0 beirut, lebanon january 30, 2008 infrastructure and privatization inter-ministerial committee...
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Beirut, LebanonJanuary 30, 2008
Infrastructure and Privatization Inter-Ministerial Committee Progress Report # 4
PRESENTATION
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Today’s objective is to update your Excellencies on progress to-date against Commitment Documents of the respective stakeholders
Meeting Objectives
Brief on the status of issues raised in the previous IMC and on progress to-date of GR PCO planning and monitoring activities
– Following the last IMC dated August 24, 2007: 8 main issues were raised regarding the Power, Telecom and Transport Sectors, and the CDR
– To-date, 2 issues were resolved, 1 is in progress, and 5 are delayed
Highlight progress and status of implementation of short-term programs in each sector (where available):
– Monthly Progress Report against programs charted in commitment documents
– New and Emerging Issues
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Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
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The Paris III implementation planning process is generally on track, except for the Power Sector which is delayed, and the Transport Sector, which is still at the initiative identification phase
Natural Owner
Identification of Initiatives
Prioritization of Initiatives
Program Charters
DevelopmentKPI Setting
Progress Report
Commitment Document
Immediate Next Steps
Ministry of Telecom ✓ ✓ ✓ ✓ ✓ ✓
Commitment document (no financial requirements) signed by MoT
HCP ✓ ✓ ✓ ✓ ✓ ✓ Commitment document for Telecom
and Power signed by HCP
TRA ✓ ✓ ✓ ✓ ✓ ✓ Commitment document signed by TRA
Ministry of Energy and Water / EDL
✓ ✓ ✓ ✓(Targets missing)
✓ ✓
Finalize KPIs for EDL Commitment document for Power
signed with no KPIs
Ministry of Transport
50% 50%Not
ApplicableNot
ApplicableNot
ApplicableNot
Applicable
Discuss Airport privatization roadmap and ports strategy development plan with Prime Minister/Minister of Transport and HCP SG
CDR ✓ ✓ ✓ ✓ ✓ ✓
Commitment document signed by CDR
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Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
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Program Status and Budget Performance Definitions
Monthly progress reports will highlight the status of each program – defined in a commitment document – along implementation, budget, and KPI dimensions
StatusStatus ImplementationImplementation BudgetBudget KPIKPI
Completed on Time
Completed on Time
Completed on Budget
Completed on Budget
Completed on Target
Completed on Target
On Track On Track On Budget On Budget On Target On Target
Could be Delayed
Could be Delayed
Potential Over Budget
Potential Over Budget
Emerging Issues
Emerging Issues
Delayed Delayed Over Budget Over Budget Off Target Off Target
Not Started Not Started N/A N/A N/A N/A
NS
Budget Performance
Initial BudgetBudget endorsed
during an IMC
Revised Budget
Budget adjusted using a Program Change
Request Form endorsed during an
IMC
Actual SpentAmount spent until date of reporting
Remaining Budget Requirements
Estimate
Estimate of the remaining budgetary requirements for the
program
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Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
8
Program DashboardProgram Dashboard
Program Overall Status:
Program Title: TEL-001: Establish the Telecom Regulatory Authority
Natural Owner: Minister of Telecom/TRA
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Transfer of Regulatory Functions from MoT to TRA
15% 75%100% (April 08)
Broadband licensing 0% 40%Process
launched (June 08)
Achievements Since Last Report
Transfer of qualified staff from MoT completed
Key Issues
New: TRA budget approved but not transferred yet Second advanced payment approved but not transferred as of
January 18th, 2008 Review and approval of Ministry of Finance for financial
procedures still pending Carried Over from Previous IMC: Need to complete the process in transferring documentation
and information from MoT to TRA– Numbering assignment database– RF planning and studies (ATDI, and other) carried out to
the benefit of MoT– Transfer of Satellite licensing information
Transfer of RF management equipment
Budget Performance*
Initial Budget $13,500,000
Revised Budget N/A
Actual Spent $2,000,000
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
9On Track Could be Delayed Delayed Not startedNSCompleted
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
1. Establish the Telecom Regulatory Authority 23/07/02 30/11/07 281.8 w ks
1.b Issue decrees to facilitate operations of the TRA 03/01/05 24/08/07 139.6 w ks
1.b.iv Approve and transfer TRA budget 02/07/07 13/07/07 2 w ks CoM, MoFBudget approved and transferred
1.b.vi Issue decrees for specif ic secondary legislation 02/07/07 24/08/07 8 w ks CoM Decrees issued
1.c Transfer regulatory responsibility to the TRA 05/03/07 01/10/07 31.6 w ks1.c.iii Transfer all necessary documentation from MoT to TRA (e.g., Radio Frequency, Licensing, Authorizations) 19/06/07 24/09/07 14.6 w ks
TRA Board / MoT Documentation imported
1.c.iv Transfer relevant equipment from MoT to TRA (mainly RF management equipment) 19/06/07 24/09/07 14.6 w ks
TRA Board / MoT
Tools & equipment transferred
1.c.v Migrate and appoint TRA staff 19/06/07 24/09/07 14.6 w ksTRA Board / MoT Staff migrated
1.c.vi Finalize transfer of existing functions 25/09/07 01/10/07 1.2 w ksTRA Board / MoT
Regulatory functions transferred
1.c.vii Transfer international representation for Radio Frequency and Standards to TRA 02/07/07 01/10/07 13.4 w ks
TRA Board / MoT
International representation
1.d Draft telecom policy outlining the liberalization path to be follow ed 05/06/07 30/11/07 26.8 w ks TRA
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
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Program DashboardProgram Dashboard
Program Overall Status:
Program Title: Tel-002: Corporatize and Privatize Liban Telecom
Natural Owner: Minister of Telecom
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Liban Telecom Board appointment Delayed DelayedCompleted (Dec. 2007)
Percentage of employee migration from Ogero to LT
0% 0%Completed (Jul. 2008)
Percentage of asset migration from Ogero to LT
0% 0%Completed (Dec. 2008)
Percentage of customer migration from Ogero to LT
0% 0%Completed (Dec. 2008)
Percentage of vendor migration from Ogero to LT
0% 0%Completed (Dec. 2008)
Achievements Since Last Report
MoT launched on IP TV pilot project MoT is proceeding with its national project providing broadband
services
Key Issues
New: None
Carried Over from Previous IMC: Need to appoint Liban Telecom Board of Directors or
alternative governance structure
Budget Performance*
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
11On Track Could be Delayed Delayed Not startedNSCompleted
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
2. Corporatize and Privatize Liban Telecom 04/01/05 15/10/09 251.4 w ks2.a Issue decrees to establish LT and appoint governance structure 04/01/05 01/07/07 131.4 w ks
2.a.ii Appoint LT Board of Directors or equivalent governance structure 01/05/07 01/07/07 9.4 w ks MoT / CoM
LT governance structure appointed
2.b Setup Program Management Office (PMO) 02/07/07 07/09/07 10 w ks
2.b.i Appoint PMO director, task force leaders and teams 02/07/07 27/07/07 4 w ks MoT/ LT Board PMO Staff appointed
2.b.ii Develop and approve w ork program 30/07/07 07/09/07 6 w ks LT Board/ HCP Work program approved
2.c Create LT organizational structure 02/07/07 15/11/07 20 w ks
2.c.i Develop LT Organizational Chart 02/07/07 24/08/07 8 w ks LT BoardOrganizational Chart created
2.c.ii Appoint CEO and Level 1 Management Team 27/08/07 15/11/07 12 w ks LT BoardCEO and Level 1 appointed
2.d Set up provisional opening balance and prepare asset transfer 10/09/07 20/03/08 28 w ks2.d.i Perform full asset survey and valuation as per a pre-approved RFP 10/09/07 24/01/08 20 w ks
LT Board/ PMO/ HCP Asset survey performed
2.d.ii Develop Accounting policies 10/09/07 01/11/07 8 w ks LT Board / PMOAccounting policies developed
2.e Capitalize LT by transferring budget 04/01/05 27/07/07 135.4 w ks
2.e.i Issue decree 4/1/05 4/1/05 1 day CoM Decree 13944 issued2.e.ii Open bank account, define signature attorney, contract execution pow er 02/07/07 27/07/07 4 w ks LT Board / MoF
Execution pow er contracted
2.j Create LT brand and establish w eb presence 10/09/07 15/10/09 110 w ks2.j.i Launch Procurement process and Prepare TOR for TA Consultant to develop a new brand for LT 10/09/07 18/10/07 6 w ks PMO RFP sent
2.j.vi Design LT w ebsite 10/09/07 18/10/07 6 w ks PMO Website designed
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
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Program DashboardProgram Dashboard
Program Overall Status:
Program Title: TEL-003: Privatize mobile telecom Natural Owner: Secretary General of HCP and TRA Chairman
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Regulations Issued by the TRA 4 512
(June 2008)
Mobile licensing process completion 0% 85%100%
(May 08)
Achievements Since Last Report
Review and finalizing of the 4 regulation issued for consultation (Interconnection, SMP, Consumer Affairs, and Quality of Service and Key Performance Indicators)
Issue Type approval regulation for consultation
Finalize request for application
Finalize information memorandum
Launch of the mobile licensing process
Opening of the online data room along the auction website
Finalize the mobile draft license
Finalize all related document (due diligence reports)
Finalize draft transaction document (SPA)
Key Issues
New: None
Carried Over from Previous IMC: None
Budget Performance*
Initial Budget $ 13,500,000
Revised Budget N/A
Actual Spent $ 2,000,000
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
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On Track Could be Delayed Delayed Not startedNSCompleted
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
1. Privatize mobile telecom 13/12/05 14/01/08 111 wks
1.a Draft and issue regulations (e.g., Interconnection, Competition,
Consumer Guidelines, Universal Services, National Roaming) 02/04/07 28/12/07 40 wks
1.a.i Draft mobile telecom regulations 02/04/07 30/11/07 35.8 wks TRA Regulations drafted
1.a.ii Publish draft regulations on TRA website for review 08/06/07 03/12/07 26.2 wks TRA
Draft regulations
reviewed
1.a.iii Update draft regulations based on review 19/06/07 14/12/07 26.8 wks TRA Draft regulations updated
1.a.iv Issue telecom regulations 03/07/07 28/12/07 26.2 wks TRA Regulations issued
1.b Perform valuation of licenses 13/12/05 31/08/07 91.4 wks
1.b.iv Negotiate and sign contract with investment bank 14/07/06 06/07/07 52.6 wks HCP Contract signed
1.b.v Perform valuation of licenses 09/07/07 31/08/07 8 wks
HCP supported
by TRA
Valuation report
completed
1.c Perform financial due diligence 13/12/06 12/09/07 40.6 wks
1.c.iv Negotiate and sign contract with consultant 23/04/07 13/07/07 12.6 wks HCP Contract signed
1.c.v Conduct statutory audit of MIC accounts (2005-2006) 02/04/07 31/07/07 18 wks HCP
2005-2006 audit
conducted
1.c.vi Reconstruct cash flows (2004-2006) 01/08/07 29/08/07 4.2 wks
HCP/ MoT
(OSB)
2004-2006 cash flows
reconstructed
1.c.vii Conduct vendor due dilligence 01/08/07 12/09/07 6.2 wks
HCP/ MoT
(OSB) Vendor report submitted
1.d Perform technical due diligence 06/12/06 25/09/07 43.4 wks
1.d.iv Negotiate and sign contract with consultant 27/02/07 27/07/07 23 wks HCP Contract signed
1.d.v Present key findings from technical review and site visits
and status of KPI analysis 01/08/07 21/08/07 3 wks HCP Key findings presented
1.d.v Draft technical section for Information Memorandum 01/08/07 04/09/07 5 wks HCP
IM technical section
drafted
1.d.vi Undertake KPI analysis 01/08/07 04/09/07 5 wks HCP KPIs determined
1.d.vii Verify networks' asset register 01/08/07 25/09/07 8 wks HCP Asset register verified
1.d.viii Forecast CapEx over 12 month 01/08/07 25/09/07 8 wks HCP CapEx forecasted
1.d.ix Perform network asset replacement valuation 01/08/07 25/09/07 8 wks HCP Valuation performed
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
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Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
1.e Perform legal due diligence 01/12/06 07/09/07 41.6 wks
1.e.iv Review compiled contracts 26/03/07 07/09/07 25 wks HCP Contracts reviewed
1.f Define and finalize the legal basis for the transfer of ownership of mobile assets 14/05/07 07/08/07 13 wks
1.f.ii Submit to Minister of Telecom for review 23/06/07 03/07/07 2 wksMinister of Telecom Documents revised
1.f.iii Get legal advise from MoJ 04/07/07 31/07/07 4 wksMinister of Telecom Legal advise received
1.f.iv Submit to Council of Ministers for approval 01/08/07 07/08/07 1 wk TRA; HCP; CoM Documents approved
1.g Finalize auction rules and procedures 02/07/07 07/09/07 10 wks
1.g.i Draft auction guidelines 02/07/07 03/08/07 5 wks TRA; HCP Auction guidelines drafted
1.g.ii Draft rules and procedures related to assets lease/ sale 06/08/07 17/08/07 2 wks HCPAssets rules and procedures drafted
1.g.iii Draft rules and procedures related to license sale 06/08/07 17/08/07 2 wks TRALicense rules and procedures drafted
1.g.iv Approve auction rules and procedures 20/08/07 24/08/07 1 wk CoMAuction rules and procedures approved
1.g.v Merge document and finalize it 27/08/07 07/09/07 2 wks TRA; HCP Auction document finalized
1.h Publish Request for Applications (RFA), including pre-qualification/ qualification criteria, and review EoIs 31/08/07 02/11/07 9.6 wks
1.h.i Adopt pre-qualification / qualification criteria 31/08/07 13/09/07 2 wks TRA; HCP Criteria adopted
1.h.ii Publish RFA and receive technical bids 14/09/07 14/10/07 4.6 wks TRA; HCPTechnical proposals received
1.i Draft and distribute Information Memorandum (IM), and provide dataroom access and site visits 01/08/07 11/12/07 19.4 wks
1.i.i Draft IM 01/08/07 14/09/07 6.6 wks HCP; TRA IM drafted
1.i.ii Adopt IM 17/09/07 28/09/07 2 wks HCP; TRA IM adopted
1.i.iv Compile data room's documents 26/09/07 19/10/07 4 wks HCP; MoT Documents compiled
1.j Review transaction documents based on bidders’ comments, and distribute revised documents 10/09/07 03/12/07 12.6 wks
1.j.i Draft transaction documents 10/09/07 28/09/07 3 wks HCP; TRATransaction documents drafted
1.j.ii Provide comments on transaction documents 30/09/07 11/10/07 2 wks HCP; TRATransaction documents revised
On Track Could be Delayed Delayed Not startedNSCompleted
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Sector / Natural Owner Issues Register
Issue ID
Issue Level
Issue Description Raised by DateAssigned
toActions Needed Deadline Status
TEL-001 H
Need to speed-up the process in transferring documentation, information, and employees (e.g., Radio Frequency, Licensing Authorizations, Studies) from MoT to TRA
TRA Chairman
05/07/2007
MoT/ TRA
MoT/ TRA
Minister of Telecom
MoT/ TRA
MoT/ TRA
MoT to transfer frequency data to TRA
MoT and TRA to develop a detailed schedule for the transfer of documentation, information, and employees
Minister of Telecom to approve schedule
MoT and OGERO to transfer selected staff to TRA, after issuing an internal memorandum
Transfer to be completed by October 1st,
2007 (Expected completion date April 30, 2008)
17/07/2007
27/07/2007
03/08/2007
20/08/2007
01/10/2007
Completed
Completed
Completed
Completed
Delayed
TEL-002 HNeed to appoint Liban Telecom Board of Directors or alternative governance structure
Minister of Telecom / HCP SG / BAH
15/05/2007Minister of Telecom
MoT to assign PMO Members, who will report to the Steering Committee
Appoint Liban Telecom Board
18/05/2007
30/06/2007
Delayed
Delayed
TEL-003 HNeed to finalize the decision on whether to sell or lease the mobile assets when issuing new licenses
TRA Chairman / HCP SG / BAH
15/05/2007
Dept. of Legal & Legislation Matters(MoJ)
HCP SG
Minister of Telecom to transfer the file to the Department of Legal and Legislation Matters (DoLLM) at the Ministry of Justice
DoLLM to decide if the assets can be sold under the current Privatization Law
HCP/TRA to proceed and accelerate development of tender documents in coordination with Citigroup/JP Morgan
16/07/2007
31/07/2007
On-going
Completed
Completed(Assets can
be sold)
Completed
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Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
17
Program DashboardProgram Dashboard
Program Overall Status:
Program Title: POW-001: Strengthen Sector Policy-Making Capacity
Natural Owner: Minister of Energy and Water
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
National Control Center implementation
In Progress In ProgressCompleted (Oct. 2008)
Master Plan for generation and transmission development
On Track On TrackCompleted (Jul. 2008)
Achievements Since Last Report
Recommendations for the Generation segment will be submitted on 17 February 2008
Recommendations for the Transmission segment will be submitted on 17 April 2008
Integrated report will be submitted on 17 July 2008 Public Expenditure Review Completed
Key Issues
New: New variation order for NCC (New financing required)
Carried Over from Previous IMC: None
Budget Performance*
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
18On Track Could be Delayed Delayed Not startedNSCompleted
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
1. Strengthen sector policy-making capacity 03/07/06 30/06/09 159.2 w ks1.b Appoint qualif ied advisors at the Ministry of Energy and Water to support on strategic planning and evaluation of electricity policy reforms 01/01/07 30/08/07 36 w ks
1.b.vi Undertake negotiations w ith selected applicants 12/06/07 19/07/07 6 w ks CDR and MoEW Negotiations undertaken
1.b.vii Aw ard contract 20/07/07 23/08/07 5 w ks CDR Contract aw arded
1.b.viii Undertake formal signature 24/08/07 30/08/07 1 w k CDR Contract signed
1.c Complete Sector Expenditure Review w ith World Bank support 01/03/07 28/12/07 45 w ks PER report f inalized1.d Establish a National Control Center to properly dispatch EDL’s generation and transmission system 03/07/06 13/10/08 121.8 w ks
1.d.vii Define the HW/SW configuration and prepare Purchase Request and Procurement 11/12/06 23/07/07 33.6 w ks EDL
HS/SW configuration defined
1.d.viii Collect data and produce FAT database & displays 15/12/06 27/09/07 42.4 w ks EDLFAT database and displays produced
1.d.ix Conduct end-to-end tests 13/11/07 23/4/2008 23.8 w ks EDLEnd-to-end tests conducted
1.d.x Install and integrate the system, and get FAT submittal and approval 05/03/07 24/10/07 35 w ks EDL
FAT installed and approved
1.d.xi Ship HW/SW 26/10/2007 16/01/2008 12 w ks EDL HW/SW shipped
1.d.xii Backup and f inetune the w hole system 17/01/2008 05/10/08 38.4 wks EDL System fine-tuned1.e Hire consultants to develop a Master Plan for the Pow er Sector 03/07/07 26/06/08 52.8 w ks
1.e.i Hire EDF to undertake Master Plan 03/07/07 03/07/07 0 w ks EDF hired
1.e.ii Develop Pow er Sector Master Plan 03/09/07 26/06/08 44 w ksPow er Sector Master Plan developed
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
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Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
1.f Assess the feasibility of increasing hydro-electrical production
08/01/08 30/6/2008 25.8 w ks MoEW/CDR Issue report
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
On Track Could be Delayed Delayed Not startedNSCompleted
NS
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Program DashboardProgram Dashboard
Program Overall Status:
Program Title: POW-002: Improve EDL Operational Efficiency
Natural Owner: Minister of Energy and Water
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Non-Technical losses N/A N/A N/A N/A
Bill collection rate N/A N/A N/A N/A
Average number of electricity hours per day (Country-wide)
N/A N/A N/A N/A
Percent distortion in electricity distribution between regions
N/A N/A N/A N/A
Achievements Since Last Report
Viability report for Zouk Power Plant submitted
Tender was issued for Zouk and Jieh to perform feasibility study
Audit of 2002 accounts issued in draft form
Key Issues
New: EDL to provide KPI’s Finalize Audit for 2002 account Signature of Natural Gas agreement with Egypt Proceed with Audit of financial statements from 2003 to 2006
Carried Over from Previous IMC:
Need to formalize KEPCO contract
EDL to follow up with consultants on the preparation of a technical report on the viability of Jiyyeh power plant
Advisors hired for MoEW, EDL and HCP have submitted their first deliverables – Decon contacted Azorom – Advisors should coordinate with IFC
Budget Performance*
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
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Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
2. Improve EDL operational eff iciency 01/02/06 31/12/09 207.2 w ks2.a Appoint consultancy team at EDL to perform operational, f inancial, accounting, legal and contract management activities, including coordinating and assisting the HCP and its advisory team in the corporatization and privatization of EDL 01/01/07 30/08/07 36 w ks
2.a.vi Undertake negotiations w ith selected applicants 12/06/07 19/07/07 6 w ks CDR and MoEW Negotiations undertaken
2.a.vii Aw ard contract 20/07/07 23/08/07 5 w ks CDR Contract aw arded
2.a.viii Undertake formal signature 24/08/07 30/08/07 1 w k CDR Contract signed
2.b Formalize KEPCO contract 01/02/06 07/09/07 85 w ks
2.b.ii Settle conflict over the contract w ith KEPCO 01/03/06 31/08/07 80 w ksMoEW/EDL, MoF and BDL Conflict settled
2.b.iii Sign contract w ith KEPCO 03/09/07 07/09/07 1 w k MoEW/EDL Contract signed2.c Aw ard contracts for the supervision of the KEPCO O&M activities for Beddaw i and Zahrani plants 03/09/07 08/04/08 32 w ks
2.c.i Develop TOR for the supervision of the KEPCO O&M activities 03/09/07 12/02/08 24 w ks MoEW/EDL
TOR for the supervision of KEPCO
2.d Decide on the viability of the Zouk and Jiyyeh plants, and rehabilitate viable existing pow er plants 01/06/06 18/12/07 82.6 w ks
2.d.ii Develop short-list of interested companies 01/01/07 18/12/07 52 w ks MoEW/EDLShort-list of interested companies
2.d.iii Open discussions w ith KEPCO on undertaking the study for free 02/07/07 01/08/07 4.6 w ks
MoEW/EDL and HCP
2.d.iv Undertake survey on the viability of Zouk and Jiyyeh pow er plants 03/09/07 07/09/07 1 w k MoEW/EDL
Survey on the viability of Zouk conducted
2.d.v Draft and submit report on viability of Zouk and Jiyyeh pow er plants 10/09/07 21/09/07 2 w ks MoEW/EDL
Report on the viability of Zouk submitted
2.e Complete the expansion and rehabilitation of the 220KV transmission netw ork 09/01/07 30/06/08 79.4 w ks2.f Complete the auditing of EDL financial statements from 2002 to 2006 01/02/07 02/03/09 111.2 w ks
2.f.vi Prepare preliminary Audit Reports 2003 02/07/07 28/09/07 65 days MoEW/EDL2003 audit report prepared
2.j Improve procurement process of fuel and gas oil, to ensure better quality and reduce high premiums 01/08/07 19/12/08 74 w ks
2.j.i Organize stakholders' meeting to identify potential issues 08/01/07 22/10/07 12 w ks MoEW Stakholders' meeting2.m Complete the infrastructure needed for the Ksara station (including 400 KV netw ork) to allow Lebanon’s integration into the regional electrical netw ork know n as the “Seventh Joint” 01/01/07 31/03/08 66.4 w ks
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
On Track Could be Delayed Delayed Not startedNSCompleted
22
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
2.l Commit the supply of Natural Gas to the Beddawi plant 23/4/2007 23/7/2009 119.6 w ks
2.l.i Sign Natural Gas supply agreement with Egypt 23/4/2007 23/4/2007 0.2 w ks MoEWNatural gas contract signed with Egypt
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
On Track Could be Delayed Delayed Not startedNSCompleted
23
Program DashboardProgram Dashboard
Program Overall Status:
Program Title: POW-003: Corporatize and Privatize EDL Natural Owner: Secretary General of the HCP
Period: Jan 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Asset registry 0% 10%Completed (Dec. 2008)
Legal due diligence Not Started Not StartedCompleted (Apr. 2008)
New EDL launch plans Not Started 50%Completed (Mar. 2008)
EDL Corporatization 5% 20%Completed
(March. 2009)Establishment of additional production capacity through IPPs
10% 15%Completed (Dec. 2009)
Collection Management and Metering 15% 55%Completed (Jun. 2008)
Achievements Since Last Report
EDL restructuring kick off was end of September 2007
Sector strategy presented to the PM and IMC committee in January 2008 and approved
Key Issues
New: Need for law 462 amendment regarding certain issues
Budget Performance*
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
24On Track Could be Delayed Delayed Not startedNSCompleted
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
3. Corporatize and Privatize EDL 02/09/02 31/12/10 438 w ks3.a Retain consultants to assist the HCP w ith the corporatization and restructuring of EDL 01/01/07 30/08/07 36 w ks
3.a.vi Undertake negotiations w ith selected applicants 12/06/07 19/07/07 6 w ks CDR and MoEW Negotiations undertaken
3.a.vii Aw ard contract 20/07/07 23/08/07 5 w ks CDR Contract aw arded
3.a.viii Undertake formal signature 24/08/07 30/08/07 1 w k CDR Contract signed3.b Establish the Electricity Regulatory Authority and define its f inancial and organizational structures 02/09/02 24/03/08 292.4 w ks
3.b.iii Undertake interview s w ith candidates 15/05/07 27/09/07 20 w ks MoEWInterview s w ith candidates
3.b.iv Appoint ERA Board 28/09/07 03/10/07 1 w kCoM, Minister of Energy and ERA Board appointed
3.b.v Issue decrees to define ERA organizational and f inancial structure, and compensation/ benefits 01/08/07 19/11/07 16 w ks CoM Decrees Issued
3.c Launch and aw ard tender for the installation and operation of remote meters 02/10/06 11/04/08 82 w ks
3.c.v Develop and update CMM w ebsite for FAQ and source of all documentation 03/04/07 17/10/07 29.2 w ks MoEW, HCP CMM w ebsite developed3.c.vii Develop, issue and receive prequalif ication documents to interested bidders 03/04/07 07/07/07 14.4 w ks MoEW, HCP
Pre-qualif ication documents received
3.c.viii Present interested bidders list to PM and Minister of EW 09/07/07 30/07/07 3.2 w ks MoEW, HCPInterested bidders list presented
3.c.ix Develop and issue the tender document to prequalif ied bidders, and launch open data room 09/04/07 16/08/07 19.2 w ks MoEW, HCP Tender documents issued
3.c.x Manage bidding process 17/08/07 29/09/07 6.2 w ks MoEW, HCPBidding documents submitted
3.d Launch and aw ard tender for service contracts for distribution 02/10/06 24/01/08 70.6 w ks3.d.v Develop and update CMM w ebsite for FAQ and source of all documentation 03/04/07 17/10/07 29.2 w ks MoEW, HCP CMM w ebsite developed3.d.vii Develop, issue and receive prequalif ication documents to interested bidders 03/04/07 07/07/07 14.4 w ks MoEW, HCP
Pre-qualif ication documents received
3.d.viii Present interested bidders list to PM and Minister of EW 09/07/07 30/07/07 3.2 w ks MoEW, HCPInterested bidders list presented
3.d.ix Develop and issue the tender document to prequalif ied bidders, and launch open data room 09/04/07 16/08/07 19.2 w ks MoEW, HCP Tender documents issued
3.d.x Manage bidding process 17/08/07 29/09/07 6.2 w ks MoEW, HCPBidding documents submitted
3.e Develop additional generation capacity through IPP: Install additional capacity in Deir Ammar w ith private sector participation 13/04/07 12/12/08 89 w ks
3.e.ii Retain specialized consultants to provide technical and accounting advisory services 04/07/07 08/10/07 14 w ks HCP Contracts signed
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
25
On Track Could be Delayed Delayed Not startedNSCompleted
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
3.f Undertake asset registration and valuation of EDL’s assets 1/10/07 2/3/09 75.4 w ks
3.f.i Develop and issue RFP 1/10/07 15/11/07 6.8 w ks HCP RFP developed and issued
3.f.ii Manage Bidding Process 16/11/07 16/12/07 4.4 w ks HCP Proposals received
3.f.iii Evaluate proposals and Select w inner 17/12/07 17/1/08 4.8 w ks HCP Advisor selected
3.f.iv Negotiate and sign contract 18/1/08 1/3/08 6.4 w ks HCP Contract signed
3.f.v Undertake asset registration and asset valuation 3/3/08 02/03/09 53 w ks HCP Report submitted
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
26
Sector / Natural Owner Issues Register
Issue ID
Issue Level
Issue Description Raised by DateAssigned
toActions Needed Deadline Status
POW-001 H Need to formalize KEPCO contract EDL 05/07/2007 EDL
Stakeholders to agree on a solution to provide credit line to KEPCO
EDL to revise submitted offer of KEPCO
24/07/2007 Delayed
POW-002 H
Lack of consensus on approach regarding CRA issue (1.2 million meters vs. 16,800 pilot meters)
BAH 05/07/2007
Minister of Energy and Water / EDL / HCP
Agree on clear assignment of roles and responsibilities pertaining to the CRA contract, including the number of meters to be installed in both the short and long terms
24/07/2007 Completed16,800 by MoEW and
1.2M by HCP (incl.
funding) with support from
MoEW
POW-003 MA technical report on the viability of Zouk and Jiyyeh plants should be developed
IMC 05/07/2007 EDL
EDL to follow up with consultants on the preparation of a technical report on the viability of Zouk
EDL to follow up with consultants on the preparation of a technical report on the viability of Jiyyeh
31/07/2007
31/07/2007
Completed
Delayed
POW-004 MNo stakeholder assigned to undertake EDL asset registry
EDL 05/07/2007 HCP
HCP is working on retrieving consultant to undertake EDL asset registration
01/10/2007 Delayed
POW-005 M
Need to shift focus of auditors to EDL’s 2005-2006 accounts (or have them work in parallel on 2002-2004 and 2005-2006 accounts)
HCP 05/07/2007
EDL/MoF
EDL
Need to quickly secure funding for Grant Thornton
Audit of 2002 in final form Audit for 2003 onwards not started
31/07/2007
20/08/2007
Completed
Delayed
27
Sector / Natural Owner Issues Register
Issue ID
Issue Level
Issue Description Raised by DateAssigned
toActions Needed Deadline Status
POW-006 HMoEW could consider the LNG option as an alternative to Natural Gas
Minister of Energy and Water and CDR President
05/07/2007HCP and CDR
HCP and CDR to request from their consultants to include the assessment of the supply of LNG to the Beddawi plant within their scope of work
20/08/2007 Completed
POW-007 H
Advisors hired for MoEW, EDL and HCP might have different orientations, which could create conflicts or inconsistencies among their recommendations
Minister of Finance
05/07/2007
Minister of Energy and Water / EDL / HCP
Current Infrastructure & Privatization IMC Sub-Committee (PM, MoEW, EDL, HCP, MoF) to steer the work of all advisors: The scope of work of EDL advisors should be channeled toward preparing for the set form corporatization, once sector strategy is agreed
Reinforce the Sub-Committee with some Technical Assistance
31/08/2007 Completed
28
Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
29
Airport privatization roadmap and ports privatization approach were developed by the GR PCO consultant, and need to be discussed with the Minister of Transport and HCP Secretary General
Transport Sector Progress
Following the request of the Prime Minister and the Minister of Transport during the IMC
meeting on 5/7/2007, the GR PCO consultant developed the following:
– Air Transport: Detailed roadmap for the privatization of the Beirut Rafic Hariri International Airport (BRHIA)
– Maritime Transport: Approach to privatizing the different ports, including quick-wins
These proposals need to be discussed and finalized with the Prime Minister, the
Minister of Transport and HCP Secretary General
31
Planned Institutional Structure of Civil Aviation in Lebanon
Government Responsible
Agency
Ministry of Public Works and Transport
(MPWT)
Ministry of Public Works and Transport
(MPWT)
Planning and Regulation
Civil Aviation Authority (CAA)Civil Aviation
Authority (CAA)
Operations
Beirut Rafic Hariri International
Airport Corporation
(BRHIAC)
Beirut Rafic Hariri International
Airport Corporation
(BRHIAC)
The aviation sector liberalization Law 481 calls for the set up of an Aviation Authority and an Airport Company, and clearly defines the roles and responsibilities of each
Propose CAA Board appointment or termination for the Council of Ministers
Set compensation and rules for Board Directors
Provide guidelines and approve overall aviation policy
Propose CAA Board appointment or termination for the Council of Ministers
Set compensation and rules for Board Directors
Provide guidelines and approve overall aviation policy
Propose aviation policy and key initiatives
Develop and enforce safety and economic regulations for airports, airlines and air traffic control
Propose development project for existing and new airports
Negotiate international agreements and ensure close cooperation with ICAO and other international and regional organizations
Propose aviation policy and key initiatives
Develop and enforce safety and economic regulations for airports, airlines and air traffic control
Propose development project for existing and new airports
Negotiate international agreements and ensure close cooperation with ICAO and other international and regional organizations
Plan and manage airport operations in coordination with government agencies
Plan and decide on subcontracting service providers for airport activities, and ensure supervision and coordination of all providers
Provide air navigation, communication, and metrological observation services
Plan and manage airport operations in coordination with government agencies
Plan and decide on subcontracting service providers for airport activities, and ensure supervision and coordination of all providers
Provide air navigation, communication, and metrological observation services
Key RolesEntity
Source: Law 481, Other Regulations
32
The CAA is the safety and economic regulator, while BRHIAC is the company that is fully responsible for running the Beirut Airport
Allocation of Selected Key Aviation Responsibilities
Source: Law 481, Other regulations
Minister of TransportMinister of Transport CAACAA BRHIACBRHIAC
Aviation PolicyAviation Policy Set guidelines, approve policies,
and submit for CoM (where needed) Set guidelines, approve policies,
and submit for CoM (where needed) Develop draft policy and laws in
consultation with stakeholders Develop draft policy and laws in
consultation with stakeholders Contribute / Propose own plans Contribute / Propose own plans
Safety StandardsSafety Standards Develop and Enforce safety
standards and rules for airport, airline, and ATC
Develop and Enforce safety standards and rules for airport, airline, and ATC
Fully comply with all safety standards
Fully comply with all safety standards
Accident / Incident Investigation
Accident / Incident Investigation
Accident Investigation office under Minister leads investigations
Accident Investigation office under Minister leads investigations
Contribute to accident and incident investigation
Contribute to accident and incident investigation
Contribute / participate Contribute / participate
Licensing Personnel, Equipment and FlightsLicensing Personnel,
Equipment and Flights
License personnel, aircrafts and airline flights in line with safety and bilaterals
License personnel, aircrafts and airline flights in line with safety and bilaterals
Ensure personnel, aircraft and flights admitted are licensed
Ensure personnel, aircraft and flights admitted are licensed
Bilateral AgreementsBilateral Agreements Review and process for approval as
per Lebanese law
Review and process for approval as per Lebanese law
Conduct negotiations and implement provisions
Conduct negotiations and implement provisions
Provide input Provide input
Airport / Airline TariffAirport / Airline Tariff Approve aviation tariff and/or refer
to CoM as per aviation laws
Approve aviation tariff and/or refer to CoM as per aviation laws
Set fees for services by CAA Review and approve aviation tariff Set fees for services by CAA Review and approve aviation tariff
Collect airport fees and fares Collect airport fees and fares
Airport developments / investments
Airport developments / investments
Review plans for compliance with safety and economic regulations
Review plans for compliance with safety and economic regulations
Plan and submit studies for airport development and investment initiatives
Plan and submit studies for airport development and investment initiatives
Outsourcing Contracts and Tenders
Outsourcing Contracts and Tenders
Review compliance with regulations and safety guidelines
Review compliance with regulations and safety guidelines
Develop tender and approve winners in compliance with laws
Develop tender and approve winners in compliance with laws
Operations Management, Outsourcing SupervisionOperations Management, Outsourcing Supervision
Review compliance with regulations and license personnel and equipment
Review compliance with regulations and license personnel and equipment
Plan and manage operations and supervise all service providers
Plan and manage operations and supervise all service providers
Airport Planning and Budgeting
Airport Planning and Budgeting
Review and submit budget for government approval
Review and submit budget for government approval
Develop and propose airport plans and budgets
Develop and propose airport plans and budgets
33
The GoL postponed the creation of the CAA and BRHIAC despite the enactment of the aviation Law and the CAA decree since 2002 and 2003
Civil Aviation Institutional Structure – Status of Implementation
Current StatusCurrent Status
In August 2003, the CoM issued decrees defining and creating the organization of the CAA, as well as incorporating the BIAC
Since then, studies have been prepared for detailed organization and manpower of the new institutional set up
However, the GoL has delayed implementation of the decrees, without providing a revised timeline
To-date, the CAA Board is not appointed and no progress have been made in setting up BRHIAC
In August 2003, the CoM issued decrees defining and creating the organization of the CAA, as well as incorporating the BIAC
Since then, studies have been prepared for detailed organization and manpower of the new institutional set up
However, the GoL has delayed implementation of the decrees, without providing a revised timeline
To-date, the CAA Board is not appointed and no progress have been made in setting up BRHIAC
Current Organization of the Directorate General of Civil Aviation
Source: Directorate General of Civil Aviation
Director GeneralDirector General
Research and Studies
Research and Studies AirportsAirportsAir TransportAir TransportAviation
SafetyAviation SafetyMeteorologyMeteorology
Airport Studies Directorate
Airport Studies Directorate
Beirut Airport Presidency
Beirut Airport Presidency
Technical Affairs
Technical Affairs
Air Navigation Directorate
Air Navigation Directorate
Equipment Maintenance Directorate
Equipment Maintenance Directorate
Air Communication
Directorate
Air Communication
Directorate
Technical Installation Directorate
Technical Installation Directorate
34
The new CAA organization is planned to have two core functions focused on safety and economic regulations
Proposed Civil Aviation Authority Organization Structure(1)
(1) Proposed as part of a study on the organization, job descriptions and manpower plans of the new CAA and BRHIAC
Source: Directorate General of Civil Aviation
CAA Board of DirectorsCAA Board of Directors
Environment & Meteorology Directorate
Environment & Meteorology Directorate
Lebanese Civil Aviation Training
Center
Lebanese Civil Aviation Training
Center
Air Transport Directorate
Air Transport Directorate
Civil Aviation Safety Directorate
Civil Aviation Safety Directorate
Administrative Directorate
Administrative Directorate
Secretariat of the Authority
Secretariat of the Authority
Flight OperationsFlight Operations
AirworthinessAirworthiness
LicensesLicenses
AerodromeAerodrome
Air TrafficAir Traffic
Int’l Agreements & Authorizations
Int’l Agreements & Authorizations
Economic Studies & Financial RevenuesEconomic Studies & Financial Revenues
MeteorologyMeteorology
Environment & ClimateEnvironment & Climate
Promotion & DevelopmentPromotion & Development
Human Resources & Technology TransferHuman Resources & Technology Transfer
Legal AffairsLegal Affairs
Financial AffairsFinancial Affairs
Personal Affairs & Supplies
Personal Affairs & Supplies
Information TechnologyInformation Technology
Public RelationsPublic Relations
Performance & Quality Control
Performance & Quality Control
Safety and Economic Regulatory Functions
35
Most of the Beirut Airport activities are currently managed by MEA subsidiaries or private companies
Beirut Rafic Hariri International Airport – Privatized Activities
Note: (*) MEA is organized as a private company under the commerce code, but is 96% held by the GoL and is under the financial responsibility of BDL
Infrastructure provision & site management
Infrastructure provision & site management
Asset / Facility ManagementAsset / Facility Management
Free ZoneFree Zone
Asset / Facility Operation and Maintenance
Asset / Facility Operation and Maintenance
Airport parkingAirport parking
RetailingRetailing
CateringCatering
FuelingFueling
CargoCargo
Ground HandlingGround Handling
Aircraft MaintenanceAircraft Maintenance
Aircraft CateringAircraft Catering
GovernmentGovernment MEA* Subsidiary
MEA* Subsidiary
Privatized through
Concession
Privatized through
ConcessionCommentsComments
Managed by Directorate General of Civil Aviation (DGCA) Managed by Directorate General of Civil Aviation (DGCA)
Managed by Directorate General of Civil Aviation (DGCA) Managed by Directorate General of Civil Aviation (DGCA)
Managed by Directorate General of Civil Aviation (DGCA) Managed by Directorate General of Civil Aviation (DGCA)
Operated and maintained by Middle East Airports Services (MEAS)
Operated and maintained by Middle East Airports Services (MEAS)
15-year BOT concession won by Al-Khorafi of Kuwait 15-year BOT concession won by Al-Khorafi of Kuwait
15-year concession won by Phoenicia-Aer Rianta Company 15-year concession won by Phoenicia-Aer Rianta Company
15-year concession awarded to Abella 15-year concession awarded to Abella
15-year concession won by a consortium of 5 local companies 15-year concession won by a consortium of 5 local companies
Cargo handled by Middle East Airlines Ground Handling (MEAG)
Cargo handled by Middle East Airlines Ground Handling (MEAG)
Ground handling by MEAG, LAT, ASAS, EAS, Flying Carpet, and Beirut Wing
Ground handling by MEAG, LAT, ASAS, EAS, Flying Carpet, and Beirut Wing
Aircraft maintenance by Mideast Aircraft Services Company (MASCO), and TMA
Aircraft maintenance by Mideast Aircraft Services Company (MASCO), and TMA
Aircraft catering by Lebanese Beirut Airport Catering Company (LBACC)
Aircraft catering by Lebanese Beirut Airport Catering Company (LBACC)
36
However, four key requirements need to be addressed upfront to enable the privatization
Appoint the Board of Directors
Fully develop the organization and build all requisite safety and economic regulations capabilities
Appoint the Board of Directors
Fully develop the organization and build all requisite safety and economic regulations capabilities
CAA Set UpCAA Set Up
Potential investors need to be reassured about the existence of an independent regulator, as such, they need to know who the regulator will be
Potential investors need to be reassured about the existence of an independent regulator, as such, they need to know who the regulator will be
Confirm the form of the privatization option and define the process timeline – consider extending Lease term to more than 50 years
Determine a transaction timing with favorable growth prospects and political situation
Confirm the form of the privatization option and define the process timeline – consider extending Lease term to more than 50 years
Determine a transaction timing with favorable growth prospects and political situation
TimingTiming The ability to attract investors and the value of
privatization proceeds is heavily dependent on traffic growth prospects and political stability
The ability to attract investors and the value of privatization proceeds is heavily dependent on traffic growth prospects and political stability
Ensure each government agency understands and accepts its mandate post-privatization
Ensure coordination and conflict resolution mechanisms between government agencies
Ensure each government agency understands and accepts its mandate post-privatization
Ensure coordination and conflict resolution mechanisms between government agencies
Government Agencies
Coordination
Government Agencies
Coordination
Unsupportive and uncoordinated work of government security and control agencies directly impacts negatively on airport operations and commercial services
Unsupportive and uncoordinated work of government security and control agencies directly impacts negatively on airport operations and commercial services
Description Rationale
Beirut Rafic Hariri International Airport Privatization – Key Requirements
Appoint the Board of Directors
Fully develop the organization
Transition all airport operating responsibilities and staff from DGCA to BRHIAC as per Law
Appoint the Board of Directors
Fully develop the organization
Transition all airport operating responsibilities and staff from DGCA to BRHIAC as per Law
BRHIAC Set UpBRHIAC Set Up Potential investors need to be reassured about
the split between the regulator and the operator of the airport
Potential investors need to be reassured about the split between the regulator and the operator of the airport
37
List of Programs and Initiatives
Sector Programs and Initiatives Stakeholders Preliminary Timeline Implem. Comments
1.Set up Institutional Structure
1a.Set-up the CAA and appoint the Board of Directors MPWT, CoM Q3 2007
1b.Develop CAA organization and capabilities (Safety and economic regulations)
CAA Board Q4 2007
1c.Set-up BRHIAC and appoint Board of Directors MPWT, CoM Q3 2007
1c.Develop BRHIAC organization and transition responsibilities fro DGCA
BRHIAC Board Q4 2007
1d.Plan and implement the transition of responsibilities, assets and staff from DGCA to BRHIAC
BRHIAC Board Q4 2007
1e.Develop necessary laws and regulations for Free Zone / “Airport City”
CAA, MPWT, CoM Q4 2007 – Q2 2008
2.Develop Privatization Scheme and Process
2a.Confirm goals of privatization and establish priorities of key stakeholders
HCP Q3 2007
2b.Evaluate privatization options against priorities, airport investment market and financial impact
HCP, BRHIAC, CAA Q4 2007
2c.Select and approve preferred option CoM, HCP, MPWT, BRHIAC Q1 2008
2d.Draft Terms of Reference HCP, BRHIAC Q1 2008
2e.Detail full transaction process and timeline HCP Q1 2008
2f.Develop and secure official approval on coordination mechanism of government agencies at the airport
CAA, BRHIAC Q1 2008 – Q2 2008
Natural Owner S: Short term M: Medium Term L: Long TermIMPLEMENTATION:XXX
As such, the privatization roadmap starts with the establishment of the institutional structure before developing the privatization scheme
PRELIMINARY
PRELIMINARY
38
List of Programs and Initiatives
Sector Programs and Initiatives Stakeholders Preliminary Timeline Implem. Comments
3. Implement the Privatization Process
3a. Identify potential local and international operators HCP, BRHIAC Q2 2008
3b.Short-list target operators against fit with privatization scheme and political sensitivities
MPWT, HCP, BRHIAC Q2 2008
3c.Finalize Terms of Reference and Tender documentation
HCP Q3 2008
3c.Decide on timing of the launch of process based on growth and political prospects
MPWT, HCP, BRHIAC Anytime after Q2 2008
3d.Conduct roadshow to short-listed operators and formalize Expressions of Interest through consultative issue of tender documents
HCP, BRHIAC Q4 2008
3e.Draft and issue final tender documents and schedule Q&A sessions
HCP, BRHIAC Q4 2008
3f.Receive and evaluate bids against criteria HCP Q4 2008
3g.Select preferred bidder and ensure selection is certified through the right legal process
HCP, BRHIAC, MPWT, CoM Q1 2009
3h.Notify bidders of outcome HCP Q1 2009
4.Transition to Private Operator
4a.Sign contract and launch mobilization HCP, BRHIAC, CAA Q2 2009
4b.Plan and execute transition to new operators BRHIAC Q2 2009 – Q3 2009
Natural Owner S: Short term M: Medium Term L: Long TermIMPLEMENTATION:XXX
The privatization can then be launched at the right timing, targeting selected operators and followed by a carefully planned transition
PRELIMINARY
PRELIMINARY
40
Beirut and Tripoli Ports are currently operated and managed by the GoL, except for the Container Terminal activities of the Port of Beirut (PoB) which are outsourced through a concession agreement
Ports Components Privatization in Lebanon
Note: (*) Mediterranean Shipping Company (MSC)
Beirut Port
Beirut Port
Tripoli Port
Tripoli Port
GovernmentGovernmentPrivatized through
Concession
Privatized through
ConcessionCommentsComments
Infrastructure provision & site management
Infrastructure provision & site management
Managed by Gestion et Exploitation du Port de Beyrouth (GEPB)
Managed by Gestion et Exploitation du Port de Beyrouth (GEPB)
Asset / Facility Management
Asset / Facility Management
Managed by Gestion et Exploitation du Port de Beyrouth (GEPB)
Managed by Gestion et Exploitation du Port de Beyrouth (GEPB)
Asset / Facility Operations and Maintenance
Asset / Facility Operations and Maintenance
Operated and maintained by Gestion et Exploitation du Port de Beyrouth (GEPB)
Operated and maintained by Gestion et Exploitation du Port de Beyrouth (GEPB)
General Cargo OperationsGeneral Cargo Operations Managed and operated by Gestion et Exploitation du Port de
Beyrouth (GEPB)
Managed and operated by Gestion et Exploitation du Port de Beyrouth (GEPB)
Container Terminal Operation
Container Terminal Operation
POB subcontracted container terminal operation to Beirut Container Terminal Consortium (BCTC) in February 2005
POB signed a partnership contract with MSC* CMA-CGM also established a hub at POB
POB subcontracted container terminal operation to Beirut Container Terminal Consortium (BCTC) in February 2005
POB signed a partnership contract with MSC* CMA-CGM also established a hub at POB
Infrastructure provision & site management
Infrastructure provision & site management
Asset / Facility Management
Asset / Facility Management
Asset / Facility Operations and Maintenance
Asset / Facility Operations and Maintenance
All Cargo and Container Operations
All Cargo and Container Operations
41
Three key requirements need to be addressed upfront to enable the privatization of Beirut and Tripoli Ports
Establish a Maritime Transport Authority
Appoint Board of Directors of MTA
Fully develop the organization and build all requisite safety and economic regulations capabilities
Establish a Maritime Transport Authority
Appoint Board of Directors of MTA
Fully develop the organization and build all requisite safety and economic regulations capabilities
Maritime Transport Authority (MTA) Set
Up
Maritime Transport Authority (MTA) Set
Up
Potential investors need to be reassured about the existence of an independent regulator
Potential investors need to be reassured about the existence of an independent regulator
Develop a Maritime Transport Sector Vision for Lebanon
Develop a 5-year Maritime Transport Strategy
Clarify the appropriate organization and roles of port administrations, regulatory institutions, and the private sector
Develop a Maritime Transport Sector Vision for Lebanon
Develop a 5-year Maritime Transport Strategy
Clarify the appropriate organization and roles of port administrations, regulatory institutions, and the private sector
Maritime Sector Strategy
Maritime Sector Strategy
GoL needs to have a clear vision and strategy allowing it to have a clear maritime structure and privatization path
GoL needs to have a clear vision and strategy allowing it to have a clear maritime structure and privatization path
Description Rationale
Beirut and Tripoli Ports Privatization – Key Requirements
Develop a Privatization Law for the Maritime Sector
Specify the potential privatization options, and define the transition of responsibilities and staff phases
Develop a Privatization Law for the Maritime Sector
Specify the potential privatization options, and define the transition of responsibilities and staff phases
Maritime Sector Privatization LawMaritime Sector
Privatization Law
A law (similar to Civil Aviation Law 481) needs to be drafted for the Maritime Sector in order to enable port privatization
A law (similar to Civil Aviation Law 481) needs to be drafted for the Maritime Sector in order to enable port privatization
42
Maritime Sector Privatization Roadmap
Determine Socio-Economic Implications by Region
Determine Socio-Economic Implications by Region
Determine Implications and Critical Improvements for
Infrastructure Model
Determine Implications and Critical Improvements for
Infrastructure Model
Develop Port and Port-related Business Strategies
Develop Port and Port-related Business Strategies
Develop Maritime Sector Privatization Law
Develop Maritime Sector Privatization Law
Develop Maritime Sector Strategy
Develop Maritime Sector Strategy
Assess Market Demand and Economics
Assess Market Demand and Economics
Define Liberalization and Commercialization Options and
Timelines
Define Liberalization and Commercialization Options and
Timelines
Develop Regulatory Structure, Methodologies, and Phased
Regulations
Develop Regulatory Structure, Methodologies, and Phased
Regulations
Restructure and Corporatize Functional Areas (when applicable)
Restructure and Corporatize Functional Areas (when applicable)
Commercialize Administrative, Human Resources and Internal
Services
Commercialize Administrative, Human Resources and Internal
Services
Commercialize Service ProvisionCommercialize Service Provision
Develop & Strengthen Regulator Capability
Develop & Strengthen Regulator Capability
StrategyComponents
OperationalRestructuring
I.5
I.1
I.2
I.3
I.4
II.1
2008 20111/9/2007 2009 2010
PreliminaryTargets:
Sector LiberalizationSector Liberalization Ports PrivatizationPorts PrivatizationSector PolicySector Policy
Develop Port of Beirut by Increasing the Holding
Capacity of the Container Terminal*
Develop Port of Beirut by Increasing the Holding
Capacity of the Container Terminal*
Complete Development Work of the Port of Tripoli*
Complete Development Work of the Port of Tripoli*
Source: (*) Lebanon Maritime Transport Policy , May 2006
PRELIMINARY
PRELIMINARY
Develop Privatization Plan for Commercial Maritime Assets
Develop Privatization Plan for Commercial Maritime Assets
II.3
II.2 II.4
43
List of Programs and Initiatives
Sector Programs and Initiatives Stakeholders Preliminary Timeline Implem. Comments
1.Set up Institutional Structure
1a.Develop Maritime Sector Strategy (Policy) MPWT Q4 2007
1b.Develop Maritime Sector Privatization Law HCP, MPWT, CoM, Parliament
Q4 2007
1c.Establish the Maritime Transport Authority (MTA) and appoint its Board of Directors*
MPWT, CoM Q1 2008
1d.Develop MTA organization and capabilities* MRA Board Q2 2008
1e.Transfer regulatory responsibilities to the MRA* MPWT, MTA Q2 2008 – Q3 2008
1c.Setup Port Company, and appoint its Board of Directors*
MPWT, CoM Q4 2008
1c.Develop Port Company organization and plan transition of responsibilities from GEPB*
PBC Board Q1 2009
1d.Plan and implement the transition of responsibilities, assets and staff to Port Company*
PBC Board Q1 2009
2.Develop Privatization Scheme and Process
2a.Confirm goals of privatization and establish priorities of key stakeholders*
HCP Q3 2008
2b.Evaluate privatization options against priorities, airport investment market and financial impact*
HCP, MTA Q4 2008
2c.Select and approve preferred option* HCP, CoM, MPWT Q1 2009
2d.Draft TORs, and design full transaction process and timeline in details*
HCP Q1 2009
2e.Develop and secure official approval on coordination mechanism of government agencies at the ports*
MTA Q1 2009 – Q2 2009
Natural Owner S: Short term M: Medium Term L: Long TermIMPLEMENTATION:XXX
As such, the privatization roadmap starts with the development of a sector strategy and establishment of the institutional structure, before developing the privatization scheme
Note: (*) In light of Sector Strategy and Privatization Law outcome
PRELIMINARY
PRELIMINARY
44
Sector / Natural Owner Issues Register
Issue ID
Issue Level
Issue Description Raised by DateAssigned
toActions Needed Deadline Status
TRA-001 HStrategy relating to privatization of other public entities (e.g., airport, ports) still under development
Minister of Transport / Minister of Finance
15/05/2007
GR PCO
Minister of Transport/ HCP SG
Develop transport sector privatization roadmap, within scope of current legislation
Align transport sector stakeholders on privatization roadmap
31/07/2007
10/08/2007
Completed
Delayed
45
Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
46
Program DashboardProgram Dashboard
Program Overall Status:
Program Title: CDR-001: Restructure CDR’s capacity to undertake investments
Natural Owner: President of CDR
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Percentage of vacant key positions filled
0% 70%100%
(29/02/2008)
Achievements Since Last Report
Job Vacancies List Prepared Consultants on contract basis hired (from foreign grants) New Procurement Law endorsed by CoM
Key Issues
New: None
Carried Over from Previous IMC: None
Budget Performance*
Initial Budget $ 2,000,000
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
47
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
1. Restructure CDR’s capacity to undertake reconstruction & development investments 15/07/07 31/07/08 55.8 w ks
1.a Strengthen the capacity of CDR’s procurement, f inancial and project management, planning, and legal functions 15/07/07 31/12/2007 25.2 w ks
1.a.i Prepare f irst list of job vacancies and profiles 15/07/07 15/08/07 4.8 w ks CDR, OMSARJob vacancies list prepared
1.a.ii Announce the available job vacancies 03/09/07 01/10/07 4.6 w ks CDR, OMSAR Job vacancies published
1.a.iii Evaluate the applicants' CVs 02/10/07 02/11/07 4.8 w ks CDR, OMSAR CVs evaluated
1.a.iv Interview , select, and recruit applicants 03/11/07 31/12/07 8.4 w ks CDR, OMSAR Staff Recruited1.a.v Hire individual consultants on contract-basis (from foreign grants) 01/10/07 31/12/2007 CDR Consultants hired
1.b Streamline related internal procedures from bidding and terms of reference preparations to contracts management and 15/09/07 31/07/08 46.4 w ks
1.b.i Draft Law s on new procurement procedures 15/09/07 15/10/07 4.6 w ks CDRNew procurement law s drafted
1.b.ii Endorse law s by the Council of Ministers 01/11/07 31/12/2007 8.8 w ks CoMNew procurement law s endorsed bt CoM
1.b.iii Enact Law s by Parliament 01/01/08 31/07/2008 30.6 w ks ParliamentNew procurement law s enacted by Parliament
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
NS
NS
On Track Could be Delayed Delayed Not startedNSCompleted
48
Program DashboardProgram Dashboard
Program Overall Status:
Program Title: CDR-002: Develop Public Investment Plan for 2009-2012
Natural Owner: President of CDR
Period: January 2008 IMC: Infrastructure and Privatization
KPI Baseline Current ValueTarget
(Closest Date)Status
Achievements Since Last Report
Public Investment Plan submitted to Council of Ministers
Key Issues
New: None
Carried Over from Previous IMC: None
Budget Performance*
Initial Budget N/A
Revised Budget N/A
Actual Spent N/A
Remaining Budget Requirements Estimate
N/A
Status N/A
Note: (*) Defined in the legend
49
Program/ Initiative/ Workstep Start Date End Date DurationWorkstep
ResponsibleDeliverable/ Milestone Status
2. Develop Public Investment Plan for 2009-2012 05/07/07 05/09/07 9.4 w ks
2.a Develop a Public Investment Plan (PIP) for 2009-2012 05/07/07 05/09/07 9.4 w ks CDR PIP developed
Detailed Workplan Progress -- Sep 1, 2007 - Feb 29, 2008
On Track Could be Delayed Delayed Not startedNSCompleted
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Sector / Natural Owner Issues Register
Issue ID
Issue Level
Issue Description Raised by DateAssigned
toActions Needed Deadline Status
CDR-001 HCDR needs to develop a Public Investment Plan aligned with Paris III requirements
CDR 05/07/2007
CDR President, Minister of Finance, and Office of PCM
A Task Force including the CDR, MoF and the Office of PCM to be created in order to oversee the development of the Public Investment Plan
CDR and Ministry of Finance to coordinate the preparation of a preliminary Public Investment Plan to be ready for the next IMC
CDR and Ministry of Finance to coordinate the development of a draft Public Investment Plan for 2009-2012
23/07/2007
20/08/2007
09/09/2007
Completed
Completed
Completed
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Table of Contents
GR PCO Planning & Monitoring
Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
Next Steps
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Next StepsActions Required
Telecom Sector:
– Appoint Liban Telecom Board in order to proceed with the corporatization process
– Transfer relevant documentation and information from the Ministry of Telecom to TRA
– Transfer TRA budget
– Review and approval of MoF for financial procedures
Power Sector:
– Secure financing for the variation order of the NCC
– Finalize 2002 audits and proceed with audit of 2003 to 2006
– Formalize KEPCO contract
– Follow up with consultants on the preparation of a technical report on the viability of Jiyyeh
– Sign the Natural Gas agreement with Egypt
Transport Sector:
– Align key stakeholders on a roadmap for implementing priority programs
– Develop Commitment Document
CDR:
– Proceed with the recruitment of the key positions