Ministry of Public Works and Transportation under Aridi’s Tenure : USD 1 Billion Spent on Roads
But the matter may reach the brink of a scandal when the Lebanese realize that the billions of Lebanese pounds spent in the past few years were wasted on road maintenance works that were not put into action or that, in the best case scenarios, were partly implemented with little if any conformity to the proper technical standards, the roads thus reverting to their previous deplorable state in just a few weeks or months after the termination of works. This happens despite the supervision of the Ministry of Public Works and Transport over the execution of works or its entry into contracts with consultancy offices responsible for overseeing the projects but seemingly colluding with the companies in charge of the works.
In the few months prior to his resignation, Minister of Public Works and Transport Ghazi Aridi announced that the ministry failed to carry out any works due to shortage in funds. He noted that Lebanon’s roads would turn into lakes by the time winter approaches because his ministry was denied the amounts necessary to clean and open the sewers and drainage pipes, thus putting the blame on the Ministry of Finance. In response to Aridi’s claims, the Minister of Finance asserted that the funds were available at the Ministry of Public Works and Transport and that it was their fault to have spent most of the funds. News circulated that the sums squandered during Minister Ghazi Aridi’s term are the largest compared to all his predecessors.
The following figures will reveal the truth by exposing the exact amounts spent by the Ministry of Public Works and Transport.
Ministry’s Budget
The budget assigned to the Ministry of Public Works and Transport stood in 2000 at LBP 190.496 billion accounting for 2.23% of the total public expenditures. In 2012, the Ministry was allocated LBP 538.198 billion or 2.55% of the expenditures.
The following Table 1 illustrates the evolution of the Ministry of Public Works and Transport’s budget between 2000 and 2012 as well as its share of the total public expenditures. The Ministry’s budget increased by 182% while the public budget increased by 147%.
Evolution of the Ministry of Public Works and Transport’s budget (2000 -2012)
Table 1
Year
Total budget
of the MoPWT
(LBP billion)
Public budget
(LBP billion)
MoPWT’s share of the public budget (%)
2000
190.496
8,530
2.23
2001
286.795
9,900
2.89
2002
194.303
9,375
2.07
2003
140.794
8,600
1.63
2004
190.910
9,400
2.03
2005
167.332
10,000
1.67
2006
275.893
11,195
2.46
2007
174.185
11,840
1.47
2008
202.145
11,475
1.76
2009
260.780
16,304
1.59
2010
542.021
19,537
2.77
2011
500.672
19,826
2.52
2012
538.198
21,063
2.55
Source: Public budget laws between 2000 and 2005 and draft public budget laws between 2006 and 2012
Ghazi Aridi: Top Spender
The credits allocated to maintain and improve Lebanon’s roads differed from year to year soaring from LBP 101.9 billion in 2000 to LBP 420 billion in 2012, i.e. up by LBP 318 billion or 312% as illustrated in the following Table 2 and additional credits section.
A close examination of the tenures of all five ministers who have succeeded to office since 2000 reveals that the largest amounts were spent under Ghazi Aridi’s term either due to the rise in prices which dictated higher costs or to his being the longest serving minister.
Spending under Aridi’s tenure jumped up to LBP 1525.5 billion (around USD 1 billion), of which LBP 1,060 billion were assigned to the Ministry in the public budget and the remaining LBP 465.5 billion were granted in the form of additional credits. This translates into an average of LBP 300 billion (USD 199 million) annually.
The Ministry’s spending stood at LBP 310 billion or around LBP 103 billion (USD 68.3 million) annually when Mohammad Safadi was in office while it reached LBP 484 billion or around LBP 121 billion (USD 80.3 million) annually during the term of Najib Mikati.
Distribution of the credits assigned to construct and maintain diverse roads (2000 -2012) (Amounts in billions of LBP)
Table 2
Year
Road building
Maintenance of international roads
Maintenance of primary roads
Maintenance of secondary roads
Maintenance
of internal
roads
Maintenance of local roads
Total
Najib Mikati
2000
66.960 (of which 18.960 are spent upon MPs’ requests)
-
35
-
-
-
101.960
2001
87.760 (of which 18.960 are spent upon MPs’ requests)
2.5
59.3
3.5
7.5
1.5
162.06
2002
42.893 (of which 14.144 are spent upon MPs’ requests)
8,375
22.562
11.562
3.850
15.750
104.992
2003
33.9 (of which 12.8 are spent upon MPs’ requests)
6.375
14.562
6.562
50
(LBP million)
10.650
72.099
2004
32.4 (of which 12.8 are spent upon MPs’ requests)
8
47.7
11
2.050
18.950
120.1
Mohammad Safadi
2005
16.800 (of which 12.8 are spent upon MPs’ requests)
7
36.5
6
5.050
12.950
84.3
2006
9.950
11
34
11
5.050
18.950
89.950
2007
8
5
37
16
2.050
27.950
96
Ghazi Aridi
2008
12
5
55
18
50
(LBP million)
29.950
120
2009
20.300
21.700
70.1
22
150
(LBP million)
34.750
169
2010
21.954
35
62
37
78.5
62.5
296.95
2011
-
45
71.5
35
75
65
291.5
2012
-
50
84
43.5
61
64.5
303
Source: Public budget laws between 2000 and 2005 and draft public budget laws between 2006 and 2012
Additional Credits
Spending was not restricted to the amounts listed under certain clauses of the public budget, for additional credits were allocated from the budget reserves or as treasury advances in order to complete the works of building and maintenance. The additional credits totaled LBP 491 billion distributed according to the following years:
2012
Decree No. 8535 dated July 18, 2012 transferred LBP 177 billion from the budget reserves to the Ministry of Public Works and Transport. Of the transferred amount, LBP 117 billion were assigned for road maintenance as follows:
Maintenance of international roads: LBP 17 billion
Maintenance of primary roads: LBP 19 billion
Maintenance of secondary roads: LBP 19 billion
Maintenance of internal roads: LBP 31 billion
Maintenance of local roads: LBP 31 billion
2011
Decree No. 6737 dated October 28, 2011 granted the Ministry of Public Works and Transport a treasury advance of LBP 130 billion to award a concession for the rebuilding and maintenance of the road network in different Lebanese regions.
Decree No. 6971 dated November 25, 2011 granted the Ministry of Public Works and Transport a treasury advance of LBP 70 billion to fill the gap between previous and current credit allocations.
Decree No. 6972 dated November 25, 2011 granted the Ministry of Public Works and Transport a treasury advance of LBP 140 billion for the execution of road maintenance and rebuilding works through Requests for Proposals solicitation at around LBP 109 billion.
2010
Decree No. 4742 dated July 31, 2010 transferred LBP 750 million from the budget reserves to the Ministry of Public Works and Transport to remove the landslides that occurred on the routes leading to the Gibran Museum in Bsharri.
2009
Decree No. 1303 dated February 6, 2009 transferred credits totaling LBP 7.820 billion from the Council for Development and Construction to the Ministry of Public Works to build and maintain roads.
2008
Decree No. 1195 dated March 28, 2008 transferred LBP 500 million from the budget reserves to the Ministry of Public Works and Transport to maintain the Mansourieh road.
2007
Legally operative Decree No. 997 dated November 24, 2008 transferred LBP 1.950 billion from the budget reserves to the Ministry of Public Works and Transport to build a primary road in the town of Sfireh.
Legally operative Decree No. 738 dated September 20, 2007 transferred LBP 3 billion from the budget reserves to the Ministry of Public Works and Transport to maintain roads in the regions of Jbeil, Western Beqa’a- Rashaya and Baalbeck-Hermel.
2003
Decree No. 11076 dated October 3, 2003 transferred LBP 1 billion from the budget reserves to the Ministry of Public Works and Transport to maintain local roads in the Qada’a of Akkar.
Decree No. 10769 dated September 6, 2003 transferred LBP 2 billion from the budget reserves to the Ministry of Public Works and Transport to rehabilitate the Al-Qasr-Hermel road.
Decree No. 10525 dated July 25, 2003 transferred LBP 1 billion from the budget reserves to the Ministry of Public Works and Transport to maintain the local roads in Lebanon’s summer destinations.
2002
Decree No. 9133 dated November 29, 2002 transferred LBP 300 million from the budget reserves to the Ministry of Public Works and Transport to maintain local roads in the Qada’a of Akkar.
Decree No. 9037 dated November 6, 2002 transferred LBP 3.5 billion from the budget reserves to the Ministry of Public Works and Transport to rehabilitate the Tripoli-Seer-Huwara road in Dennieh.
Decree No. 7454 dated February 19, 2002 transferred LBP 1.982 billion from the budget reserves to the Ministry of Public Works and Transport to carry out urgent preparatory works for the Arab League that was held in Lebanon.
2001
Decree No. 6087 dated August 16, 2001 transferred LBP 3 billion from the budget reserves to the Ministry of Public Works and Transport to maintain the roads for the Francophone Summit in Beirut.
Decree No. 5983 dated July 30, 2001 transferred LBP 7.488 billion from the budget reserves to the Ministry of Public Works and Transport to carry out infrastructure works on the Zahrani-Tyre road towards Jouya and Tebnine.
Ministry of Public Works and Transport (2000- 2013)
Ghazi Aridi: Longest Serving Minister
The Ministry of Transport was introduced in April 1993 as a stand-alone entity. Later in August 2000, it was merged with the Ministry of Public Works under the name Ministry of Public Works and Transport. Unlike the case with different sovereign posts, this Ministry was never set aside for a certain political or sectarian group, although there is a clear tendency nowadays to make it an exclusive prerogative for the Druze. So far, Minister Ghazi Aridi has assumed the longest tenure- five years- as the head of the ministry. The ministers that succeeded to office at the Ministry of Public Works and Transport are:
Najib Mikati (Sunni) headed this post under two governments from October 26, 2000 until October 26, 2004, i.e. for four years.
Yassine Jaber (Shia’a) assumed office from October 26, 2004 until April 19, 2005, i.e. for 5 months and 24 days.
Adel Hamieh (Druze) took on ministerial responsibilities from April 19, 2005 until July 19, 2005, i.e. for 3 months.
Mohammad Safadi (Sunni) was minister from July 19, 2005 until November 7, 2008, i.e. for 3 years and 3 months and 19 days.
Ghazi Aridi served as Minister of Public Works and Transport in three successive governments from November 7, 2008 until his resignation on December 16, 2013, i.e. for five years and 1 month and 9 days. Minister Ahmad Karami took office as acting Minister of Public Works and Transport after Aridi.
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