VZCZCXRO0777
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHDH RUEHIK RUEHKUK RUEHLZ RUEHROV
RUEHSR
DE RUEHLB #0516/01 1310521
ZNR UUUUU ZZH
R 110521Z MAY 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 4838
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 BEIRUT 000516 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ELA AND EEB/IFD/ODF 
STATE PASS USTR FRANCESCKI 
STATE PASS USAID LAUDATO/NANDY/SCOTT 
TREASURY FOR PARODI/BLEIWEISS/AHERN 
USDOC FOR 4520/ITA/MAC/ONE 
NSC FOR SHAPIRO/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EAIR EIND PGOV KFLU LE
SUBJECT: LEBANON: ELECTRICITY FROM EGYPT EXPECTED TO RELIEVE POWER 
SHORTAGES (ECONOMIC WEEK IN REVIEW, MAY 4 - 10, 2009) 
 
CONTENTS 
-------- 
 
-- LEBANON STARTS RECEIVING ELECTRICITY FROM EGYPT 
-- GOL CONTINUES TO IMPROVE SECURITY AT BEIRUT AIRPORT 
-- IMF, S&P DELEGATIONS TO VISIT BEIRUT NEXT WEEK 
-- BANKING DEPOSITS REACH $80.5 BILLION IN FIRST QUARTER 2009 
-- LEBANON IS MOST OPTIMISTIC COUNTRY IN THE REGION IN TERMS OF JOB 
PROSPECTS 
-- LEBANON FALLS IN QUALITY OF LIFE SURVEY 
 
 
LEBANON STARTS RECEIVING 
ELECTRICITY FROM EGYPT 
-------------------- 
 
¶1. (U) On April 27, Lebanon started receiving 50 megawatts (MGW) 
electricity from Egypt as a start, following the signing of an 
agreement in February 2009 whereby Egypt would sell Lebanon between 
150 and 450 MGW electricity through the power grid passing through 
Jordan and Syria.  The additional electricity is expected to help 
reduce power shortages since Lebanon's national power utility 
Electricity du Liban (EDL) supplies 1500 MGW, while local demand is 
around 2300 MGW. 
 
GOL CONTINUES TO IMPROVE 
SECURITY AT BEIRUT AIRPORT 
-------------------- 
 
¶2. (SBU) On May 7, Civil Aviation Director General Hamdi Chaouk told 
us that x-rays, explosive detection machines, and high-tech 
equipment for passengers and baggage checks were installed at the 
Beirut International Airport (BIA) recently.  Three companies, 
including two U.S. firms Rapiscan and American Science and 
Engineering, won the ICAO-organized international tender, Chaouk 
said.  Total cost of this project is $16 million, entirely paid by 
the GOL.  This project is part of the government's efforts to 
improve security procedures at BIA. 
 
¶3. (U) Meanwhile, Byblos Bank research department reported that the 
Ministry of Public Works and Transportation signed a cooperation 
agreement with French Bureau of Enquiry and Analysis for Civil 
Aviation Security (BEA) to help Lebanon implement better civil 
aviation safety norms.  BEA will help Lebanon maintain the safety of 
aircraft flying over Lebanon to the European Union as well as 
develop systems to maintain the public safety of civil aviation in 
Lebanon. 
 
IMF, S&P DELEGATIONS TO 
VISIT BEIRUT NEXT WEEK 
-------------------- 
 
¶4. (SBU) On May 6, Finance Ministry Senior Economic officer Zeina 
Kassem told us that an IMF mission is expected in Beirut May 13 for 
a one-week visit to follow-up on the Emergency Post-Conflict 
Assistance (EPCA II) program.  The mission will evaluate 
macro-economic indicators and monitor the GOL's fiscal performance. 
 
 
¶5. (SBU) Kassem also said that a delegation from international 
rating agency Standard & Poor's (S&P) will visit Beirut next week to 
evaluate macro-economic performance.  This is the first visit of an 
S&P delegation since 2005, Kassem noted, adding that other 
international rating agencies such as Moody's and Fitch visit 
Lebanon yearly to prepare sovereign rating reports.  S&P will meet 
with Central Bank Governor Salameh, Finance Minister Chatah, and 
commercial banks. 
 
BANKING DEPOSITS REACH $80.5 
BILLION IN FIRST QUARTER 2009 
------------------ 
 
¶6. (U) According to leading Bank Audi research department, Lebanese 
banking sector deposits rose by $2.7 billion in the first quarter of 
2009, reaching $80.5 billion at end-March 2009.  The resilience of 
the local banking sector has continued to attract deposits in spite 
of the global economic crisis.  Local financial experts have noted 
that given such an increase in banking deposits and the fall in the 
 
BEIRUT 00000516  002 OF 002 
 
 
dollarization of deposits, more bank lending should take place to 
stimulate growth and decrease bank exposure to foreign currency 
vulnerabilities. 
 
LEBANON IS MOST OPTIMISTIC COUNTRY 
IN THE REGION IN TERMS OF JOB PROSPECTS 
-------------------- 
 
¶7. (U) A survey by Middle East job website bayt.com conducted in 
March-April 2009 showed that Lebanon was the country most optimistic 
about work conditions in the MENA region in view of the global 
economic crisis.  42% of respondents in Lebanon are not worried 
about their current job situation, compared to 65% in the region. 
Lebanon also posted the lowest level of actual and expected job 
cuts, with 25% witnessing job cuts at their workplace and 24% 
expecting future job cuts, compared to 43% and 40% respectively in 
the region.  The situation seems to be different for Lebanese 
abroad, as some economists expect unemployment in Lebanon to rise in 
2009 with the return of Lebanese expatriates, mainly from the Gulf 
region, that may have lost their jobs as a result of the global 
financial crisis. 
 
LEBANON FALLS IN 
QUALITY OF LIFE SURVEY 
-------------------- 
 
¶8. (U) In Mercer Human Resource Consulting annual Worldwide Quality 
of Living Survey, Lebanon ranked 175 out of 215 countries worldwide, 
and 14 out of 18 MENA surveyed countries.  In comparison, Lebanon 
ranked 171 worldwide and 13 within the region in 2008.  Overall 
security was noted as a continued concern for Lebanon.  The survey 
evaluates cities based on political, economic, and socio-cultural 
factors, as well as environment, housing, entertainment, health 
care, education, transportation, and other public services. 
 
SISON