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USAID/Lebanon 

Operational Plan 

FY 2006 

June 12, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: Revolutionary yet destabilizing events marked Lebanon this 

year beginning with the assassination of former Prime Minister Rafiqi which led to mass demonstrations 

that ended the 30-year Syrian presence in Lebanon. As a result, the country is in a transition phase on its 

path towards freedom and democracy, a path that is filled with obstacles and challenges. Fifteen 

bombings, including seven political assassinations and attempts targeting key intellectual and political 

figures from opposition factions, shook and shocked the country. In addition, the economic situation 

continues to be unfavorable. Public debt continues to accumulate, having reached $37.7 billion. This is 

leading the government to dedicate more than 70% of its public revenues to pay interests on the debt 

instead of financing public services. Tourism has dropped by 13.4% since last year and the rate of 

immigration and unemployment increased to 20%. The judicial and security system, which lacks 

transparency and autonomy, and the inefficient public sector institutions are further contributing to 

instability and tension. As the Government of Lebanon (GOL) is continuously distracted from 

environmental protection issues, environmental abuses continue unabated. 

The USAID program addresses the security, economic, political, and environmental challenges prevalent 

in the country by promoting democratic principles and free economies through investing in the people. It 

is helping the people of Lebanon by improving their standard of living, protecting their environment and 

health, building their local and judicial institutions, addressing their legal rights as citizens, and responding 

to their humanitarian needs. 

USAID attempts to improve living standards and address economic stagnation by: 

- Revitalizing and expanding economic opportunities in rural areas, focusing on three key productive and 

growth-oriented sectors that comprise 35% of Lebanon’s gross domestic product (GDP): agro-industry, 

Information and Communication Technology, and tourism. 

- Promoting World Trade Organization (WTO) accession to encourage trade and investment, 

globalization, and broad-based policy and legislative reform. 

- Strengthening American educational institutions through provision of assistance for scholarships. 

- Providing humanitarian and economic assistance to indigenous groups to support their programs. 

To address the problems of environmental degradation, water resources scarcity, and lack of proper 

management of water resources, USAID attempts to improve environmental policies and practices 

through: 

- Promoting appropriate waste management practices that attempt to solve major sanitation problems and 

create awareness among the people about the need for environmental protection. 

- Developing measures for efficient water management and a strategy for tariff restructuring and private 

sector participation in the water sector to make agriculture more productive and ensure that water pricing 

is efficient and equitable. The program is providing a unique contribution to the development of this 

sector that no other donor is tackling. 

Addressing political deadlocks and weaknesses, USAID attempts to strengthen democratic institutions 

through promoting good governance and transparent practices at the municipal and grass roots civil 

society levels. 

As a result of the accelerating political events, GOL commitment to USAID activities dropped from 

previous years. The interests and attention of major public counterparts shifted from development 

concerns towards the more vital and pressing stability and security concerns. This situation led to delays 

in some activities and suspension of others at the policy level. However, despite these major challenges, 

USAID was able to achieve significant results by adopting a unique approach compared to other donor 

programs in the country. Assistance has been expanded all over Lebanon. It is channeled directly to the 

Lebanon's small communities and responds to those needs. It is based on partnerships and fund 

matching for the purpose of long-term viability and sustainability. It is implemented through a consortium 

of partnerships that pull together the diversified skills and experience of the private and public sector, 

academic institutions, and local and international non-governmental organizations. Though not the 

largest donor, USAID has the most impact on the ground. 

This year USAID succeeded in the direct creation of over 5,000 new jobs in rural areas. These were 
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achieved through the provision of $6.27million worth of small loans to small enterprise operations in rural 

areas. For engaging in rural tourism activities, establishing agro-industrial production cooperatives, and 

introducing crop improvement techniques, 4,690 individuals received loans. Specifically, USAID 

programs resulted in the increase of total agricultural production in Lebanon by $3.6 million. The program 

support helped increase the size of agricultural exports by $5 million, mainly to the Gulf States, the United 

States and Europe. In addition, USAID assistance succeeded in reviving rural tourism, a sector that was 

dormant for decades as result of continuous instabilities. More than 130,000 tourists visited rural areas in 

targeted growth poles including the south. USAID contributed to significant developments in the ICT 

sector. It succeeded in establishing Lebanon as a regional ICT center and improved Information 

Technology (IT) access to a total of 16,500 users in 34 centers throughout rural Lebanon. With USAID 

support, ICT companies participated in specialized trade shows and generated $400 million in production, 

contributing 12% growth in GDP. 

As an indication of the successful water tariff restructuring and water pricing models developed for the 

South Lebanon Water and Wastewater Establishment (SLWWE), USAID started this year replicating 

them at the Beirut and Mount Lebanon Water Establishment - the largest. Also with the new models, 

SLWWE was able to reduce the level of unaccounted for water from 50% in 2003 to 46.6% in 2004. 

Collection rate and cost recovery increased from 68% in 2003 to 74% in 2004 (FY2005 results will appear 

in January 2006, following the close of Lebanon’s 2005 financial year). At another level, USAID 

developed six investment options for water quality management and pollution remediation at the Litani 

River Basin and identified seven areas for implementing waste water treatment plants. With designs 

developed for all systems, USAID will start construction of two in FY 2006. 

Utilizing the systems and procedures developed under the municipal development program, 

municipalities are now able to collect taxes in an efficient, consistent, and legal manner with opportunities 

for tax evasion and corruption minimized. For the first time in decades, municipalities have begun to 

identify neglected and unaccounted for revenues such as billboard advertising or unregistered rental 

contracts. This has resulted in expanded revenues that can be used to provide infrastructure and 

services to the community. Directly-collected revenue in a sample of 412 municipalities increased by 

15% from $36 million in 2003 to $41.3 million in 2004 (official revenue data is generally available within 

six months of the end of the calendar year). In Beirut Municipality, total revenue increased by 47% from 

$40.3 million in 2003 to $59.9 million in 2004. Also, as an indication of positive impact of the program, 

results of a survey conducted on 500 people in one large Municipality showed that municipal efficiency 

rose from 18% (prior to 2004) to 36% in 2005. 

In brief, USAID activities are all interlinked and built to achieve the goal of improving the lives of the 

Lebanese people. Municipalities that are adopting transparent and democratic procedures are increasing 

their revenues and are better prepared to serve their communities by investing more in community 

development work. In response, people are more encouraged to invest in their communities and hence 

will tend to migrate less to urban areas. At another level, improved environmental practices and healthier 

surroundings are significant driving factors for economic prosperity in rural communities. 

Women and disadvantaged groups' empowerment is a major concern that USAID is addressing in a 

unique manner. Through its landmines and war victims assistance program, a total of 172 landmine and 

war survivors (including 54 women) have become engaged in productive enterprises and are rebuilding 

their lives. Their annual income increased by more than $200 per month. Through the women’s 

agriculture production cooperatives, more than 500 rural women have been trained in proper production 

and marketing of local agricultural products, leading to an average increase in income of $300 per month. 

USAID in Lebanon is advocating the use of ICT across the board in all sectors of assistance. ICT can 

facilitate economic growth, stimulate investment, create jobs, improve lives and businesses, as well as 

provide rapid mechanisms for people to share information. In FY 2005, USAID improved ICT access to 

more than 16,500 users in rural areas. Furthermore, USAID is advocating the use of ICT to promote other 

sectors of the industry through the development of 16 IT applications, including a website on the olive oil 

sector and a virtual agricultural market to link farmers and processors. IT software applications are also 

adopted in the municipal assistance program to ensure transparency and proper local governance. The 
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Lebanon Water Policy Program also uses IT systems at the Water Establishments to ensure efficiency of 

operations. Assistance in Lebanon's WTO accession also includes an IT component that targets the 

issues of Intellectual Property Rights and e-government laws. 

 

The Professional Training Program is another activity that has an impact across all of USAID's programs. 

It seeks to build the knowledge base and capacities of Lebanese professionals by exposing them to 

international experiences and practices in specific fields. This year a total of 46 individuals from the 

private and public sectors participated in training programs and conferences taking place in Lebanon and 

abroad. 
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FY 2006 Program 

SO: 268-001 Expanded Economic Opportunity 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($600,000 ESF; $600,000 ESF Prior Year 

Unobligated). USAID funding is being used to provide more than 400 high school students, over two 

years, with scholarship assistance at two American educational institutions. The International College and 

the American Community School is benefiting from this component. 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($4,400,000 ESF; $6,500,000 ESF Prior Year Unobligated). 

USAID funds are supporting innovative ideas that promote the tourism and ICT sectors with the purpose 

of reducing rural migration by creating job opportunities within their communities. To attract more tourists, 

USAID is funding the implementation of a National Road Map initiative, improving the quality of 25 

cottage inns in rural areas, training 75 professionals in the tourism workforce, supporting the 

establishment of 15 new bed and breakfast inns, and helping 50 owners of guest houses access credit 

facilities. To strengthen the ICT sector, the program is promoting ICT exports, establishing three computer 

centers in rural areas, increasing the competitiveness of rural businesses through ICT, creating 12 

wireless internet service provider (WISP) businesses, assisting 30 non-governmental organizations 

(NGOs), training 250 individuals, and facilitating the subscription of 1,000 individuals to WISP businesses. 

Principal Implementers: Stanford Research Institute (SRI) International, American Near East Refugee Aid, 

International Executive Service Corps, and ECODIT. 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($16,800,000 ESF; $10,553,544 ESF Prior Year Unobligated). 

USAID is creating jobs and increasing incomes in rural areas by developing competitive farming systems 

and value-added products, and by facilitating access to niche markets. Three agro-processing pilot plants 

and two women-owned/managed food production centers are expected to increase export of niche 

Lebanese products by $1.6 million. USAID is also establishing six rural business development centers, 

assisting 36 small and medium enterprises to double their income, creating 1,200 new jobs, and providing 

credit for more than 300 agri-businesses. USAID plans to increase sales of agricultural products by 66% 

in the olive, olive oil, pine nut, forage, and honey production sectors. The program is targeting 1,000 

farmers per year, establishing 10 breeding and feed service centers, benefiting more than 2,000 farmers 

from organic agri-business development, and marketing $600,000 of organic produce. Twenty-five olive 

mills are being rehabilitated, and 100 fishermen in southern Lebanon are improving their profitability. 

USAID is also supporting food producers and food industry syndicates to access international markets 

and thus increase agricultural exports by an estimated $2.5 million. Principal Implementers: Agricultural 

Cooperative Development International/Volunteers in Overseas Cooperative Assistance, Cooperative 

Housing Foundation, Mercy Corps, SRI International, and World Vision. 

Increase Capacity of Higher Education to Contribute to Development 

Increase Capacity of Higher Education to Contribute to Development ($5,400,000 ESF; $3,400,000 ESF 

Prior Year Unobligated). USAID funds are providing more than 1,700 university students with scholarship 

assistance over two years to attend two American educational institutions. In addition to the scholarship 

recipients, American University of Beirut and Lebanese American University are also benefiting from this 

program. 

Protect and Increase the Assets and Livelihoods of the Poor 
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Protect and Increase the Assets and Livelihoods of the Poor ($400,000 ESF; $500,000 DA Prior Year 

Unobligated; $166,456 ESF Prior Year Unobligated). USAID is supporting 25 local NGOs in their 

humanitarian assistance and development programs aimed at improving the lives of more than 6,000 

people. Under the landmine/war victims’ assistance program, USAID is including one additional incomegenerating activity (dairy production) and adding 80 new beneficiaries to the Jezzine Resource 

Development Cooperative. Principal Implementer: To Be Determined. 

FY 2007 Program 

SO: 268-001 Expanded Economic Opportunity 

Achieve Equitable Access to Quality Basic Education 

This objective will close in FY 2006. FY 2007 funds and activities from this objective are notified under 

Strategic Objective 268-XXX as part of the new strategy for FY 2007-2009. 

FY 2006 Program 

SO: 268-002 Strengthened Foundations for Governance 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce Through Vocational/Technical Education ($100,000 ESF). As a crosscutting 

theme affecting all USAID objectives, the Professional Training Program (PTP) aims at building the 

knowledge base and capacities of Lebanese professionals by exposing them to international experiences 

in specific fields. PTP serves male and female professionals from both the private and public sectors and 

is a valuable vehicle to strengthening bridges between the Lebanese and American cultures. PTP is 

continuing to provide appropriate and efficient training to relevant participants from all sectors of 

Lebanese society. Fifteen trainees are being sent to the United States and 10 trainees are being sent to 

the Middle East North Africa region, and three training programs are being organized in Lebanon in 2006. 

Principal Implementer: America-Mideast Educational and Training Services (AMIDEAST)/Lebanon. 

Promote And Support Anti-Corruption Reforms 

Promote And Support Anti-Corruption Reforms ($900,000 ESF). Through the Transparency and 

Accountability Grant program, USAID is continuing to strengthen civil society. USAID is funding activities 

that empower local civic associations to play a constructive role in advocating change and enhancing 

transparency, accountability, and good governance in Lebanon. Funds are supporting a minimum of 25 

grants in FY 2006. Principal Implementer: AMIDEAST/Lebanon. 

Promote Effective and Democratic Governance of the Security Sector 

Promote Effective and Democratic Governance of the Security Sector ($1,000,000 ESF Prior Year 

Unobligated). To bolster the Government of Lebanon's (GOL) ability to investigate, counter, and deter an 

ongoing campaign of destabilization, which takes the form of bombings and assassinations, USAID funds 

are being transferred to the U.S. Department of State under the Section 632(a) mechanism to support 

Federal Bureau of Investigation training in crime scene management and post-blast investigations for 

security and law enforcement personnel. Two new Lebanese "evidence response teams" are being 

formed. The program will also be helping the GOL acquire state-of-the-art equipment for reliable forensic 

analysis, fingerprinting, DNA, and chemical analysis. This activity is still under development and indicators 

and results have not yet been developed. Principal Implementer: To Be Determined. 

Support Democratic Local Government & Decentralization 
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Support Democratic Local Government and Decentralization ($6,000,000 ESF; $3,000,000 ESF Prior 

Year Unobligated). USAID is continuing to build on the progress made in the previous year to further 

institutionalize municipal standards and procedures, increase transparency and accountability in 

operations, expand the municipal revenue base, strengthen the role of local government in economic 

development, and facilitate greater citizen participation in decision making. Two hundred municipalities 

are issuing automated annual financial statements. Tax revenues are expected to increase by at least 

10% from FY 2005. Protocols are being developed to allow electronic sharing of data with the 

Government Accounting Office. Four thousand municipal employees are receiving training. Twenty-two 

municipal unions are improving their administrative and financial capabilities, of which five will be using 

standardized budgeting procedures. Surveys are being conducted in seven municipalities to measure 

citizen satisfaction. Revenue is anticipated to increase by 10% compared to the previous year by 

installing the Municipal Geographic Information Systems in 10 large municipalities. The twinning of cities 

is continuing, and policy dialogue trips are being organized between Lebanese municipal officials and 

their U.S. counterparts to facilitate joint projects between them. Five municipal laws, decrees, and orders 

are being issued/amended to enhance the role of municipalities. Principal Implementer: State University 

of New York/Albany-Center for Legislative Development. 

USAID plans to use proposed funding for implementation of activities to address key rule of law problems: 

legitimacy, order, and security. Activities may include: supporting the judicial system in order to make it 

independent from political interference; enhancing the system of court administration to render it more 

transparent, accessible, and efficient; building a culture of respect for the rule of law through awareness 

and civic education; and initiating professional education targeted at judges. 

 

A U.S. House Democracy Assistance Committee team will visit Lebanon in March 2006 to assess the 

possibility of a cooperative assistance program between the U.S. House of Representatives and the 

Lebanese Parliament. USAID will provide technical assistance to the GOL-appointed election commission 

to review all proposed electoral laws. 

FY 2007 Program 

SO: 268-002 Strengthened Foundations for Governance 

Strengthen Civil Society 

This objective will close in FY 2006. Funds and activities from this objective are notified under Strategic 

Objective 268-YYY as part of the new strategy for FY 2007-2009. 

FY 2006 Program 

SO: 268-005 Improved Environmental Policies and Practices 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources and Biodiversity ($900,000 ESF). Funds are 

being used to expand activities under the Lebanon Water Policy Program for an additional year with 

specific focus on two targeted water establishments: South Lebanon Water Establishment (SLWE) and 

Beirut and Mount Lebanon Water Establishment (BMLWE). The program is starting to implement the 

different tariff scenarios developed for South Lebanon by selecting a pilot area for the installation of water 

consumption meters. This activity is accompanied by extensive training of water establishment staff on 

tariff monitoring and bill collection. USAID is introducing awareness campaigns on the new concept of 

water meters. The program is continuing to assist the SLWE staff on a daily basis to ensure proper use of 

the newly installed Financial and Accounting System (FAS). Also, the program plans to develop a new 

FAS for the BMLWE. By the end of the program, the goal is to have reformed two water establishments to 

become independent financial entities, able to attract the private sector, and create a clear vision of 

Public Private Partnerships (PPP) among decision makers to support the adoption of the proposed tariff 

strategy and tariff structures. This will lead to an increase in the collection rate and cost recovery from 

68% in 2003 to 87% in 2006 and a drop in the amounts of unaccounted water from 52% in 2003 to 45% 

in 2006. Principal Implementers: To Be Determined. 
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Reduce, Prevent & Mitigate Pollution 

Reduce, Prevent and Mitigate Pollution ($4,100,000 ESF; $3,500,000 ESF Prior Year Unobligated). 

USAID is continuing the existing waste management program in Lebanon's rural communities by 

conducting an assessment of a proposed Operation and Management Plan (O&M). Wastewater 

treatment plants that were previously constructed and facing operational difficulties are benefiting from 

the O&M and helping to ensure their sustainability. Seven municipalities will be able to properly operate 

their wastewater treatment facilities, creating seven long-term jobs. Two wastewater treatment plants are 

being built at the upper Litani River Basin to benefit 32,000 people and treat 7,000 cubic meters of water 

per day. These plants are among the seven wastewater treatment systems designed for treating 22,000 

cubic meters of domestic wastewater at the upper Litani River Basin that serves approximately 101,000 

people, 29% of the upper Litani population. The plants are also contributing to the improved quality of 

around 5,800 hectares of land in the area. 

USAID is undertaking activities to strengthen the management capabilities of the two targeted 

municipalities and raise general awareness on proper waste disposal methods. Operation and 

maintenance programs are being initiated, targeting 50 municipal staff and community leaders. Principal 

Implementer: Camp, Dresser, and McKee. 

FY 2007 Program 

SO: 268-005 Improved Environmental Policies and Practices 

Improve Sustainable Management Of Natural Resources & Biodiversity 

This objective will close in FY 2006. Funds and activities from this objective are notified under Strategic 

Objective 268-ZZZ as part of the new strategy for FY 2007-2009. 

FY 2006 Program 

SO: 268-XXX Strengthening Democracy through Economic Freedom 

Achieve Equitable Access to Quality Basic Education 

This objective is new in FY 2007 and builds on the activities under SO 268-001 that will close in FY 2006. 

FY 2007 Program 

SO: 268-XXX Strengthening Democracy through Economic Freedom 

Achieve Equitable Access to Quality Basic Education 

Achieve Equitable Access to Quality Basic Education ($300,000 ESF). Funds will be used to provide 

more than 200 high school students with scholarship assistance at American educational institutions. 

Principal Implementer: To Be Determined (TBD). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($4,500,000 ESF). USAID plans to reinforce the economic and 

social foundations of democracy through a number of activities targeting selected private sectors, namely 

ICT, tourism, and physical infrastructure construction. Funds will be used to develop sustainable tourism 

activities to improve the living standards of rural communities and reinforce geographical expansion of 

tourism through niche markets. The ICT sector yields numerous opportunities for development, including 

potential for employment, reducing the cost of bandwidth, software development, and telecommunications 

infrastructure. Principal Implementer: TBD. 
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Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($6,900,000 ESF). USAID plans to create jobs and increase 

incomes by assisting agri-businesses with the production and marketing of specialty agricultural products 

locally and for export. New USAID programs under this component will take into consideration previous 

experience and build on past successes and lessons learned and will continue to focus on agri-business 

small and medium enterprise development, niche food processing, and support for subsistence producers 

as part of a social safety net. Principal Implementer: TBD. 

Increase Capacity of Higher Education to Contribute to Development 

Increase Capacity of Higher Education to Contribute to Development ($3,700,000 ESF). USAID funding 

will provide more than 850 university students with scholarship assistance at American educational 

institutions. Without USAID's assistance, these students would not be able to have access to Americanstyle education. Principal Implementer: TBD. 

Protect and Increase the Assets and Livelihoods of the Poor 

Protect and Increase the Assets and Livelihoods of the Poor ($100,000 ESF). The amount of $100,000 

might be used to provide small grants to support local non-governmental organizations in their 

humanitarian and development projects. Principal Implementer: TBD. 

FY 2006 Program 

SO: 268-YYY Enhancing Rule of Law and Political Will 

Strengthen Civil Society 

This objective is new in FY 2007 and builds on the activities under SO 268-002 that will close in FY 2006. 

FY 2007 Program 

SO: 268-YYY Enhancing Rule of Law and Political Will 

Improve Quality of Workforce through Vocational/Technical Education 

Improve Quality of Workforce through Vocational/Technical Education ($100,000 ESF). Funds will be 

used to continue providing appropriate, efficient, and effective training to relevant professionals from all 

sectors of the Lebanese society. The Professional Training Program aims to build the knowledge base 

and capacities of Lebanese professionals from both private and public sectors by exposing them to 

international experiences and practices in their specific fields. It is expected that 15 trainees will be sent 

to training destinations in the United States, 10 will be sent to the Middle East North Africa region, and 

three training programs will be organized in Lebanon in 2007. Additional components and activities may 

be initiated. Principal Implementer: America-Mideast Educational and Training Services 

(AMIDEAST)/Lebanon. 

Promote And Support Anti-Corruption Reforms 

Promote and Support Anti-Corruption Reforms ($2,200,000 ESF). USAID plans to continue working on 

strengthening civil society through the Transparency and Accountability Grant (TAG). TAG empowers 

local civic associations to play a constructive role in advocating change and enhancing transparency, 

accountability, and good governance in Lebanon. With the additional funding, TAG will support 15 

projects. Principal Implementer: AMIDEAST/Lebanon. 
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Assistance will also be provided to service providing government institutions in the executive branch, like 

the Ministry of Finance, and to watchdog agencies, like the Civil Service Board, the Court of Audit, and 

the Central Inspection Board, that have a major role to play in exercising oversight of public institutions. 

Principal Implementer: To Be Determined (TBD). 

Strengthen Civil Society 

Strengthen Civil Society ($1,000,000 ESF). USAID plans to increase its support to civil society 

organizations, particularly those that foster reform and debate on non-confessional, technical, economic, 

and social issues. Principal Implementer: TBD. 

Strengthen Democratic Political Parties 

Strengthen Democratic Political Parties ($200,000 ESF). USAID plans to build on programs currently 

funded by the U.S. Department of State’s Bureau of Democracy, Human Rights, and Labor and Middle 

East Partnership Initiative to support the development of a competitive and representative political 

framework and build capacity of political parties to effectively participate in this framework. USAID will 

also provide support to the independent electoral commission to represent a more competitive political life 

and a more reliable electoral process. Principal Implementer: TBD. 

Strengthen the Justice Sector 

Strengthen the Justice Sector ($3,000,000 ESF). USAID plans to use proposed funding for 

implementation of activities to address key rule of law problems: legitimacy, order, and security. 

Legitimacy will be addressed through the following activities: support of the judicial system in order to 

make it independent from political interference; enhancement of the system of court administration to 

render it more transparent, accessible, and efficient; building a culture of respect for the rule of law 

through awareness and civic education; and initiating professional education targeted at judges. Principal 

Implementer: TBD. 

Strengthen the Legislative Function/Legal Framework 

Strengthen Legislative Function/Legal Framework ($1,000,000 ESF). USAID plans to increase support to 

the legislature to enhance the ability of Parliament to exercise effective oversight of public administration 

and to legislate in areas critical to economic and political reform. Principal Implementer: TBD. 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($2,500,000 ESF). Though the municipal 

program will end in FY 2007, with a one-year optional extension, ongoing support will be provided to 

further the process of institutionalization and standardization of procedures for the municipalities. It is 

anticipated that an additional 200 municipalities will issue automated annual financial statements bringing 

the cumulative total to 700, 75% of total municipalities in Lebanon, and 1,000 municipal staff and officials 

will be trained. Municipal revenue expansion will remain a primary focus of efforts as a means to 

ultimately enable municipalities to provide better services to citizens. The Municipal Geographic 

Information System, a key component of this effort, will be installed in an additional 10 municipalities for a 

cumulative total of 20. Revenue is anticipated to increase approximately 10% compared to the previous 

year for a cumulative increase of 30% compared to the baseline of 2003. Communication with citizens 

and the quality of municipal services provided will continue to be enhanced. 

Within the aim of promoting decentralization and strengthening the role of municipal unions in 
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implementing regional plans, USAID plans to extend support to the 22 active municipal unions to further 

ensure that standardized procedures are institutionalized and that municipalities efficiently coordinate in 

regional planning. To ensure regional planning, an additional five municipal unions will be using 

standardized budgeting procedures by the end of 2007. Fifteen municipalities will be electronically 

audited by the control agencies, thus, allowing the control agencies to practice their audit objectives to 

ensure transparency and accountability. 

In support of improved administrative, financial, and legislative practices, exchange programs will 

continue to be organized for experts from the United States to Lebanon and for municipal officials and 

parliamentarians to visit the United States. Principal Implementer: State University of New York. 

FY 2006 Program 

SO: 268-ZZZ Improved Environmental Policies and Practices 

Improve Sustainable Management Of Natural Resources & Biodiversity 

This objective is new in FY 2007 and builds on the activities under SO 268-005 that will close in FY 2006. 

FY 2007 Program 

SO: 268-ZZZ Improved Environmental Policies and Practices 

Improve Sustainable Management Of Natural Resources & Biodiversity 

Improve Sustainable Management of Natural Resources and Biodiversity ($2,000,000 ESF). USAID plans 

to expand work under the water policy program aimed at strengthening regional water management units 

and improving water use efficiency by increasing cost recovery and decreasing the rate of unaccounted 

for water. USAID plans to achieve this goal by providing the needed financial and administrative tools to 

one additional water establishment, the Bekaa Water Establishment, and by establishing a reformed and 

unified financial and accounting system at the Beirut and Mount Lebanon Water Establishment. Principal 

Implementer: To Be Determined (TBD). 

Reduce, Prevent & Mitigate Pollution 

Reduce, Prevent and Mitigate Pollution ($8,000,000 ESF). USAID plans to use proposed funding to 

initiate activities aimed at alleviating pollution on the Litani watershed by focusing on the upper Litani 

basin. As the Litani River is the major outlet in the Bekaa Valley for domestic, industrial, and agriculture 

waste water, USAID intends to contribute to the reduction in the level of wastewater directly discharged 

into the river by addressing the sources of pollution. With initial funding, two additional wastewater 

treatment plants may be built and an assessment of the industrial waste discharged in the river and 

means to treat this waste may be conducted. In addition, USAID intends to initiate an agricultural 

extension program that aims at improving farming practices related to the extensive use of pesticides that 

are causing high concentrations of phosphorous in the underground waters and in the Litani River. 

Principal Implementer: TBD. 
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Results Framework 

268-001 Expanded Economic Opportunity 

Program Title: Economic Development 

 1.1: Improved Enabling Environment for Trade and Investment 

 1.2: Improved Competitiveness and Growth in Targeted Sectors (Agriculture, ICT and Tourism) 

 1.3: Increased Rural and Industry Cluster Opportunities 

 1.4: Enhanced Access to Credit 

 1.5: Increased Safety and Assistance in Landmines-Affected Areas 

268-002 Strengthened Foundations for Governance 

Program Title: Promoting Democracy and Good Governance 

 2.1: Improved Municipal Governance 

 2.2: Expanded Role of Civil Society Advocacy 

268-005 Improved Environmental Policies and Practices 

Program Title: Improved Environmental Policies and Practices 

 3.1: Increased Use of Appropriate Environmental Management Practices 

 3.2: Improved Participatory Approaches in Water Management 

 3.3: Increased Effectiveness of Water Authorities, Laws and Policies 

268-XXX Strengthening Democracy through Economic Freedom 

Program Title: Strengthening Democracy through Economic Freedom 

268-YYY Enhancing Rule of Law and Political Will 

Program Title: Enhancing Rule of Law and Political Will 

268-ZZZ Improved Environmental Policies and Practices 

Program Title: Improved Environmental Policies and Practices