The Lebanese government has laid down a number of conditions before it can agree to extend the mandate of Solidere, the property company which rebuilt much of Beirut's destroyed downtown after the civil war.
A public-private partnership with a mandate set to expire in 2029, Solidere has requested a 25-year extension – more than 30 years after the then prime minister Rafic Hariri had tasked the firm with rebuilding Beirut Central District, which was devastated by the civil war from 1975 to 1990.
Its mandate was initially for 25 years before it was extended in 2019 for another 10 years.
Government sets conditions for extension
But after a cabinet meeting presided over by Lebanese President Joseph Aoun at Baabda, the government laid out a series of terms it would discuss with Solidere.
If met, an eight-year extension – with a possible additional six years – will be provided “after verifying the company's commitment to the results of the agreed performance indicators,” the government said.
“The government decided to directly enter negotiations with Solidere,” said Prime Minister Nawaf Salam.
“Any extension must be linked to the revitalisation of Downtown Beirut and the completion of public-benefit projects, with clear performance indicators, timelines, and specific implementation mechanisms, as well as a plan to enhance culture and heritage, urban cohesion, and to encourage members of the middle class and small and medium-sized enterprises."
Information Minister Paul Morcos acknowledged the contribution made by Solidere in rebuilding Downtown Beirut but said “a large part of the urban areas stipulated in the original guideline are still undeveloped, and a number of the obligations undertaken by the company to the state have not yet been implemented” despite three decades of work.
What Lebanon is asking of Solidere
Among the requests the government will make are an independent audit of the firm's accounts and a system for measuring key performance indicators with binding timelines for implementation.
The government is also seeking an updated tax framework for future revenue-generating activities and projects.
A cornerstone of any extension would include a “commitment to a specific and binding list of projects with clear dates for completion and clear measurement criteria”. These include projects in the Corniche, Martyrs Square and cultural and heritage moments in the area.
The downtown area is home to some of Beirut's most expensive apartment complexes and upscale restaurants. What was once the historic market in the heart of the capital is Beirut Souks, a commercial area full of retail stores, a cinema complex and expensive jewellery shops.
Beirut Souks integrates archeological sites with modern street art in a “promenade architecturale,” Solidere says.
According to Solidere's website, it is currently developing the eastern marina on the waterfront; the marina will offer another 115 berths for 6- to 25-meter-long boats.
But the company, which was granted extensive powers upon its creation, has also faced accusations that it harassed the original landowners into selling their land below market value, rebuilt the area in a way not befitting its past, and made Downtown Beirut an island reserved for upper-class Lebanese.
