BEIRUT: Lebanon has yet to give the IMF its estimate of losses in the financial system as discussions on the issue continue, but is working hard to sign a memorandum of understanding with the Fund by year-end, governor Riad Salameh told Reuters on Tuesday.
Disagreements in Lebanon over the size of the losses and how they should be distributed torpedoed IMF talks last year. The central bank, banks and political elite rejected figures set out in a government plan that was endorsed by the IMF at the time.
The issue has obstructed attempts to chart a way out of the crisis that has devastated Lebanon since 2019, sinking the currency by more than 90 percent, causing poverty to skyrocket and leading many Lebanese to emigrate.
Speaking in an interview for the upcoming Reuters Next conference, Salameh also said the bank had $14 billion of available liquidity in its reserves, and reiterated denials of wrongdoing as judicial authorities in France and Switzerland investigate money laundering allegations against him.
Salameh said an IMF program was essential for Lebanon to exit the crisis, noting the external financing it would unlock and discipline that would impose reforms.
Therefore the central bank would accept the figures for the losses as decided by the government, he said.
“We are, at this stage, still in the process of gathering the data that is requested by the IMF and the issue of the losses — the number of these losses — are not going to be a hurdle for these negotiations, at least from the side of the central bank,” he said.
Asked whether there was agreement yet on who will bear the burden of the losses — such as depositors, bank shareholders, the government and the central bank itself — Salameh said no decision had been taken “because we don’t have yet the final figures that are agreed with the IMF for the total losses.”
Last year, several sources said Salameh dug in his heels over the losses which the previous government’s plan suggested were in the $70 billion range, although higher figures have been cited. Ruling parties and commercial banks also objected to the figures, saying they were too big.
Asked when the figure would be ready, Salameh said Prime Minister Najib Mikati had set a deadline for signing the IMF memorandum of understanding by the end of 2021, which the government and central bank were working “very hard to achieve.”
Salameh became Banque du Liban (BDL) governor in 1993 and managed a pegged exchange rate that underpinned the import-dependent economy from 1997 until the meltdown.
As Lebanon’s currency sunk, the reserves were depleted as BDL provided dollars at heavily subsidised exchange rates to finance imports including fuel, food and medicine.
Salameh noted that this policy had now been largely phased out — the only imports for which dollars are being provided at subsidised rates today are medicines for some chronic illnesses and wheat, while BDL sells dollars for gasoline imports at a small discount to the market exchange rate.
“Our expectation is that if we stay on this model, for the next 12 months ... the BDL will have to fund $2.5 billion,” he said. BDL might recoup $300-$500 million from its foreign exchange platform, Sayrafa, in that timeframe, he said.
The reserves were recently boosted by the sale of over $1 billion of IMF Special Drawing Rights.
Salameh is being investigated by authorities in four European countries, including the Swiss inquiry over alleged “aggravated money laundering” at BDL involving $300 million in gains by a company owned by his brother, Raja Salameh.
Last week, he said he had ordered an audit of transactions and investments that had been the focus of media reports and this had shown no public funds were used to pay fees and commissions to the company owned by his brother. Raja Salameh has not publicly commented on the accusation.
Salameh gave the prime minister a copy of the audit last week but declined to provide Reuters with one. “In this report, it is clear that there was no embezzlement or money laundering on my side or under my guidance at the central bank,” he said.
Lebanon has yet to give IMF figure for financial losses, central bank governor says
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Lebanon has yet to give IMF figure for financial losses, central bank governor says
- Disagreements in Lebanon over the size of the losses and how they should be distributed torpedoed IMF talks last year
- Salameh reiterated denials of wrongdoing as judicial authorities in France and Switzerland investigate money laundering allegations against him
New service at Jeddah port to boost Saudi-India trade
RIYADH: Saudi and Indian traders are set to benefit from Jeddah Islamic Port’s new service, bolstering trade connectivity between the nations.
The Saudi Ports Authority, also known as Mawani, on Thursday said that Unifeeder, a Danish logistics company, has introduced the “RGI” shipping service at the Saudi port. This initiative connects the Kingdom to Indian checkpoints, facilitating trade between the two nations and offering expedited and secure solutions for exporters and suppliers.
In a statement, Mawani affirmed that this undertaking showcases investors’ confidence in the Kingdom’s terminals, bolsters maritime transport and logistics services, and solidifies Jeddah Islamic Port’s status.
It added that the seaport is the Kingdom’s first dock for exports and imports, and the first re-export point in the Red Sea, with 62 multipurpose berths and a capacity of 130 million tonnes.
The new shipping service connects the Jeddah terminal to the ports of Mundra and Nhava Sheva in India, Jebel Ali in the UAE, and Sokhna in Egypt through regular weekly trips, with a capacity of up to 2,824 twenty-foot equivalent units, Mawani noted.
Mideast sets record in renewable energy capacity, Saudi Arabia reaches 2.6 GW: IRENA
RIYADH: Renewable energy capacity in the Middle East soared to a record high in 2023, with the addition of 5.1 gigawatts, marking a 16.6 percent increase from the previous year.
According to the latest data released by the International Renewable Energy Agency, this new addition brought the region’s total renewable energy capacity to 35.54 GW, with Saudi Arabia accounting for 2.68 GW.
The data showed that global green power capacity reached 3,870 GW in 2023, marking a 13.9 percent increase over the previous year. This represents the largest surge in sustainable energy capacity to date, with the addition of 473 GW.
Green sources constituted a record-breaking 86 percent of global power additions, primarily driven by substantial expansions in solar and wind energy.
Solar power alone contributed nearly three-quarters of renewable additions, totaling a record 346 GW, while an additional 116 GW of wind energy was incorporated, the report added.
Francesco La Camera, director general of IRENA, said: “Despite these unprecedented renewable additions in 2023, the world is still falling short of what is required to achieve the goal adopted at COP28 to triple installed renewable power capacity by 2030 to reach 11 TW.”
With one less year to meet the goal, he emphasized that the world now requires additions of approximately 1,050 GW each year for the remainder of this decade to align with the World Energy Transitions Outlook scenario and maintain a trajectory toward limiting global warming to 1.5 degrees Celsius.
The growth of sustainable energy is unevenly distributed globally, with Asia leading the expansion with a 473 GW increase, primarily propelled by China’s 63 percent surge to 297.6 GW. This highlights a notable discrepancy with other regions, particularly developing countries. While Africa saw some growth, it was modest at 4.6 percent, reaching 62 GW.
By the end of 2023, Camera said, renewable energy sources comprised 43 percent of the global installed power capacity.
“Yet, as we draw closer to a world in which renewable energy accounts for half of total capacity, many energy planning questions still need to be addressed to establish renewables as the most significant source of electricity generation - including in the context of grid flexibility and adaptation to variable renewable power,” he added.
ACWA Power signs $800m water purchase agreement with Senegal
RIYADH: Saudi energy giant ACWA Power has signed an SR3 billion ($800 million) agreement with Senegal’s Ministry of Water to develop a desalination plant.
The company, partly owned by the Public Investment Fund, announced the inking of a water purchase agreement for the construction of the facility in Dakar, Senegal in a statement on the Saudi Stock Exchange, Tadawul.
ACWA Power will be responsible for the infrastructure, design and financing as well as construction, operation and maintenance of the Grande Cote seawater desalination plant in the West African country.
The project will have a production capacity of 400,000 cubic meters per day, the statement said.
Its first phase and financial impact are expected to materialize by the first quarter of 2028, with a contract duration of 32 years.
This marks a continued partnership between the company and Senegal, as it has previously signed a memorandum of understanding with the Senegalese National Water Co. and the country’s National Electricity Co. in September 2022.
The MoU entailed the development of a 300,000 cubic meters per day seawater reverse osmosis plant in Grande Cote, located about 40 km north of the nation’s capital.
The development was the first desalination project in the country to be facilitated through a public-private partnership and the largest treatment initiative of its kind in Sub-Saharan Africa.
NEOM CEO lands in top 3 of Forbes’ Real Estate Leaders list
RIYADH: NEOM CEO Nadhmi Al-Nasr has been ranked third in Forbes Middle East’s “Most Impactful Real Estate Leaders” list, underlining the Kingdom’s prominence in the sector.
The giga-project chief was placed beneath Mohamed Alabbar from UAE-based Emaar Properties and Talal Al-Dhiyebi, CEO of Abu Dhabi-headquartered Aldar Properties.
The Kingdom had the second-most entries on the list, with 23 Saudis appearing in the publication’s rankings.
This is a testament to the major investments the nation has made in its real estate sector, a statement from Forbes noted.
“Governments, corporates, and semi-government developers are investing in real estate projects throughout the region, particularly in Saudi Arabia, Egypt, and the UAE. These projects are giving a huge boost to the regional construction sector, which also has a positive outlook over the next few years,” the statement said.
Demonstrating this, several leading Saudi companies landed within the top 20 of the list.
Among them was David Grover, the CEO of Saudi Arabia’s Public Investment Fund subsidiary, ROSHN Group, who ranked eighth place.
This is a testament to the giga-project’s vital role in enabling the achievement of Vision 2030 through the expansion of the private sector and the creation of job opportunities.
Similarly, the CEO of the Kingdom’s National Housing Co., Mohammad Al-Buty, ranked 13th, while the founder of Dar Al-Arkan Saudi Development Co., Yousef Al-Shelash, was placed 14th in an evaluation of 100 regional companies.
The criteria for the rating system are based on the company’s financials, value of projects completed, and reputation of project delivery, as well as the land bank units held by the developer.
Entities featured on the list based on this methodology include nine countries in the region. The UAE leads with 33 companies named, six of which are in the top 10.
Saudi Arabia followed with 23 companies, while Egypt came third, with 20 companies in the ranking.
This is driven by the fact that real estate sale transactions in the nations of the Gulf Cooperation Council between January and October 2023 reached $171.6 billion, up 21.1 percent year-on-year, according to a report by Kamco Invest.
In 2024, the property sector continues to have promising long-term potential. Robust economic growth, expanding population, and government investment could all contribute to increasing demand for real estate, the statement by Forbes highlighted.
UAE, Japan to develop industrial steam and electricity cogeneration plant in Saudi Arabia
Abu Dhabi National Energy Co., also known as TAQA, together with JERA Co., Inc, Japan’s largest power generation company, announced Thursday that they have entered into a Power and Steam Purchase Agreement with Saudi Aramco Total Refining and Petrochemical Co., or SATORP, a joint venture company owned by Saudi Aramco and TotalEnergies.
According to the Emirates News Agency, they will develop a greenfield industrial steam and electricity cogeneration plant that will produce electricity and steam for the Amiral petrochemical complex to be developed in Jubail in the Eastern Province of Saudi Arabia.
The Amiral petrochemical complex is expected to house one of the largest mixed-load steam crackers in the Arab Gulf region.
The Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems, and gas-insulated switchgear interconnections while meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre.
The project also provides for the future installation of a carbon dioxide capture plant and is capable of hydrogen cofiring, WAM reported.
The Amiral cogeneration plant will be developed by a special purpose entity owned by TAQA, holding 51 percent, and JERA, holding 49 percent. It will operate on a build, own, and operate basis for 25 years, with the possibility of extension by five years upon mutual agreement.
TAQA and JERA will also undertake the operation and maintenance of the plant through an O&M special purpose entity.
Farid Al Awlaqi, CEO of TAQA Generation, said: “The signing of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility, a key downstream project being developed by two of the world’s leading energy companies, demonstrates the confidence in TAQA’s ability to deliver critical utilities, including power and steam effectively.
Together with our partner JERA, TAQA is looking forward to developing an efficient cogeneration plant that reduces carbon emissions and supports SATORP with its long-term decarbonization program. The agreement will bolster TAQA’s efforts in building on our growth and executing our 2030 goals.”
Steven Winn, chief global strategist of JERA, said: “We will be providing stable, highly efficient, clean and reliable power and steam to our customer SATORP. The Amiral Cogeneration plant will not only enhance the Amiral Complex’s operational efficiency, but also demonstrate our commitment to environmental stewardship and our growth ambitions for sustainable power generation solutions in the Kingdom of Saudi Arabia and the region.”