With about $16.6bn of projects planned or underway, Lebanon is one of the smallest markets in the Mena region, with typically between $1bn-2bn of project contracts awarded each year. Construction and water projects have accounted for much of Lebanon’s project spending in recent years. Transport, power and construction projects are set to become more prevalent in future years, accounting for the majority of planned projects.
About $16.6bn of projects are planned or underway in Lebanon. Of these, about $7.8bn of projects are under construction, with $8.8bn of planned projects. Construction and transport projects, including real estate developments, housing, public buildings roads, airport and seaport, account for nearly two-thirds of all projects planned or underway in Lebanon.
Water projects account for about 19 per cent of projects planned or underway. $16bn of project contract awards have been made in Lebanon since 2008 – an average of $1.4bn of awards a year. The value of annual project awards peaked in 2015 at about $2bn, following the award of multiple construction and transport sector contracts.
With $3.3bn of unawarded projects in bidding stage, the outlook for Lebanon’s projects market is expected to pick up marginally in 2019.
The formation of the new government and the approval of the new electricity plan in the first few months of 2019 have provided fresh optimism that Lebanon may be able to solve the power problems in the coming years.
A $295m World Bank loan to the Greater Beirut Public Transport Project has been agreed to help tackle Beirut’s traffic problems.
Furthermore, the government has sought $86m in financing from Jeddah-based Islamic Development Bank for the expansion and development of the Port of Tripoli, located in the country’s northern region. The project is expected to be tendered before the end of the year.
Currently, the High Council for Privatisation & PPP (HCP) is progressing with three PPP projects.
The first is the estimated $500m expansion of Beirut’s Rafic Hariri International airport that aims to increase capacity to 20 million passengers a year by 2030. The scheme is expected to be tendered by September this year, with an award in mid-2020.
Another project being developed as a PPP is the $2.9bn Khaldeh-Nahr Expressway project.
The HCP also plans to deliver two data centres with the Telecommunications Ministry that will be owned, managed and operated by the private sector.
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“MEED Projects allows Saudi Aramco to effectively evaluate our capital resource program. In concentrated markets such as the Middle East, we have to compete harder to get the best resources. Having the complete MEED Projects package ensures we have full visibility of the projects market and the correct balance of contractors working on Saudi Aramco’s projects.”SAUDI ARAMCO
“MEED Projects has been a crucial to our navigation throughout financially difficult times. MEED Projects has allowed Unibeton to effectively forecast and align its growth strategy for the coming years in an increasingly competitive marketplace. The regular updates have increased our first to market advantage for new projects allowing Unibeton to properly match our environmental and technical products to project requirements.”UNIBETON READYMIX