Workers clean the beach of the coastal town of Zouk Mosbeh, north of Beirut, as garbage washed and piled along the shore after stormy weather, January 2018. AFP
Workers clean the beach of the coastal town of Zouk Mosbeh, north of Beirut, as garbage washed and piled along the shore after stormy weather, January 2018. AFP
Workers clean the beach of the coastal town of Zouk Mosbeh, north of Beirut, as garbage washed and piled along the shore after stormy weather, January 2018. AFP
Workers clean the beach of the coastal town of Zouk Mosbeh, north of Beirut, as garbage washed and piled along the shore after stormy weather, January 2018. AFP

Lebanese politicians warn of imminent waste crisis in Beirut and beyond


Sunniva Rose
  • English
  • Arabic

Lebanese politicians have warned that rubbish could start piling up in the streets of Beirut again by early September, four years after demonstrations against a similar refuse crisis brought the country to a standstill.

“Beirut is threatened by a garbage crisis similar to what happened four years ago and left very bad memories for the Lebanese,” MP Marwan Hamadeh, who has occupied ministerial positions including Education Minister and Economy Minister over the past two decades, told The National on Wednesday.

Lebanon has relied on temporary solutions to process its waste since the end of the civil war in 1990. Over 900 illegal dumps have sprung up across the country and become major health hazards.

Mismanagement peaked in 2015 after the capital’s main landfill shut down. Permanent solutions were not found despite massive protests, and activists accuse politicians of corruption in sealing lucrative waste management deals.

In addition to environmental problems caused by the illegal dumps, their location regularly leads to sectarian disputes in a country where power-sharing is based on religious affiliation.

For the past five months, litter has been piling up in the streets of several towns in northern Lebanon after an informal dump closed for financial reasons.

Earlier this month, locals from the town of Terbol, which is dominated by Sunni Muslims, protested the opening of a new refuse centre because they did not want to accept waste coming from Christian villages in the region.

In parallel, Beirut’s landfills are close to saturation, and owners are threatening to stop accepting rubbish from areas where the population is of a different religion after September 1, said Mr Hamadeh.

“The same problem has been going on for years. Already existing environmental problems are exacerbated by additional confessional complications."

In a joint press conference with environment minister Fadi Jreissati on Tuesday, Mr Hamadeh requested that a council of ministers be convened rapidly to focus solely on the refuse crisis.

Mr Jreissati informed him later that afternoon that the council meeting will be held next Tuesday, Mr Hamadeh told The National.

Asked whether Beirut can be spared a new garbage crisis, Mr Hamadeh said he was unsure. “We have signed all the necessary laws in the past, but nobody applies them,” he said.

On Tuesday, Mr Jreissati compared Lebanon’s inability to process its waste to a “civil war” which could potentially “destroy” Lebanon’s tourism sector and more broadly, its economy. Tourism is one of the main drivers of the economy in the small country, which boasts 225 kilometres of coastline on the Mediterranean Sea and snow-capped mountains.

“There is no tourism, health or agriculture if we do not deal with the waste problem,” Mr Jreissati said during the press conference, the state-run National News Agency reported.

“I say that the issue of waste is more important than the economic crisis which politicians and executive authorities have given such importance to. The Environment Ministry submitted a plan on June 3 which has not yet been approved,” he complained.

The minister’s plan includes setting up 25 landfills across the country to replace the illegal dumps.

Formed late January, the latest government vowed to implement quick reforms to clean up the country’s finances but has been paralysed by infighting.

On Thursday, the cabinet will meet for the second time since politicians resumed contact on August 9 after a deadly shoot-out that involved a junior minister paralysed it for 40 days.

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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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