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Vol. 1983/00 25 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben. 
COMMISSION  OF THE  EUROPEAN  COMMUNITIES 
COM(83)  69 final. 
Brussels,  10 February  1983. 
COMMUNICATION FROM THE COMMISSION TO THE  COUNCIL 
AND TO  THE  EUROPEAN  PARLIAMENT 
concerning  Community  aid for the  reconstruction  of Lebanon 
OM(83)  69 final. 

COMMUNICATION  FROM  THE  COMMISSION  TO THE  COUNCIL 
AND TO THE  EUROPEAN  PARLIAMENT 
concerning  Community aid for the reconstruction of Lebanon 
Since  the invasion of Lebanon by Israeli troops in June 1982 the European 
Community has expressed its intention of aiding in the reconstruction of 
that  country on several  occasions,  and notably in the conclusions of the 
European  Councils of 28/29 June and of 3/4 December 1982, as well as in the 
statement published after the meeting of Foreign Ministers of the Ten on 
20 September 1982. In making this commitment the Ten reaffirmed their  soli­
darity  with  a friendly country whose stability was seriously threatened. 
Mr. Edgard  Pisani,  Member of the Commission in charge of Development, went 
to Lebanon in December 1982 to examine the needs of the country and 
identify actions which the Community might take. Amongst a number of 
projects, the Lebanese authorities put forward an urgent project, ready 
for external financing of approximately 20 million ECU, and consisting of 
the pumping and piping of drinking water for the town of Beirut. 
Because  of the urgency of the probLem of water for Beirut, aggravated 
by the delays resulting from the war, the Lebanese authorities cannot long 
delay  the realisation of this project, for which there exists to our 
knowledge no other possibility of external financing; they have therefore 
placed  their hope in a contribution from the Community. 
If the Community wishes to make a political gesture in favour of Lebanon 
as it is committed to do, and particularly if through "his gesture the 
Community wishes to contribute to the stabilisation of Lebanon, it is 
clear  that  an action must be chosen which can be realised quickly. 
An immediate intervention by the Community would be all the more significant 

2.-
politically when other countries and institutions hesitate to invest 
in the country. The urgency of the action proposed therefore stems above 
all from the political objective which is sought. 
As for the project itself, it seems particularly appropriate for 
reconstruction aid. Not only will its realisation help to satisfy the 
water requirements of the population of Beirut, but it will also 
help to reduce the risk of pollution of the distribution system 
resulting from the interruption of supply, as is currently the  case  in 
Beirut. A  further  advantage of this project is  that  it is situated 
in an area where Community participation should not encounter political 
problems and should bring benefits to all  without  confessional distinction. 
If therefore an intervention is required which has the maximum political 
impact, it is necessary for urgent decisions to be taken as much for the 
financing of the project as for the means of execution. 
With regard to financing, endowment of the new line 952  "Special  Aid to 
Lebanon"  should be considered through a transfer to be reimbursed in the 
course  of the 1983 budget year. A transfer proposal is attached at annex I. 
In fact , there is scarely an alternative. 
Use of the exceptional European Investment Bank loan of 50 million ECU 
for this project seems entirely Inappropriate. The loan consists of 
funds supplied at market rates,  without  interest subsidies, and therefore 
too burdensome for this type of action which will not be directly income-
producing. 
Nor is use of the funds of the new financial protocol of the  EEC/Lebanon 
Agreement desirable. These credits, apart from being insufficient in 
that  they are limited to 11 million ECU in grants for the next five years, 
are already programmed for other projects. 

Furthermore, the funds of the new financial protocol were not allocated 
as special aid to Lebanon but were accorded on the same basis as the 
funds envisaged in the financial protocols concluded in parallel  with 
the other countries of the Southern Mediterranean. 
In consequence, use of these credits, as  with  use of those of the EIB, 
would result in the Community proposal losing all political impact since 
it would merely be a question of utilising  differently  already existing 
credits and not of providing supplementary credits. 
With regard to the execution of the project, urgent decisions are also 
needed  -The financial contribution of the European Community to the 
project would cover the equipment and  work  listed below  : 
pumping equipment 1 557 000  ECU 
pumping station buildings 1 968 000  ECU 
ductile iron pipes 386 000  ECU 
construction of reservoirs 1 636 000  ECU 
laying of pipes 13 064 000  ECU 
18 611 000  ECU 
contingencies  (7.5 %) 1 389 000  ECU 
Total 20 000 000  ECU 
The Lebanese contribution  (+ 15  million ECU) would consist of the supply 
of asbestos- cement pipes  (_+ 35  km), expropriations, and the rehabilitation 
of the roadways affected. 
In connexion  with  the  part  of the project for the Community, urgent 
decisions  are needed on the means of execution. For the two lots for 
electro-mechanical  pumping equipment and for ductile iron pipes,the 
procedure would be an international call for tenders open to all Community 

4.-
and Lebanese firms  with  a time-Limit for proposals in the order of 
two months. 
For the two lots for pumping station buildings and reservoirs, the 
procedure would be a call for tenders by accelerated procedure open to 
all civil works firms of the EEC and Lebanon. 
For the lot for laying the pipes, the procedure would be a restricted 
call  for tenders open to firms in the country,  with  preselection if the 
Lebanese  authorities so wish, and simultaneous opening of the bids of 
the preselected firms in the presence of the Delegate of the Commission of 
the European Communities or of his representative so  that  the most 
economically advantageous offer  might  be  chosen. 
In sum,  with  regard to procedures, it would be a project more ressembling 
an emergency aid action tha n a project to be put  into  effect in the 
framework of the financial Protocol funds  . 
In conclusion, the Commission recommends the Council  : 
- to give its agreement as quickly as possible to the financing of the 
water supply project to the sum of  20  million ECU; 
- to approve the means of execution indicated in this communication. 
The Commission  asks  the budgetary  authority  to make its position known 
as quickly as possible on the request for the transfer of credits which 
will  be submitted very shortly and which is annexed to the present 
communication for information. 

Annex  I 
Transfer of appropriations n° 
(Non compulsory expenditure) 
From  chapter 93 : Cooperation  with  non associated developing countries 
Article 930 : Financial and technical cooperation  with  non associated 
developing countries 
CE : 20.000.000 ECU 
CP : 20.000.000 ECU 
To chapter 95 : Exceptional measures to assist developing and other 
non-member countries 
Article 952 :  Special  aid to Lebanon 20.000.000 ECU 
(non  differentiated 
appropriations) 
The financial controller approved  this  proposal on February 1983 
in accordance  with  article 21 (4) of the Financial Regulation and 
certified  that  the appropriations are available. 

Grounds 
1. By  amendment  n° 580, the  European Parliament introduced  a new ar-
ticLe  952 :  Special  aid to  Lebanon,  with  a token entry,  in the 1983 
draft  budget, thus creating  the  necessary framework  for the  financing 
of reconstruction  aid in  Lebanon. This amendment  was not  modified  by 
the Council  at its  second reading  of the  draft  budget  ; this  new  article 
therefore appears  in the 1983  budget. 
2. The  political  and  economic reasons  for  transferring appropriations  to 
this line  are  given  in the  Commission communication  to the  Council 
concerning  Community aid for the  reconstruction  of  Lebanon.  It is 
also  mentioned therein  that  the  amount  to be  transferred  (i.e 20 Mio ECU) 
represents the cost of a  water-supply project  to be  carried  out in 
Beyrouth. 
3. As far as the  origin  of the  credits  is  concerned,  the  Commission's  pro-
posal  is to  take  the  amounts required from article  930 :  Financial  and 
technical  Cooperation  with  non  associated developing  countries,  which  is 
the only  budget line  within  title  IX,  with  the  exception  of the  food 
aid chapter,  to  have enough credits  to be  able  to  bear such  an  important 
deduction  at the  beginning  of the  budget year. 
4. It should  be  possible  to  implement  the  credits thus transferred  to 
article  952  over  a two-year  period.  The  Commission suggeststherefore 
that  these  20 Mio ECU  should  be non  differentiated appropriations. 
To this end, it is  necessary  to deduct  20 Mio  ECU both from  the  conr 
mitment appropriations  and  from  the  payment appropriations  bf  article 
930. 
5. It is the  Commission's view  that  the  principle  of  granting  a special 
aid to  lebanon  was agreed by the  budgetary authority  and  that  it 
should  not  involve  a net reduction of the Overall  amount  of  credits 
which isjve  alrcady  been  allocated  to  development  Cooperation for the 
1983  budget year.  As a  consequence  the  deduction  to be  made from 
article 930 can  only  be  provisional  and the sum of 20  million  ECU  should 
be reinstated  on  Article  930  before  the end of the  budget year. 

Annex  II 
TECHNICAL  NOTE 
Benefi  ciary 
count ry Republic  of Lebanon. 
Project  title Beirut Water Supply. 
Estimated  cost 
of the project 20 M ECU. 
Proj ect 
definition The provision of water supply facilities for the  con­
veyance  of water from wells at Damour, Mershref and 
Naameh  to the town of Beirut. 
Nature,  descrip­
tion and object­
ives of the 
project Beirut, the capital of Lebanon, is estimated to have a 
current population of about one million; a more precise 
calculation has not been possible, due to recent events. 
That figure does not include the population of the outer 
suburbs  (about 400 000). 
The town is supplied  with  water principally by a gallery-
canal  which carries water from the  "Amel"  spring  (this 
project was set up in 1870). 
When  water quantities reaching the town are low, due to 
draw off for irrigation purposes (which can take up to 
50 %), the supplies have to be made up from wells. 
Several  private wells among those situated  within  the 
town limits supply water which, even today, is 
non potable. 
The needs of the town at the present time are estimated 
at between 300 000 and 400 000 m^/day, depending on the 
seasons.  Current production is 250 000 m3/day in winter 
and 167 000 m^/day in summer. 
The war caused major damage to the water distribution 
system;  at the end of the conflict,  losses  were estimated 
at about 70 X. 

2. 
As a result of German aid and continuous action by 
Lebanese  technical teams, these  losses  have been reduced 
to about 50 %. However, even though additional involvement 
is foreseen from  Italian  aid, and even if improvements 
should  be made day by day, it is unlikely  that  losses 
will be reduced to reasonable quantities, since the net­
work, which in certain sectors was constructed at the 
beginning  of the century, is in a state of decay. 
Hence,  the World Bank has financed, for about 3 M ECU, a 
study  for the renewal of the distribution network, ex­
tensions  to the suburbs  (year  2000  horizon) and for the 
reorganization of the Beirut Water Office (B.W.O.). This 
study  has been awarded to a French firm of consultants. 
B.W.O . 
The Water Office is responsible for the management of 
all matters concerning  water  distribution. It has 500 em­
ployees,  of which 200 are qualified techni  ca I staf f, 200 are 
the labour force and 100 the administrative staff. The 
organization is reasonably  well  managed and carries out 
its own collection of  water  charges. 
Gross  receipts for the past five years (in b L) : 
1978 1979  1980  1981 1982 
12 444 660 18 556 693 23 167 377 22 502 246 32 396 650 
Consumer  contracts, the first year's cost of which is 
about 2 000 t L, are of two types : either a pre-judged 
quantity  (fixed  lump sum price), or the actual consumption 
(by meter).  The current price of  water  is 1 b L/m^. This 
unit price is standard for both types of contract; there 
is no varying scale of charges. Standpipes do not exist. 
Currently the B.W.O. maintains daily distribution of  water 
for about 12 hours in  winter  and 5 to 6 hours in summer. 
Framework of 
the project The Lebanese Administration, in order to improve distrib­
ution,  has carried out studies to find new sources of 
water  supply. 
While waiting to be able to implement a supply system  that 
will include a dam to be situated some 50 km south-east 
of Beirut ~ which  will  meet needs to the year  2000  - 11 
wells have, since the start of 1980's, been constructed 
about 20 km south of the capital in the zones of Damour, 
Mershref and Naameh. These wells have an average depth 
of 100 rn and a combined delivery of 435 l/sec, i.e. 
about 35 000 m^/day. 

3. 
-* —— —• —— . 
The wells  will be equipped  with electric  pumps  and the 
water will be stored in reservoirs placed a  sufficient­
ly high level to provide the  head necessary to  convey 
the water by pipeline to the reservoirs at Beirut, the 
total capacity of  which is about 96 000  m^. The  water 
will be distributed  from these reservoirs either by 
gravity  or pumping. 
The connecting of Beirut to the wells by  means of the 
pipelines  will increase the  availability  of water by 
about 20 % during the  seasons  when at present there is 
too little  water and will, at the same time, permit  10 
hours of distribution  each day. 
DetaiLs of the 
project and cost 
estimation The financial  contribution of the  European  Community, 
comprising the present project, covers the following 
equipment  and works : supply of ductile iron pipes and 
associated  equipment,  construction of  pumping  stations 
and reservoirs and the laying of  asbestos-cement  pipes. 
The Lebanese  contribution  will concern the supply of 
asbestos-cement  pipes (about  35 km, of  which a part  will 
make provision for future extensions), land acquisition 
and the re-making  of roads and tracks. 
The European  Community's  contribution  amounts  to 20 M 
ECU, which  is based on the following estimation of 
costs : 
- pumping equipment  1 557 000  ECU 
- pumping  station buildings  1 968 000  ECU 
- ductile iron pipes  386 000  ECU 
- construction of reservoirs  1 636 000  ECU 
- laying of pipes  13 064 000  ECU 
18 611 000  ECU 
- contingencies  (7.5 %) 1 389 000  ECU 
total : 20 000 000  ECU 
The Lebanon  Government  contribution  - for the two  compo­
nents with which it will be concerned  - will be about 
15 M ECU. 
Means of im­
plementation For the two  lots, electro-mechanical  equipment  for pump­
ing and ductile-iron pipes, there  will be an internatio­
nal call  for tenders  open to all  companies  of the  E.E„C. 
and Lebanon,  with a tendering period of  about two months. 

4. 
For the two Lots,  pumping  station buildings and construc­
tion of reservoirs, there  will be a restricted  call for 
tenders by accelerated  procedure  open to contractors of 
the E.E.C.  and Lebanon. 
For the lot comprising the laying of pipes, there  will be 
a restricted  call for tenders  open to companies  that are 
in the Country,  with preselection  - if the Lebanese  Au­
thorities  so wish - where the opening  of the offers of 
the pre-selected  companies  will take place in the pre­
sence of the Delegate of the  Commission  of the  European 
Communities  or his representative in order to  ensure 
that the  most economical offer is retained. \ 
J 
SpeciaL 
conditions 1 
1 
! 
The Lebanese  Government  undertakes  to : i 
1) provide the financing for the two  lots for which it 
is responsible (supply of  asbestos-cement  pipes, land  ! 
acquisition  and the  re-making  of roads and tracks); 
2) to bear any excess expenditure  which  may be incurred 
during the course of the project implementation.