Lebanon's finance minister, Jihad Azour, has said the government will issue all the letters of credit (L/Cs) needed for tankers to unload the fuel required by the country's state-run power stations.

"There will be no shortage of fuel or risk of a complete blackout despite the huge drain on state coffers that Electricite du Liban (EDL) constitutes," Azour said amidst reports that a lack of L/Cs would soon prevent fuel reaching Lebanon's power stations.

No solution

The minister said providing L/Cs to purchase fuel is not a solution for the state utility's long-standing problems, which he says stem from aging power plants that need to be closed down and losses from the network due to theft.

"EDL is an absolute disaster in the Lebanese economy. Every day EDL has a deficit of US$3 million," Azour said.

L/C furore

The minister says officials at the state-run utility do not like the way he intends to restructure EDL and raise the matters of delays in issuing L/Cs periodically.

"Every two months or so the same problem emerges. They want to divert attention from the real problem and turn it into an issue of delays in issuing L/Cs and the threat of blackouts, knowing that the government will bail them out every time," Azour said.

Government solution

The minister says the government is prepared for the time being to open L/Cs for fuel, even though it is difficult to do so in the current economic climate.

But he blames EDL officials for problems with Lebanon's power supplies, saying difficulties frequently arise as a result of the way EDL schedules its fuel requirements and manages its supply.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.