0 beirut, lebanon august 24, 2007 infrastructure and privatization inter-ministerial committee...

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Beirut, LebanonAugust 24, 2007

Infrastructure and Privatization Inter-Ministerial Committee Progress Report # 3

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, 12 main issues (including 5 that were carried over from the first IMC) were raised regarding the Power, Telecom and Transport Sectors, and the CDR

– To-date, 5 issues were resolved, 2 are 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

4

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 ✓ ✓ ✓ ✓ ✓ ✓

Obtain Prime Minister and Minister approval on commitment document (no financial requirements)

HCP ✓ ✓ ✓ ✓ ✓ ✓

Obtain Prime Minister and HCP SG approval on telecom and power commitment documents (no financial requirements)

TRA ✓ ✓ ✓ ✓ ✓ ✓ Obtain Prime Minister and TRA

Chairman approval on commitment document (no financial requirements)

Ministry of Energy and Water / EDL

✓ ✓ ✓ ✓(Targets missing)

✓ ✓

Finalize KPIs Obtain Prime Minister and Minister

approval on commitment document (no financial requirements

Ministry of Transport

50% 50%Not

ApplicableNot

ApplicableNot

ApplicableNot

Applicable

Discuss Airport privatization roadmap and ports strategy development plan with Minister of Transport and HCP SG

CDR ✓ ✓ ✓ ✓ ✓ ✓

Obtain Prime Minister, Minister of Finance, and CDR President approval on commitment document

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Table of Contents



– Telecom Sector

– Power Sector


– CDR

Next Steps

6

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



– Telecom Sector

– Power 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

Period: July 2007 IMC: Infrastructure and Privatization

KPIBaseline

(July 2007)Current Value

Target (Closest Date)

Status

Transfer of Regulatory Functions from MoT to TRA

15% 15%100% (Oct. 2007)

Broadband licensing 0% 25%Process

launched (Dec. 2007)

Achievements Since Last Report

Hiring mechanism submitted to CoM for approval Financial Procedures approved by the Ministry of Telecom

Key Issues

New: TRA budget approved but not transferred yet Review and approval of Ministry of Finance for financial

procedures still pending

Carried Over from Previous IMC: Need to speed-up the process in transferring documentation

and information from MoT to TRA

Budget Performance*

Initial Budget $13,500,000

Revised Budget N/A

Actual Spent $600,000

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 wks

1.b Issue decrees to facilitate operations of the TRA 03/01/05 24/08/07 139.6 wks

1.b.iv Approve and transfer TRA budget 02/07/07 13/07/07 2 wks CoM, MoFBudget approved and transferred

1.b.vi Issue decrees for specific secondary legislation 02/07/07 24/08/07 8 wks CoM Decrees issued

1.c Transfer regulatory responsibility to the TRA 05/03/07 01/10/07 31.6 wks

1.c.iii Transfer all necessary documentation from MoT to TRA (e.g., Radio Frequency, Licensing, Authorizations) 19/06/07 24/09/07 14.6 wks

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 wks

TRA Board / MoT

Tools & equipment transferred

1.c.v Migrate and appoint TRA staff 19/06/07 24/09/07 14.6 wksTRA Board / MoT Staff migrated

1.c.vi Finalize transfer of existing functions 25/09/07 01/10/07 1.2 wksTRA 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 wks

TRA Board / MoT

International representation transferred

1.d Draft telecom policy outlining the liberalization path to be followed 05/06/07 30/11/07 26.8 wks TRA

1.d.i Draft telecom policy 05/06/07 31/10/07 22.4 wks TRA Policy drafted

Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007

NS

NS

NS

NS

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Program Title: Tel-002: Corporatize and Privatize Liban Telecom

Natural Owner: Minister of Telecom


KPIBaseline



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


Percentage of vendor migration from Ogero to LT



None

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


N/A

Status N/A


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2. Corporatize and Privatize Liban Telecom 04/01/05 15/10/09 251.4 wks

2.a Issue decrees to establish LT and appoint governance structure 04/01/05 01/07/07 131.4 wks

2.a.ii Appoint LT Board of Directors or equivalent governance structure 01/05/07 01/07/07 9.4 wks MoT / CoM

LT governance structure appointed

2.b Setup Program Management Office (PMO) 02/07/07 07/09/07 10 wks

2.b.i Appoint PMO director, task force leaders and teams 02/07/07 27/07/07 4 wks MoT/ LT Board PMO Staff appointed

2.b.ii Develop and approve work program 30/07/07 07/09/07 6 wks LT Board/ HCP Work program approved

2.c Create LT organizational structure 02/07/07 15/11/07 20 wks

2.c.i Develop LT Organizational Chart 02/07/07 24/08/07 8 wks LT BoardOrganizational Chart created

2.c.ii Appoint CEO and Level 1 Management Team 27/08/07 15/11/07 12 wks LT Board CEO and Level 1 appointed

2.d Set up provisional opening balance and prepare asset transfer 10/09/07 20/03/08 28 wks

2.d.i Perform full asset survey and valuation as per a pre-approved RFP 10/09/07 24/01/08 20 wks

LT Board/ PMO/ HCP Asset survey performed

2.d.ii Develop Accounting policies 10/09/07 01/11/07 8 wks LT Board / PMOAccounting policies developed

2.e Capitalize LT by transferring budget 04/01/05 27/07/07 135.4 wks

2.e.ii Open bank account, define signature attorney, contract execution power 02/07/07 27/07/07 4 wks LT Board / MoF Execution power contracted

2.j Create LT brand and establish web presence 10/09/07 15/10/09 110 wks

2.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 wks PMO RFP sent

2.j.vi Design LT website 10/09/07 18/10/07 6 wks PMO Website designed


NS

NS

NS

NS

NS

NS

NS

NS

NS

On Track Could be Delayed Delayed Not startedNSCompleted

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Program Title: TEL-003: Privatize mobile telecom Natural Owner: Secretary General of HCP and TRA Chairman


KPIBaseline



Status

Mobile Regulatory Guidelines Issued by the TRA

4 412

(Dec. 2007)

Mobile licensing process completion 0% 25%100%

(Dec. 2007)


4 mobile regulatory guidelines issued by the TRA (Interconnection Guidelines, SMP Guidelines, Consumer Affairs Guidelines, and Draft Quality of Service and Key Performance Indicators)

Contract signed with investment bank to undertake valuation of licenses

Contract signed with TRA consultants

Contracts signed with consultants to undertake financial and legal due diligence

DoLLM within MoJ finalized the decision allowing the sale of the mobile assets when issuing new licenses

Key Issues

New: None

Carried Over from Previous IMC: None

Budget Performance*

Initial Budget $ 2,950,000

Revised Budget N/A

Actual Spent N/A


N/A

Status N/A


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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 wksHCP 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 wksHCP/ MoT (OSB)

2004-2006 cash flows reconstructed

1.c.vii Conduct vendor due dilligence 01/08/07 12/09/07 6.2 wksHCP/ 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



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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

NS

NS

NS

NS

NS

NS


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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

17/07/2007

27/07/2007

03/08/2007

20/08/2007

01/10/2007

Delayed

Delayed

Delayed

Delayed

Not started

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)

On-going

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Table of Contents



– Telecom Sector

– Power Sector


– CDR

Next Steps

17



Program Title: POW-001: Strengthen Sector Policy-Making Capacity

Natural Owner: Minister of Energy and Water


KPIBaseline



Status

National Control Center implementation

In Progress In ProgressCompleted (Oct. 2008)

Master Plan for generation and transmission development

Not Started Not StartedCompleted (Jul. 2008)

N/A


EDF hired to undertake the Power Sector Master Plan (July 3, 2007 – The program is financed by the AFD)

Key Issues

New: None


Budget Performance*

Initial Budget N/A

Revised Budget N/A

Actual Spent N/A


N/A

Status N/A





1. Strengthen sector policy-making capacity 03/07/06 30/06/09 159.2 wks

1.b Appoint qualified 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 wks

1.b.vi Undertake negotiations with selected applicants 12/06/07 19/07/07 6 wks CDR and MoEW Negotiations undertaken

1.b.vii Award contract 20/07/07 23/08/07 5 wks CDR Contract awarded

1.b.viii Undertake formal signature 24/08/07 30/08/07 1 wk CDR Contract signed

1.c Complete Sector Expenditure Review with World Bank support 01/03/07 28/12/07 45 wks

1.d Establish a National Control Center to properly dispatch EDL’s generation and transmission system 03/07/06 13/10/08 121.8 wks

1.d.vii Define the HW/SW configuration and prepare Purchase Request and Procurement 11/12/06 23/07/07 33.6 wks EDL

HS/SW configuration defined

1.d.viii Collect data and produce FAT database & displays 15/12/06 27/09/07 42.4 wks EDLFAT database and displays produced

1.d.x Install and integrate the system, and get FAT submittal and approval 05/03/07 24/10/07 35 wks EDL FAT installed and approved

1.e Hire consultants to develop a Master Plan for the Power Sector 03/07/07 26/06/08 52.8 wks

1.e.i Hire EDF to undertake Master Plan 03/07/07 03/07/07 0 wks EDF hired

1.e.ii Develop Power Sector Master Plan 03/09/07 26/06/08 44 wksPower Sector Master Plan developed


NS

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Program Title: POW-002: Improve EDL Operational Efficiency

Natural Owner: Minister of Energy and Water


KPIBaseline



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


KEPCO agreed to perform Zouk power plant survey for free

Grant Thornton started compilation of EDL’s 2005-2006 accounts, while working on 2002-2004 accounts towards defining an opening balance for 2005

Key Issues

New: None

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 might have different orientations, which could create conflicts or inconsistencies among their recommendations

Budget Performance*

Initial Budget N/A

Revised Budget N/A

Actual Spent N/A


N/A

Status N/A


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2. Improve EDL operational efficiency 01/02/06 31/12/09 207.2 wks

2.a Appoint consultancy team at EDL to perform operational, financial, 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 wks

2.a.vi Undertake negotiations with selected applicants 12/06/07 19/07/07 6 wks CDR and MoEW Negotiations undertaken

2.a.vii Award contract 20/07/07 23/08/07 5 wks CDR Contract awarded

2.a.viii Undertake formal signature 24/08/07 30/08/07 1 wk CDR Contract signed

2.b Formalize KEPCO contract 01/02/06 07/09/07 85 wks

2.b.ii Settle conflict over the contract with KEPCO 01/03/06 31/08/07 80 wksMoEW/EDL, MoF and BDL Conflict settled

2.b.iii Sign contract with KEPCO 03/09/07 07/09/07 1 wk MoEW/EDL Contract signed

2.c Award contracts for the supervision of the KEPCO O&M activities for Beddawi and Zahrani plants 03/09/07 08/04/08 32 wks

2.c.i Develop TOR for the supervision of the KEPCO O&M activities 03/09/07 12/02/08 24 wks MoEW/EDLTOR for the supervision of KEPCO

2.d Decide on the viability of the Zouk and Jiyyeh plants, and rehabilitate viable existing power plants 01/06/06 18/12/07 82.6 wks

2.d.ii Develop short-list of interested companies 01/01/07 18/12/07 52 wks MoEW/EDLShort-list of interested companies

2.d.iii Open discussions with KEPCO on undertaking the study for free 02/07/07 01/08/07 4.6 wks

MoEW/EDL and HCP

2.d.iv Undertake survey on the viability of Zouk and Jiyyeh power plants 03/09/07 07/09/07 1 wk MoEW/EDL

Survey on the viability of Zouk and Jiyyeh conducted

2.d.v Draft and submit report on viability of Zouk and Jiyyeh power plants 10/09/07 21/09/07 2 wks MoEW/EDL

Report on the viability of Zouk and Jiyyeh submitted

2.e Complete the expansion and rehabilitation of the 220KV transmission network 09/01/07 30/06/08 79.4 wks

2.f Complete the auditing of EDL financial statements from 2002 to 2006 01/02/07 02/03/09 111.2 wks

2.f.vi Prepare preliminary Audit Reports 2003 02/07/07 28/09/07 65 days MoEW/EDL 2003 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 wks

2.j.i Organize stakholders' meeting to identify potential issues 01/08/07 22/10/07 12 wks MoEW Stakholders' meeting

2.m Complete the infrastructure needed for the Ksara station (including 400 KV network) to allow Lebanon’s integration into the regional electrical network known as the “Seventh Joint” 01/01/07 31/03/08 66.4 wks


NS

NS


NS

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Program Title: POW-003: Corporatize and Privatize EDL Natural Owner: Secretary General of the HCP


KPIBaseline



Status

Asset registry Not Started Not StartedCompleted (Dec. 2008)

N/A

Legal due diligence Not Started Not StartedCompleted (Apr. 2008)

N/A

New EDL launch plans Not Started Not StartedCompleted (Mar. 2008)

N/A

EDL Corporatization 5% 5%Completed (Dec. 2008)

Establishment of additional production capacity through IPPs


Collection Management and Metering 15% 15%Completed (Jun. 2008)


Consensus on approach regarding CRA issue (1.2 million meters vs. 16,800 pilot meters) reached

RFPs for technical and accounting advisory services for the IPP project issued

Negotiations with winning bidder to assist HCP with the corporatization of EDL completed

Key Issues

New: None

Carried Over from Previous IMC: Contract consultants to undertake EDL asset registration and

valuation

Budget Performance*

Initial Budget N/A

Revised Budget N/A

Actual Spent N/A


N/A

Status N/A





3. Corporatize and Privatize EDL 02/09/02 31/12/10 438 wks

3.a Retain consultants to assist the HCP with the corporatization and restructuring of EDL 01/01/07 30/08/07 36 wks

3.a.vi Undertake negotiations with selected applicants 12/06/07 19/07/07 6 wks CDR and MoEW Negotiations undertaken

3.a.vii Award contract 20/07/07 23/08/07 5 wks CDR Contract awarded

3.a.viii Undertake formal signature 24/08/07 30/08/07 1 wk CDR Contract signed

3.b Establish the Electricity Regulatory Authority and define its financial and organizational structures 02/09/02 24/03/08 292.4 wks

3.b.iii Undertake interviews with candidates 15/05/07 27/09/07 20 wks MoEW Interviews with candidates

3.b.iv Appoint ERA Board 28/09/07 03/10/07 1 wk

CoM, Minister of Energy and Water ERA Board appointed

3.b.v Issue decrees to define ERA organizational and financial structure, and compensation/ benefits 01/08/07 19/11/07 16 wks CoM Decrees Issued

3.c Launch and award tender for the installation and operation of remote meters 02/10/06 11/04/08 82 wks

3.c.v Develop and update CMM website for FAQ and source of all documentation 03/04/07 17/10/07 29.2 wks MoEW, HCP CMM website developed

3.c.vii Develop, issue and receive prequalification documents to interested bidders 03/04/07 07/07/07 14.4 wks MoEW, HCP

Pre-qualification documents received

3.c.viii Present interested bidders list to PM and Minister of EW 09/07/07 30/07/07 3.2 wks MoEW, HCPInterested bidders list presented

3.c.ix Develop and issue the tender document to prequalified bidders, and launch open data room 09/04/07 16/08/07 19.2 wks MoEW, HCP Tender documents issued

3.c.x Manage bidding process 17/08/07 29/09/07 6.2 wks MoEW, HCPBidding documents submitted

3.d Launch and award tender for service contracts for distribution 02/10/06 24/01/08 70.6 wks

3.d.v Develop and update CMM website for FAQ and source of all documentation 03/04/07 17/10/07 29.2 wks MoEW, HCP CMM website developed

3.d.vii Develop, issue and receive prequalification documents to interested bidders 03/04/07 07/07/07 14.4 wks MoEW, HCP

Pre-qualification documents received

3.d.viii Present interested bidders list to PM and Minister of EW 09/07/07 30/07/07 3.2 wks MoEW, HCPInterested bidders list presented

3.d.ix Develop and issue the tender document to prequalified bidders, and launch open data room 09/04/07 16/08/07 19.2 wks MoEW, HCP Tender documents issued

3.d.x Manage bidding process 17/08/07 29/09/07 6.2 wks MoEW, HCPBidding documents submitted

3.e Develop additional generation capacity through IPP: Install additional capacity in Deir Ammar with private sector participation 13/04/07 12/12/08 89 wks

3.e.ii Retain specialized consultants to provide technical and accounting advisory services 04/07/07 08/10/07 14 wks HCP Contracts signed


NS

NS

NS

23


Issue ID

Issue Level



POW-001 H Need to formalize KEPCO contract EDL 05/07/2007 MoF/ BDL

Stakeholders to agree on a solution to provide credit line to 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

Contract consultants to undertake EDL asset registration and valuation

01/10/2007 In progress

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

Grant Thornton to start compilation of EDL’s 2005-2006 accounts, while working on 2002-2004 accounts towards defining an opening balance for 2005

31/07/2007

20/08/2007

Completed

Completed

24


Issue ID

Issue Level



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 In progress

25

Table of Contents



– Telecom Sector

– Power Sector


– CDR

Next Steps

26

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 last

IMC, 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 Minister of Transport

and HCP Secretary General

27


Issue ID

Issue Level



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

28

Table of Contents



– Telecom Sector

– Power Sector


– CDR

Next Steps

29



Program Title: CDR-001: Restructure CDR’s capacity to undertake investments

Natural Owner: President of CDR


KPIBaseline



Status

Percentage of vacant key positions filled

0% 0%100%

(Dec. 2007)


None

Key Issues

New: None


Budget Performance*

Initial Budget $ 2,000,000

Revised Budget N/A

Actual Spent N/A


N/A

Status N/A


30



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 31/12/07 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 published1.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


NS

NS


31



Program Title: CDR-002: Develop Public Investment Plan for 2009-2012

Natural Owner: President of CDR


KPIBaseline



Status


Public Investment Plan guidelines prepared

Key Issues

New: None


Budget Performance*

Initial Budget N/A

Revised Budget N/A

Actual Spent N/A


N/A

Status N/A


32



2. Develop Public Investment Plan for 2009-2012 05/07/07 05/09/07 9.4 wks

2.a Develop a Public Investment Plan (PIP) for 2009-2012 05/07/07 05/09/07 9.4 wks CDR PIP developed



33


Issue ID

Issue Level



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

In progress

34

Table of Contents



– Telecom Sector

– Power Sector


– CDR

Next Steps

35

Next Steps

Actions 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

Power Sector:

– Formalize KEPCO contract

– Follow up with consultants on the preparation of a technical report on the viability of Jiyyeh

– Channel the scope of work of EDL advisors toward preparing for the set form corporatization, once sector strategy is agreed

Transport Sector:

– Align key stakeholders on a roadmap for implementing priority programs

– Develop Commitment Document

CDR:

– Coordinate with MoF the development of a draft Public Investment Plan for 2009-2012

Sign Commitment Documents for all Infrastructure & Privatization IMC