Electricity subcontracts renewed with two companies for four years

BUS, part of the Butec Group and NEUC of Debbas Group have concluded negotiations with Electricité du Liban (EDL) to undertake power distribution, maintenance, and bill collection operations for a second four-year period.

“The decision awaits the approval of the Ministry of Energy and Water for the renewal and Ministry of Finance for the budget,” said a source close to deal.

The contract conditions remain unchanged. The two firms are required to install smart meters during the next four years.

“The first year will be for testing and certification, and during the second and third year, one and ten percent of smart meters will be installed respectively,” the source said.

By the end of the fourth year, all meters would have been installed. The smart meter reduces technical and non-technical (theft) losses of electricity.

The value of the renewed contract per company is between $260 million and $280 million.

“Service providers asked for compensations and for a higher budget because of inflation but EDL did not agree,” according to the source.

The budget includes leftover funds for the installation of smart meters because they were not expended. The three distribution service providers (DSPs) were expected to install 1.1 million meters, valued at $350 million.

KVA of Arabian Construction Company (ACC), the third DSP, is still undergoing negotiations with the EDL.

“At this point, it is still not clear whether KVA shall renew the contract or not, even though today is the last day of the time extension,” another source said.

The three DSPs were granted time extensions twice because of protests and sit-ins that took place in the last four years. KVA is requesting EDL pay between $10 and $20 million worth of claims. EDL is refusing to pay up.

KVA has a fulltime staff of 700, BUS 850, and NUEC 1,200. KVA covers Beirut and Bekaa, NEUC the region south of Beirut, and BUS the region north of Beirut.