The Council of Ministers approved an agreement with the European Investment Bank (EIB) to provide loans to the private sector to fund renewable energy projects. The agreement comes in the framework of the National Energy Efficiency and Renewable Energy Action (NEEREA).

“EIB is partaking in a joint initiative with the Agence Francaise de Developpement (AFD) to fund $85 million-worth of energy projects,” said Pierre Khoury, Director of Lebanese Center for Energy Conservation (LCEC).

The funds will be handled by the Central Bank (BDL) while LCEC will provide technical assistance.

Khoury said: “The loans will have near-zero interest rate, but in return, the payback period should be short.”

According to BDL regulations, a single project can acquire a maximum loan value of $20 million. Some $140 million have already been spent on implementing renewable energy projects. LCEC expects more international bodies to join in on the efforts to cut traditional use of power.