Lebanon has appointed a local auditing company, Abousleiman & Co, to conduct the first audit in a decade of the country’s collapsing state electricity company, Energy Minister Walid Fayad said on Friday.
The audit is a requirement from the World Bank to unlock two loans estimated to be worth $600 million in total for Lebanon to import gas from Egypt and electricity from Jordan, both via Syria.
This would enable national electricity company Electricite du Liban to increase its output from roughly two to eight hours a day. State infrastructure has nearly collapsed amid the country’s three-year old economic crisis, its worst to date.
“The bids were evaluated in close co-ordination with the World Bank and this company won,” Mr Fayad told The National, referring to Abousleiman & Co, which is one of the Finance Ministry’s pre-qualified auditors.
EDL initiated the tender in December. Three months later, roughly 10 companies had been privately invited to apply, Mr Fayad told The National.
The firm’s managing director, Wissam Abousleiman, said that it won the bid “less than two months ago”. He added: “We are waiting to hear back from EDL about the signature of the loan from the World Bank. Parliament then needs to approve the contract between the Lebanese government and the World Bank before we can commence the audit."
The audit is one of many steps requested by the World Bank to boost productivity at EDL, which has contributed to as much as $43 billion in the country's $93bn national debt, according to a 2021 report led by the American University of Beirut.
Sources in the energy sector say that the only two power plants left operating supply less than 10 per cent of local demand. They are currently running on gas oil imported from Iraq under a special deal that enables Lebanon to pay Iraq with money that is deposited at Lebanon’s central bank.
Iraq can only spend those funds in Lebanon. This is in order to work around Lebanon’s collapsing banking sector.
Mr Fayad’s regional power deal has been marred by delays. He had previously said that he hoped that Egypt would start exporting gas to Lebanon before a May 15 parliamentary election.
Lebanon needs to work on making its power sector sustainable for the first time since the end of its 1975-1990 civil war. But geopolitical considerations have further complicated the deal.
Both the Egyptian gas and the Jordanian electricity must be transported through Syria, with which Lebanon shares its longest land border. Working with Damascus exposes individuals or businesses to sanctions under the 2019 Caesar Act.
Waiting for a 'final formal clearance'
The US has repeatedly said that it would make an exception to this sanction framework to allow Lebanon to benefit from a few hours more power a day. Syria is to receive only in-kind payment for transit services, not cash, so as to not trigger sanctions.
US special envoy for energy affairs Amos Hochstein told the Senate Foreign Relations Committee on Thursday: “We have given [Lebanon] some comfort and pre-clearance to, based on the information we had, to move ahead [and waive] the sanctions, but I want to be clear that that will be determined when the contracts are signed.
“They did in fact give a 'clearance in principle' which is still pending until they analyse the contracts and also the funding terms of the World Bank in order to then issue a 'final formal clearance,' Mr Fayad confirmed to The National.
It remains unclear why the contract with Egypt, which is expected to be implemented before the one with Jordan, has not moved forward. Mr Fayad did not answer follow-up questions and the World Bank did not answer a request for comment.
Mr Fayad said earlier this week that “politics and bureaucracy” explained delays. “The World Bank will be providing the finances and it is putting more conditions,” he said, without elaborating on the conditions.
Marc Ayoub, of the American University of Beirut’s Issam Fares Institute for Public Policy and International Affairs, said that he believed that the fate of the deal was indirectly linked to Lebanon’s long-term maritime border dispute with Israel.
The dispute is also mediated by Mr Hochstein, who is expected in Beirut in the coming days. Tensions between Lebanon and Israel flared up recently with the arrival of a vessel in disputed waters. This led to rebukes from Lebanon’s President Michel Aoun and also from Hezbollah leader Hassan Nasrallah.
“It’s not about audits, or financing. All the technicalities have been accomplished,” said Mr Ayoub. “It’s all about an energy package, in my opinion.”
Company%20profile
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if you go
The flights
Etihad and Emirates fly direct to Kolkata from Dh1,504 and Dh1,450 return including taxes, respectively. The flight takes four hours 30 minutes outbound and 5 hours 30 minute returning.
The trains
Numerous trains link Kolkata and Murshidabad but the daily early morning Hazarduari Express (3’ 52”) is the fastest and most convenient; this service also stops in Plassey. The return train departs Murshidabad late afternoon. Though just about feasible as a day trip, staying overnight is recommended.
The hotels
Mursidabad’s hotels are less than modest but Berhampore, 11km south, offers more accommodation and facilities (and the Hazarduari Express also pauses here). Try Hotel The Fame, with an array of rooms from doubles at Rs1,596/Dh90 to a ‘grand presidential suite’ at Rs7,854/Dh443.
Red Sparrow
Dir: Francis Lawrence
Starring: Jennifer Lawrence, Joel Egerton, Charlotte Rampling, Jeremy Irons
Three stars
More from Neighbourhood Watch:
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Essentials
The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes.
The activities: A half-day Silfra snorkelling trip costs 14,990 Icelandic kronur (Dh544) with Dive.is. Inside the Volcano also takes half a day and costs 42,000 kronur (Dh1,524). The Jokulsarlon small-boat cruise lasts about an hour and costs 9,800 kronur (Dh356). Into the Glacier costs 19,500 kronur (Dh708). It lasts three to four hours.
The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com
The Dark Blue Winter Overcoat & Other Stories From the North
Edited and Introduced by Sjón and Ted Hodgkinson
Pushkin Press
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
FIXTURES
All games 6pm UAE on Sunday:
Arsenal v Watford
Burnley v Brighton
Chelsea v Wolves
Crystal Palace v Tottenham
Everton v Bournemouth
Leicester v Man United
Man City v Norwich
Newcastle v Liverpool
Southampton v Sheffield United
West Ham v Aston Villa
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