Transcript IMC Meeting

PRESENTATION
Infrastructure and Privatization
Inter-Ministerial Committee
Progress Report # 3
Beirut, Lebanon
August 24, 2007
0
Today’s objective is to update your Excellencies on progress to-date
against Commitment Documents of the respective stakeholders
Meeting Objectives
 Brief on the status of issues raised in the previous IMC and on progress to-date of GR PCO
planning and monitoring activities
– Following the last IMC, 12 main issues (including 5 that were carried over from the first
IMC) were raised regarding the Power, Telecom and Transport Sectors, and the CDR
– To-date, 5 issues were resolved, 2 are in progress, and 5 are delayed
 Highlight progress and status of implementation of short-term programs in each sector (where
available):
– Monthly Progress Report against programs charted in commitment documents
– New and Emerging Issues
1
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
2
The Paris III implementation planning process is generally on track,
except for the Power Sector which is delayed, and the Transport
Sector, which is still at the initiative identification phase
Natural
Owner
Ministry of
Telecom
Identification Prioritization
of Initiatives of Initiatives
✓
✓
Program
Progress Commitment
Charters KPI Setting
Report
Document
Development
✓
✓
✓
✓
HCP
✓
✓
✓
✓
✓
✓
TRA
✓
✓
✓
✓
✓
✓
Ministry of
Energy and
Water / EDL
Ministry of
Transport
CDR
✓
50%
✓
✓
✓
50%
Not
Applicable
✓
✓
✓
(Targets
missing)
✓
Not
Not
Applicable Applicable
✓
✓
✓
Immediate Next Steps
 Obtain Prime Minister and Minister
approval on commitment document (no
financial requirements)
 Obtain Prime Minister and HCP SG
approval on telecom and power
commitment documents (no financial
requirements)
 Obtain Prime Minister and TRA
Chairman approval on commitment
document (no financial requirements)
 Finalize KPIs
 Obtain Prime Minister and Minister
approval on commitment document (no
financial requirements
Not
Applicable
 Discuss Airport privatization roadmap
and ports strategy development plan
with Minister of Transport and HCP SG
✓
 Obtain Prime Minister, Minister of
Finance, and CDR President approval
on commitment document
3
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
4
Monthly progress reports will highlight the status of each program
– defined in a commitment document – along implementation,
budget, and KPI dimensions
Program Status and Budget Performance Definitions
Status

Implementation
KPI
Completed on Completed on Completed on
Time
Budget
Target
On Track
Could be
Delayed
Delayed
NS
Budget
Not Started
On Budget
Budget Performance
Initial Budget
Budget endorsed
during an IMC
Revised Budget
Budget adjusted using
a Program Change
Request Form
endorsed during an
IMC
Actual Spent
Amount spent until
date of reporting
Remaining Budget
Requirements
Estimate
Estimate of the
remaining budgetary
requirements for the
program
On Target
Potential Over Emerging
Budget
Issues
Over Budget
N/A
Off Target
N/A
5
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
6
Program Dashboard
Program Title:
TEL-001: Establish the Telecom
Regulatory Authority
Natural Owner: Minister of Telecom
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Hiring mechanism submitted to CoM for approval
Financial Procedures approved by the Ministry of Telecom
New:
TRA budget approved but not transferred yet
Review and approval of Ministry of Finance for financial
procedures still pending
Carried Over from Previous IMC:
Need to speed-up the process in transferring documentation
and information from MoT to TRA
KPI
Transfer of Regulatory Functions from
MoT to TRA
Broadband licensing
Note: (*) Defined in the legend
Baseline
(July 2007)
15%
0%
Current Value
15%
25%
Target
Status
(Closest Date)
100%
(Oct. 2007)
Process
launched
(Dec. 2007)
Budget Performance*
Initial Budget
$13,500,000
Revised Budget
N/A
Actual Spent
$600,000
Remaining Budget
Requirements Estimate
N/A
Status
N/A
7
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
End Date
23/07/02
30/11/07
281.8 wks
03/01/05
24/08/07
139.6 wks
1.b.iv Approve and transfer TRA budget
02/07/07
13/07/07
2 wks
CoM, MoF
Budget approved and
transferred
1.b.vi Issue decrees for specific secondary legislation
02/07/07
24/08/07
8 wks
CoM
Decrees issued
05/03/07
01/10/07
31.6 wks
19/06/07
24/09/07
14.6 wks
19/06/07
24/09/07
14.6 wks
1.c.v Migrate and appoint TRA staff
19/06/07
24/09/07
14.6 wks
1.c.vi Finalize transfer of existing functions
1.c.vii Transfer international representation for Radio Frequency and
Standards to TRA
25/09/07
01/10/07
1.2 wks
02/07/07
01/10/07
13.4 wks
TRA Board /
MoT
TRA Board /
MoT
TRA Board /
MoT
TRA Board /
MoT
TRA Board /
MoT
05/06/07
30/11/07
26.8 wks
TRA
05/06/07
31/10/07
22.4 wks
TRA
1. Establish the Telecom Regulatory Authority
1.b Issue decrees to facilitate operations of the TRA
1.c Transfer regulatory responsibility to the TRA
1.c.iii Transfer all necessary documentation from MoT to TRA (e.g.,
Radio Frequency, Licensing, Authorizations)
1.c.iv Transfer relevant equipment from MoT to TRA (mainly RF
management equipment)
1.d Draft telecom policy outlining the liberalization path to be followed
1.d.i Draft telecom policy

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Delayed
Deliverable/ Milestone
Documentation imported
Tools & equipment
transferred
Staff migrated
Regulatory functions
transferred
International representation
transferred
Policy drafted
Status
NS
NS
NS
NS
NS Not started
8
Program Dashboard
Program Title:
Tel-002: Corporatize and Privatize
Liban Telecom
Natural Owner: Minister of Telecom
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 None
New:
None
Carried Over from Previous IMC:
Need to appoint Liban Telecom Board of Directors or alternative
governance structure
KPI
Liban Telecom Board appointment
Percentage of employee migration from
Ogero to LT
Percentage of asset migration from
Ogero to LT
Percentage of customer migration from
Ogero to LT
Percentage of vendor migration from
Ogero to LT
Note: (*) Defined in the legend
Baseline
(July 2007)
Current Value
Delayed
Delayed
0%
0%
0%
0%
0%
0%
0%
0%
Target
Status
(Closest Date)
Completed
(Dec. 2007)
Completed
(Jul. 2008)
Completed
(Dec. 2008)
Completed
(Dec. 2008)
Completed
(Dec. 2008)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
9
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
End Date
04/01/05
15/10/09
251.4 wks
2.a Issue decrees to establish LT and appoint governance structure
2.a.ii Appoint LT Board of Directors or equivalent governance
structure
04/01/05
01/07/07
131.4 wks
01/05/07
01/07/07
9.4 wks
2.b Setup Program Management Office (PMO)
02/07/07
07/09/07
10 wks
2.b.i Appoint PMO director, task force leaders and teams
02/07/07
27/07/07
4 wks
MoT/ LT Board PMO Staff appointed
2.b.ii Develop and approve work program
30/07/07
07/09/07
6 wks
LT Board/ HCP
Work program approved
NS
02/07/07
15/11/07
20 wks
2.c.i Develop LT Organizational Chart
02/07/07
24/08/07
8 wks
LT Board
Organizational Chart
created
NS
2.c.ii Appoint CEO and Level 1 Management Team
27/08/07
15/11/07
12 wks
LT Board
CEO and Level 1 appointed
NS
10/09/07
20/03/08
28 wks
10/09/07
24/01/08
20 wks
10/09/07
01/11/07
8 wks
2.e Capitalize LT by transferring budget
2.e.ii Open bank account, define signature attorney, contract
execution power
04/01/05
27/07/07
135.4 wks
02/07/07
27/07/07
4 wks
2.j Create LT brand and establish web presence
2.j.i Launch Procurement process and Prepare TOR for TA
Consultant to develop a new brand for LT
10/09/07
15/10/09
110 wks
10/09/07
18/10/07
6 wks
PMO
RFP sent
NS
10/09/07
18/10/07
6 wks
PMO
Website designed
NS
2. Corporatize and Privatize Liban Telecom
2.c Create LT organizational structure
2.d Set up provisional opening balance and prepare asset transfer
2.d.i Perform full asset survey and valuation as per a pre-approved
RFP
2.d.ii Develop Accounting policies
2.j.vi Design LT website

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Delayed
MoT / CoM
Deliverable/ Milestone
LT governance structure
appointed
LT Board/ PMO/
HCP
Asset survey performed
Accounting policies
LT Board / PMO developed
LT Board / MoF
Status
Execution power contracted
NS
NS
NS
NS
NS Not started
10
Program Dashboard
Program Title: TEL-003: Privatize mobile telecom
Natural Owner:
Secretary General of HCP and
Chairman
Period:
IMC:
Infrastructure and Privatization
July 2007
Achievements Since Last Report
TRA
Program
Overall Status:
Key Issues
 4 mobile regulatory guidelines issued by the TRA
(Interconnection Guidelines, SMP Guidelines, Consumer Affairs
Guidelines, and Draft Quality of Service and Key Performance
Indicators)
New:
None
 Contract signed with investment bank to undertake valuation of
licenses
 Contract signed with TRA consultants
Carried Over from Previous IMC:
None
 Contracts signed with consultants to undertake financial and
legal due diligence
 DoLLM within MoJ finalized the decision allowing the sale of the
mobile assets when issuing new licenses
KPI
Mobile Regulatory Guidelines Issued
by the TRA
Mobile licensing process completion
Note: (*) Defined in the legend
Baseline
(July 2007)
4
0%
Current Value
4
25%
Target
Status
(Closest Date)
12
(Dec. 2007)
100%
(Dec. 2007)
Budget Performance*
Initial Budget
$ 2,950,000
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
11
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
End Date
13/12/05
14/01/08
111 wks
02/04/07
28/12/07
40 wks
1.a.i Draft mobile telecom regulations
02/04/07
30/11/07
35.8 wks
TRA
Regulations drafted
1.a.ii Publish draft regulations on TRA website for review
08/06/07
03/12/07
26.2 wks
TRA
Draft regulations reviewed
1.a.iii Update draft regulations based on review
19/06/07
14/12/07
26.8 wks
TRA
Draft regulations updated
1.a.iv Issue telecom regulations
03/07/07
28/12/07
26.2 wks
TRA
Regulations issued
13/12/05
31/08/07
91.4 wks
1.b.iv Negotiate and sign contract with investment bank
14/07/06
06/07/07
52.6 wks
Contract signed
1.b.v Perform valuation of licenses
09/07/07
31/08/07
8 wks
HCP
HCP supported
by TRA
13/12/06
12/09/07
40.6 wks
1.c.iv Negotiate and sign contract with consultant
23/04/07
13/07/07
12.6 wks
HCP
Contract signed
1.c.v Conduct statutory audit of MIC accounts (2005-2006)
02/04/07
31/07/07
18 wks
1.c.vi Reconstruct cash flows (2004-2006)
01/08/07
29/08/07
4.2 wks
2005-2006 audit conducted
2004-2006 cash flows
reconstructed
1.c.vii Conduct vendor due dilligence
01/08/07
12/09/07
6.2 wks
HCP
HCP/ MoT
(OSB)
HCP/ MoT
(OSB)
06/12/06
25/09/07
43.4 wks
1.d.iv Negotiate and sign contract with consultant
1.d.v Present key findings from technical review and site visits and
status of KPI analysis
27/02/07
27/07/07
23 wks
HCP
Contract signed
01/08/07
21/08/07
3 wks
HCP
Key findings presented
1.d.v Draft technical section for Information Memorandum
01/08/07
04/09/07
5 wks
HCP
IM technical section drafted
1.d.vi Undertake KPI analysis
01/08/07
04/09/07
5 wks
HCP
KPIs determined
1.d.vii Verify networks' asset register
01/08/07
25/09/07
8 wks
HCP
Asset register verified
1.d.viii Forecast CapEx over 12 month
01/08/07
25/09/07
8 wks
HCP
CapEx forecasted
1.d.ix Perform network asset replacement valuation
01/08/07
25/09/07
8 wks
HCP
Valuation performed
1. Privatize mobile telecom
1.a Draft and issue regulations (e.g., Interconnection, Competition,
Consumer Guidelines, Universal Services, National Roaming)
1.b Perform valuation of licenses
1.c Perform financial due diligence
1.d Perform technical due diligence

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Delayed
Deliverable/ Milestone
Status

Valuation report completed

Vendor report submitted
NS Not started

12
Program/ Initiative/ Workstep
Workstep
Responsible
Start Date
End Date
1.e Perform legal due diligence
01/12/06
07/09/07
41.6 wks
1.e.iv Review compiled contracts
1.f Define and finalize the legal basis for the transfer of ownership of
mobile assets
26/03/07
07/09/07
25 wks
14/05/07
07/08/07
13 wks
1.f.ii Submit to Minister of Telecom for review
23/06/07
03/07/07
2 wks
1.f.iii Get legal advise from MoJ
04/07/07
31/07/07
4 wks
Minister of
Telecom
Minister of
Telecom
1.f.iv Submit to Council of Ministers for approval
01/08/07
07/08/07
1 wk
TRA; HCP; CoM Documents approved
02/07/07
07/09/07
10 wks
1.g.i Draft auction guidelines
02/07/07
03/08/07
5 wks
TRA; HCP
1.g.ii Draft rules and procedures related to assets lease/ sale
06/08/07
17/08/07
2 wks
HCP
1.g.iii Draft rules and procedures related to license sale
06/08/07
17/08/07
2 wks
TRA
1.g.iv Approve auction rules and procedures
20/08/07
24/08/07
1 wk
CoM
Auction guidelines drafted
Assets rules and
procedures drafted
License rules and
procedures drafted
Auction rules and
procedures approved
27/08/07
07/09/07
2 wks
TRA; HCP
Auction document finalized
31/08/07
02/11/07
9.6 wks
31/08/07
13/09/07
2 wks
TRA; HCP
14/09/07
14/10/07
4.6 wks
TRA; HCP
Criteria adopted
Technical proposals
received
01/08/07
11/12/07
19.4 wks
1.i.i Draft IM
01/08/07
14/09/07
6.6 wks
HCP; TRA
IM drafted
1.i.ii Adopt IM
17/09/07
28/09/07
2 wks
HCP; TRA
IM adopted
26/09/07
19/10/07
4 wks
HCP; MoT
Documents compiled
10/09/07
03/12/07
12.6 wks
1.j.i Draft transaction documents
10/09/07
28/09/07
3 wks
HCP; TRA
1.j.ii Provide comments on transaction documents
30/09/07
11/10/07
2 wks
HCP; TRA
1.g Finalize auction rules and procedures
1.g.v Merge document and finalize it
1.h Publish Request for Applications (RFA), including pre-qualification/
qualification criteria, and review EoIs
1.h.i Adopt pre-qualification / qualification criteria
1.h.ii Publish RFA and receive technical bids
1.i Draft and distribute Information Memorandum (IM), and provide
dataroom access and site visits
1.i.iv Compile data room's documents
1.j Review transaction documents based on bidders’ comments, and
distribute revised documents

Completed
On Track
Could be Delayed
Duration
HCP
Delayed
Deliverable/ Milestone
Status
Contracts reviewed
Documents revised

Legal advise received

Transaction documents
drafted
Transaction documents
revised
NS Not started
NS
NS
NS
NS
NS
NS
13
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
Actions Needed
Deadline
Status
17/07/2007
Delayed
MoT/ TRA  MoT and TRA to develop a detailed
27/07/2007
schedule for the transfer of documentation,
information, and employees
Minister of
Telecom
 Minister of Telecom to approve schedule 03/08/2007
Delayed
MoT/ TRA  MoT and OGERO to transfer selected staff 20/08/2007
to TRA, after issuing an internal
memorandum
Delayed
MoT/ TRA  MoT to transfer frequency data to TRA
TEL-001
H
Need to speed-up the process in
transferring documentation,
information, and employees (e.g., TRA
Radio Frequency, Licensing
Chairman
Authorizations, Studies) from MoT
to TRA
05/07/2007
MoT/ TRA  Transfer to be completed by October 1st,
2007
TEL-002
TEL-003
H
H
Need to appoint Liban Telecom
Board of Directors or alternative
governance structure
Minister of
Telecom /
HCP SG /
BAH
TRA
Need to finalize the decision on
Chairman /
whether to sell or lease the mobile
HCP SG /
assets when issuing new licenses
BAH
Delayed
15/05/2007
Minister of
Telecom
01/10/2007 Not started
 MoT to assign PMO Members, who will
report to the Steering Committee
18/05/2007
Delayed
 Appoint Liban Telecom Board
30/06/2007
Delayed
Dept. of
 Minister of Telecom to transfer the file to
16/07/2007 Completed
Legal &
the Department of Legal and Legislation
Legislation
Matters (DoLLM) at the Ministry of Justice
Matters
(MoJ)
 DoLLM to decide if the assets can be sold 31/07/2007 Completed
15/05/2007
under the current Privatization Law
(Assets can
be sold)
HCP SG
 HCP/TRA to proceed and accelerate
development of tender documents in
On-going
On-going
coordination with Citigroup/JP Morgan
14
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
15
Program Dashboard
Program Title:
POW-001: Strengthen Sector PolicyNatural Owner: Minister of Energy and Water
Making Capacity
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 EDF hired to undertake the Power Sector Master Plan (July 3,
2007 – The program is financed by the AFD)
New:
None
Carried Over from Previous IMC:
None
KPI
National Control Center implementation
Master Plan for generation and
transmission development
Note: (*) Defined in the legend
Baseline
(July 2007)
In Progress
Not Started
Current Value
In Progress
Not Started
Target
Status
(Closest Date)
Completed
(Oct. 2008)
Completed
(Jul. 2008)
N/A
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
16
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
End Date
03/07/06
30/06/09
159.2 wks
01/01/07
30/08/07
36 wks
1.b.vi Undertake negotiations with selected applicants
12/06/07
19/07/07
6 wks
CDR and MoEW Negotiations undertaken

1.b.vii Award contract
20/07/07
23/08/07
5 wks
CDR
Contract awarded

1.b.viii Undertake formal signature
24/08/07
30/08/07
1 wk
CDR
Contract signed
01/03/07
28/12/07
45 wks
03/07/06
13/10/08
121.8 wks
11/12/06
23/07/07
33.6 wks
EDL
1.d.viii Collect data and produce FAT database & displays
1.d.x Install and integrate the system, and get FAT submittal and
approval
15/12/06
27/09/07
42.4 wks
EDL
HS/SW configuration
defined
FAT database and displays
produced
05/03/07
24/10/07
35 wks
EDL
FAT installed and approved
1.e Hire consultants to develop a Master Plan for the Power Sector
03/07/07
26/06/08
52.8 wks
1.e.i Hire EDF to undertake Master Plan
03/07/07
03/07/07
0 wks
1.e.ii Develop Power Sector Master Plan
03/09/07
26/06/08
44 wks
1. Strengthen sector policy-making capacity
1.b Appoint qualified advisors at the Ministry of Energy and Water to
support on strategic planning and evaluation of electricity policy reforms
1.c Complete Sector Expenditure Review with World Bank support
1.d Establish a National Control Center to properly dispatch EDL’s
generation and transmission system
1.d.vii Define the HW/SW configuration and prepare Purchase
Request and Procurement

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Delayed
Deliverable/ Milestone
EDF hired
Power Sector Master Plan
developed
Status


NS
NS Not started
17
Program Dashboard
Program Title:
POW-002: Improve EDL Operational
Efficiency
Natural Owner: Minister of Energy and Water
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 KEPCO agreed to perform Zouk power plant survey for free
 Grant Thornton started compilation of EDL’s 2005-2006
accounts, while working on 2002-2004 accounts towards
defining an opening balance for 2005
New:
None
Carried Over from Previous IMC:
Need to formalize KEPCO contract
EDL to follow up with consultants on the preparation of a
technical report on the viability of Jiyyeh power plant
Advisors hired for MoEW, EDL and HCP might have different
orientations, which could create conflicts or inconsistencies
among their recommendations
Baseline
(July 2007)
Current Value
Non-Technical losses
N/A
N/A
N/A
N/A
Bill collection rate
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
KPI
Average number of electricity hours per
day (Country-wide)
Percent distortion in electricity
distribution between regions
Note: (*) Defined in the legend
Target
Status
(Closest Date)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
N/A
N/A
Actual Spent
Remaining Budget
Requirements Estimate
N/A
Status
N/A
N/A
18
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
End Date
01/02/06
31/12/09
207.2 wks
01/01/07
30/08/07
36 wks
2.a.vi Undertake negotiations with selected applicants
12/06/07
19/07/07
6 wks
CDR and MoEW Negotiations undertaken
2.a.vii Award contract
20/07/07
23/08/07
5 wks
CDR
Contract awarded
2.a.viii Undertake formal signature
24/08/07
30/08/07
1 wk
CDR
Contract signed
01/02/06
07/09/07
85 wks
01/03/06
31/08/07
80 wks
MoEW/EDL,
MoF and BDL
Conflict settled
2.b.iii Sign contract with KEPCO
2.c Award contracts for the supervision of the KEPCO O&M activities
for Beddawi and Zahrani plants
03/09/07
07/09/07
1 wk
MoEW/EDL
Contract signed
03/09/07
08/04/08
32 wks
2.c.i Develop TOR for the supervision of the KEPCO O&M activities
2.d Decide on the viability of the Zouk and Jiyyeh plants, and
rehabilitate viable existing power plants
03/09/07
12/02/08
24 wks
MoEW/EDL
TOR for the supervision of
KEPCO
01/06/06
18/12/07
82.6 wks
2.d.ii Develop short-list of interested companies
2.d.iii Open discussions with KEPCO on undertaking the study for
free
2.d.iv Undertake survey on the viability of Zouk and Jiyyeh power
plants
2.d.v Draft and submit report on viability of Zouk and Jiyyeh power
plants
2.e Complete the expansion and rehabilitation of the 220KV
transmission network
2.f Complete the auditing of EDL financial statements from 2002 to
2006
01/01/07
18/12/07
52 wks
02/07/07
01/08/07
4.6 wks
03/09/07
07/09/07
1 wk
10/09/07
21/09/07
2 wks
09/01/07
30/06/08
79.4 wks
01/02/07
02/03/09
111.2 wks
2.f.vi Prepare preliminary Audit Reports 2003
2.j Improve procurement process of fuel and gas oil, to ensure better
quality and reduce high premiums
02/07/07
28/09/07
65 days
01/08/07
19/12/08
74 wks
01/08/07
22/10/07
12 wks
01/01/07
31/03/08
66.4 wks
2. Improve EDL operational efficiency
2.a Appoint consultancy team at EDL to perform operational, financial,
accounting, legal and contract management activities, including
coordinating and assisting the HCP and its advisory team in the
corporatization and privatization of EDL
2.b Formalize KEPCO contract
2.b.ii Settle conflict over the contract with KEPCO
2.j.i Organize stakholders' meeting to identify potential issues
2.m Complete the infrastructure needed for the Ksara station (including
400 KV network) to allow Lebanon’s integration into the regional
electrical network known as the “Seventh Joint”

Completed
On Track
Could be Delayed
Duration
Workstep
Responsible
Start Date
Deliverable/ Milestone
Short-list of interested
MoEW/EDL
companies
MoEW/EDL and
HCP
Survey on the viability of
MoEW/EDL
Zouk and Jiyyeh conducted
Report on the viability of
MoEW/EDL
Zouk and Jiyyeh submitted
MoEW/EDL
2003 audit report prepared
MoEW
Stakholders' meeting
Delayed
NS Not started
Status

NS

NS
NS
19
Program Dashboard
Program Title:
POW-003: Corporatize and Privatize
Natural Owner: Secretary General of the HCP
EDL
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Consensus on approach regarding CRA issue (1.2 million
meters vs. 16,800 pilot meters) reached
New:
None
 RFPs for technical and accounting advisory services for the IPP
project issued
 Negotiations with winning bidder to assist HCP with the
corporatization of EDL completed
Carried Over from Previous IMC:
Contract consultants to undertake EDL asset registration and
valuation
Baseline
(July 2007)
Current Value
Asset registry
Not Started
Not Started
Legal due diligence
Not Started
Not Started
New EDL launch plans
Not Started
Not Started
KPI
EDL Corporatization
5%
5%
Establishment of additional production
capacity through IPPs
10%
15%
Collection Management and Metering
15%
15%
Note: (*) Defined in the legend
Target
Status
(Closest Date)
Completed
N/A
(Dec. 2008)
Completed
N/A
(Apr. 2008)
Completed
N/A
(Mar. 2008)
Completed
(Dec. 2008)
Completed
(Dec. 2009)
Completed
(Jun. 2008)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
20
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
End Date
02/09/02
31/12/10
438 wks
01/01/07
30/08/07
36 wks
3.a.vi Undertake negotiations with selected applicants
12/06/07
19/07/07
6 wks
CDR and MoEW Negotiations undertaken
3.a.vii Award contract
20/07/07
23/08/07
5 wks
CDR
Contract awarded
24/08/07
30/08/07
1 wk
CDR
Contract signed
02/09/02
24/03/08
292.4 wks
15/05/07
27/09/07
20 wks
28/09/07
03/10/07
01/08/07
3. Corporatize and Privatize EDL
3.a Retain consultants to assist the HCP with the corporatization and
restructuring of EDL
3.a.viii Undertake formal signature
3.b Establish the Electricity Regulatory Authority and define its financial
and organizational structures
3.b.iii Undertake interviews with candidates
Duration
Workstep
Responsible
Start Date
Deliverable/ Milestone
Status

NS
1 wk
MoEWMinister of Interviews with candidates
CoM,
Energy and
Water
ERA Board appointed
NS
19/11/07
16 wks
CoM
Decrees Issued
NS
02/10/06
11/04/08
82 wks
03/04/07
17/10/07
29.2 wks
MoEW, HCP
03/04/07
07/07/07
14.4 wks
MoEW, HCP
3.c.viii Present interested bidders list to PM and Minister of EW
3.c.ix Develop and issue the tender document to prequalified bidders,
and launch open data room
09/07/07
30/07/07
3.2 wks
MoEW, HCP
CMM website developed
Pre-qualification documents
received
Interested bidders list
presented


09/04/07
16/08/07
19.2 wks
MoEW, HCP
3.c.x Manage bidding process
17/08/07
29/09/07
6.2 wks
MoEW, HCP
02/10/06
24/01/08
70.6 wks
03/04/07
17/10/07
29.2 wks
MoEW, HCP
03/04/07
07/07/07
14.4 wks
MoEW, HCP
09/07/07
30/07/07
3.2 wks
MoEW, HCP
09/04/07
16/08/07
19.2 wks
MoEW, HCP
17/08/07
29/09/07
6.2 wks
MoEW, HCP
Tender documents issued
Bidding documents
submitted
13/04/07
12/12/08
89 wks
04/07/07
08/10/07
14 wks
HCP
Contracts signed
3.b.iv Appoint ERA Board
3.b.v Issue decrees to define ERA organizational and financial
structure, and compensation/ benefits
3.c Launch and award tender for the installation and operation of
remote meters
3.c.v Develop and update CMM website for FAQ and source of all
documentation
3.c.vii Develop, issue and receive prequalification documents to
interested bidders
3.d Launch and award tender for service contracts for distribution
3.d.v Develop and update CMM website for FAQ and source of all
documentation
3.d.vii Develop, issue and receive prequalification documents to
interested bidders
3.d.viii Present interested bidders list to PM and Minister of EW
3.d.ix Develop and issue the tender document to prequalified bidders,
and launch open data room
3.d.x Manage bidding process
3.e Develop additional generation capacity through IPP: Install
additional capacity in Deir Ammar with private sector participation
3.e.ii Retain specialized consultants to provide technical and
accounting advisory services

Completed
On Track
Could be Delayed
Delayed
Tender documents issued
Bidding documents
submitted
CMM website developed
Pre-qualification documents
received
Interested bidders list
presented
NS Not started


21
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
Actions Needed
 Stakeholders to agree on a solution to
provide credit line to KEPCO
POW-001
H
Need to formalize KEPCO contract EDL
Lack of consensus on approach
regarding CRA issue (1.2 million
meters vs. 16,800 pilot meters)
POW-002
H
POW-003
M
A technical report on the viability of
Zouk and Jiyyeh plants should be IMC
developed
POW-004
M
No stakeholder assigned to
undertake EDL asset registry
POW-005
M
Need to shift focus of auditors to
EDL’s 2005-2006 accounts (or
have them work in parallel on
2002-2004 and 2005-2006
accounts)
BAH
EDL
Status
24/07/2007
Delayed
05/07/2007 MoF/ BDL
 Agree on clear assignment of roles and
24/07/2007 Completed
responsibilities pertaining to the CRA
16,800 by
Minister of
contract, including the number of meters to
MoEW and
Energy
be installed in both the short and long
1.2M by
05/07/2007 and Water
terms
HCP (incl.
/ EDL /
funding) with
HCP
support from
MoEW
 EDL to follow up with consultants on the
31/07/2007 Completed
preparation of a technical report on the
viability of Zouk
05/07/2007 EDL
 EDL to follow up with consultants on the
31/07/2007 Delayed
preparation of a technical report on the
viability of Jiyyeh
 Contract consultants to undertake EDL
01/10/2007 In progress
asset registration and valuation
05/07/2007 HCP
EDL/MoF
HCP
Deadline
05/07/2007
EDL
 Need to quickly secure funding for Grant
Thornton
31/07/2007 Completed
 Grant Thornton to start compilation of
20/08/2007 Completed
EDL’s 2005-2006 accounts, while working
on 2002-2004 accounts towards defining
an opening balance for 2005
22
Sector / Natural Owner Issues Register
Issue
ID
POW-006
POW-007
Issue
Level
Issue Description
Raised by
H
MoEW could consider the LNG
option as an alternative to Natural
Gas
Minister of
Energy and
Water and
CDR
President
H
Advisors hired for MoEW, EDL and
HCP might have different
Minister of
orientations, which could create
Finance
conflicts or inconsistencies among
their recommendations
Date
05/07/2007
Assigned
to
HCP and
CDR
Actions Needed
 HCP and CDR to request from their
consultants to include the assessment of
the supply of LNG to the Beddawi plant
within their scope of work
Deadline
Status
20/08/2007 Completed
 Current Infrastructure & Privatization IMC 31/08/2007 In progress
Sub-Committee (PM, MoEW, EDL, HCP,
MoF) to steer the work of all advisors: The
Minister of
scope of work of EDL advisors should be
Energy
channeled toward preparing for the set
05/07/2007 and Water
form corporatization, once sector strategy
/ EDL /
is agreed
HCP
 Reinforce the Sub-Committee with some
Technical Assistance
23
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
24
Airport privatization roadmap and ports privatization approach were
developed by the GR PCO consultant, and need to be discussed with
the Minister of Transport and HCP Secretary General
Transport Sector Progress
 Following the request of the Prime Minister and the Minister of Transport during the last
IMC, the GR PCO consultant developed the following:
– Air Transport: Detailed roadmap for the privatization of the Beirut Rafic Hariri
International Airport (BRHIA)
– Maritime Transport: Approach to privatizing the different ports, including quick-wins
 These proposals need to be discussed and finalized with the Minister of Transport
and HCP Secretary General
25
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
GR PCO
TRA-001
H
Minister of
Strategy relating to privatization of
Transport /
other public entities (e.g., airport,
Minister of
ports) still under development
Finance
Actions Needed
 Develop transport sector privatization
roadmap, within scope of current
legislation
Deadline
Status
31/07/2007 Completed
15/05/2007
Minister of  Align transport sector stakeholders on
Transport/
privatization roadmap
HCP SG
10/08/2007
Delayed
26
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
27
Program Dashboard
Program Title:
CDR-001: Restructure CDR’s
capacity to undertake investments
Natural Owner: President of CDR
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 None
New:
None
Carried Over from Previous IMC:
None
KPI
Percentage of vacant key positions
filled
Note: (*) Defined in the legend
Baseline
(July 2007)
Current Value
0%
0%
Target
Status
(Closest Date)
100%
(Dec. 2007)
Budget Performance*
Initial Budget
$ 2,000,000
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
28
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program / Initiative/ Workstep
1. Restructure CDR’s capacity to undertake reconstruction &
development investments
1.a Strengthen the capacity of CDR’s procurement, financial and
project management, planning, and legal functions
1.a.i Prepare first list of job vacancies and profiles
1.a.ii Announce the available job vacancies
1.b Streamline related internal procedures from bidding and terms
of reference preparations to contracts management and
1.b.i Draft law s on new procurement procedures

Completed
Start Date
End Date
15/07/07
31/07/08
55.8 w ks
15/07/07
31/12/07
25.2 w ks
Workstep
Responsible
Deliverable/ Milestone
15/07/07
15/08/07
4.8 w ks
CDR, OMSAR
Job vacancies list
prepared
03/09/07
01/10/07
4.6 w ks
CDR, OMSAR
Job vacancies published
15/09/07
31/07/08
46.4 w ks
CDR
New procurement law s
drafted
15/09/07
On Track
Duration
15/10/07
Could be Delayed
4.6 w ks
Delayed
Status

NS
NS
NS Not started
29
Program Dashboard
Program Title:
CDR-002: Develop Public
Investment Plan for 2009-2012
Natural Owner: President of CDR
Period:
July 2007
IMC:
Program
Overall Status:
Infrastructure and Privatization
Achievements Since Last Report
Key Issues
 Public Investment Plan guidelines prepared
New:
None
Carried Over from Previous IMC:
None
KPI
Note: (*) Defined in the legend
Baseline
(July 2007)
Current Value
Target
Status
(Closest Date)
Budget Performance*
Initial Budget
N/A
Revised Budget
N/A
Actual Spent
N/A
Remaining Budget
Requirements Estimate
N/A
Status
N/A
30
Detailed Workplan Progress -- Jul. 1, 2007 - Sep. 30, 2007
Program/ Initiative/ Workstep
2. Develop Public Investment Plan for 2009-2012
2.a Develop a Public Investment Plan (PIP) for 2009-2012

Completed
On Track
Start Date
End Date
05/07/07
05/09/07
9.4 wks
05/07/07
05/09/07
9.4 wks
Could be Delayed
Duration
Delayed
Workstep
Responsible
CDR
Deliverable/ Milestone
Status
PIP developed
NS Not started
31
Sector / Natural Owner Issues Register
Issue
ID
Issue
Level
Issue Description
Raised by
Date
Assigned
to
Actions Needed
Deadline
Status
 A Task Force including the CDR, MoF and 23/07/2007 Completed
the Office of PCM to be created in order to
oversee the development of the Public
Investment Plan
CDR-001
H
CDR needs to develop a Public
Investment Plan aligned with Paris CDR
III requirements
CDR
President,  CDR and Ministry of Finance to coordinate 20/08/2007 Completed
Minister of
the preparation of a preliminary Public
05/07/2007
Finance,
Investment Plan to be ready for the next
and Office
IMC
of PCM
 CDR and Ministry of Finance to coordinate 09/09/2007 In progress
the development of a draft Public
Investment Plan for 2009-2012
32
Table of Contents
 GR PCO Planning & Monitoring
 Monthly Progress Reports
– Telecom Sector
– Power Sector
– Transport Sector
– CDR
 Next Steps
33
Next Steps
Actions Required
 Telecom Sector:
– Appoint Liban Telecom Board in order to proceed with the corporatization process
– Transfer relevant documentation and information from the Ministry of Telecom to TRA
– Transfer TRA budget
 Power Sector:
– Formalize KEPCO contract
– Follow up with consultants on the preparation of a technical report on the viability of Jiyyeh
– Channel the scope of work of EDL advisors toward preparing for the set form
corporatization, once sector strategy is agreed
 Transport Sector:
– Align key stakeholders on a roadmap for implementing priority programs
– Develop Commitment Document
 CDR:
– Coordinate with MoF the development of a draft Public Investment Plan for 2009-2012
 Sign Commitment Documents for all Infrastructure & Privatization IMC
34