Lebanon - Project FinancingLebanon - Financing
The Council for Development and Reconstruction (CDR), the government's executive body for redevelopment, has a total of $2.8 billion in loans and agreements ratified by Parliament but not yet disbursed. An additional $670 million in loans from international donors and development banks await Parliament’s approval. The CDR has a limited absorptive capacity and targets annual spending at approximately $750 million. About 15 foreign financing sources are involved in CDR's development plan, with 11 sources contributing to over 90 percent of the CDR’s total foreign financing. Primary contributors include the World Bank, the Arab Fund for Economic and Social Development (AFAED), the Kuwaiti Fund (KFAED), the European Union (EU) and the European Investment Bank (EIB), the Islamic Development Bank, the Saudi Fund for Development (SFD), and the Governments of Saudi Arabia, Italy, and France.
Lebanon’s banking sector also provides project finance facilities to Lebanese and international companies carrying out projects in Lebanon. The process involves reviewing the project at hand, carrying out a commercial, financial, and legal due diligence on the borrower and sponsor before structuring the facility. Typical security packages include real estate mortgages over land and assets.