Posted by: r.m. | December 19, 2013

privatizing Lebanon’s water

‘Blue Gold – the Fifth Plan” — This  document claiming to have the solution to the water problem in Lebanon  – and yet has pages filled with advertising by companies that are notorious in privatizing water, including Pepsi; a document that is printed on very glossy paper and yet claims to have an environmental solution to the water problem (while ignoring the environmental impacts of the very printing itself); a document that presents itself with the sleekness of an oiled advertising campaign  from Saatchi and Saatchi – and yet claims to be a grassroots effort. … Well: such is the document that was being sold (yes, sold for $10) at the Biel Book Exhibit.  [Btw, if you want to see the document, just stop by my office]

The objective: to be swept away by the document’s shine and gleam, and by their intention to resolve our water problems in Lebanon (without clearly identifying what exactly IS the problem), and then to vote for the plan.

I think not.

What is this plan anyway?

Al-Akhbar exposes their plan. Lebanon’s Blue Gold Project: Vote to Privatize Your Water

“Vote for the Blue Gold project. Many have noticed the television adson Lebanese networks, and some may have even thought that Blue Gold is a campaign to protect Lebanon’s water resources. However, the project owner – the Civic Influence Hub, a lobby of leading businesspeople – is actually proposing nothing more than a novel way to make profits. Indeed, the advertisements fail to mention that the ultimate goal is to privatize the water sector.

On Tuesday, December 17, Lebanese President Michel Suleiman and Prime Minister-designate Tammam Salam attended a launch ceremony for what is actually yet another nail in the coffin of the Lebanese state: the Blue Gold project, the brainchild of the Civic Influence Hub (CIH), which seeks to manage Lebanon’s water resources.

The CIH called on the Lebanese to support replacing government departments with a National Water Council, to be shared equally between “delegates from the ministries concerned” and “civil society experts” – the latter a euphemism for private companies and banks seeking to profit from the privatization of Lebanon’s water resources, citing “poor and weak management” of public institutions.

…some well-defined aspects of the project do eventually slip out in the course of the ad campaign. Consider for instance the part about a “pilot project” for Beirut and Mount Lebanon, which were chosen, quite frankly, because of the “good financial performance” of their utilities “compared to others.”

In clearer terms, the Establishment of the Water of Beirut and Mount Lebanon (EBML) was chosen because of its potentially huge profits. For this reason, “the project aims to transfer the responsibilities of operations and maintenance to private operators.

There is no dispute that Lebanon’s water resources are in dismal shape, precipitated in no small part by poor public administration. The reasons for this are many, beginning with the lack of an appropriate plan for water distribution, dam-building projects, and programs for the maintenance of the worn-out water grid. Then there is the unchecked overconsumption of water nationwide.

But it is rather odd is to see the Lebanese president sponsoring a commercial venture declaring the bankruptcy of the state and promoting the need for a private sector “savior,” whose natural purpose is to profit from rather than provide a public service.

 The campaign calls for replacing “our divided and beleaguered” public water utilities with a partnership between the government and the private sector, recommending that this first starts by establishing institutional and legal structures that ensure transparency. But who will have access to the meetings of the boards of private companies behind the project, not to mention holding them accountable or even influencing them? And are “politics” really independent from the economic interests of the CIH?

The project proposes a series of recommendations, such as increasing water storage capacity through the construction of dams; “connecting water basins” through a “national grid”; “rehabilitating water distribution networks” to reduce losses in them; developing new water sources; establishing a monitoring system to monitor water safety; pushing for more efficient consumption; establishing water treatment plants; and using drip irrigation to save water.

According to project planners, the plan would see “surplus water quantity increase to 500 million cubic meters by 2020,” which would eventually allow Lebanon to create a water-bottling and export industry worth $600 million.

But who makes up the lobby behind the project, which claims to “transcend” politics and special interests?

During the Blue Gold project launch event, prominent businesspeople gave testimonials in support of the project, including Samir Hanna, group chief executive officer of Audi Saradar Group, who expressed his “faith” in the project. Other business leaders also took the podium to praise the project: Walid Raphael, general manager of Banque Libano-Francaise; Nehme Frem, head of industrial INDEVCO Group; Walid Assaf, general manager of Pepsi Cola Lebanon; Mazen Salha, manager of the Phoenicia Hotel; Marc Tabourian, from the Sannine Bottled Water Company; Dana Nakad, director of Wardiyeh petroleum products company; and Gilbert Ghostine, president of Asia Pacific, the Diageo spirits company.

Some people with good intentions may be persuaded that these people are really above politics. But can commercial advertisement persuade any sane person that this business lobby is really above profits and special interests?

This business lobby uses the CIH as its nom de guerre. The CIH is led by a council consisting predominantly of businesspeople and executives from private firms, according to founder Farid Chehab, who published a book in 2011 titled A Bet for a National Conscience, explaining the nature and goals of the CIH.

Chehab calls the CIH’s ruling board the Council of Wisdom, but where the only criterion for wisdom is wealth. Chebab wrote in his book that a man’s ability to accumulate wealth served as “a test for wisdom.” It should be noted that each council member must pay an obligatory entry donation of $50,000, and then a $10,000 annual membership fee.

Chehab insists that the CIH is above financial, personal, and political gains, and that his goal is to nurture an “apolitical consciousness,” and remind the Lebanese “that issues of national concern should be determined not on the street, but within the esteemed chambers of corporations and businesses.” Chehab wants to “replace the language of popular politics with one of productive economics.”

In other words, Chehab does not want “the mob” to have a role in determining public policy on the street, and yet, he and his clique need one million votes from this same “mob” to get their venture approved, forcing them to invest in a huge advertising campaign that addresses the public’s instincts in the dumbed-down language of empty marketing slogans and special effects, rather than their intellect.”

No to privatizing Lebanon’s waters. No to making a profit out of a human right. No to establishing these so-called “public-private” partnerships.

Yes to solving the crux of the problem: Yes to repairing the infrastructure. Yes to wiser irrigation. Yes to decreased consumption.  And yes to stronger ministries, free of corruption.

Want to believe that the route to safe, accessible water for all is through these so-called ‘public-private’ partnerships and through making a profit for private enterprises? Look at Bolivia. Look at numerous examples around the world that have showed us clearly: the foundation for a public-private partnership is a STRONG public sector, a transparent and accountable public sector.  The partnership or privatization can NOT work without a strong government – yet the usual reason given for privatization is a weak, corrupt, inefficient government.   A weak corrupt government allows for a companies to profit at their will, to create imbalance in distribution, and to disregard the rights of the people themselves.  Privatizing this resource aggravates the problem, and does not solve it.   Then again: solving the problem is not the objective; making a profit is the objective.





  1. Wow, I’m glad I read this. I didn’t know much about the water projects going on, but I assumed that they they were government projects and not a matter of privatiziation.
    This cannot end well. Some questions come to mind: Will the poor have access to clean and healthy water (not that they do now)? Will privatizing this sector eliminate any future social friction resulting from the lack of water? Will water quality suffer for the sake of cheap manufacturing and profit?

    By the way, Dr. Rania can I still take a look at that document after the break?

  2. Thank you Dr. Rania for this well explained article. I was not sure about this project in the first place because like all business projects, it is going to be only made for making the maximum amount of profit for the investor without regarding the effects it could cause. Like Charbel,I was not really up to date with the water projects going on so this was a helpful process to realize that people will always be empowered by the urge to make more money.

  3. Jad Ghantous Biol 207
    Thank you Dr. Rania for this well explained article. I was not sure about this project in the first place because like all business projects, it is going to be only made for making the maximum amount of profit for the investor without regarding the effects it could cause. Like Charbel,I was not really up to date with the water projects going on so this was a helpful process to realize that people will always be empowered by the urge to make more money.

  4. At first, it seemed like an eco-effective idea to me, but I then realized what a monopoly! Using water as a front in their advertisment is a very plausible since water is the main source of survival and a primary resource for every human. Consequently, vast numbers of lebanese citizens would probably respond to such a project, particularily, I would say, those concerned with agriculture. I believe the “plans to be accomplished” as promised by the people involved are promising and very effective if they are really applied. The questions that remain to be asked are: is the government really involved in this? And will this turn into an oligopoly?

  5. It is unfortunately evident that in Lebanon we sometimes tend to replace a problem by another during our approach towards finding a solution. We need to stand up and awaken people who might as the article mentioned think of this as a solution out of their good hearts.

  6. Marianne Bersaoui BIOL207
    Everything has its price, wether its silly and innocuous, or fatal and inevitable. And in our precious Lebanon, the history is repeating itself.. it’s like our two-year president Habib Basha Al-Sa’ad when he gave the Regi corporation the right to profit from our tabac all over again.. But at that time, people were brave and aware enough to ignite an enormous rebellion to reclaim our rights. Privatizing Lebanon’s water by world wide companies such as Pepsi is like an oppression of what’s rightfully ours. It’s like exposing ourselves to cancer, with us being aware of its deadly effect, but we’re still exposing ourselves like nothing’s happening. We are naïve enough to see the life sucked out of our precious kingdom without even lifting a finger to defend it. The scent of sulfur, death and decay will hover, hanging dimly in the cold thin air above Lebanon in no time. Where are the trees we used to have, hence the expression “Green Lebanon”? We have to act, and fast.. We have to enforce our economic system. We have to learn to be independant, break the strings holding us like puppets in the hands of the world wide companies, therefore reenforcing our ecology.. We have to take part in the Green Resistance!

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