SGS consortium wins mécanique tender. Ten-year contract valued at $440 million

A consortium of Société Générale de Surveillance and Autospect has won an international tender for the establishment, operation, and transfer of eight new vehicle inspection 'mécanique' centers.

The centers will be located in Kuweikhat-Akkar, Tripoli, Jbeil, Shouf, Nabatieh, Tyr, Rashaya, and Baalbek. The new operator will also be in charge of the present centers, which are located in Hadat, Zahlé, Majdlaya, and Ghaziyeh.

The value of the ...

Article details

Ministry of Labor proposes increase in minimum wage. Business associations are against it

The Ministry of Labor has suggested increasing the minimum wage to LL1,200,000 ($800) from the current LL675,000 ($450).

The ministry will invite business associations and the General Confederation of Labor Unions (GCLU) to meet at the session of the Cost of Living Indicator Committee on August 9. The meeting will include representatives from several ministries, including Labor, Finance, and Economy and Trade.

Sejaan Azzi, Minister of Labor, said: "I have suggested this increase ...

Article details

Biometric passports: Circulation begins in August. Prices to remain the same as the old-style passports

The General Directorate of General Security has announced that biometric passports will begin circulation as of August 1.

General Hassan Ali Ahmad, Head of the Information Technology Department at the Directorate, said: "People carrying the old-style passport may continue to use them until they expire." once expired, the passports will be replaced with biometric passports.

The price and the expiry period of biometric passports will remain unchanged. The price for a one-year passp...

Article details

$1.4 billion from World Bank for local projects. Five-year framework program launches

The World Bank will launch on July 27 the Country Partnership Framework 2017-2022. The grand total of loans that will be part of the framework is $1.4 billion.

For the first two years of the framework, a $55 million loan will be granted through the International Bank for Reconstruction and Development (IBRD). The loan will be mobilized for the Lake Qaraoun Pollution Prevention Project.

Another $200 million will be directed at the Rural Roads and Employment Program over the years 2...

Article details

Inflation up in June as oil prices stabilize.

The Consumer Price Index (CPI) rose by 0.67 percent to 96.27 in June compared to that in May. The prices of water, electricity, gas, and other fuels jumped by 2.65 percent in June compared to the previous month while the cost of transportation rose by 1.24 percent, according to the Central Administration of Statistics (CAS).

The decline in oil prices has abated and is reflected in the monthly CPI, said economist and statistician, Robert Kasparian. It is too early to talk about a shift fro...

Article details

Construction permits see sharp turnaround. Beirut tumbles, high growth elsewhere

The number of construction permits increased 13 percent during the first half of this year, in comparison with the same period of 2015, according to the Orders of Engineers in Beirut and the North. The 8,361 permits represent 6.4 million square meters, up eight percent. The average area per permit has dropped by five percent to 767 square meters.

The area of permits in Beirut fell 23 percent to 235,429 square meters and the number of permits reached 347, down 22 percent. The average area...

Article details

BLOM in talks to buy local arm of HSBC. Deal is expected to close at $90-$100 million

BLOM Bank has confirmed that it is in talks to buy the local arm of HSBC Bank Middle East. Negotiations have not yet resulted in a closing agreement, according to sources at both banks.

The deal is expected to close at $90-$100 million.

The fate of nearly 200 local HSBC employees are at stake, said a source familiar with the subject.

Other banks vying for HSBC's business included Fransabank, Banque Libano-Française (BLF), and Bank Audi.

The sale of HSBC Leban...

Article details

Saltek to expand bakery equipment factory. Investment expected to double production output

Saltek, a bakery equipment manufacturer, will expand its factory in the industrial city of Mazraat Yachouh. The expansion will start operating in June 2018.

Investment, which is expected to double the production output, is estimated at $5 million.

Garabet Salkhanian, Chairman, said: "Demand for flat bread is increasing in the countries that host Syrian refugees, so we have to increase production to meet those needs."

The total built-up area of the factory is 4,000 square me...

Article details

Royal Forex to upgrade to a financial company. Change enables it to tap into micro lending and investment funds

Royal Forex Trading has changed its name to Royal Financials as part of a move to upgrade its license from a financial brokerage firm into a financial company.

This change will enable the company to tap into the micro-loan industry and to add new financial products like investment funds, said CEO Rayan El Annan.

Royal Financials, which currently operates an electronic trading platform (ETP), is already licensed to conduct advisory and discretionary trading as a brokerage firm.
Article details

World Bank loan to fight Qaraoun pollution.

The World Bank Group (WBG) has approved a $55 million loan to help reduce the pollution flowing into Qaraoun Lake.

"The project marks a first step in a larger effort estimated at $250 million, according to the Government's business plan for combating pollution of Qaraoun Lake," the World Bank WBG said in a statement.

In a larger initiative, the WBG rolled out the Country Partnership Framework (CPF) with Lebanon, a program that spans the years 2017 to 2022.

"The CPF aims at m...

Article details

LC Waikiki to open several stores. $15 million investment in ten locations

National Retailers Group (NRG), chaired by Nabil Gebrael, will open the first of ten LC Waikiki clothing stores at Citymall, Dora, in September.

"The initial store will be followed by locations in Tripoli as well as Sour (Tyr) to truly capture the extremities of the country," said Gebrael.

After the introduction phase, LC Waikiki will open in key strategic locations such as Hamra, Bekaa, and in major malls including Beirut City Center.

NRG was established this year as a mas...

Article details

$113 million from Germany for vulnerable families and refugees.

Germany has contributed €100 million ($113 million) to the United Nations World Food Programme (WFP) to help it support vulnerable Lebanese families and Syrian refugees in Lebanon.

The contribution, which was made through the German Ministry for Economic Cooperation and Development, will allow WFP to continue providing food assistance to over 700,000 Syrian refugees and more than 50,000 Lebanese.

WFP supports the refugees through its electronic food card (e-card) program which all...

Article details

Contract renewed for Karadeniz power ships.

The Ministry of Energy and Water (MoEW) has renewed the contract for Karadeniz, the Turkish firm that owns the two power generation barges, Fatmagul and Orhan Bey. The contract will expire at the end of September 2018.

Ralph Faisal, local representative of Karadeniz, said: "The production capacity of the two ships was raised from 330 megawatts (MW) to a minimum of 370 MW. But they are actually able to produce up to 400 MW."

Power production cost was also lowered from 5.95 to 5.85 c...

Article details

Full health coverage for 64 years old and above. $11 million required to fill the gap

The Ministry of Public Health announced that a full health coverage program will be provided to people aged 64 and above. The program will be financed by the ministry, which used to cover only 85 percent of hospitalization bills.

The ministry said that the budget required for this program is around $11 million. According to Bahij Arbid, advisor to the ministry, the program will require a five percent increase in the ministry's budget, which, he said, the Council of Ministers has agreed t...

Article details

Economic bodies and labor unions join forces. To provide health coverage and retirement pension

Relations between economic bodies and the General Confederation of Labor Unions (GCLU) are stronger than ever. The two sides have agreed to work together on projects that could boost social security and enhance the conditions of employees.

Both parties are members in a Parliamentary commission to debate two projects they both recommended. Nicolas Chammas, Chairman of Beirut Trader's Association, said that after negotiations, both parties agreed on providing health coverage for people ab...

Article details

Datsun is back and available at Rymco.

Rasamny Younis Motor Co. (RYMCO) is the distributor of Nissan's Datsun, with a first shipment of about 300 cars, said Jade Ayoub, RYMCO's Marketing Manager.

Nissan halted production of Datsun in 1986, re-launching it in 2013. Lebanon will be the fifth country in the world to import the Datsun brand after its re-launch, Ayoub said.

The cars, manufactured by AvtoVAZ in Russia, are distributed through RYMCO's Nissan showrooms, Ayoub said. AvtoVAZ, better known by its trade name Lada,...

Article details

Le Vendome secures debt reschedule scheme. The value of loans is around $100 million

Bankmed and Bank Audi have agreed to refinance the debts of La Société des Grands Hotels du Liban (SGHL), owners of the Hotel Phoenicia and Le Vendome, after negotiations to restructure the debt. Bankmed is the main lender.

The banks agreed on the rescheduling of debt payments based on a payment-in-kind security against Le Vendome hotel. As the Central Bank (BDL) is facilitating debt relief schemes to businesses, its Banking Control Commission participated in the negotiati...

Article details

IM Capital launches angel investor program. Targeted investment of $300,000 in first year

Insure and Match Capital (IM Capital), a Berytech company, has launched Seeders Masterclass for Business Angels, a one-year program to link early-stage individual angel investors and micro and small and medium enterprises (MSMEs) through a "learn and earn" system.

Implemented in collaboration with Switzerland-based early-stage investing platform Go Beyond, the $300,000 program will have 25 different angel investors participate with $15,000 each during its first year.

The program a...

Article details

Pandaplast invests $12 million in the Congo.

Pandaplast, a manufacturer of plastic household items and furniture, is expanding to the Congo. Investment in the factory is estimated at $12 million, including the cost of the land.

Manufacturing, which has already started, will gradually build up to full capacity by mid-2017, reaching 3,000 tons of plastic per year. Production is expected to encompass more than 200 different items.

The factory, named Europlast, will have a total built-up area of 20,000 sqm. Ali Kassem, major sh...

Article details

Speed@BDD completes second acceleration program. Startups seek a combined $3.5 million capital

Speed@BDD has completed a three-month acceleration program for seven tech startups in which it has invested $210,000. This is the startup accelerator's second program, with a third acceleration program in the offering.

The investment comes under the Central Bank's program which aims to support entrepreneurs in the knowledge economy.

The tech accelerator stated that during the cycle it has invested $30,000 in cash in each startup and an equivalent amount in "in-kind" services cove...

Article details

Two mega projects worth $200 million. Two gated communities for Damour and Terbol

Two large gated communities are planned for Terbol, near Tripoli, and Damour, south of Beirut.

Elmirador de Terbol is a traditional Lebanese village concept by developers Ahmad Alameddine and Mohamad Malass. The 735,000 sqm project is divided into two phases. The infrastructure of the first phase, which covers around 300,000 sqm, is now complete. "The construction of villas, which begins in October, will take around two and a half years to finish," said Malass.

The first phase inc...

Article details

Le Gray plans $10 million expansion. Hotel building on previous good performance

Le Gray Hotel will expand its premises, with an expected completion date of early 2017.

The expansion will include 16 new rooms on the first floor, including 12 suites. It will also comprise a ballroom with capacity for 400 people, in addition to two conference rooms, a screening room, a lobby, and an international restaurant.

Investment in the project is estimated at $10 million.

Georges Ojeil, General Manager, said that the hotel has had a good performance in the past f...

Article details

Five new restaurant brands by Boubess Group in Souks. Concepts are franchisable

Boubess Group will be launching five new concept brands of restaurants in the Beirut Souks before the end of this year.

Hady Fadel, Corporate Marketing Manager, said: "There is possibility to sell franchises and to expand in other areas."

'The Corner', a burger joint, will be located on a roof in Beirut Souks. The diner has capacity of around 250 people. It will open in early September.

Café Libanais is getting ready to open in two months on Ajami Street (where City...

Article details

MoF’s decree targets those with no designated workplace.

The Ministry of Finance (MoF) has issued a decree to better track residents and non-residents for tax purposes. It mainly targets those with no designated workplace in the country.

The decree requires taxpayers who buy services or assets from residents who are not registered at the MoF to inform the Ministry of their names and addresses on a quarterly basis.

Non-residents who do not have a designated workplace in the country and who make profits or revenues that are not generated...

Article details

Pain d’Or factory expands to double production rates. $15 million investment expected

Malco Group, the mother company of Pain d'Or and Fantasia, will launch construction works to expand its factory in Choueifat.

The new 4,000-square-meter factory, built on an 8,000-square-meter plot adjacent to the present factory, has an expected completion date of early 2019.

The expansion will be dedicated to Pain d'Or products. Marwan El-Koussa, Managing Partner, said: "We will initially produce Arabic bread, before increasing production of other products, as well as creating n...

Article details

BDL in $3 billion swap to boost net foreign reserves. Buys back T-bills at large discount

The Central Bank (BDL) killed two birds with one stone in a swap operation with local banks worth $3 billion. BDL needed to strengthen its foreign currency reserves which have, according to the International Monetary Fund (IMF), dropped into negative territory, a result created by the nebulous and intertwined imbalances between deposits by banks and liquidity made available by the BDL.

BDL bought back treasury bills denominated in lira from the banks at a premium discount against their s...

Article details

Green light for the widening of the Dbayeh-Tabarja highway.

The Council of Ministers approved a project to expand the North Highway linking Dbayeh to Tabarja, allocating $35 million for the expropriation of property.

The expropriation file will be sent to a valuation committee at the Council for Development and Reconstruction (CDR), which will then start buying each property. In parallel, the CDR will prepare the prequalification file for of eligible contractors, who will submit tenders to participate in the execution of the project. Another tend...

Article details

Central Bank issues new regulations to implement IFRS9.

The Central Bank (BDL) has instructed local banks to abide by additional regulations in preparation for the implementation of the International Financial Reporting Standard 9 (IFRS 9).

IFRS 9, which is promulgated by the International Accounting Standards Board (IASB), includes accounting standards pertaining to financial instruments. When it becomes effective in January 2018, IFRS 9 will replace an earlier international norm.

In preparation of this new standard, BDL informed banks...

Article details

New Jounieh port to attract thousands of tourists. Injection of $40 million expected

A new touristic port in Jounieh is to go ahead after the Council of Ministers approved works.

The new port will be located between the army base and the Portemilio beach resort in Kaslik. The first phase of the project will cost $8 million, with the overall costs expected to reach around $40 million.

"The port would attract mega charters able to transport 4,000 tourists," Fouad Boueri, member of Jounieh Municipality, said. The Council will now task the Council for Development and ...

Article details

Agriculture sector reaps bumper harvests. Field crops and poultry production surge

Total field crop production increased 55 percent within four years, accounting for $227 million last year, according to Centre de Recherche et d'Etudes Agricole Libanais (CREAL).

Field crops mainly include cereals, potatoes, pulses, and fodder. Potatoes topped the list with a production value of $165 million, doubling within four years.

According to Riad Saadeh, Chairman of CREAL, this is due to a 40-percent increase in cultivated areas, reaching 15,000 hectares. Potatoes ha...

Article details