The World Bank has drawn up recommendations for the recovery of Beirut Port which was seriously damaged during the tragic explosion in August.
The 42-page World Bank document, reviewed by Arabian Business, aims to provide guidance to policy makers in Lebanon on the crucial additional requirements to be undertaken in the rebuilding of the port in terms of both improving its resilience and addressing the underlying governance concerns that are broadly acknowledged to have contributed to the tragedy.
The explosion caused between up to $4.6 billion in damage across Beirut with the port suffering to the tune of around $350 million.
“As failure to guarantee safe and efficient operations at the Port of Beirut, combined with serious governance, transparency and accountability issues, have contributed to the tragedy of the port on August 4, reforming Lebanon’s port sector is a prerequisite for building back a better Port of Beirut and revitalising the Lebanese economy,” the document said.
The World Bank added that Lebanon adheres to a port management system that arguably reflects the complex political-economic realities, and which as a result run counter to many recognised good practices.
The governance of the sector is a patchwork of ad-hoc institutions, structures, laws and regulations that preclude the development of a coherent integrated strategy, it said, adding that the current framework inhibits efficiency as several key government agencies for transport, trade, and border management have overlapping mandates, divergent strategies, often operate under outdated processes and regulations and do not coordinate among themselves.
It also criticised the Lebanese Customs, saying its two parallel institutions – the Higher Council for Customs and the Customs Directorate – have proven to be inefficient and subject to political exploitation and power struggles.
The World Bank stressed that a crucial pre-requisite to the rebuilding of Port of Beirut is the establishment of a robust institutional framework for the wider port sector.
This new framework will restore trust of the Lebanese society and economic operators into its capacity to strengthen the economic fabric and provide support in overcoming the country’s economic crisis, the new document noted.
It recommended four key foundation stones to the reconstruction of the Port of Beirut including a new governance structure, efficient and modern customs, border agency and trade processes, open and transparent bidding processes and quality infrastructure.
For the port’s governance to meet global standards, a well-developed port sector law must be enacted, the World Bank added.
It also said that the recent tragedy presents an opportunity to rethink the nature, function and location of facilities in the Port of Beirut with the twin aims of both enhancing port performance and competitiveness and optimising capacity and land use.
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