After 16 years of civil war from 1975-1991, Lebanon has embarked on a serious, long-term, and so-far-successful effort to rebuild the country.  The financial requirements for reconstruction and rehabilitation have been estimated at $18 billion for the public sector and some $35-$40 billion for the private sector from 1997-2007.  Overseeing these works is the powerful Council for Development and Reconstruction (CDR).  A substantial portion of this effort will continue to include environmental components.  Lebanon has been notably successful in raising capital for reconstruction, through such mechanisms as Eurobond offerings, but without substantial further infusions of foreign assistance and investment it will fall short of its current goals and timetable. 

Lebanon offers the most liberal investment climate in the Middle East, with no significant restrictions on foreign investment.  It has a competitive, open market commercial orientation and a liberal banking regime.  However, the government's lack of transparency in awarding contracts is an ongoing problem for foreign bidders on projects in Lebanon. 

The lifting of the restriction on the use of U.S. passports in Lebanon in 1997 has made it easier for U.S. firms to pursue business opportunities there.  It is important to note, however, that a State Department travel warning remains in effect.  Despite the end of the civil war, inter confessional rivalries remain an important factor in Lebanese political, economic and business affairs. 

ENVIRONMENTAL PROBLEMS 

Lebanon’s most serious environmental problems stem directly from the devastation left by the protracted civil war.  Uncontrolled wartime dumpsites in Beirut are a top priority for remediation, both because of the hazards they represent and because of the high value of the land they occupy.  Hazardous wastes from other countries, brought to Lebanon for profit during the period of minimal governmental control, have now mostly been cleaned up and returned to their countries of origin.  Water and sewage systems and treatment plants were also damaged during the war.  Their repair, as well new construction that was deferred during the hostilities, is now being undertaken.  Industrial regulation and curbs on pollution are beginning to be put into place as peacetime prosperity brings increasing industrial and urban air pollution.  Maritime pollution, by both municipal and industrial waste, is receiving growing public attention. 

Land 
Large portions of the capital were severely damaged during the civil war, but the Lebanese are energetically restoring Beirut.  Two significant ventures have been established: Solidere, to refurbish the Beirut Central District, and Linord, with the mandate to develop a coastal strip in north Beirut.  In each case, a major part of the project entails cleanup and reclamation of an existing uncontrolled dumpsite located on potentially valuable oceanfront territory.  For Solidere this is the Normandy landfill, and for Linord it is Bourj Hammoud.  In addition, the issue of unrestricted quarrying has a high local profile both for aesthetic reasons and because the quarries contribute to land degradation on fragile slops with extensive deforestation and soil erosion. 

Water 
While quantities of water are currently sufficient for the population, projections of population growth and increasing industrial, touristic and agricultural use suggest significant shortages are likely before the year 2020.  In addition, wastewater treatment is minimal, with a considerable quantity of municipal and industrial waste dumped directly into Lebanon’s rivers or into the sea. 

Air and Industrial Pollution 
Vehicular air pollution in Beirut is a growing problem, compounded by traffic congestion on the overburdened highway infrastructure.  In addition, point source industrial pollution is a concern, particularly from the cement industry, but also from paper, pharmaceutical, paint and plastic producers as well as thermal power plants and refineries. 

Solid Waste 
Beirut has an effective waste collection system managed by the private company Sukleen (Sukkar Engineering), but its ability to process these wastes is reaching capacity limits as waste collection has expanded from 600 tons/day in 1994 to 2,000 tons/day in late 1997.  Elsewhere in Lebanon collection and disposal of waste remains a problem and effective means for disposal of hazardous and medical wastes are needed throughout the country.  Garbage collection is a top priority for village councils elected in 1998. 

Maritime Pollution 
A 1997 survey by local NGOs identified considerable pollution along the length of the Lebanese coastline.  This included both industrial and municipal discharges, some reaching the ocean directly and some transported from inshore by streams.  The European Investment bank and the Government of Japan have pledged funds for Lebanon’s first sewage treatment system for the coastal Mediterranean cities of Sidon, Tyr and Tripoli.  However, World Bank funding is on hold pending parliamentary approval of the project. 

ENVIRONMENTAL BUSINESS OPPORTUNITIES 
Lebanon’s reconstruction needs, combined with its success in obtaining financing to address these needs, provide significantly greater opportunities for environmental business than would be expected for a population and an economy of its size.  However, U.S. companies face stiff competition from European companies already established in the market and having relatively cheaper transportation costs for commodity imports.  This should not deter U.S. companies having substantial technical advantages to market. 

The Water Sector (Treatment and Supply) 
Treatment of Lebanon’s wastewater will provide substantial opportunities for U.S. firms over the coming decade, during which time plant construction to address substantial unmet needs will be braked only by funding constraints.  In some areas water scarcity will dictate treatment to a quality acceptable for irrigation.  In addition, storage, supply and drainage systems, including rehabilitation of existing facilities as well as expanding networks, will present some opportunities.  Most ambitiously, the Lebanese government is considering developing an interconnected series of small storage dams as it prepares to address the growing water scarcity problem. 

Solid Waste 
The rehabilitation of the Normandy landfill is already well advanced, while the contract to clean up Bourj Hammoud has yet to be let.  In addition to competing for the projects themselves, U.S. technology should be competitive in supplying whomever is chosen to carry them out.  Lebanon will need new and appropriate landfill technology as well as appropriate means for disposing of hazardous and medical wastes.  However, incineration as a solution has come under sharp public criticism and Lebanon has moved to shut down its existing incinerators. 

Industrial Pollution Control and Monitoring 
Lebanon has significant opportunities in “end of pipe” technologies for existing industries.  Testing and monitoring equipment may also sell well, particularly if industry is held to the legal standard that it must provide its own equipment, approved by the Ministry of the Environment.  As Lebanon’s economy grows there will be more opportunities for environmental management and conservation technologies to be promoted from the industrial design stage onward. 

Environmental Consulting 
With the proliferation of rehabilitation projects, most requiring environmental impact assessments, there is some scope for U.S. involvement in environmental consulting. 

CONTACTS 

The Council for Development and Reconstruction (CDR) 
Tallet Al-Saray 
P.O. Box 116/5351 
Beirut 
Tel:  (961-1) – 643-980/1/2/3; or 981-431/2 
Fax:  (961-1) – 864-494/647-947 
Website: http://www.cdr.gov.lb 

Contact: Mr. Nabil El-Jisr, President 

The Investment Development Authority of Lebanon (IDAL) 
Liberty Tower, Sanayeh 
Hamra Street, Beirut 
Tel:  (961-1)-344-676/344-403 
Fax: (961-1) – 344-463/347-397 
Website: http://www.idal.com.lb; e-mail: invest@idal.com.lb 

Contact: Dr. Youssef Choucair, Chairman 

Ministry of Environment 
Antelias, Beirut 
Tel:  (961-4) - 522-222; 524-888/999 
Fax:  (961-4) - 418-910 
Website: http://www.moe.gov.lb 

Contact: H.E. Akram Shehayeb, Minister of Environment 

Solidere 
The Lebanese Company for the Development and Reconstruction of Beirut Central District 
150, Saed Zaghloul St., off Foch St. 
P.O. Box 119493 Beirut 
Tel:  (961-1) – 981-650/63; 980-650/63 
Fax:  (961-1) – 981-133; 980-133 

Contact: Mr. Nasser Chammaa, Chairman and General Manager 

Linord 
The Lebanese Company for the Development of the Northern Littoral of the City of Beirut 
Governmental Palace 
Beirut 
Tel:  (961-1) – 744-300/1 
Fax:  (961-1) – 744-302 
E-mail: linord@dm.net.lb 

Contact: Mr. Fadi Fawaz, Managing Director 

Beirut Chamber of Commerce, Industry and Agriculture 
Beirut Chamber of Commerce and Industry Building 
Sanayeh 2100, Beirut 
P.O. Box 11-1801, Beirut 
Tel:  (961-1) – 744-160/2; 745-287/9; 353-390/1/2/3 
Fax: (961-1) – 745-288; 602-050 
Website: http://www.ccib.org.lb; e-mail: info@ccib.org.lb 
 

Contact: Mr. Adnan Kassar, President (akassar-president@ccib.org.lb) 

Embassy of the United States 
Antelias, 
P.O. Box 70-840 
Beirut 
Tel:  (961-4) - 402-200/300 
Fax:  (961-4) - 407-112 

Contacts:  Mr. Patrick Syring, Economic and Commercial Officer 
       Mr. Spike Stephenson, USAID Director