Construction sector faces severe contraction in Lebanon

Beirut’s Corniche after Lebanon declared a medical state of emergency as part of preventive measures against the spread of the coronavirus, in Beirut, Lebanon, March 15, 2020. (Reuters)
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Updated 08 June 2020
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Construction sector faces severe contraction in Lebanon

  • The accumulated amount owed to contractors, engineers and consultants by the Lebanese government is approximately $600 million
  • Most of the projects carried out by contractors under the Council for Development and Reconstruction are related to infrastructure such as roads and water

BEIRUT: A prominent member of the Lebanese engineering and construction sector has warned of dire consequences if the industry collapses.

Maroun El-Helou, chairman of the Syndicate of Contractors of Public Works and Buildings, said: “The collapse, if it occurs, will directly affect 700 contracting companies, 300 consulting firms, and 15,000 engineers working in companies or as freelancers in the public and private sectors. The collapse will affect 3,000 engineering offices and subcontractors and more than 150,000 administrators, technicians, and workers, in addition to workers in all other construction-related jobs.”

El-Helou warned that a collapse could lead to “an exodus of skilled and specialized manpower as well as unemployment and starvation in Lebanon.”

The accumulated amount owed to contractors, engineers and consultants by the Lebanese government is approximately $600 million. El-Helou said: “The irregular payments, plus the lack of a clear roadmap for state action in light of the exceptional conditions that Lebanon is experiencing has put all projects in limbo. This will be directly reflected by the decline of environmental, health and living conditions. The investments and projects will be lost because of the government’s lack of seriousness in dealing with the burning issues.”

Most of the projects carried out by contractors under the Council for Development and Reconstruction are related to infrastructure such as roads and water.

El-Helou said, “There are 18 projects under construction and we demanded the cancellation of contracts for these projects. The projects are worth about $150 million and were funded locally. They were cancelled due to the failure to clear the bills which amounted to approximately $40 million for nearly two years. The Ministry of Finance did not transfer funds in 2018 and 2019. We proposed that the state pay half of the amount and complete the projects, but the Council for Development and Reconstruction suggested that cancelling contracts for incomplete projects was the worst possible solution, because it would result in the loss of money spent on the projects without achieving the desired goals.”

He added: “There are projects that the government must pay for in dollars, but the payment is very late and is made in Lebanese pounds according to the official exchange rate of LBP1,507 (to the dollar). This led to the suspension of work, increased losses, and (led to) a rise in the dismissal of engineers and workers.”

The projects suffered a financial setback more than two years ago because of irregular payments by the Ministry of Finance. “The major catastrophe that most affected the entire engineering sector was the actions of banks in terms of imposing restrictions on the movement of funds for withdrawal or transfer,” El-Helou said.

“Today the dollar exchange rate has led to an increase in the high price of materials, the scarcity of materials and the inability to import them. That has in turn led to the suspension of work in most projects and dismissing engineers, employees, and workers by more than 50 percent.”

As for projects to which the state contributes 25 percent of financing, and to which international institutions such as the World Bank, plus Arab and foreign funds contribute 75 percent, the Ministry of Finance “does not pay its share, which makes projects faltering, slow, and in danger of being stopped,” according to El-Helou.

The Syndicate of Contractors of Public Works and Buildings has asked officials for solutions to the issues they face. Contractors became angry when Lebanon’s financial public prosecutor summoned 30 contractors and engineers a week ago to investigate media reports and information on social media regarding suspicious deals.

“We want accountability and transparency,” El-Helou said, “and if fraud occurs, we will not protect anyone but we will appear before the competent judiciary and the Audit Bureau. The method of summoning without any documented information that warrants an investigation is unacceptable. Such action is not based on the professionalism and merit that the Lebanese judiciary has always enjoyed.”

He added: “Targeting and defaming the sector without hard evidence is tantamount to demolishing the most important pillars of the national economy. It also weakens some 70 professions directly related to the work of engineers and contractors at a time when we are in dire need of reversing the faltering and traumatic economic cycle which underlies our political, financial and monetary problems.”


Israel to abolish free trade deal with Turkiye in retaliation

Updated 17 May 2024
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Israel to abolish free trade deal with Turkiye in retaliation

  • Earlier this month, Turkiye said it was stopping exports to Israel during the duration of the Israel-Hamas war

JERUSALEM: Israeli Finance Minister Bezalel Smotrich on Thursday said Israel would abolish its free trade agreement with Turkiye and also impose a 100 percent tariff on other imports from Turkiye in retaliation for Turkish President Tayyip Erdogan’s decision to halt exports to Israel.
The plan, he said, would be submitted to the cabinet for approval.
Earlier this month, Turkiye said it was stopping exports to Israel during the duration of the Israel-Hamas war, citing “worsening humanitarian tragedy” in the Palestinian territories. But the Turkish Trade Ministry has said that companies have three months to fulfil existing orders via third countries.
“His (Erdogan’s) announcement of the stoppage of imports to Israel constitutes a declaration of an economic boycott and a serious violation of international trade agreements to which Turkiye has committed,” Smotrich said in a statement.
He noted that Israel’s actions would only last as long as Erdogan remained in power.
“If at the end of Erdogan’s term the citizens of Turkiye elect a leader who is sane and not a hater of Israel, it would be possible to return the trade route with Turkiye,” Smotrich said.
Under Smotrich’s plan, all the reduced customs rates applicable to goods imported from Turkiye to Israel according to an agreement to the free trade deal would be abolished. At the same time, a duty would be imposed on any product imported from Turkiye to Israel at a rate of 100 percent of the value of the goods in addition to the existing duty rate.
The finance, economy and foreign ministries, the statement said, would also take steps to strengthen Israel’s manufacturing while diversifying sources of import to reduce the dependency on Turkiye.
Israel’s Manufacturers’ Association called Smotrich’s plan “an appropriate response” for not allowing Erdogan to damage the economy without a response.


Measured support for end of UN mission in Iraq

Updated 17 May 2024
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Measured support for end of UN mission in Iraq

UNITED NATIONS: Several members of the UN Security Council, including Russia and China, on Thursday backed Baghdad’s request for the world body’s political mission in Iraq to shut down by next year — but Washington did not immediately offer its support.
Last week, in a letter to the council, Iraqi Prime Minister Mohamed Shia Al-Sudani called for the United Nations Assistance Mission for Iraq (UNAMI), which has been operational since 2003, to end by December 31, 2025.
Iraq’s deputy UN envoy Abbas Kadhom Obaid Al-Fatlawi reiterated the request before the council on Thursday, saying: “The mission has achieved its goals.”
Russian envoy Vasily Nebenzia shared that view, saying “Iraqis are ready to take responsibility for the political future of their country.”
“The remaining problems should not become an excuse for UNAMI to stay in the country indefinitely,” he added.
Within the framework of the mission’s annual renewal, due at the end of May, the council should “propose a plan... in order to ensure its gradual drawdown and smooth transition toward an ultimate withdrawal,” noted China’s deputy UN envoy Geng Shuang.
Given that UN missions can only operate with the host nation’s consent, Britain and France also voiced support for a transition in the partnership between Iraq and the UN.
The US was more vague, with ambassador Linda Thomas-Greenfield saying UNAMI still had “important work to do,” and making no mention of Baghdad’s request.
She emphasized the mission’s key role on several important political issues, such as support for organizing elections and promoting human rights, even though Iraq has clearly asked that the mission focus more squarely on economic issues.
In an evaluation requested by the council, German diplomat Volker Perthes said in March that UNAMI, which had more than 700 staff as of late 2023, “in its present form, appears too big.”
Perthes called on the mission to “begin to transition its tasks to national institutions and the United Nations country team in a responsible, orderly and gradual manner within an agreed time frame.”
Without commenting on Baghdad’s request, mission chief Jeanine Hennis-Plasschaert painted a picture of an Iraq that “looks different to the country to which UNAMI was first deployed some 20 years ago.”
“Today we are, so to speak, witnessing an Iraq on the rise,” she said, while noting multiple challenges yet unresolved, such as corruption and armed groups operating outside state control.
But she added: “I do believe it is high time to judge the country on progress made, and to turn the page on the darker images of Iraq’s past.”


ICRC officials to meet UK Foreign Office over plan for Palestinian detainees

Updated 17 May 2024
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ICRC officials to meet UK Foreign Office over plan for Palestinian detainees

  • David Cameron reportedly negotiated deal with Israel’s government to allow two British legal observers and Israeli judge to visit some prisoners

LONDON: Officials from the International Committee of the Red Cross will hold talks with the UK Foreign Office over concerns about British plans to visit Palestinian detainees in Israeli jails.

Foreign Secretary David Cameron has reportedly negotiated a deal with Israel’s government to allow two British legal observers and an Israeli judge to visit some prisoners being held in Israeli prisons amid reports of “inhumane treatment,” The Guardian reported on Thursday.

In an interview with the BBC at the weekend, Cameron said he had spoken to Israeli Prime Minister Benjamin Netanyahu about the issue.

“It’s not all bleak ... I said it (the lack of access to detainees) was not good enough, that we needed to have a proper independent system for inspecting and regulating, and the Israelis have announced they are now doing that,” he said.

Netanyahu’s government has blocked ICRC staff from having any access to Palestinian detainees since the Hamas-led attack on Oct. 7. It has said the block will remain until Hamas allows access to Israeli hostages taken during the attack.

Critics say this stance could constitute a breach of the Geneva Conventions, with the ICRC having made repeated requests to both sides in the conflict to allow access to all those detained, as set out in the conventions.

Observers have also raised concerns that the UK plan will “weaken the rule of law” and could set a “dangerous precedent” for how detainees are treated in other conflict zones, The Guardian report added.

The ICRC’s director for the Middle East region, Fabrizio Carboni, is in London to hold talks with Foreign Office officials.

In a statement to The Guardian, the aid organization said Palestinian detainees must be treated as protected persons with access to the ICRC, as proscribed under the Geneva rules.

The statement added: “We have seen the reports of a government of Israel decision to allow observers to visit some places of detention. The ICRC remains hopeful that suitable steps are taken that could protect the health and welfare of detainees, which remains paramount. We reiterate our readiness to resume our mandated detention activities.”

Arab News columnist and director of the Council for Arab-British Understanding, Chris Doyle, said the Foreign Office plan risked establishing a system that bypassed the ICRC and internationally accepted regulations.

“There is no transparency about Cameron’s alternative … I very much doubt that two Foreign Office-appointed lawyers in the company of a judge from the occupying power are going to have the expertise of the ICRC, but will instead be taken around sanitised prisons,” he said.

“What has happened to the thousands of Palestinians taken from Gaza to Israel is a huge issue. (Neither) we nor their families know where they are, whether they are combatants or children, or why in some cases they are being stripped to their underpants. We have heard nothing from the UK government about this,” he added.

During a week-long truce between Hamas and Israeli forces in November, the ICRC played an active role in facilitating the swap of 105 Israeli hostages held by Hamas and 240 Palestinian prisoners from Israeli jails.


Residents cower as fighting picks up in Sudan’s Al-Fashir

Updated 16 May 2024
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Residents cower as fighting picks up in Sudan’s Al-Fashir

CAIRO/DUBAI: Residents are fleeing missile fire and sheltering without food and water amid escalating fighting in the Sudanese city of Al-Fashir, witnesses and aid workers said, adding to fears of an all-out battle.
The city is the Sudanese army’s last stronghold in the western Darfur region. Its capture would be a major boost for the rival Rapid Support Forces (RSF) as regional and international powers try to push the sides to negotiate an end to a 13-month war.
Locals and aid workers fear the clashes could also lead to a new round of bloodletting after ethnically-driven violence blamed on the RSF and its allies elsewhere in Darfur last year.
Many of Al-Fashir’s 1.6 million residents arrived during the violence between Arabs and non-Arabs that killed hundreds of thousands of people in the early-2000s. The RSF’s origins lie in the Arab janjaweed militias accused of ethnic cleansing and genocide then.
In recent weeks the RSF has almost surrounded Al-Fashir, capital of North Darfur state, while soldiers from the army and allied non-Arab armed groups fill the city.
In a sign of mounting ethnic tensions, Mini Minnawi, head of one of the groups, said on X he had made a wide call for fighters to come and defend Al-Fashir, in response to what he said was a similar call by the RSF.
Al-Fashir residents report snipers, stray missiles and army air strikes causing fires in the east and north of the city. Many civilians have taken up arms.
“The situation in the city has been difficult the past few days. Missiles from both sides are falling inside neighborhoods and homes, and getting to hospitals is dangerous,” said 38-year-old resident Hussein Adam.
Medical aid agency MSF said on Thursday that the city’s South Hospital had seen 489 casualties since May 10, including 64 deaths, though it said the real toll was far higher.
Another hospital it supports, which saw 27 people killed last weekend, was forced to shut down after an army air strike 50 meters away, MSF said.
The RSF and army blame each other for the violence.
On Wednesday, the United States imposed sanctions on two top RSF commanders, including the force’s head of operations, for the attacks on Al-Fashir.
“We are prepared to take further action against those who actively escalate this war – including any offensive actions on El Fasher – create barriers to humanitarian access, or commit atrocities,” US ambassador to the United Nations Linda Thomas-Greenfield posted on X.
Experts have raised warnings of impending famine in the displacement camps that dot Al-Fashir. The city also suffers from water shortages, network outages, and high prices.
In one of those camps, Abu Shouk in the north of the city, nine people were killed by stray missiles, camp leaders said on Sunday.
Residents say displaced people from eastern neighborhoods are sheltering under trees and in open squares.
“Most families have moved west, women and children with nothing to eat or drink,” said resident Mohamed Jamal, a volunteer with the local emergency response room.
The army has so far insisted that international aid delivered via Chad for other parts of Darfur pass through Al-Fashir, something that the escalating violence prevents.
Carl Skau, Chief Operating Officer of the World Food Programme, said the agency had trucks ready in the Chadian border town of Tina, but they needed to be able to move soon.
“The window is closing, the rains are coming and we need action in the next couple of weeks,” he told Reuters after a trip to Port Sudan where he tried to negotiate with the army for better access this week.
The UN’s World Food Programme expects more people are being driven to the brink of starvation in other parts of Sudan worst affected by the war including the capital Khartoum, El Gezira state and the Kordofan regions.
“We really need to step up a concerted effort to avoid an even worse catastrophe,” Skau said.


US military says aid pier anchored to Gaza beach

Updated 16 May 2024
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US military says aid pier anchored to Gaza beach

  • The US Central Command said the pier was “successfully affixed to the beach in Gaza” with around 500 tons of aid expected to enter the Palestinian territory in the coming days
  • “It’s a pretty substantial amount, and it’s spread out over multiple ships right now,” Vice Admiral Brad Cooper, deputy CENTCOM commander, told reporters

JERUSALEM: US troops on Thursday anchored a long-awaited temporary pier aimed at ramping up emergency aid to a beach in the war-ravaged Gaza Strip, the US military and Israel said.
The US Central Command said the pier was “successfully affixed to the beach in Gaza” with around 500 tons of aid expected to enter the Palestinian territory in the coming days.
“It’s a pretty substantial amount, and it’s spread out over multiple ships right now,” Vice Admiral Brad Cooper, deputy CENTCOM commander, told reporters in Washington.
Israel’s military also said in a statement that the connection was “successfully completed.”
But Farhan Haq, a spokesman for UN Secretary-General Antonio Guterres, said negotiations remained ongoing on distribution of the aid — particularly on the safety of workers.
“We are finalizing our operational plans to make sure that we’re ready to handle it once the floating dock is properly functioning, while ensuring the safety of our staff,” he said.
The Gaza war has been devastating for aid workers. The UN agency for Palestinian refugees, UNRWA, which Israel accuses of bias, has alone lost 188 Gaza staff, according to UN figures.
Asked about the concerns, State Department spokesman Vedant Patel said the United States was working with the United Nations on practicalities but added: “From our point of view, we believe that this is ready to go and for aid to start flowing as soon as possible.”
US President Joe Biden announced the emergency pier in March to address the humanitarian crisis in Gaza, where the United Nations has warned of famine with virtually the entire population of 2.4 million displaced by the Israeli military action in response to the October 7 Hamas attack.
Built at a cost of at least $320 million, the project is extraordinary in that such massive humanitarian efforts by the United States are usually in response to actions by hostile countries, not a US ally.
The humanitarian assistance is being screened in Cyprus and loaded by truck. Once on land, it will “move quickly,” being offloaded from the coast into Gaza within hours, Cooper said, adding that “thousands of tons of aid are in the pipeline.”
He said that around 1,000 US soldiers and sailors were involved in the operation but that they would not take part in delivery, which will be led by the UN.
The war began after Hamas’s October 7 attack on southern Israel, which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.
Israel’s military retaliation has killed at least 35,272 people, also mostly civilians, according to the health ministry in the Hamas-run Gaza Strip.
The UN has argued that opening up land crossing points and allowing more trucks convoys into Gaza is the only way to stem the spiralling humanitarian crisis.
But the primary crossing into Gaza, on the territory’s border with Egypt, has been closed for days.
Israeli troops took over the Palestinian side of the crossing last week as the military threatened a wider assault on the southern city, defying warnings from the United States and others over the fate of some 1.4 million civilians who had been sheltering there.
“Of course we’re thankful to the US for all the work they’ve done in creating the floating dock. However, getting aid to people in need into and across Gaza cannot and should not depend on a floating dock far from where needs are most acute,” Haq said.
Cyprus, the Mediterranean island nation that is the departure point for aid on the planned maritime corridor, said US ship James A. Loux left Wednesday, carrying relief supplies and technical equipment.
Government spokesman Konstantinos Letymbiotis said that “new departures are expected, transporting humanitarian aid including food items, medical supplies, hygiene and temporary shelter.”
Britain, meanwhile, said its initial contribution of nearly 100 tons of “shelter coverage kits” figured in the first shipment.
The pier will begin with facilitating the delivery of around 90 truckloads of international aid into Gaza each day, before volumes are scaled up to 150 truckloads daily, a British statement said.