World Bank Approves $257.8M to Bolster Water Supply in Greater Beirut and Mount Lebanon

Project to Expand Water Access, Improve Quality, and Strengthen Lebanon’s Water Sector Resilience.

The World Bank Board of Executive Directors has approved $257.8 million in financing for the Second Greater Beirut Water Supply Project (SGBWSP), a critical initiative aimed at enhancing water supply services for the Greater Beirut and Mount Lebanon area. This project will complete essential water infrastructure, improve water quality, reduce dependence on expensive private water sources, and implement reforms to improve water sector efficiency and sustainability.

Despite its high precipitation levels, Lebanon faces significant water shortages due to seasonal rainfall concentration, limited surface water storage, and deteriorating infrastructure. Climate change is expected to exacerbate these issues, potentially halving water availability during the dry season by 2040 and increasing the frequency of floods and droughts. These challenges are compounded by Lebanon’s ongoing economic and financial crises, which have impeded the development and maintenance of water infrastructure.

The SGBWSP builds on the progress of the first Greater Beirut Water Supply Project, financing the completion of bulk water infrastructure and repairs to facilities damaged by conflict. It will also expand the capacity of the Wardanieh Water Treatment Plant to address seasonal pollution and improve water quality.

Once completed, the project aims to increase water supply coverage for 1.8 million residents of Greater Beirut and Mount Lebanon, ensuring surface water meets 70% of dry-season demand, up from the current 24%. This will significantly reduce reliance on costly private water tankers, which are up to ten times more expensive.

Key Features of the Project

• Enhanced Infrastructure: Completion of bulk water systems and repairs to conflict-damaged infrastructure.
• Improved Water Quality: Upgrades to the Wardanieh Water Treatment Plant to address seasonal pollution.
• Increased Coverage: Water supply coverage will expand to meet 70% of dry-season demand, benefiting 1.8 million residents.
• Cost Reduction: Reduced reliance on private water sources, offering substantial financial relief to households.

Advancing Water Sector Reforms

The project aligns with Lebanon’s National Water Sector Strategy (NWSS) 2024-2035, recently finalized by the Ministry of Energy and Water. Reforms include six new water decrees to regulate groundwater extraction, licensing, and tariff adjustments to reflect currency devaluation.

The SGBWSP will support Beirut and Mount Lebanon Water Establishment (BMLWE) in implementing efficiency measures, such as:

• Reducing water losses.
• Digitalizing operational processes.
• Enhancing billing and collection systems.
• Improving operational management practices.

These reforms aim to strengthen the financial and operational sustainability of BMLWE, enhance public water service reliability, and reduce reliance on external financing over time.

A Strategic Commitment to Lebanon’s Recovery

Jean-Christophe Carret, World Bank Middle East Country Director, highlighted the importance of the project in Lebanon’s recovery efforts.

“The Second Greater Beirut Water Supply Project reflects the World Bank’s commitment to support Lebanon’s long-term development needs despite recent challenges. By prioritizing climate-resilient investments and institutional reforms, this project will ensure reliable access to essential services and lay the foundation for sustainable economic growth,” Carret said.

Broader Impact and Future Goals

In addition to expanding water access, the SGBWSP supports broader social and economic goals, including job creation through construction projects, improved public health outcomes, and the strengthening of Lebanon’s resilience to climate-related shocks.

This initiative is part of the World Bank’s broader strategy to foster economic recovery and sustainability in Lebanon, working closely with development partners to coordinate efforts in the water sector and beyond.

The SGBWSP represents a vital step forward in addressing Lebanon’s water crisis and ensuring a sustainable future for its citizens.