Lebanon appoints advisers for $4bn infrastructure PPP projects

20 May 2018
The $2.9bn expressway PPP is expected to be tendered in 2020

Lebanon’s High Council for Privatisation and PPP (HCP) has appointed international advisers for the development of national data centres, a new expressway and the expansion of Beirut Rafic Hariri International airport

HCP appointed  UK-based European Bank for Reconstruction and Development (EBRD) and Washington-based International Finance Corporation as transaction advisers for the development of the Khaldeh-Nahr Ibrahim Highway and the expansion of Beirut Rafic Hariri International airport, respectively.

UK consultancy Solon and Netherlands-headquartered KPMG were appointed as transaction advisers for the national data centres project.

The development of the Khaldeh-Nahr Expressway project, which will extend 38 kilometres, will account for roughly $2.9bn of the total planned budget for the three projects, estimated at $4bn.

The scheme will include a 12km tunnel and a 20km three- to four-lane dual lane expressway. The rest will comprise interchanges, service roads and bridges.

It will start at the town of Khaldeh to the south of Beirut and head northward through the towns of Choueifat, Hadath, Hazmieh and then through Dikwaneh, Baouchrieh, Jal el-dib and Antelias before it connects to the existing Northern Highway at Dbayeh north of Beirut.

According to HCP, the expressway project implementation cost is $1.6bn, and the expropriation cost is estimated at $1.26bn.

The expressway study is expected to take three years, with the tendering process expected to be initiated in March 2020.

The airport study is expected to take 21 months while the data centres study will take 14 months, a local media report said.

The Telecommunications Ministry, project client for the data centres, is understood to be planning to build two data centres that will be owned, managed and operated by the private sector.

The planned expansion of Beirut Rafic Hariri International airport, which is estimated to cost $500m, entails taking the annual capacity from 6 to 20 million passengers by 2030.

 

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