Hopes pinned on PPP for infrastructure upgrades

No legislation so far to support such projects

Public-Private Partnership (PPP) is the only option left for funding infrastructure development without increasing the public deficit, said Central Bank Governor Riad Salameh during a seminar held on May 21.

Salameh said shares resulting from Build Operate and Transfer (BOT) projects would enrich the Beirut Stock Exchange.

The sixth annual banking seminar, organized by First Protocol in cooperation with Bank Audi Group, addressed the issue of PPP from the private sector’s point of view.

Initiating PPP projects will allow the government to initiate much-needed infrastructural projects, namely in the energy production sector.

Salameh said having the private sector fund the vital infrastructural upgrades would alleviate the budget deficit, create more jobs, and spur overall economic growth.

So far, there is no legal framework to organize PPP projects. Ziad Hayek, Secretary General of the Higher Council for Privatization, said the first step is adopting the PPP Law which has been hanging in the Cabinet and Parliament since 2007. The Cabinet had recently pledged to submit the PPP law to Parliament for ratification soon.

Hayek said PPP ventures also require adopting a set of other legislations in order to improve the overall business environment.