PARIS III

EU pledges additional 400 mln euros aid to Lebanon
Wed 24 Jan 2007 12:56:52 GMT
BRUSSELS, Jan 24 (Reuters) - The European Commission said on Wednesday it was pledging almost 400 million euros ($520 million) of additional aid to Lebanon to help it with post-war reconstruction and political and economic reform.

The pledge in grants and loans to be made formally at a donor conference in Paris on Thursday would bring to 500 million euros the total provided to Lebanon by the EU executive since last June, Commission spokeswoman Emma Udwin said.

The Lebanese government hopes for political backing from its foreign allies and up to $5 billion in assistance to help ease the burden of Lebanon's $40.5 billion public debt -- equal to 180 percent of gross domestic product.

source: http://today.reuters.co.uk/news/CrisesArticle.aspx?storyId=BRU005329&WTmodLoc=World-C5-MoreCrisis-5

France offers Lebanon Euro 500 m loan amid growing tensions

By News Agencies

PARIS - France will offer the Lebanese government a 500 million euro ($650.3 million) loan on very favorable terms, a spokesman for French President Jacques Chirac said on Wednesday.

The announcement came amidst a high-strung debate in Lebanon on the need for international financial aid to the bankrupt government. On Tuesday, opposition-led protesters went on a general strike in which three people were killed and more than 130 were injured.

Chirac said in television interviews on Tuesday that the Lebanese government had practically run out of money and that anti-government protests in Lebanon could discourage the international community from granting financial aid to Beirut at a donor conference in Paris on Thursday.

Siniora's government has shrugged off demands to refrain from accepting funds from the West and is instead preparing for an international aid conference in Paris on Thursday that it hopes will yield billions of dollars for Lebanon's debt-laden economy.

Tuesday's strike was called by the Hezbollah-led opposition in a bid to topple Prime Minister Fouad Siniora's Western-backed government.

Thousands of protesters blocked main roads in Beirut and around the country with rubble and burning tires as the strike began.

Lebanon's anti-Syrian majority leaders Tuesday accused the opposition of staging a "coup" against the government by blocking major roads.

"This is a coup d'etat. This is a revolt in all sense of the word," Christian leader Samir Geagea told the Lebanese television station LBCI.

In a televised speech, Siniora vowed to remain strong and united with the Lebanese people against the violence. "We will stay together against intimidation. We will stand together against strife," he said.

"Today's general strike turned into actions and harassment that overstepped all limits and rekindled memories of times of strife, war and hegemony," Siniora said.

He hinted that the government might take stronger measures.

"The duty of the army and security forces does not allow any flexibility or compromise regarding the public interest, order and civic peace," Siniora declared.

Chirac: Protests will deter international donors
French President Jacques Chirac said on Tuesday anti-government
protests in Lebanon could discourage the international community from granting financial aid to Beirut at a donors' conference scheduled for Thursday.

Chirac said in an interview with France 24 television and Lebanese television that Lebanon's financial situation was "very serious, very grave", adding: "practically, the Lebanese government has no more money."

"Lebanon has an urgent need to be financially supported and helped," Chirac said.

"It is clear that the behavior ... of those who are using it to create social difficulties at the same moment when we are gathering for this conference, does not encourage those who want to help to give Lebanon the means to survive," he said

Donor countries are expected to pledge money, possibly in the billions of dollars, for Lebanon's debt-laden economy at Thursday's conference in Paris.

Meanwhile, the United States also voiced concern about the protests, calling on all sides to exercise restraint and settle their differences peacefully.

"The United States is deeply concerned about developments today in Lebanon," State Department spokesman Sean McCormack said in a statement on Tuesday

source: http://www.haaretz.com/hasen/spages/817390.html

Lebanon Goes to Paris III: High Stakes in France and Beirut

By David Schenker
January 24, 2007

On January 25, Lebanon will participate in Paris III, the third international donor conference for Lebanon convened by French president Jacques Chirac since February 2001. The top agenda items are grants and soft loans for Lebanon and the economic reform plan of Lebanese prime minister Fouad Siniora. For Siniora and his "March 14" ruling coalition, the success of the conference -- i.e., international commitments to provide billions to Lebanon -- is exceedingly important, as the government is coming under increasing pressure from the Hizballah-led opposition. Indeed, this week, the opposition upped the ante in its continuing effort to topple the Siniora government, closing key Lebanese arteries, including the highways into Beirut and the airport road. If Paris III is broadly perceived as "successful," it will strengthen Siniora and demonstrate that the March 14 coalition can govern and advance key Lebanese interests without Hizballah participation in government. Should international donors not prove particularly generous, the momentum will shift toward the opposition.
Current Strife in Lebanon

For months, Hizballah and members of General Michel Aoun's Free Patriotic Movement had already been camped out in downtown Beirut near the Grand Serail, protesting against what they said was a lack of "power sharing." Hizballah cabinet ministers had left the government in November 2006 to press their demand for additional cabinet seats in an effort to secure a "blocking third" and the ability to veto government initiatives. But the Siniora government did not give in and proceeded to push forward with its agenda, including its economic reform initiative, the cornerstone of which is Paris III.

Recent weeks have seen a number of demonstrations in Beirut. Concerned about the implications of these economic reforms, unions in Lebanon staged a series of sit-ins at government ministries, rallying against proposed reforms, which they said would be detrimental to their constituents. The demonstrations were not particularly well attended -- less than 2,000 of 200,000 union members showed -- but Hizballah and Aoun joined the cause, linking their efforts to topple Siniora and scuttle Paris III with the unions'.

On January 21, the opposition called for a national strike. When the initial response to the call proved tepid, strategy shifted from a voluntary to an opposition-enforced strike. In this context, on January 23 the opposition closed down several key roads throughout Lebanon (including in the north and en route to Damascus), stopping traffic into Beirut, obstructing the airport road, and effectively closing the airport. Although Hizballah leader Hassan Nasrallah counseled his followers in a January 22 speech, "We don't want fighting and we don't want bloodshed," three protestors were killed and 50 wounded in clashes with the Lebanese Armed Forces (LAF) and accompanying sectarian violence. The "strike" was called off that evening.

The Paris Conferences

Despite the ongoing civil unrest, in Lebanon tomorrow all eyes will be on Paris. The quid pro quo of Paris is relatively simple. In exchange for what Siniora hopes will be an extremely generous package of grants and soft loans to Lebanon from the 40 international donors attending the conference, the government of Lebanon will commit to an economic reform program consisting of: (1) an increase in the Value Added Tax (VAT) from 10 to 12 percent; (2) a decrease in government subsidies on fuel, and (3) the privatization of electricity and telecommunications (mobile phone) sectors. The funds raised at the conference would be used to help defray some ongoing recurrent costs, and to service Lebanon's estimated $41 billion in debt. In 2003, this crushing debt cost $3 billion a year in interest payments, equivalent to nearly 40 percent of Lebanon's annual budget.

This will be the third in the series of conferences convened in Paris to assist Lebanon's economy. At Paris I in February 2001, among other commitments, Lebanon pledged to stimulate the economy and modernize its tax system. In exchange, France provided Lebanon with 500 million euros to finance development projects. At Paris II in November 2002, the Lebanese government under then-prime minister Rafiq Hariri agreed to privatize key industries, pay down debt, cut recurrent expenditures, and increase tax revenues. In return, the international community pledged some $4.4 billion, of which Lebanon has to date received only $2.5 billion.

Notably, the United States did not contribute to Paris II because it wanted Lebanon to commit to a program similar to those of the International Monetary Fund (IMF), which would have linked disbursements to reform. In retrospect, this was prescient: from 2002 to 2006, Beirut failed to deliver on its commitments to reform the economy. But the calculus for Paris III is different: many Arab and Western states are concerned about the Iranian and Syrian-backed opposition efforts to topple Siniora and will look to strengthen his March 14 forces via the conference. Unlike his predecessors, Siniora seems committed to remedying Lebanon's economic woes via reform. Moreover, it is likely that Paris III will be underpinned by either an IMF or an IMF-monitored program. The U.S. commitment has not yet been announced, but State Department officials say it will be substantial.

Opposition to Paris III

The Hizballah-Aoun alliance and its sympathizers have couched their opposition to Paris III in terms of criticism of foreign influence in Lebanon and government corruption. During his January 22 speech televised on al-Manar, Nasrallah said Hizballah "supported Paris III . . . and any international help without political conditions . . . but the conditions of Paris III are not clear." Nasrallah also accused the Siniora government of financial mismanagement: "You controlled the economic file [during the Syrian occupation] . . . and now we are headed toward bankruptcy." Aoun has also focused on the same message of corruption and foreign influence. His website (www.tayyar.org) raised three primary objections to the conference: (1) there are "hidden conditions" on the assistance, (2) the aid will be given to Siniora and not to the Lebanese people, and (3) grants at Paris III would be tied to "a secret agreement to settle the [Sunni] Palestinian refugees in Lebanon," a move that threatens to skew the delicate sectarian balance of Lebanon.

Aoun's conspiracy theories aside, the opposition has raised the stakes now to prevent a Siniora success in Paris III. After months of protests and sit-ins failed to shake the Siniora premiership, the opposition saw it necessary to exacerbate the crisis. As Suleiman Franjiyeh, an opposition leader closely tied to the Syrians, told al-Manar television earlier this week, "Our campaign will escalate day by day . . . As long as they won't listen to us, we will not let them rest."

Conclusion

Paris III is not without risks for the Siniora government. First, it is not clear whether donations will meet Lebanese expectations. In Lebanon, many are speculating that $6-$9 billion will be pledged, but government officials have tried to lower expectations, fearing that if donations fall short, the perceived failure will be exploited by the opposition. Indeed, conservative estimates are that pledges will be closer to $5 billion than $10 billion. Meanwhile, the current standoff between the opposition and the LAF in Lebanon has brought the state once again to the precipice of sectarian violence, raising tensions that will be difficult to defuse.

Conversely, if the Siniora administration walks away from Paris III with sufficient funds, it will return to Lebanon vindicated and strengthened, proving that it can effectively govern and pursue key initiatives without Hizballah and Aoun. At the same time, Hizballah and Aoun may emerge from this latest showdown with Siniora and the LAF diminished; not only could the opposition not prevent Paris III, but, in the process of trying, Hizballah closed down the Beirut airport. For the Lebanese, closure of the airport is something typically associated with Israeli airstrikes, not Hizballah. Likewise, the image of Shiite Hizballah holding Lebanon hostage may tarnish the militia's reputation -- enhanced by its performance in the summer war with Israel -- in the Sunni Arab world.

Regardless of what happens in Paris, the March 14 forces will declare victory, and the opposition will claim conspiracies and secret deals. More important than what Siniora actually receives will be the perceptions of what was achieved, and his government's renewed focus on moving forward with reform. In this environment, it will be incumbent on the Lebanese government to demonstrate, in Siniora's words, that "this reform program is not for one Lebanese party. All the Lebanese will benefit from this reform program."

David Schenker is a senior fellow in Arab politics at The Washington Institute.

source: http://www.washingtoninstitute.org/templateC05.php?CID=2557

Pledges for Lebanon donor conference

Associated Press
Countries that plan to pledge what aid to Lebanon at a donor conference in Paris on Thursday:

FRANCE - Conference host pledging a loan of $650 million at "very advantageous" terms.

EUROPEAN UNION - European Commission pledging $522 million in new aid and loans.

UNITED STATES - Promises "considerable" donation. Total expected to exceed the $230 million contributed to reconstruction efforts last year. Congress must approve the funding.

SOUTH KOREA - Reluctant to offer fresh donation beyond the $5.5 million pledged last year.

FINLAND - Expects to donate "somewhat smaller amount" than the $5.8 million it gave in 2006.

MALAYSIA - Foreign Minister Syed Hamid Albar told The Star that Malaysia would not make fresh loan because it loaned $500 million four years ago.

BRITAIN - Plans to offer $40 million to UNIFIL in 2007-2008 financial year.

DENMARK - Planning extra support of $3.5 million for mine-clearance, aid and implementing U.N. resolution 1701.

CHINA - Promising "assistance within our capacity."

Thanks so much for the updates Libano!

Thanks Libano.

Moreover, all who are interested to read the reform plan which will be distributed during the conference is available here (http://www.finance.gov.lb/The+Ministry/Ministry+News/Paris+III.htm).

Oh,thanx libano and nareg.

Paris Donors Mtg Upgrades Race To Finance Lebanon

http://www.nasdaq.com

PARIS (AP)--The tug-of-war for control of Lebanon takes a financial turn Thursday, with high-ranking officials from 35 mostly Western and Gulf countries meeting in Paris seeking to raise billions of dollars in aid for Prime Minister Fuad Saniora's embattled government.

Saniora arrived in Paris on a private jet Wednesday, a day after Hezbollah-led protesters who want to topple him clashed with government supporters across Lebanon. At least three people were killed and more than 170 injured in the violence in Lebanon.

The U.S. and other Western nations that support Saniora see crucial stakes in Lebanon, hoping the country can emerge from years of war as a stabile nation in the restive Middle East and stand on its own without interference from countries like Syria or Iran.

French Foreign Minister Philippe Douste-Blazy said Wednesday that the conference is "a chance for Lebanon - for all Lebanese people without exception."

The aid package that analysts expect will be about $5 billion would help cut Lebanon's public debt and pay for rebuilding costs after the 34-day war between Israel and Hezbollah fighters last summer.

The European Union's executive commission said Wednesday it will pledge EUR400 million in aid and loans at the conference to bolster Saniora's reform agenda.

Such support amounts to financial one-upmanship in Lebanon. Iranian-backed Hezbollah is thought to have doled out many millions of dollars' worth of aid to residents of areas devastated by the fighting.

"There's a high-speed race between this (international) aid and the aid from Hezbollah and Iran, which is more direct - more often in cash," said Joseph Bahout, a Lebanese-born professor at Paris' elite Sciences Po political university.

No Hezbollah representatives were invited to the Paris event. Top French diplomatic officials said France and other donors were working only with the elected Saniora government, and said it was up to his government to work with opponents at home.

At one point, France had considered talking to Tehran directly about the conference "if Iran had something to say," French President Jacques Chirac said in a television interview Tuesday.

The idea didn't pan out "because the practical details weren't cleared up," Chirac said. The plan reportedly faced resistance from the U.S. and others, which feared it would undercut separate efforts led by six nations, including France, to keep Tehran from developing nuclear weapons.

Many parts of southern Lebanon remain a wasteland of destruction and rubble five months after the end of the war. Lebanon's worsening political turmoil has also raised worries the government may be too paralyzed to fully deal with reconstruction even with newly injected funds.

While some of the foreign aid could go to reconstruction projects, analysts said most will go to reducing short-term debt - Lebanon faces a staggering $40 billion in public debt - and to paying daily expenses like soldiers' salaries and electricity.

The aid will come with conditions - mainly assurances that Saniora's government will make good on economic reforms announced this month that have infuriated labor unions and Hezbollah supporters. They argue the international aid - which is expected to include loans as well as grants - will leave the country further indebted.

Lebanon's economy is virtually at a standstill, despite two other Paris donor conferences since 1998 and another in Stockholm, Sweden, in August that pledged about $1 billion for postwar reconstruction.

"What's happening this time is a bit of an injection of vitamins for the current government, to allow it to hold out for another year or so," said Bahout.

U.S. Secretary of State Condoleezza Rice, U.N. Secretary-general Ban Ki-moon and European Union Commission President Jose Manuel Barroso were among those expected to attend the conference.

Rice: U.S. to Pledge $770M to Lebanon

Last Edited: Wednesday, 24 Jan 2007, 4:25 PM CST
Created: Wednesday, 24 Jan 2007, 4:25 PM CST

Credit: MyFox By ANNE GEARAN
AP Diplomatic Writer

PARIS -- The United States plans to offer nearly $770 million to help the fragile democratic government in Lebanon, Secretary of State Condoleezza Rice said Wednesday, a day after deadly protests in Beirut offered fresh evidence of deep political and sectarian divisions.
The donation, which must be approved by Congress, would include $220 million in military aid for the beleaguered Western-backed government of Prime Minister Fuad Saniora. The money could buy small arms, ammunition, spare parts and Humvees, U.S. officials said.

Lebanon remained tense Wednesday, a day after Hezbollah-led protesters clashed with government supporters across the country, killing three. What had been planned as a peaceful work-stoppage around the country turned into the worst violence since Shiite Hezbollah militants and their allies launched a campaign two months ago to oust the government.

"What you saw yesterday was irresponsible in the violence that erupted," Rice told reporters traveling with her to a 35-nation conference meant to help Lebanon recover from the summer war between Israel and Hezbollah and make a dent in its huge national debt.

The street protests and violence underscore the world's duty to help the democratic government survive in Lebanon, Rice said.

Saniora will also attend the donors' session in Paris, proof that he will not be intimidated by political opponents at home, Rice said.

Although the Saniora government is warmer to the United States than any Beirut government in two decades, he has paid a cost in criticism that he is a puppet of Washington.

Rice will meet privately with Saniora on Thursday, patching up a relationship strained by Saniora's frustration that it took 34 days to get a United Nations cease-fire in the Israeli-Hezbollah war.

The United States was widely viewed as sanctioning Israel's desire to do as much damage to Hezbollah as possible before the campaign stopped last August. The war wasted towns in southern Lebanon, destroying bridges and roads and other structures that neither Hezbollah nor the Beirut government have been able to replace quickly.

Hezbollah, backed by Iran and allied with Syria, is a military and political organization that controlled much of southern Lebanon before the war. The United States considers the group a terrorist organization. Its popularity among many of Lebanon's majority Shiites rose after the war, but the extent of its political clout is uncertain.

Rice did not directly answer a question about whether Tuesday's demonstrations reveal that Hezbollah is strong enough to bring down Saniora. His collapse could re-ignite civil war in a nation of 4 million that has traditionally been a Middle East battleground.

"I assume they would not want to plunge Lebanon into open conflict and to kill lots of innocent Lebanese to pursue their political goals," she said.

The United States and other Western nations that support Saniora see crucial stakes in Lebanon, hoping the country can emerge from years of war as an oasis of stability in the Middle East without interference from countries like Syria or Iran.

The Paris session is expected to bring in pledges of about $5 billion. The government estimates its needs at about $3.5 billion to repair buildings and infrastructure damaged in the summer war. Lebanon owes a staggering $40 billion, some of it dating to the 1970s and the country's long and bitter civil war.

The U.S. money would more than triple last year's pledge of $230 million, and represents a major increase over past years' annual offerings of $30 million to $40 million.

The largest chunk of that money would be a $250 million cash reserve to be meted out as the Lebanese government meets targets for financial and structural overhauls.

About $184 million would go to the U.N. peacekeeping force that is supposed to keep postwar order in southern Lebanon, and $60 million would support internal Lebanese security services.

It is not clear whether any of the money would directly fund efforts to disarm Hezbollah, something the United States insisted must be part of a settlement to end the war but which has never happened.

Lebanon aid pledges top $7.6 billion at Paris III
Thursday, 25 January, 2007 @ 5:08 PM


Beirut & Paris - Lebanon won more than $7.6 billion on Thursday to help it cope with a debt mountain and recover from war -- and, some donors hope, to help its democratically elected government weather a growing threat from pro-Syrian Hezbollah-led opponents.



Saudi Arabia headed the list of donors with a promise of $1.1 billion of development aid and grants, the United States pledged $770 million and the Arab Monetary Fund and World Bank offered funding of around $700 million apiece.

"The total sum collected for Lebanon amounts to a little more than $7.6 billion," French President Jacques Chirac told the conference after around 40 countries and organizations outlined their funding plans at the one-day meeting.

"I'm overjoyed by this," he added to loud applause.

Lebanon is still struggling to rebuild after its 1975-1990 civil war and is weighed down by $40 billion of debt, equal to 180 percent of gross domestic product.

War between Israel and Shi'ite Hezbollah guerrillas last year left much of the country's infrastructure bombed and many Shi'ite villages and districts wrecked.

The conference comes amid new political violence in Lebanon. An opposition student was shot dead at a Beirut university on Thursday, bringing to at least six the death toll in clashes this week during a general strike called by the Hezbollah-led opposition in an effort to oust the government.

"The people of Lebanon deserve to live in peace. They deserve to make decisions about their political future free from the threat of violence and free from political intimidation," U.S. Secretary of State Condoleezza Rice told the conference.

"The United States is dedicated to this task. We will help to defend democracy in Lebanon."
Hezbollah has accused Prime Minister Fouad Siniora of being in the pocket of the West and Lebanon's pro-opposition al-Akhbar daily said on Thursday the Paris conference was designed to help the government, not the country.

But donor countries stressed they were making funds available for the whole country and Siniora dismissed suggestions that his administration was the sole beneficiary.

"This conference, and the results, are for all the Lebanese," he said. "This is going to extend over a number of years and the benefit is going to accrue to all Lebanese governments, ultimately to all the Lebanese.

COST OF WAR

"After Israel's onslaught on our country we are now on the edge of a deep recession," Siniora told delegates, adding that his government would stand firm against the Hezbollah-led protests and try to enact a planned financial reform.

Hezbollah is funded by Shi'ite Iran and has promised to provide its own financial aid to the war victims. Western and Arab leaders are anxious to show the Lebanese people that they have deeper pockets and are not about to abandon the country.

The amount pledged on Thursday exceeded by over 80 % the $4.2 billion offered at a previous donors' conference for Lebanon in Paris in 2002. On that occasion the United States refused to make any firm commitments, in stark contrast to 2006.

"We will help to defend democracy in Lebanon," Rice told the meeting.

Full details of the various aid packages were not immediately available and it was not clear how many of the pledges were loans, grants or gifts.

Some donors are likely to link their aid offers to Siniora 's ability to push through the potentially unpopular reform package unveiled this month, which includes plans for privatizations, cutting state spending and hiking taxes.

"Even in times of great despair our determination has never diminished. We have faith in the people of Lebanon," Siniora said.

Sources: Reuters, Ya Libnan

source: http://yalibnan.com/site/archives/2007/01/update_lebanon.php

Thanks for all those who donated and God bless Jacque Chirac for all his efforts in making this happen. If this conference did not take place we would have been in big trouble as 3 billions from our debt are due this year.

^^ well said Lirtain, thank God for Jaques Chirac, Vive la France!

you all realise if that self-proclaimed "socialist" woman wins the french elections, there will be no more Chirac??? Her policy will shift to support the arabs/lebanon less in favour of Israel. What do people in Beirut think of her?

^^ Again you have gone out of subject.

By what you suggest, I have to understand that you are not happy with the aid that Lebanon got yesterday. Shame!

you all realise if that self-proclaimed "socialist" woman wins the french elections, there will be no more Chirac??? Her policy will shift to support the arabs/lebanon less in favour of Israel. What do people in Beirut think of her?

No matter what France will always love Lebanon.

No matter what France will always love Lebanon.

I'm afraid not my friend, it's all about politics.

Austraarabian is actually right in what he is saying. Chirac is up against some conservative opponents who will not have the same positive and friendly attitude towards Lebanon and the rest of the Arab world.

Remember that Chirac's friendly attitude towards Lebanon is also largely do to the very close friendship and relations he had with Rafic Hariri and other Lebanese politicians.

These conservative runner-ups do not have this political friendships and relations. Some in fact are very anti-immigrant as well.

i hope the money won't go into the politician's pockets and villas !!

you all realise if that self-proclaimed "socialist" woman wins the french elections, there will be no more Chirac??? Her policy will shift to support the arabs/lebanon less in favour of Israel. What do people in Beirut think of her?

where did this guy come from ! omg

Microsoft joins Cisco & Intel in Lebanon Partnership
Friday, 26 January, 2007 @ 9:36 PM


Prime Minister Siniora, Secretary Rice and selected business leaders met at Paris III to build a more promising future for the people of Lebanon. There, they discussed the crucial role of public-private partnerships in helping to rebuild Lebanon for a better future through expanding the reach of education and workforce training, job creation and building technology infrastructure.

Four of the business leaders, Craig Barrett, Chairman, Intel Corporation; John Chambers, Chairman and CEO, Cisco Systems, Inc.; Yousif Ghafari, Chairman, GHAFARI, Inc.; and Dr. Ray Irani, Chairman, President and CEO, Occidental Petroleum Corporation, formed the U.S.-Lebanon Partnership in September, at the request of United States President George W. Bush.

Additionally, Microsoft CEO Steve Ballmer was introduced as a new member of the Lebanon Partnership leadership group today.

"Lebanon faces real and substantial challenges in the wake of the recent conflict, with damages to homes, schools and other critical infrastructure costing billions of dollars. The U.S.-Lebanon Partnership is a great friend to the people of Lebanon, and a leader in the effort to marshal international support for the rebuilding efforts. We will continue to work with the leaders of the Partnership to find a more stable and prosperous future for the Lebanese people," said Fouad Siniora, Prime Minister of Lebanon.

"The United States is deeply concerned about the people of Lebanon and is committed to finding enduring solutions for the challenges they face," said U.S. Secretary of State Condoleezza Rice. "The U.S.-Lebanon Partnership is making important progress towards that goal, helping to lay the foundation for sustained economic growth and long-term stability."

Today, the Partnership announced initiatives in five key areas critical to creating sustainable economic growth in the region, which include crisis relief and response, information communication technology (ICT) infrastructure, workforce training, job creation/private sector revival and connected government.

Crisis Relief and Response

The Partnership is working with proven non-governmental organizations (NGOs) in Lebanon to help address the immediate needs of adequate housing, education and worker training. Today, the Partnership announced a series of steps being taken by the NGOs which are funded by the Partnership, including:

* Habitat for Humanity (HFH) will assist approximately 50 families to repair damaged homes and will establish a new Habitat Resource Center to help with ongoing disaster response programs, directly and indirectly helping more than 3,500 people.

* The United Nations Children's Fund (UNICEF) will accelerate efforts to return normalcy to children and families, with a focus on improving health and nutrition, child protection and education. As part of this, UNICEF will rehabilitate 10 schools in southern Lebanon, relying in part on youth volunteers brought in from affected areas and across the country.

* American Near East Refugee Aid (ANERA) will distribute Partnership funds among 10 southern Lebanese community-based organizations to link the neediest populations to educational and worker training materials through ICT.

* Mercy Corps will rehabilitate 10 schools, expand their extra-curricular offerings, provide IT access and computer training and encourage school engagement among parents and other community members.

ICT Infrastructure

Currently, Lebanon is burdened by a nascent and inefficient ICT infrastructure. The Partnership has pledged to support development of an International Gateway and an Internet Exchange Point to Lebanon which will help develop Lebanon's economy by enabling open communications in a competitive environment. This support may include donation of equipment, training and consulting. The International Gateway will offer improved international Internet connectivity for Lebanon, and the Internet Exchange Point will strengthen local infrastructure to stimulate local economic development. This project has the potential to improve the speed and efficiency of Internet traffic flow throughout Lebanon and help decrease costs.

Assistance also will be made available to the Lebanese Telecommunications Regulatory Authority in establishing an enabling environment for ICT in Lebanon that can promote innovation, investment and infrastructure development.

Workforce Training

Sustainable economic growth in Lebanon requires a skilled workforce and businesses built to compete in a global marketplace. The Partnership is working to identify and place 500 Lebanese interns in Lebanon and the United States over the next three years. Members of the Partnership have initially committed to placing 115 interns within their own companies.

In addition, Cisco has pledged to double the number of its Networking Academies in Lebanon. The Networking Academy program prepares students for IT jobs through a combination of online, e-learning curriculum and hands-on lab work.

Job Creation / Private Sector Revival

Growing Lebanon's private sector is the linchpin to creating jobs for the Lebanese people. Over the past two months, the Partnership has conducted extensive outreach and worked with local stakeholders to identify private sector projects that could be accelerated through injection of capital and joint ventures with companies worldwide. The result of this outreach is an initial list of more than 100 promising projects in six key industries - technology, tourism, banking and finance, agribusiness, health care and manufacturing - which will contribute to job creation in Lebanon.

The project acceleration phase will start in mid-February, and the Partnership will work with the United States Chamber of Commerce, Overseas Private Investment Corporation and the Near East Consulting Group to create joint ventures between Lebanese businesses and compatible foreign business partners and provide needed funding and insurance incentives. This will be done with the help of key Lebanese business development organizations including Kafalat, IDAL and the AmCham.

Connected Government

Technology has an increasingly important role to play in the delivery of government and social services to the Lebanese people. For this reason, the Partnership will enable on-line community access in Lebanon by providing on-line access points that offer social resources such as job training, healthcare information, on-line education, global resources such as on-line libraries and other rich media content and government services to Lebanese citizens.

"Microsoft has been working with Lebanon's government and NGOs for years, collaborating on education projects, on efforts to expand technology access, and on e-government solutions," said Steve Ballmer, Microsoft CEO. "So we're pleased to be involved in the U.S.-Lebanon Partnership Fund. This builds on our ongoing efforts to help foster stability and promote development across the Middle East."

Microsoft supports access to technology and IT skills training for schools and communities through its flagship citizenship programs Unlimited Potential and Partners in Learning. In Lebanon, Microsoft works to help students, orphans, elderly and people with disabilities, and to help small and medium businesses thrive.

"Lebanon will only be rebuilt through actions focused on improving the educational and economic infrastructure," said Craig Barrett, Chairman, Intel Corporation. "The first $1 million in grants from the U.S.-Lebanon Partnership Fund will enhance the existing relief efforts. By collaborating with proven NGOs, our goal is to accelerate meeting the immediate needs of adequate housing, education and worker training."

"Only occasionally do you have an opportunity to make a difference in a person's life, much less in a community. Through this partnership, we have a chance to make a difference in a country and perhaps even a region," said John Chambers, Chairman and CEO, Cisco. "After visiting Lebanon, I have seen first-hand the serious challenges facing the country. Through the efforts of this Partnership, we can make a meaningful contribution not just for rebuilding Lebanon but to help position the country for leadership in the future. Through the unique combination of public-private partnerships and the support of the global community, together we can accomplish what none of us can do alone. We cannot underestimate the challenges associated with this endeavor, nor can we afford to ignore the great needs facing this country and all of its citizens. The time to act is now."

"It is my personal goal to help Lebanon return to the country I knew growing up," said Yousif Ghafari, Chairman, GHAFARI, Inc. "Lebanon used to be called the Switzerland or the Paris of the Middle East, there was commerce and tourism: people of different religions lived as peaceful neighbors. We were hospitable and we were entrepreneurs and our small country welcomed the world to its sophisticated night life, its beaches and its mountain resorts. The world has changed, and Lebanon has lost its luster, but its people have not lost their will to live in peace, tolerance and prosperity. I firmly believe that with our human capital, outstanding educational institutions and the Lebanese entrepreneurship we once again can make Lebanon an example for the region where different faiths and cultures can live together in peace and harmony, an oasis of tolerance and prosperity in a volatile and increasing intolerant region of the world. We cannot lose this generation to ignorance, lack of economic opportunity and a loss of hope, if we do, we have lost Lebanon. We cannot have peace without the hope of a future for the young people, they have no comfort in the memory of Lebanon as it was, they need education and opportunity and they will make a new Lebanon. The Lebanon they make, however, is up to us, they can move to the light, or they can move to the darkness of religious and cultural intolerance, and blind and violent hatred of all things Western. They can work for peace, or make war; my wish, and the reason I am participating in this effort, is to work for peace. Every small step toward peace is a step away from war."

"There has never been a more important time for the American people to show their support and generosity to those in need in Lebanon," said Dr. Ray Irani, Chairman, President and CEO of Occidental Petroleum Corporation. "I continue, along with Occidental, to very actively support a wide range of educational, health care and charitable organizations throughout the Arab Middle East, including Lebanon. It remains my hope that the work of the U.S.-Lebanon Partnership, coupled with the important contributions of numerous other non-governmental organizations throughout the United States and across the globe, can assist Lebanon in achieving a more rapid recovery and help in promoting lasting peace and stability in the region."

Interview with Cisco CEO John Chambers

What is the U.S.-Lebanon Partnership?

John Chambers: In September I had the privilege of participating in a presidential delegation of American businesses that was asked to visit Lebanon. We went there to listen, learn and develop a joint action plan. We saw the goodness of the Lebanese people and the traits they have in common with our own people such as family, faith, resilience and optimism. What became obvious was that no one group could achieve this on its own. Through public-private partnerships along with non-governmental organizations (NGOs) and the global community, together, we can accomplish what none of us could do alone. We are calling upon citizens and the global business community to share their financial resources and expertise with the Lebanese people to contribute to a safe, stable and prosperous nation.

The call to action is clear: the door to hope is now open for Lebanon, but to cross that threshold, the effort will require the power of public-private partnerships. I, along with three fellow American business leaders-Craig Barrett, chairman of Intel, Yousif Ghafari, chairman of Ghafari Inc., and Dr. Ray Irani, chief executive of Occidental Petroleum-were asked by President George W. Bush to spearhead the U.S.-Lebanon Partnership. Our goal was to develop a joint action plan to help make a difference in Lebanon and for the Lebanese people.

Most recently, Steve Ballmer, Microsoft's chief executive officer, joined our group. Together, we look forward to contributing to the stability, economic recovery, and job creation opportunities in Lebanon. We encourage other businesses to join our effort by visiting www.lebanonpartnership.org.

How will the U.S.-Lebanon Partnership help Lebanon?

John Chambers: While we can't underestimate the challenges associated with this endeavor, we also cannot afford to ignore the great needs facing this country. Our hope is that economic recovery will help return stability to Lebanon. Public-private partnerships can help spur this recovery by assisting with education, job training, business development, and technology infrastructure. The Partnership aims to create greater support from the business community and leverage its financial, technical and entrepreneurial expertise.

Since we visited Lebanon, the Partnership has been working with the U.S. and Lebanese governments, local businesses and NGOs to assess the situation and identify where help is needed most. From this, we have developed initiatives in five key areas critical to sustaining economic growth in the region. These areas include: crisis relief and response, information communication technology infrastructure, workforce training, job creation/private sector revival and connected government.

One example of how we are helping is in the area of crisis relief and response. The Partnership is working with NGOs in Lebanon to help address the immediate needs for adequate housing, education and worker training. Habitat for Humanity will help close to fifty families repair damaged homes. UNICEF will rehabilitate ten schools in southern Lebanon. Mercy Corps will also rehabilitate ten schools expanding their extracurricular offerings providing IT access and computer training. ANERA will distribute partnership funds among ten southern Lebanese community-based organizations to link the neediest populations to education and worker training materials. These efforts will help address the immediate needs of adequate housing, education and worker training.

What specifically is Cisco contributing?

John Chambers: Cisco is making a $20 million commitment to this effort. For example, we are contributing to job creation through $10 million in venture funding and the creation of internships. We are also helping to establish community centers in Lebanon by providing the information communication technology (ICT) infrastructure. In addition, we are donating two Cisco TelePresence systems to the government of Lebanon to help facilitate communications and collaboration within the country. And we are more than doubling our Networking Academies in Lebanon to forty-four with the goal of reaching 2,500 students.

Beyond Lebanon, what do you believe should be the role of businesses as members of the world community?

John Chambers: Today's global businesses are in a unique position to help improve the future of Lebanon. I also believe that there is an opportunity to create a successful model that can be replicated in other areas of the world. By applying the combined resources and expertise of businesses, our efforts can be much more effective than if we acted alone.

Cisco has also announced plans to donate its TelePresence technology to countries in the Middle East. What is the goal of this effort?

John Chambers: Cisco has announced that it will present two Cisco TelePresence systems each to the governments of five nations in the emerging markets, including Egypt, Jordan, Lebanon, Turkey and the United Arab Emirates. In an increasingly global world, communications and collaboration will become even more important not only for people and companies, but countries as well. Cisco TelePresence has introduced an entirely new way to communicate and collaborate and the adoption of this technology by these countries illustrates the role ICT can play for countries in the emerging markets to leap frog existing infrastructures. We believe that the implementation of leading edge technology such as TelePresence in each of these countries will help foster greater interaction within both the countries and the region, presenting new ways to enhance the lives and opportunities for their citizens.

For more information about the partnership and contributing to the effort, visit www.lebanonpartnership.org

Source: Cisco Newsroom

source: http://yalibnan.com/site/archives/2007/01/microsoft_joins.php

World Bank Grants Lebanon 100 Million Dollars

The World Bank on Friday granted more than 100 million dollars for economic reforms which Lebanon pledged to introduce at a donor conference in Paris last January.

Finance Minister Jihad Azur signed the agreements on social, energy and financial reforms with Daniela Gressani, a World Bank vice president for the Middle East and North Africa.

A loan of 100 million dollars is to be allocated to Lebanon's energy sector, another one million used for social reforms and 338,000 dollars are to go to the finance ministry, according to an official statement.

The World Bank promised a total of one billion dollars in aid to Lebanon at the January 25 conference in the French capital, while the European Investment Bank pledged 1.25 billion dollars.

Lebanon received pledges of 7.6 billion dollars from the international community at the conference following the devastating Israel-Hizbullah war of July-August 2006 that caused an estimated 3.6 billion dollars in damages.

Lebanese Prime Minister Fouad Saniora announced earlier on Friday that the European Union has granted 74 million euros (100 million dollars) to finance six projects for reconstruction and economic reform.
The aid will help cover reconstruction and economic reform programs in areas most affected by the war, European Union Ambassador Patrick Laurent said.

Lebanon has a huge public debt which ballooned to 41 billion dollars -- more than 180 percent of gross domestic product -- after the Israeli war.

The Western-backed Beirut government has mapped out a five-year economic reform plan that includes a two percent rise in value-added tax (VAT) to 12 percent from 2008 and privatizing the electricity and mobile telephone sectors.(AFP-Naharnet)



Beirut, 07 Sep 07, 19:05

EU Grants Lebanon 100 Million Dollars


The European Union has granted 74 million euros (100 million dollars) to finance six projects for reconstruction and economic reform in Lebanon, Prime Minister Fouad Saniora said Friday.

The EU aid was part of the 7.6 billion dollars pledged by international donors at a Paris conference in January to help the country recover from the massive destruction inflicted during last year's war with Israel.

"The grant will help Lebanon carry out its economic reform program. It is part of the assistance pledged at the Paris III conference," Saniora told a news conference.

The aid will help cover reconstruction and economic reform programs in areas most affected by the war, EU ambassador Patrick Laurent told the joint news conference.

The European Union and its member states vowed to provide 40 percent of the grants and soft loans promised at the Paris conference, with much of the assistance granted on condition that Lebanon carry out much-needed reforms.

Israel staged a massive 34-day assault on the country after Lebanon's Shiite militant group Hizbullah captured two Israeli soldiers in a cross-border attack on July 12, 2006.
The air, sea and ground offensive caused immediate material damage estimated at 3.6 billion dollars in a country plagued by deep political and economic crisis.
Lebanon has a huge public debt which ballooned to 41 billion dollars -- more than 180 percent of gross domestic product -- after the Israeli war.

The Western-backed Beirut government has mapped out a five-year economic reform plan that includes a two percent rise in value-added tax (VAT) to 12 percent from 2008 and privatizing the electricity and mobile telephone sectors.(AFP)



Beirut, 07 Sep 07, 19:19