2009年-世界发展银行全球_Lebanon_-_Social_Impact_Analysis_for_the_Electricity_and_Water_Sectors_3页_716kb

Lebanon: Social Impact Analysis for the Electricity and Water Sectors

Core Content

This document presents a social impact analysis of the electricity and water sectors in Lebanon, based on a report by the World Bank's Middle East and North Africa (MENA) Region's Social and Economic Development Group. It aims to evaluate the current state of service provision and the potential social consequences of upcoming reforms, with a focus on how different household categories, especially the poor, are affected.

Main Findings

Electricity Sector

• High dependence on informal generation: The electricity sector is heavily reliant on informal private generators, which operate outside of state supervision and contribute up to 30% of the country's electricity supply.
• Inadequate supply and rationing: Electricity supply is unevenly rationed, particularly outside Beirut, where long blackout hours affect households' ability to meet basic needs.
• Poor tariff structure: The current tariff system is regressive and does not protect the poor from future increases. The inverted tariff block subsidizes all households, making it ineffective in promoting equity.
• Limited consumer choice: Most households have no choice but to purchase electricity from private generator companies, which operate in the grey economy.
• High willingness to pay: Consumers are more willing to pay for improved electricity service due to its high cost and limited alternatives.

Water Sector

• Inadequate supply and quality: Water supply is constrained by infrastructure limitations, population density, and demand. Quality is a major concern, with health and socioeconomic impacts.
• Fixed fee system: The absence of metering leads to a fixed fee system, which does not reflect actual consumption and results in inefficiencies.
• Informal understanding: There is an informal agreement between water companies and households where companies do not pressure households to pay, and many households do not receive their full water allotment.
• Water expenditures: Expenditures by low-income households are in line with World Bank recommendations (3-5% of household budget), but reliance on alternative sources could reduce these costs.
• Need for quality improvement: Improving water quality and reducing losses would directly enhance welfare, even if cost reduction is not the top priority.

Key Recommendations

Electricity Sector

• Design a more effective tariff structure: Develop a progressive and transparent tariff system to ensure fair distribution of costs.
• Implement policy measures in sequence: Ensure that service improvements accompany tariff increases to avoid resistance from consumers.
• Reduce rationing: Especially in non-Beirut areas, to shift the burden from poor to non-poor households.
• Establish operating guidelines for the informal sector: Formalize private generator businesses to ensure consumer protection, tax collection, and technical standards.

Water Sector

• Invest in improving water quality: Address reliability and health risks through infrastructure and management improvements.
• Expand metering: Implement metering to align supply with demand and improve billing accuracy.
• Revise contractual agreements: Introduce meters and adjust tariffs to ensure fair revenue generation and service improvement.
• Strengthen bill collection mechanisms: Improve collection efficiency to increase revenues and ensure financial sustainability.

Conclusion

The report emphasizes the need for trust-building between the public utility sectors and consumers. It highlights that both sectors suffer from inadequate supply and high losses, but with different root causes and impacts. The electricity sector requires a focus on tariff reform and informal sector regulation, while the water sector needs improved quality and expanded metering. Both sectors require substantial investment in infrastructure, management, and human resources to achieve sustainable and equitable service delivery.

Key Information

• Document Title: Lebanon: Social Impact Analysis for the Electricity and Water Sectors
• Author(s): Sebnem Akkaya, Nils Junge, Wael Mansour
• Issued by: World Bank's MENA Region, Social and Economic Development Group
• Date: June 2009
• Quick Notes Series: A series of summaries of lessons learned from Bank Knowledge and Learning activities.

Contact Information

• Director, MNA Operational Core Services Unit: Emmanuel Mbi
• Manager, MNA Development Effectiveness Unit: David Steel
• Regional Quick Notes Team: Omer Karasapan, Roby Fields, Najat Yamouri, Aliya Jalloh
• Tel #: (202) 473 8177