Lebanon’s energy minister draws a line on debt

In a country where electricity remains as precious as gold, Lebanon’s Minister of Energy and Water, Joe Saddi, is attempting to shed light both literally and figuratively on one of the most “opaque” sectors of the Lebanese state. In a recent interview with LBCI, Saddi defended his ministry’s energy policies, calling for greater transparency, fiscal responsibility, and operational reform within Électricité du Liban (EDL), the state-owned power company.

“We have nothing to hide,” he said bluntly, addressing critics who have long accused the Energy Ministry of mismanagement and corruption.

The goal is to stabilize electricity production without accumulating more debt.

For nearly two decades, Lebanon’s power sector relied on Treasury advances to fund the purchase of fuel oil and maintain minimal electricity production. Those loans, which Saddi says “could have lit up the entire country” if properly used, have now reached staggering levels. According to the minister, the Treasury advances over the past 16 years with interest would have been enough to fully electrify Lebanon.

In a bold move, Saddi has ended this practice altogether.

“We have stopped taking advances and started buying fuel directly through revenue collection,” he explained, marking a rare moment of self-financing in a country dependent on external credit.

The decision comes at a critical time, as the government’s arrears on the Iraq fuel deal estimated at $1.2 billion continue to weigh heavily on the state’s finances. Saddi thanked Baghdad for its continued support but made it clear:

Lebanon cannot afford more debt. We must rely on internal revenues to keep the lights on.

A fragile but improving supply

Despite financial strain, Saddi insists that EDL has managed to improve electricity availability. With current fuel supplies and existing generation capacity, the national grid can now deliver 7 to 9 hours of power per day in summer and up to 10 hours in winter a modest improvement in a country where blackouts once dominated daily life.

He also revealed that bill collection has reached 60% of production value, a significant step for a sector long plagued by nonpayment and energy theft.

Fuel quality, monitoring, and transparency

Saddi’s emphasis on transparency extends beyond financial reforms. He has requested that the Council of Ministers lift the exclusivity on fuel quality testing, previously conducted only in Dubai, and allow independent third-party monitoring companies to oversee the loading of fuel shipments.

This move, he argues, will reduce manipulation and improve accountability in one of the most politically sensitive areas of Lebanon’s energy sector.

Furthermore, Saddi reassured the public that purchases of Russian fuel comply with international sanctions, adhering to price caps set under existing regulations.

Reform under pressure

While progress has been made, Saddi acknowledged that the sector still faces enormous challenges from outdated infrastructure to political interference. Yet his recent statements mark a notable shift toward realism and reform: less borrowing, more transparency, and accountability in every fuel shipment and kilowatt produced.

For years, Lebanon’s power grid has symbolized dysfunction a system draining billions while delivering little. Now, with tighter controls and a renewed commitment to transparency, Saddi is betting that the same grid could become a model of cautious revival rather than chronic collapse.

“We are not hiding anything. The solution begins when the numbers are clear, the contracts are transparent, and every citizen knows where the money and the fuel goes.”