Can private public partnership pullout Lebanon out of its worst economic crisis?

Abstract

Lebanon is grappling with the worst economic crisis in decades. One cannot escape the reality that Lebanon is broke and is set to face an even more agonizing economic downturn. While Lebanon has lost many past opportunities to develop its infrastructure including its energy, waste management, water, and transport, it is high time that authorities roll up their sleeves and give development a fillip in the country through Public Private Partnership (PPP). Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place. Public-private partnerships allow large-scale government projects to be completed with private funding. The success of PPP project is defined on the basis of repayment of loans without recourse to public sector guarantees or tax revenues and the provision of public services without inflicting a direct or indirect burden on the population, that is already encumbered with huge debt as in the case of Lebanon. On one hand, establishing a railway network in Lebanon via PPP will not only enable mass public transportation but will add significantly to economic growth in the country. Electricity, as well, in the heart of the economic crisis, the government should consider partnering with green power producers via PPP to resolve this issue. Furthermore, Lebanon had two oil refineries, renovating those refineries will allow Lebanon to secure its needs of oil and then eventually to export its surplus. Likewise, Special Economic Zones play a key role in rapid economic development of a country. Hence, upgrading the infrastructure of Tripoli and its port has numerous benefits especially with the intent of reconstructing Syria.