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CDR after 40 years USD 11 billion of projects

CDR after 40 years USD 11 billion of projects

In 1977, after the election of Elias Sarkis as president and the formation of a new government under the leadership of Dr. Salim Hoss, officials wrongly believed that the Lebanese war was over. They decided to establish the Council for Development and Reconstruction (CDR) to rebuild what had been destroyed and to economically and socially jump-start Lebanon. 

What is the CDR? What are its role and tasks? What achievements and projects did it make? How much money did it spend? Did it fulfill its goal? 
 
Creation of CDR
The CDR was created by virtue of legislative decree No.5, dated Jan. 31, 1977, which describes it as “a public institution with financial and administrative autonomy and which is directly accountable to the Council of Ministers.” The decree also stipulates the abolishment of the Ministry of Public Planning.
 
Tasks 
•According to the decree, the council has many important and diverse tasks, including the following:
•Draft a general plan, subsequent plans and reconstruction and development programs, and propose economic, financial and social policies in tune with the general plan in the framework of specific development •goals that must be approved by the Council of Ministers. 
•Outline a draft budget to implement the general plan. 
•Propose reconstruction and development bills. 
•Outline a general guidance framework for civil regulation and get the approval of the Council of Ministers.
•Advise the Council of Ministers on economic and financial relations with states and bodies. 
•Prepare and promulgate statistics related to all aspects of economic and social activity.
•Request that all ministries, public institutions and municipalities prepare projects that conform to the general goals of reconstruction and development.  
•Provide suggestions for the formation, development and guidance of financial institutions and private/public companies involved with development. 
•CDR has the right to sign deals for domestic and external loans, which can also be in the form of bonds.  
•The government can sponsor CDR’s loans.
•CDR has the right to lend money to public institutions and municipalities. In 1983, the CDR was given the right to construct in every area affected by hostilities or natural disasters. 
 
Amendments 
The CDR’s founding law underwent many amendments, of which two are essential:
 
Amendment by virtue of Law No. 117 dated Dec. 7, 1991, which authorized the establishment of real estate companies (with the intention of establishing Solidere Company). 
Amendment by virtue of Law No. 247 dated Aug. 7, 2000 and amended by Law No. 295 dated April 3, 2001. The latter law stipulates expanding CDR’s role and merging it with Council for Development Projects and the Council of Greater Beirut Projects. However, this integration was only partially implemented as the CDR’s board of directors refused to incorporate the employees of both councils into the CDR.
 
Supervision over the CDR
Article 12 stipulates that the CDR is subject to the Audit Bureau’s supervision. 
 
Resources
CDR resources consist of: 
• Funds allocated from the public budget
• Loan contracts
• Financial transfers, taxes and fees
• Treasury loans  
 

CDR’s Management 
A board of directors consisting of 12 members maximum manages the council. The members are appointed by a decree issued by the Council of Ministers. They include a president, two vice presidents and a secretary-general, who together manage the CDR’s office. These members are full-time employees appointed for a five-year term. As for the part-time members, they are appointed for a three-year term. The council also has a government commission that follows up on its work. 

As customary, the president of CDR is a Sunni Muslim and its members are distributed among the other sects. Table No.1  below shows that the CDR has had eight boards of directors since its establishment. 

Table No.1: Management Office of CDR (1977-2016).

Date

President

Vice President

Vice President

Secretary-General

31-3-1977

Mohammad Atallah

Adel Khoury

Sabah El-Hajj

Joseph Sassine

10-9-1984

Malek Salem

Edward Debas

-

-

24-1-1991

Al-Fadel Ali Chalak

Boutros Antoine Labaki

Ibrahim Mohammad Mehdi Chamseddine

Nohad Georges Baroudi

10-6-1995

Nabil Adnan El-Jisr

Boutros Antoine Labaki

Ibrahim Mohammad Mehdi Chamseddine (He resigned in 1977 and was replaced by Yasser Berri)

Nohad Georges Baroudi

25-1-1999

Mahmoud Osman

Boutros Antoine Labaki

Yasser Berri

George Samaha

8-1-2002

Jamal Abdel Rahim Itani

Karim Antoine Yazbek

Hisham Mohammad Nasser

Ghazi Haddad

8-12-2004

Al-Fadel Ali Chalak (His term ended on 25-8-2006 and he was replaced by Nabil Al-Jisr)

Alain Najib Kordahi

Yasser Mostafa Berri

Ghazi Joseph Haddad
Source: Decrees on appointment of members of the board of directors-the Official Gazette. 
 

Administrative Budget 
A special budget is annually allocated for the CDR from the Council of Ministers’ budget, in order to pay salaries, wages, compensations and other related allowances, as well as to provide office supplies and pay telecommunications, electricity and water charges. This budget soared from LBP 6 billion in 2000 to LBP 38 billion in 2017. Table No.2 below shows the evolution of CDR’s administrative budget (2000-2017). 

Table No.2: CDR’s administrative budget during 2000-2017.

Projects Implemented or under Implementation  
The CDR is currently implementing dozens of projects throughout Lebanon. Table No. 3 below shows a sample of USD 710 billion’s worth of projects. 

Table No. 3: Some of the CDR’s Projects.

 

Project

Cost (USD million)

 

Mar Chaaya-Al-Atshana-Ain Alak road project, Metn

29.4

 

Renovation of Ain El-Hour-Daraya-Aanout-Zaarouriyeh junction, Chouf

12

 

Jal El-Dib highway

74 (including acquisitions of USD 22 million)

 

Construction of Baabdat-Metn-Bchellama road

52 (including acquisitions of USD 6.5 million)

 

Mayrouba-Nahr El-Dahab (Gold River)-Jouret El-Termos

27

 

Project

Cost (USD million)

 

Daraoun-Harissa road project

8

 

Completion of Ehmej-Laqlouq road

9

 

Complementation of Hazmieh connector

3.2

 

Ehden-Mar Sarkis Spring road

8

 

Tannourine El Tahta-Tannourine El Faouqa road

18

 

Main roads

27

 

Renovation of public high school  in Aley

4.5

 

Kfarselwan school project

2

 

Tyre serail

7

 

Halba serail in Akkar

7

 

Baalbeck serail

7

 

Palace of justice, Nabatieh

9.5

 

Construction of government buildings in Chehim, Chouf

7.5

 

Construction of an additional building in Roumieh Prison and a new courtroom

8.1

 

Establishment of Deir El-Qamar Governmental Hospital

10.4

 

Karantina Hospital

2

 

Sewage project in Chehar El-Gharbi

14.5

 

Implementation of sewage networks in Tyre

39

 

Sanitation in and around Jezzine

5

 

Supplemental  appropriation for sewage and drinking water project in some Baalbeck villages

10

 

Sewage project in Baalbeck’s Al-Labwa region

15

 

Completion of sewage project in Western Beqa’a

20

 

Supplying South Lebanon with Litani River water for irrigation and drinking purposes

54

 

Drinking water project in Hermel Qada’a

27.2

 

Waterworks in Aiha-Rashaya

2.5

 

Additional waterworks in Jabal Amel

29.5

 

Water systems in Hebarieh, Hasbaya

14.5

 

Construction of water line from Al-Arayesh tank in Zahle

6.5

 

Landslide in Kfarnabrakh (Emir Bashir Water Canal), Chouf

5.2

 

Financing a part of infrastructure in Beirut

28

 

Acquisition of Tyre-Ras El Ain waste mountain

2

 

Filling of lands at Tripoli Port

24

 

Railway between Tripoli and Syrian border

80
Source: CDR’s report 2016
 
 
According to the previous issue of the magazine (issue 167) that tackled “Lebanon’s Public Works Projects 2007-2017” subject, the highest number of projects (115 projects) amounting to USD 1.9 billion was implemented by the CDR. In the same vein,  the total value of projects implemented or under implementation during the period of 1992-2016 is USD 10.9 billion including:
• USD 7.5 billion for implemented projects 
• USD 3.37 billion for projects under implementation
 
The projects under implementation are distributed among the Lebanese
mohafazat as follows:
• North Lebanon and Akkar: USD 739 million 
• Mount Lebanon: USD 1,114 million
• Beirut: USD 467 million
• South Lebanon: USD 164 million 
• Nabatieh: USD 234 million 
• Baalbeck and Hermel: USD 271 million 
• Beqa’a: USD 232 million 
 

As for the implemented projects, they are distributed according to the aqdiyah as shown in Table No. 4 below.

Table No. 4: Distribution of projects implemented by CDR.

Qada’a

Value of Projects (USD million)

Beirut

739

Baabda

420.3

Metn

580.3

Chouf

216

Aley

163.6

Kessrouan

218

Jbeil

165

Mount Lebanon Total

1,763.2

Tripoli

571

Koura

77.7

Zgharta

74

Batroun

171.3

Akkar

265.6

Bsharri

95

Mennieh-Dennieh

168

North Lebanon and Akkar Total

1,422.6

Saida

286

Tyre

314.5

Jezzine

64

Bint Jbeil

133

Marjeyoun

137.6

Nabatieh

138

Hasbaya

128.3

South Lebanon and Nabatieh Total

1,201

Zahle

121

Western Beqa’a

127

Baalbeck

306

Hermel

55.2

Rashaya

23.8

Beqa’a, Baalbeck and Hermel Total

633

Overall Total

USD 5,758.8 billion

Source: CDR’s report 2016.
 

Projects Distribution by Sectors
The projects implemented between 1992 and 2016 amounted to USD 10.880 million. They were distributed among 13 service sectors and the largest share was for the transport sector (road construction, highway construction, etc), representing about 30% of the total value of projects. Table No.5 below shows how the projects were distributed by sectors.

Table No. 5: Projects by sectors.

Sector

Value (USD million)

Ratio %

Transport

3.236

30

Electricity

1.478

13.6

Drinking water

1.333

12.2

Education, Higher Education, Culture, Youth, and Sports

1.286

11.8

Sewage

897

8.2

Landline

797

7.3

Agriculture and Irrigation

505

4.6

Infrastructure Projects

504.5

4.6

Health

345

3.2

Project management and capacity building

127

1.1

Land and Environment

127

1.1

Other sectors

244.5

2.1

Total Value

10.880

100%
Source: CDR’s report 2016.
 
 
A Sample of CDR’s Projects 
In order to implement its high-cost projects that should be of high quality as they are well studied and controlled, the CDR adopts a multi-stage mechanism. However, the opposite is sometimes the case. The only difference between these projects and those implemented by the ministries is their high cost.  
 
The following is a sample of some CDR’s projects:
Construction of a parking lot in Tripoli:
This project was cancelled before implementation. Its total cost is USD 19 million.
• Preparation of the study: USD 478,500. The cost of technical supervision of the study audit is USD 30,000. 
• Project works: USD 17,431,609
• Project supervision: USD 610,106
• Technical supervision: USD 52,294
 

The CDR has replaced many ministries and been granted great powers. Yet, its achievements and aspirations have been disappointing and made most of the Lebanese pay tribute to the work of ministries. 

 
Distribution of Projects 
The value of projects implemented during the period 1992-2008 amounted to USD 9,310 million, of which USD 7,529 (81 percent) were acquired by the CDR. The remaining projects were distributed to the following:
 
• Council for South: USD 683 million (7.3 percent)
• Ministry of Public Works and Transport: USD 371 million (4 percent)
• Ministry of Energy and Water: USD 366 million (3.9 percent)
• The Central Fund for the Displaced: USD 267 million (2.8 percent)
• Électricité du Liban: USD 76 million (0.8 percent)
• Beirut and Mount Lebanon Water Establishment and South Lebanon Water Establishment: USD 18 million (0.2 percent). 

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Jawad Adra

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