviation policy and key initiatives
Planning and
Regulation
Civil Aviation
Authority (CAA)
 Develop and enforce safety and economic regulations for airports, airlines and air traffic control
 Propose development project for existing and new airports
 Negotiate international agreements and ensure close cooperation with ICAO and other
international and regional organizations
Operations
Beirut Rafic Hariri
International
Airport
Corporation
(BRHIAC)
 Plan and manage airport operations in coordination with government agencies
 Plan and decide on subcontracting service providers for airport activities, and ensure
supervision and coordination of all providers
 Provide air navigation, communication, and metrological observation services
Source: Law 481, Other Regulations
30
The CAA is the safety and economic regulator, while BRHIAC is the
company that is fully responsible for running the Beirut Airport
Allocation of Selected Key Aviation Responsibilities
Minister of Transport
Aviation Policy
 Set guidelines, approve policies,
 Develop draft policy and laws in
and submit for CoM (where needed)
consultation with stakeholders
Safety Standards
Accident / Incident
Investigation
Licensing Personnel,
Equipment and Flights
Bilateral Agreements
Airport / Airline Tariff
 Accident Investigation office under
Minister leads investigations
 Develop and Enforce safety
standards and rules for airport,
airline, and ATC
 Contribute to accident and incident
investigation
 License personnel, aircrafts and
airline flights in line with safety and
bilaterals
 Review and process for approval as  Conduct negotiations and
implement provisions
per Lebanese law
 Approve aviation tariff and/or refer
to CoM as per aviation laws
Airport developments /
investments
BRHIAC
 Contribute / Propose own plans
 Fully comply with all safety
standards
 Contribute / participate
 Ensure personnel, aircraft and
flights admitted are licensed
 Provide input
 Set fees for services by CAA
 Review and approve aviation tariff
 Collect airport fees and fares
 Review plans for compliance with
safety and economic regulations
 Plan and submit studies for airport
development and investment
initiatives
 Review compliance with regulations  Develop tender and approve
and safety guidelines
winners in compliance with laws
Outsourcing Contracts and
Tenders
Operations Management,
Outsourcing Supervision
Airport Planning and
Budgeting
CAA
 Review and submit budget for
government approval
 Review compliance with regulations  Plan and manage operations and
and license personnel and
supervise all service providers
equipment
 Develop and propose airport plans
and budgets
Source: Law 481, Other regulations
31
The GoL postponed the creation of the CAA and BRHIAC despite
the enactment of the aviation Law and the CAA decree since 2002
and 2003
Civil Aviation Institutional Structure – Status of Implementation
Current Organization of the Directorate General of Civil Aviation
Current Status
Director General
Technical
Affairs
Meteorology
Aviation
Safety
Air Transport
Research and
Studies
 In August 2003, the CoM
issued decrees defining and
creating the organization of the
CAA, as well as incorporating
the BIAC
Airports
Air Navigation
Directorate
Airport Studies
Directorate
Equipment
Maintenance
Directorate
Beirut Airport
Presidency
Air
Communication
Directorate
Technical
Installation
Directorate
Source: Directorate General of Civil Aviation
 Since then, studies have been
prepared for detailed
organization and manpower of
the new institutional set up
 However, the GoL has delayed
implementation of the decrees,
without providing a revised
timeline
 To-date, the CAA Board is not
appointed and no progress
have been made in setting up
BRHIAC
32
The new CAA organization is planned to have two core functions
focused on safety and economic regulations
Proposed Civil Aviation Authority Organization Structure(1)
CAA Board of Directors
Performance & Quality
Control
Administrative
Directorate
Civil Aviation Safety
Directorate
Secretariat of the
Authority
Air Transport
Directorate
Environment &
Meteorology
Directorate
Lebanese Civil
Aviation Training
Center
Financial Affairs
Airworthiness
Int’l Agreements &
Authorizations
Meteorology
Promotion &
Development
Legal Affairs
Flight Operations
Economic Studies &
Financial Revenues
Environment & Climate
Human Resources &
Technology Transfer
Personal Affairs &
Supplies
Licenses
Information Technology
Aerodrome
Public Relations
Air Traffic
Safety and Economic Regulatory Functions
(1) Proposed as part of a study on the organization, job descriptions and manpower plans of the new CAA and BRHIAC
Source: Directorate General of Civil Aviation
33
Most of the Beirut Airport activities are currently managed by MEA
subsidiaries or private companies
Beirut Rafic Hariri International Airport – Privatized Activities
Government
MEA*
Subsidiary
Privatized
through
Concession
Comments
Infrastructure provision & site
management

 Managed by Directorate General of Civil Aviation (DGCA)
Asset / Facility Management

 Managed by Directorate General of Civil Aviation (DGCA)
Free Zone

 Managed by Directorate General of Civil Aviation (DGCA)
Asset / Facility Operation and
Maintenance
 Operated and maintained by Middle East Airports Services
(MEAS)

Airport parking

 15-year BOT concession won by Al-Khorafi of Kuwait
Retailing

 15-year concession won by Phoenicia-Aer Rianta Company
Catering

 15-year concession awarded to Abella
Fueling

 15-year concession won by a consortium of 5 local companies
 Cargo handled by Middle East Airlines Ground Handling
(MEAG)
Cargo

Ground Handling


 Ground handling by MEAG, LAT, ASAS, EAS, Flying Carpet,
and Beirut Wing
Aircraft Maintenance


 Aircraft maintenance by Mideast Aircraft Services Company
(MASCO), and TMA

 Aircraft catering by Lebanese Beirut Airport Catering Company
(LBACC)
Aircraft Catering
Note: (*) MEA is organized as a private company under the commerce code, but is 96% held by the GoL and is under the financial responsibility of BDL
34
However, four key requirements need to be addressed upfront to
enable the privatization
Beirut Rafic Hariri International Airport Privatization – Key Requirements
Description
 Appoint the Board of Directors
CAA Set Up
 Fully develop the organization and build all
requisite safety and economic regulations
capabilities
Rationale
 Potential investors need to be reassured about
the existence of an independent regulator, as
such, they need to know who the regulator will
be
 Appoint the Board of Directors
BRHIAC Set Up
Government
Agencies
Coordination
Timing
 Fully develop the organization
 Transition all airport operating responsibilities
and staff from DGCA to BRHIAC as per Law
 Ensure each government agency understands
and accepts its mandate post-privatization
 Ensure coordination and conflict resolution
mechanisms between government agencies
 Confirm the form of the privatization option and
define the process timeline – consider
extending Lease term to more than 50 years
 Determine a transaction timing with favorable
growth prospects and political situation
 Potential investors need to be reassured about
the split between the regulator and the operator
of the airport
 Unsupportive and uncoordinated work of
government security and control agencies
directly impacts negatively on airport
operations and commercial services
 The ability to attract investors and the value of
privatization proceeds is heavily dependent on
traffic growth prospects and political stability
35
As such, the privatization roadmap starts with the establishment of
the institutional structure before developing the privatization
scheme
List of Programs and Initiatives
Sector Programs and Initiatives
Stakeholders
Preliminary Timeline Implem.
Comments
1. Set up Institutional Structure
1a. Set-up the CAA and appoint the Board of Directors MPWT, CoM
Q3 2007
1b. Develop CAA organization and capabilities (Safety CAA Board
and economic regulations)
1c. Set-up BRHIAC and appoint Board of Directors
MPWT, CoM
Q4 2007
1c. Develop BRHIAC organization and transition
responsibilities fro DGCA
1d. Plan and implement the transition of
responsibilities, assets and staff from DGCA to
BRHIAC
1e. Develop necessary laws and regulations for Free
Zone / “Airport City”
BRHIAC Board
Q4 2007
BRHIAC Board
Q4 2007
CAA, MPWT, CoM
Q4 2007 – Q2 2008
2a. Confirm goals of privatization and establish
priorities of key stakeholders
2b. Evaluate privatization options against priorities,
airport investment market and financial impact
2c. Select and approve preferred option
HCP
Q3 2007
HCP, BRHIAC, CAA
Q4 2007
CoM, HCP, MPWT, BRHIAC
Q1 2008
2d. Draft Terms of Reference
HCP, BRHIAC
Q1 2008
2e. Detail full transaction process and timeline
HCP
Q1 2008
2f. Develop and secure official approval on
coordination mechanism of government agencies
at the airport
CAA, BRHIAC
Q1 2008 – Q2 2008
Q3 2007
2. Develop Privatization Scheme and Process
XXX
Natural Owner
IMPLEMENTATION:
S: Short term
M: Medium Term
L: Long Term
36
The privatization can then be launched at the right timing, targeting
selected operators and followed by a carefully planned transition
List of Programs and Initiatives
Sector Programs and Initiatives
Stakeholders
Preliminary Timeline Implem.
Comments
3. Implement the Privatization Process
3a. Identify potential local and international operators
HCP, BRHIAC
Q2 2008
3b. Short-list target operators against fit with
privatization scheme and political sensitivities
3c. Finalize Terms of Reference and Tender
documentation
3c. Decide on timing of the launch of process based
on growth and political prospects
3d. Conduct roadshow to short-listed operators and
formalize Expressions of Interest through
consultative issue of tender documents
3e. Draft and issue final tender documents and
schedule Q&A sessions
3f. Receive and evaluate bids against criteria
MPWT, HCP, BRHIAC
Q2 2008
HCP
Q3 2008
MPWT, HCP, BRHIAC
Anytime after Q2 2008
HCP, BRHIAC
Q4 2008
HCP, BRHIAC
Q4 2008
HCP
Q4 2008
3g. Select preferred bidder and ensure selection is
certified through the right legal process
3h. Notify bidders of outcome
HCP, BRHIAC, MPWT, CoM
Q1 2009
HCP
Q1 2009
4a. Sign contract and launch mobilization
HCP, BRHIAC, CAA
Q2 2009
4b. Plan and execute transition to new operators
BRHIAC
Q2 2009 – Q3 2009
4. Transition to Private Operator
XXX
Natural Owner
IMPLEMENTATION:
S: Short term
M: Medium Term
L: Long Term
37
Table of Contents
Air Transport
Maritime Transport
38
Beirut and Tripoli Ports are currently operated and managed by the
GoL, except for the Container Terminal activities of the Port of Beirut
(PoB) which are outsourced through a concession agreement
Ports Components Privatization in Lebanon
Government
Beirut
Port
Comments
Infrastructure provision &
site management

 Managed by Gestion et Exploitation du Port de Beyrouth
(GEPB)
Asset / Facility
Management

 Managed by Gestion et Exploitation du Port de Beyrouth
(GEPB)
Asset / Facility Operations
and Maintenance

 Operated and maintained by Gestion et Exploitation du Port
de Beyrouth (GEPB)
General Cargo Operations

 Managed and operated by Gestion et Exploitation du Port de
Beyrouth (GEPB)
Container Terminal
Operation
Tripoli
Port
Privatized
through
Concession

Infrastructure provision &
site management

Asset / Facility
Management

Asset / Facility Operations
and Maintenance

All Cargo and Container
Operations

Note: (*) Mediterranean Shipping Company (MSC)
 POB subcontracted container terminal operation to Beirut
Container Terminal Consortium (BCTC) in February 2005
 POB signed a partnership contract with MSC*
 CMA-CGM also established a hub at POB
39
Three key requirements need to be addressed upfront to enable the
privatization of Beirut and Tripoli Ports
Beirut and Tripoli Ports Privatization – Key Requirements
Description
 Develop a Maritime Transport Sector Vision for
Lebanon
Maritime Sector
Strategy
Maritime Sector
Privatization Law
Maritime
Transport
Authority (MTA)
Set Up
 Develop a 5-year Maritime Transport Strategy
 Clarify the appropriate organization and roles
of port administrations, regulatory institutions,
and the private sector
 Develop a Privatization Law for the Maritime
Sector
 Specify the potential privatization options, and
define the transition of responsibilities and staff
phases
Rationale
 GoL needs to have a clear vision and strategy
allowing it to have a clear maritime structure
and privatization path
 A law (similar to Civil Aviation Law 481) needs
to be drafted for the Maritime Sector in order to
enable port privatization
 Establish a Maritime Transport Authority
 Appoint Board of Directors of MTA
 Fully develop the organization and build all
requisite safety and economic regulations
capabilities
 Potential investors need to be reassured about
the existence of an independent regulator
40
Maritime Sector Privatization Roadmap
Preliminary
Targets:
Sector Liberalization
Sector Policy
1/9/2007
2008
2009
Ports Privatization
2010
2011
I.1
Assess Market Demand and
Economics
Develop & Strengthen
Regulator Capability
Restructure and Corporatize
Functional Areas (when applicable)
Develop Port of Beirut by
Increasing the Holding
Capacity of the Container
Terminal*
Commercialize Administrative,
Human Resources and Internal
Services
Complete Development
Work of the Port of Tripoli*
Commercialize Service Provision
I.2
Develop Maritime Sector
Strategy
I.3
Define Liberalization and
Commercialization Options and
Timelines
I.4 Develop Regulatory Structure,
Methodologies, and Phased
Regulations
II.1
Determine Implications and
Critical Improvements for
Infrastructure Model
II.3
Develop Privatization Plan for
Commercial Maritime Assets
I.5
Develop Maritime Sector
Privatization Law
Strategy
Components
II.2
II.4
Develop Port and Port-related
Business Strategies
Determine Socio-Economic
Implications by Region
Operational
Restructuring
Source: (*) Lebanon Maritime Transport Policy , May 2006
41
As such, the privatization roadmap starts with the development of
a sector strategy and establishment of the institutional structure,
before developing the privatization scheme
List of Programs and Initiatives
Sector Programs and Initiatives
Stakeholders
Preliminary Timeline Implem.
Comments
1. Set up Institutional Structure
1a. Develop Maritime Sector Strategy (Policy)
MPWT
Q4 2007
1b. Develop Maritime Sector Privatization Law
HCP, MPWT, CoM,
Parliament
MPWT, CoM
Q4 2007
MRA Board
Q2 2008
MPWT, MTA
Q2 2008 – Q3 2008
1c. Establish the Maritime Transport Authority (MTA)
and appoint its Board of Directors*
1d. Develop MTA organization and capabilities*
1e. Transfer regulatory responsibilities to the MRA*
1c. Setup Port Company, and appoint its Board of
MPWT, CoM
Directors*
1c. Develop Port Company organization and plan
PBC Board
transition of responsibilities from GEPB*
1d. Plan and implement the transition of
PBC Board
responsibilities, assets and staff to Port Company*
Q1 2008
Q4 2008
Q1 2009
Q1 2009
2. Develop Privatization Scheme and Process
2a. Confirm goals of privatization and establish
priorities of key stakeholders*
2b. Evaluate privatization options against priorities,
airport investment market and financial impact*
2c. Select and approve preferred option*
HCP
Q3 2008
HCP, MTA
Q4 2008
HCP, CoM, MPWT
Q1 2009
2d. Draft TORs, and design full transaction process
and timeline in details*
2e. Develop and secure official approval on
coordination mechanism of government agencies
at the ports*
HCP
Q1 2009
MTA
Q1 2009 – Q2 2009
Note: (*) In light of Sector Strategy and Privatization Law outcome
XXX
Natural Owner
IMPLEMENTATION:
S: Short term
M: Medium Term
L: Long Term
42
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
GR PCO
TRA-001
H
Minister of
Strategy relating to privatization of
Transport /
other public entities (e.g., airport,
Minister of
ports) still under development
Finance
Actions Needed
 Develop transport sector privatization
roadmap, within scope of current
legislation
Deadline
Status
31/07/2007 Completed
15/05/2007
Minister of  Align transport sector stakeholders on
Transport/
privatization roadmap
HCP SG
10/08/2007
Delayed
43
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
44
Program Dashboard
Program Title:
CDR-001: Restructure CDR’s
capacity to undertake investments
Natural Owner: President of CDR
Period:
January 2008
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Job Vacancies List Prepared
 Consultants on contract basis hired (from foreign grants)
 New Procurement Law endorsed by CoM
New:
None
Carried Over from Previous IMC:
None
KPI
Percentage of vacant key positions
filled
Note: (*) Defined in the legend
Baseline
Current Value
0%
70%
Target
Status
(Closest Date)
100%
(29/02/2008)
Budget Performance*
Initial Budget
$ 2,000,000
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
45
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
End Date
15/07/07
31/07/08
55.8 w ks
15/07/07
31/12/2007
25.2 w ks
1.a.i Prepare first list of job vacancies and profiles
15/07/07
15/08/07
4.8 w ks
CDR, OMSAR
Job vacancies list
prepared
1.a.ii Announce the available job vacancies
03/09/07
01/10/07
4.6 w ks
CDR, OMSAR
Job vacancies published
1.a.iii Evaluate the applicants' CVs
02/10/07
02/11/07
4.8 w ks
CDR, OMSAR
CVs evaluated
NS
03/11/07
31/12/07
8.4 w ks
CDR, OMSAR
Staff Recruited
NS
01/10/07
31/12/2007
CDR
Consultants hired

15/09/07
31/07/08
46.4 w ks
1.b.i Draft Law s on new procurement procedures
15/09/07
15/10/07
4.6 w ks
CDR
1.b.ii Endorse law s by the Council of Ministers
01/11/07
31/12/2007
8.8 w ks
CoM
1.b.iii Enact Law s by Parliament
01/01/08
31/07/2008
30.6 w ks
Parliament
1. Restructure CDR’s capacity to undertake reconstruction &
development investments
1.a Strengthen the capacity of CDR’s procurement, financial and
project management, planning, and legal functions
1.a.iv Interview , select, and recruit applicants
1.a.v Hire individual consultants on contract-basis (from foreign
grants)
1.b Streamline related internal procedures from bidding and terms
of reference preparations to contracts management and

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Delayed
Deliverable/ Milestone
New procurement law s
drafted
New procurement law s
endorsed bt CoM
New procurement law s
enacted by Parliament
Status



NS Not started
46
Program Dashboard
Program Title:
CDR-002: Develop Public
Investment Plan for 2009-2012
Natural Owner: President of CDR
Period:
January 2008
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Public Investment Plan submitted to Council of Ministers
New:
None
Carried Over from Previous IMC:
None
KPI
Note: (*) Defined in the legend
Baseline
Current Value
Target
Status
(Closest Date)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
47
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
Program / Initiative/ Workstep
2. Develop Public Investment Plan for 2009-2012
2.a Develop a Public Investment Plan (PIP) for 2009-2012

Completed
On Track
Start Date
End Date
05/07/07
05/09/07
9.4 w ks
05/07/07
05/09/07
9.4 w ks
Could be Delayed
Duration
Delayed
Workstep
Responsible
Deliverable/ Milestone
Status

CDR
PIP developed

NS Not started
48
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
Actions Needed
Deadline
Status
 A Task Force including the CDR, MoF and 23/07/2007 Completed
the Office of PCM to be created in order to
oversee the development of the Public
Investment Plan
CDR-001
H
CDR needs to develop a Public
Investment Plan aligned with Paris CDR
III requirements
CDR
President,  CDR and Ministry of Finance to coordinate 20/08/2007 Completed
Minister of
the preparation of a preliminary Public
05/07/2007
Finance,
Investment Plan to be ready for the next
and Office
IMC
of PCM
 CDR and Ministry of Finance to coordinate 09/09/2007 Completed
the development of a draft Public
Investment Plan for 2009-2012
49
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
50
Next Steps
Actions Required
 Telecom Sector:
– Appoint Liban Telecom Board in order to proceed with the corporatization process
– Transfer relevant documentation and information from the Ministry of Telecom to TRA
– Transfer TRA budget
– Review and approval of MoF for financial procedures
 Power Sector:
– Secure financing for the variation order of the NCC
– Finalize 2002 audits and proceed with audit of 2003 to 2006
– Formalize KEPCO contract
– Follow up with consultants on the preparation of a technical report on the viability of Jiyyeh
– Sign the Natural Gas agreement with Egypt
 Transport Sector:
– Align key stakeholders on a roadmap for implementing priority programs
– Develop Commitment Document
 CDR:
– Proceed with the recruitment of the key positions
51