News dalla rete ITA

20 Aprile 2021

Libano - Iraq

LEBANON AND IRAQ TRADE MEDICAL SERVICES FOR FUEL OIL

The Lebanese Ministry of Public Health and its Iraqi counterpart signed on April 2, 2021 a framework agreement stipulating that Lebanon would provide medical services to Iraqi medical centers in exchange for fuel oil supplies from Iraq for electricity generation. The deal complements the agreement that the Lebanese and Iraqi authorities reached in February 2021, whereby Iraq will export 500,000 tons worth $200m of heavy fuel oil to Lebanon in 2021. The volume is equivalent to one sixth of Lebanon's fuel oil needs. The Ministry of Energy & Water indicated that Lebanon will deposit the amount in a special account at Banque du Liban so that Iraq can spend the money domestically on any type of service, including on medical and healthcare services. In return, Lebanon will provide specialized medical teams and experts to assist Iraq in managing new medical centers and facilities and to train Iraqi medical and hospital crews.The agreement between the two countries came after the contract between the Lebanese State and the Algerian energy conglomerate Sonatrach to supply fuel oil to Lebanon expired on December 31, 2020, which raised concerns about sourcing fuel oil for electricity production in Lebanon. In parallel, the Lebanese Parliament enacted on March 29, 2021 a draft law that provides an advance of LBP300bn, or $200m based on the official exchange rate of the Lebanese pound against the US dollar, to Electricité du Liban (EdL) in order to finance the imports of fuel oil for electricity generation.EdL has exhausted the LBP1,500bn, or $1bn, earmarked for its expenditures in the Budget Law for 2020. The LBP300bn, or $200m payment, is a part of the LBP1,500bn, or $1bn, that the draft budget for 2021 earmarked as transfers to EdL. However, the payment required a law in the absence of a Budget Law for 2021, given that, according to the Lebanese Constitution, a caretaker government cannot approve a budget and forward it to Parliament for deliberation. (ICE BEIRUT)


Fonte notizia: Byblos Bank - Lebanon this Week