BEIRUT — Gas-rich Qatar on Monday announced investments in Lebanon worth hundreds of millions of dollars to improve the crisis-hit nation's crumbling electricity sector and to continue support for the Lebanese armed forces and the return home of Syrian refugees.
Qatar's minister of state for foreign affairs, Mohammed bin Abdulaziz Al-Khulaifi, announced the investments by the Qatar Fund For Development after meeting Prime Minister Nawaf Salam and President Joseph Aoun in Beirut.
Lebanon has been improving relations with oil-rich gulf countries following years of tensions over the wide influence that the militant Hezbollah group had in the small nation. Hezbollah was weakened by a 14-month war with Israel, and the Iran-backed group recently called on Saudi Arabia to open a new era in relations.
For years, Qatar has been seen as a friendly country to Lebanon and a mediator for domestic and international political crises. Doha is also a key partner in the consortiums for Lebanon's offshore gas exploration blocks.
Lebanon since late 2019 has been in a historic fiscal crisis after decades of corruption and mismanagement by the country's ruling class.
Al-Khulaifi said Qatar will give a $40 million grant to the electricity sector and another $360 million for projects in the sector that it said will benefit 1.5 million people.
Qatar had tried in the past to improve Lebanon's electricity sector, without success. This time, Lebanon's president who was elected last year and a newly named prime minister have vowed to fight corruption.
Lebanon's state electricity company is one of the country's biggest sources of debt, hemorrhaging about $40 billion over the past decades with a bloated workforce and outdated infrastructure. The company provides only a few hours of electricity each day, and the state until a year ago had taken advances from the Central Bank when diesel fuel runs out.