BUS Distribution (EBRD-50357)

Countries
  • Lebanon
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 28, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
BUTEC Utility Services
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 13, 2019

Disclosed by Bank Oct 11, 2018


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Project Description

According to bank documents, the project involves a senior corporate loan of up to USD 20 million to BUTEC Utility Services, a private electricity distribution services company incorporated in Lebanon. The EBRD loan will be used to finance part of the 2018-2021 capital investment programme to be undertaken by the company as per its contract with Electricite du Liban (EdL), the Lebanese state-owned utility company.

Furthermore, the Bank's proceeds will partly finance the Company's investments towards

  1. smartmeters deployment with the goal of installing smart meters with all of the Company's consumers (520k) and
  2. upgrade of the distribution network. This is expected to reduce technical and commercial losses from their current level of 25% to 10-13%.

The Project will improve the Resilience of the Lebanese electricity sector through improving the reliability and efficiency of the distribution grid. The network upgrades and roll-out of smart meters are expected to reduce non-technical losses, improve load shedding management, and increase collection rates. In addition, the Project will improve the economic Inclusion of women in the Lebanese energy sector and close gender gaps in this traditionally very male dominated sector by strengthening Equal Opportunities in the Company's HR policies.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors
Contact Information

Joumana Najm
jnajm@bus.com.lb
+961 1 512 333
www.bus.com.lb 

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.