Proposed International Bank for Reconstruction and Development (IBRD) Loan 

for the Water Supply Augmentation Project

Lebanon

September 30, 2014

The United States welcomes the proposed $474 million IBRD loan to the Republic of 

Lebanon for the Water Supply Augmentation Project, which is carefully designed to 

address critical water scarcity in the Greater Beirut/Mount Lebanon region in a 

responsible manner. The region is home to nearly half of the country’s population, and the 

sporadic supply of water, especially in the summer months, makes it difficult to operate a 

business and has a disproportionate impact on the poorest and most vulnerable, with some 

families spending 50 percent of their income on water. Moreover, the influx of refugees from 

neighboring Syria is further straining the already inadequate municipal infrastructure, 

compounding Lebanon’s water deficit. If successful, this project will strengthen Lebanon’s 

water resource management and significantly reduce the cost of securing water for households, 

directly benefiting over 400,000 poor residents. Women, in particular, should benefit because of 

the reduced time spent gathering and transporting water.

The United States appreciates the project’s extensive consultations and the fact that the 

information gained during the consultations was used to inform and improve project 

design. The United States also commends the commitment to continued citizen engagement, as 

evidenced by the benefit-sharing program for downstream residents, a grievance redress 

mechanism, and the inclusion of targets for citizen engagement in the results matrix. Given the 

importance of ongoing beneficiary feedback and citizen engagement to the effectiveness and 

sustainability of Bank operations, the United States hopes to see this approach replicated in 

future projects. 

The United States welcomes the comprehensive project preparation process. In particular, 

the United States commends the Bank and Lebanese authorities for undertaking a comprehensive 

environmental and social impact analysis and for publicly disclosing the results in time to allow 

for adequate public consultations. Further, the United States appreciates that the authorities 

carefully considered several dam and non-dam alternatives for improved water management

before concluding that construction of the Bisri Dam represented the best option. The United 

States is pleased that the project preparation included detailed hydrological and climate change 

modeling in the design phase, and that the authorities are putting in place multiple mitigation 

measures, including providing for environmental flows, water quality monitoring, biodiversity 

management and protection, construction of a sewerage network in the upper catchment villages 

to divert sewage from the reservoir, independent quarterly monitoring of ecological flows and 

the quarterly public disclosure of results in Arabic. Finally, the United States welcomes the 

inclusion of greenhouse gas emissions (GHG) considerations. 

As always, the United States urges strong monitoring and supervision by the Bank and 

government authorities. The United States notes that small-scale, project-related resettlement 

is likely to occur under this project, and would urge the timely and effective implementation of 
the resettlement action plan. Moreover, the United States expects the Bank and authorities to 

maintain their commitment to transparency by regularly publishing compliance findings with 

respect to the project’s environmental and social management plan. Finally, given the possibility 

of increased demands for water both upstream and downstream of the dam for irrigation, the 

United States asks the Bank to consider robust options (e.g., adjust releases or re-aeration) to 

maintain appropriate environmental flows.

Overall, this project demonstrates the benefits of conducting full and robust due diligence 

for a large and complex project well in advance of Board consideration, and of following 

best practices in the construction of large dams. Therefore, with the expectation that the Bank 

will continue to be vigilant throughout project implementation, the United States supports this 

important project.