Republic of Lebanon

Conveyance of Litani Water to Southern Lebanon for Irrigation and Drinking Purposes (Elevation 800 Meters) (Supplementary Loan)
Loan No: 621 Interest Rate: 3.0 %
Beneficiary: Council for Development and Reconstruction Grace Period: 5 years
Project Cost: KD 138.2 million Maturity: 22 years
Amount of Loan: KD 32.0 million Repayment: 35 semi-annual installments
Date of Board Approval: - First Installment: 5 years following the first disbursement
Date of Loan Agreement: 2015-06-16 Date of Loan Effectiveness: 2015-09-12

Objectives:

The project aims at contributing to the development of southern Lebanon by increasing agricultural production, providing potable water and creating additional employment opportunities to improve the living conditions of the citizens in the project area. This is to be achieved through the transfer of part of the regulated Litani river water from the existing Qaraoun dam to southern Lebanon in order to be used for irrigation and drinking water.

Description:

The project, which is expected to be completed in the third quarter of 2018, will transfer about 110 million m3 of water from the Litani river which is regulated by the Qaraoun dam. About 90 million m3 will be used to irrigate about 15 thousand hectares, and about 20 million m3 to meet the drinking water demand in the project area up to the year 2040. The project will also produce electricity with an average of about 10.6 GWh annually. The project consists of the following main components:

  1. Water Transfer Facilities: This includes the construction of a water intake on the existing tunnel downstream of Qaraoun Dam, a small hydroelectric station with a capacity of about 5 MW, concrete lined tunnels with a total length of about 9.6 km, and a concrete canal with a length of about 6.0 km and a width of about 6.9 m. This component also includes laying of main and secondary pipelines, in order to transport water to the agricultural areas and the villages that will be provided with drinking water, with total lengths of about 112 km. The facilities also include the construction of about 20 reinforced concrete tanks with capacities ranging between 5 and 22 thousand m3, the construction of about 4 pumping stations with capacities ranging between about 75 and 725 l/s each, as well as the establishment of a monitoring and control system for the operation of the project facilities.
  2. Technical Services: This includes the updating and completion of the technical and economical feasibility study, the preparation of studies, detailed designs and tender documents, assistance in bid analysis and supervision of the project, in addition to preparing the necessary studies to utilize the water provided by the project.
  3. Land Expropriation: This includes the land acquisition and compensation for properties necessary for the construction of the project.
  4. Institutional Support: This includes the provision of equipment, vehicles and devices to the project’s beneficiary, as well as training their employees.

Financing:

The two Arab Fund’s loans, the original loan No. 418/2001 and the supplementary loan, cover about 46% of the total project cost. The Kuwait Fund for Arab Economic Development contributes to the financing of the project with two loans amounting to KD 41.0 million (about 30%). The Government of Lebanon will cover the remaining cost of the project and any additional cost that may arise.