{"id":124464,"date":"2026-01-09T11:09:53","date_gmt":"2026-01-09T11:09:53","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=124464"},"modified":"2026-01-12T13:03:59","modified_gmt":"2026-01-12T13:03:59","slug":"lebanon-project-finance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/lebanon-project-finance\/","title":{"rendered":"Lebanon: Project Finance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-124464","comparative_guide","type-comparative_guide","status-publish","hentry","guides-project-finance","jurisdictions-lebanon"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Bijjani Advocates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/12\/Bijjani-Advocates-logo.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Bijjani Advocates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/12\/Bijjani-Advocates-logo.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Project Finance laws and regulations applicable in Lebanon<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the typical ownership structures for project companies in your jurisdiction? Does this vary based on the industry sector?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Lebanon\u2019s commercial law provides different legal structures for setting up companies. These legal structures consist of the following:<\/p>\n<ul>\n<li>sole proprietorships;<\/li>\n<li>general partnerships;<\/li>\n<li>limited partnerships;<\/li>\n<li>joint-stock companies (SALs);<\/li>\n<li>limited liability companies (SARLs);<\/li>\n<li>holding companies;<\/li>\n<li>offshore companies; and<\/li>\n<li>representative offices and branches of foreign companies.<\/li>\n<\/ul>\n<p>Legal structures vary depending on the industry, the scale of the projects, and the associated risks. Foreign investors conducting business in Lebanon commonly opt for SALs, SARLs, as well as representative or branch offices, based on their specific needs and objectives.<\/p>\n<p>Project companies are set up as joint-stock companies, due to the following factors: The Project Company\u2019s shareholders\u2019 liability is limited to the value of their shares, protecting their personal assets from business liabilities or debts.<\/p>\n<p>The SAL company allows for significant capital investment by issuing shares to multiple shareholders, making it suitable for large-scale businesses and attracting foreign and local investors. The easiness to issue shares in the joint stock company makes it easier to raise capital from the public or private investors compared to other business structures. Also, shares in an SAL can be easily transferred, allowing flexibility in ownership changes without disrupting the company\u2019s operations.<\/p>\n<p>Finally, foreign investors can hold shares in a joint stock company in Lebanon, with certain restrictions in strategic sectors, facilitating foreign investment.<\/p>\n<p>Also, it should be noted that banking and insurance businesses can only be undertaken by join-stock companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance laws or accounting practices that foreign investors in a project company should be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><span data-contrast=\"auto\">According to Law No. 296 of April 3, 2001, all non-Lebanese persons, whether legal or natural persons, willing to\u00a0acquire\u00a0any real estate right on the Lebanese territory are\u00a0required\u00a0to obtain a license granted by decree from the Council of Ministers upon proposal of the Minister of Finance.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Exception: There\u00a0are some cases that do not require a license, of which, the acquisition by non-Lebanese naturals and legal persons and Lebanese legal persons considered by the Law as non-Lebanese of built property or property set for building, of\u00a0a maximum\u00a0of 3.000 sq m throughout the Lebanese Territory.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Limitations: It\u00a0is forbidden to license non-Lebanese naturals and legal persons and Lebanese legal\u00a0persons considered\u00a0by the Law as non-Lebanese to acquire more than 3% of the total surface\u00a0of Lebanon, providing that it would not exceed 3% of the surface of each caza, or 10%\u00a0of Beirut, where they are allowed to acquire up to10% of its surface.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In the following two cases, the rule is only applicable to 50% of the area owned:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A. Partnerships or Limited Liability Companies, in cases where more than 50% of the shares are held by Lebanese partners, or fully Lebanese-owned companies whose statutes prohibits transfer of shares to non-Lebanese, <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">B. Joint Stock Companies or Partnerships Limited by Shares, where more than 50% of shares are held by Lebanese partners or by fully Lebanese-owned companies whose statutes prohibits the transfer of shares to non-Lebanese,<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The licensed area, where ownership or any other real estate\u00a0right has\u00a0been\u00a0acquired, should be used for the purpose specified in the license application, and the implementation of the project should be completed within 5 years from the registration date. This\u00a0period is renewable only once by decision of the Council of Ministers.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The amendments brought by Law No. 126\/2019 to the Lebanese Commercial Code introduced key reforms aligned with corporate governance principles, enhancing transparency, fairness, flexibility, and other essential standards. These reforms include the possibility of separating the roles of\u00a0Chairman\u00a0and General Manager, strengthening transparency measures, and simplifying formalities in specific transactions. For example, certain transactions no longer require the submission of\u00a0the social\u00a0security\u00a0discharge to be registered before the Commercial Register.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Lebanon\u00a0operates\u00a0under a one-tier board system, where the board assumes both management and supervisory roles.\u00a0The size of the board ranges from a minimum of three (3) to a maximum of twelve (12) members.\u00a0Amendments to the Commercial Code in 2019 introduced significant changes:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Times New Roman\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Times New Roman&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"0\" data-aria-level=\"1\"><span data-contrast=\"auto\">At least one-third (1\/3) of board members must be Lebanese nationals, replacing the\u00a0previous\u00a0requirement that\u00a0the majority of\u00a0members be Lebanese.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Times New Roman\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Times New Roman&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Board members\u00a0are no longer required to\u00a0hold shares in the company.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Times New Roman\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Times New Roman&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The roles of\u00a0Chairman\u00a0of the Board and General Manager (CEO), previously combined, have been formally separated.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The Lebanese Commercial Code provides protections for minority shareholders, including access to financial information and the right to challenge board decisions. Companies must\u00a0comply with\u00a0disclosure requirements, including\u00a0maintaining\u00a0accurate\u00a0records of financial statements and\u00a0submitting\u00a0annual reports to the Ministry of Finance.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The 2019 amendments to the Commercial Code introduced a framework for managing related party transactions (RPTs):<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Times New Roman\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Times New Roman&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">RPTs\u00a0require\u00a0prior approval by the General Assembly based on board recommendations.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Times New Roman\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Times New Roman&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Reports by management and auditors on RPTs must be published in the Commercial Registry.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"-\" data-font=\"Times New Roman\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:0,&quot;335552541&quot;:1,&quot;335559685&quot;:1080,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Times New Roman&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;-&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Transactions involving loans, guarantees, or securities to third parties are prohibited.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">External auditors must be independent, and their tenure is limited to five years for the lead audit partner.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Amendments under Law No. 126 (2019) prohibit external auditors from providing non-auditing services, such as consultancy, to audited companies.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The prohibition extends to shareholders or shareholder groups holding 10% or more of the company\u2019s capital.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Companies\u00a0operating\u00a0as banks, the Lebanese Central Bank (Banque du Liban) also\u00a0provides\u00a0corporate governance guidance through Basic Decision No. 9382 and Circular No. 106 dated July 26, 2006, which was amended several times by\u00a0subsequent\u00a0intermediary decisions. Notably, we cite Basic Decision No. 12689 and Circular No. 142, both dated Octobers 5, 2017.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Additionally, Lebanon has made impressive progress in drafting environmental, social and governance texts, such as:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Law No. 78\/2018 on the protection of air quality, which aims to\u00a0monitor\u00a0air pollutants and assess their levels in the Lebanese\u00a0atmosphere;\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1080,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Law No. 44 dated 29 July 2002 on the protection of the environment; and<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1080,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Law No. 664\/2005\u00a0establishing\u00a0the Mediator of the Republic, whose mission is to ensure effective mediation between the administration and its users; its implementing decree has not yet been ratified.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1080,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If applicable, what forms of credit support from sponsors or host governments are typically provided?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>I- Credit Support from Lenders\/Investors<\/strong><\/p>\n<p>Various forms of credit support can be provided by lenders and investors to fund projects:<\/p>\n<ul>\n<li><strong>Loans and Debt Instruments:<\/strong> Sponsors, such as banks and investors, can offer traditional loans to finance the project.<\/li>\n<li><strong>Bonds and Convertible Bonds:<\/strong> Projects may issue bonds, which can be converted into equity under specific terms, depending on the agreement.<\/li>\n<li><strong>\u00a0Lease Financing:<\/strong> Leasing arrangements can be used to finance assets essential to the project.<\/li>\n<li><strong>Equity contributions:<\/strong> Equity contributions can be made by investors who may contribute by purchasing common equity or preferred equity (Investments that come with preferential rights over dividends or claims on assets in case of liquidation.)<\/li>\n<li><strong>In-Kind Contributions:<\/strong> Sponsors or stakeholders may contribute assets like land, equipment, or intellectual property instead of cash, thereby reducing initial financial outlays.<\/li>\n<li><strong>Guarantees and Letters of Credit:<\/strong> Projects may attract investors by offering guarantees or securing letters of credit from financial institutions to assure payment or performance obligations.<\/li>\n<\/ul>\n<p><strong>II- Credit Support from the Government<\/strong><\/p>\n<p>Governments often provide various forms of credit support to encourage and facilitate project financing:<\/p>\n<ul>\n<li><strong>Arrangements:<\/strong> The government may engage in various Public-Private Partnerships (PPPs) to facilitate project development and financing. These partnerships often involve providing private sector entities with a range of incentives, such as tax breaks, revenue protections, and, in some cases, partial ownership rights over public infrastructure or services. A prominent example of such arrangements is the Build-Operate-Transfer (BOT) model. In this framework, a private company assumes the responsibility for financing, building, and operating a project over a specified period. During this time, the company recovers its investment, usually through the project&#8217;s generated revenues, before eventually transferring ownership and control back to the government<\/li>\n<li><strong>Sector-Specific Exemptions:<\/strong> Companies operating in certain sectors (e.g., agriculture) or specific regions may benefit from tax incentives designed to encourage investment in underserved areas.<\/li>\n<li><strong>Holding and Offshore Companies:<\/strong> These companies enjoy an indefinite exemption from Corporate Income Tax (CIT) but are subject to an annual lump-sum tax. This amount was revised to LBP 50,000,000 per annum in the November 15, 2022 budget law.<\/li>\n<li><strong>Investment Incentives under Investment Law No. 360:<\/strong> The Investment Development Authority of Lebanon (IDAL) provides two key incentive schemes:<\/li>\n<\/ul>\n<p>a- Investment Project by Zone Scheme: this scheme offers small and medium-sized projects in designated sectors and geographical zones benefits such as tax exemptions.<\/p>\n<p>b- Package Deal Contract Scheme: This scheme is designed for large-scale projects that have a high potential for creating significant employment opportunities. It offers both financial and non-financial incentives, including the immediate issuance of work permits and a reduction in regulatory barriers, making it easier to proceed with the project.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of security interests are available (and suitable) for a project financing in your jurisdiction? Are direct agreements used?\u00a0<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Lebanese legislation grants personal and in rem guarantees to secure an obligation. All the assets in the patrimony of the grantor can be subject to a personal or in rem guarantee, and they are divided into two categories:<\/p>\n<ul>\n<li>movable assets, corporal or incorporeal (eg, vehicles, vessels, aircrafts, equipment, products, cash, shares, bank accounts, licenses, insurance, jewelry and valuable goods and IP rights); and<\/li>\n<li>immovable assets (eg, real estate, land and buildings),<\/li>\n<\/ul>\n<p>However, as per article 130 of Property Ownership Act, future assets cannot be subject to a security interest in favor of creditors. Creditors will only have a security right on present assets.<\/p>\n<p>In this context, it should be noted that the right related to movable assets takes the form of pledges while the right related to immovable assets takes the form of mortgages.<\/p>\n<p>Based on the above, the following security interests are applicable:<\/p>\n<ul>\n<li>To assign payouts, royalties or insurance rights in order to ensure the creditor is paid in the event the debtor fails to do so;<\/li>\n<li>To pledge a movable property, allowing the creditor to retain the said movable property until the settlement of the debt; and<\/li>\n<li>To grant the creditor a mortgage over real estate owned by the debtor to secure the repayment of the debt. The registered mortgage before the property department will be attached to the property in case the debtor sold the property and will be written off when the debt is settled. In the event the debtor is in default, the creditor can have recourse to the execution courts to sell the property in auction and repay the debt.<\/li>\n<li>To grant a personal or corporate guarantee which enhances the creditor&#8217;s security position, functioning similarly to a surety. This guarantee makes the guarantor liable for repayment in the event of default by the primary debtor. Essentially, it provides an additional layer of assurance for the creditor, as the guarantor agrees to fulfill the debt obligations if the main debtor is unable to do so.<\/li>\n<\/ul>\n<p>To safeguard their investment, lenders enter into direct agreements with key project counterparties. These agreements grant lenders step-in rights, allowing them, in the event of serious difficulties (e.g., loan default or project mismanagement), to address the problem, ensure continuity of the project, and preserve its overall value.<\/p>\n<p>In Lebanon, the enforceability of direct agreements and step-in rights is grounded in the general principles of Lebanese contract law, particularly the broad freedom of contract under the Code of Obligations and Contracts. Lenders typically secure these rights through tailored contractual provisions with the project company and key counterparties, including public authorities or contractors. While Lebanon\u2019s PPP Law does not address every financing mechanism in detail, it provides a framework that supports the protection of lenders\u2019 rights and allows the negotiation and implementation of direct agreements and step-in rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the above security interests perfected?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Given that security interest is an agreement, it must meet the substantive and formal conditions required by Lebanese law for the validity of the acts (without vices of consent, lawful object or cause of the agreement).<\/p>\n<p>Furthermore, to enforce a security interest agreement towards third parties, the latter must be written and registered before the relevant authorities.<\/p>\n<p>For example, pledges of shares should be registered at the Commercial Register; security interests over certain movable property (eg, vessels and vehicles) must be registered at registers specifically established for each type of asset; mortgages and guarantees over real estate must be registered at the Real Estate Register. As for movables, the perfection is concluded by handing over the asset.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify how security is enforced (notably the enforcement options available for secured parties) both pre and post insolvency\/bankruptcy of the project company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>A- Enforcement of the Security pre-bankruptcy:<\/strong><\/p>\n<p>Outside the context of a bankruptcy, in order to enforce a security, the project lender must commence legal action before the competent court, along with the instrument, requesting the notification of the debtor and seizure of the asset serving as collateral. The execution judge will either approve the request of the project lender or decide to notify the debtor and give him a limited period of time (usually ten days from the date of notification) to settle his or her debt or submit an objection to the project lender\u2019s petition.<\/p>\n<p>In case the debtor submits an objection before the execution judge, the foreclosure will be paused until the execution judge issues his or her decision on the matter. The debtor could be granted an additional period of time to settle his or her debt, if it does not exceed six months (such request will not affect the right of the creditor to take conservative measures in order to ensure the protection of his or her rights). Also, the creditor may claim for interest.<\/p>\n<p>In case the debtor fails to settle his or her debt after such extension, the execution department will seize his or her assets, sell them at a public auction and reimburse the project lender the amount due to him or her from the debtor. The project&#8217;s lenders can participate in the public auction if they meet the participation requirements.<strong>B- Post-Bankruptcy:<\/strong><\/p>\n<p>The Lebanese Bankruptcy Law states that all creditors have an equal right to payment on a pro-rata basis (this excludes creditors who has perfected their lien over specific assets). The Law does not exclude foreign creditors.<\/p>\n<p>The above-mentioned equality principle only applies to creditors who have an unsecured and non-preferred right that they share pro rata after the satisfaction of secured and preferred creditors\u2019 debts.<\/p>\n<p>Nevertheless, article 32 of Legislative Decree No. 147 of 1959 provides that the Treasury\u2019s debt benefits from a first-degree priority over all other creditors.<\/p>\n<p>However, creditors who hold a security interest and creditors who have a preference under law are only prioritized over the Treasury debt if their registration before the relevant authorities was done prior to the Treasury\u2019s registration.<\/p>\n<p>Finally, during the suspect period (as fixed by the court, which shall not exceed 18 months prior to the decaled bankruptcy date), certain acts conducted by the bankrupt may be deemed null and void if they jeopardize creditors&#8217; interests, such as:<\/p>\n<ul>\n<li>settlement of a debt by any means that has not yet come due;<\/li>\n<li>any gratuitous act or donation, or for a consideration that is clearly too low;<\/li>\n<li>any mortgage and any guarantee or legal lien established for debts contracted before the cessation of payments; and<\/li>\n<li>payment made by a method other than cash or commercial paper, even of a mature debt.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are other important considerations in relation to the security regime in the jurisdiction that secured parties should be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Certain types of security interests in Lebanon require registration to be enforceable. These include pledges of stocks, mortgages and guarantees over real estate, as well as security interests over specific types of movable property.<\/p>\n<p>It is important to note that the assignment of any asset\u2014whether tangible or intangible\u2014to an assignee, transfers not only the asset itself but also all its associated rights and accessories. These may include guarantees, privileges, pledges, and real estate securities. However, the debtor retains the right to raise any defences or objections against the assignee that they could have asserted against the assignor. This right ceases to apply if the debtor explicitly and unconditionally accepts the transfer, as such acceptance is regarded as a waiver of any prior defences or objections they might have had.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What key project risks should lenders be aware of in project financings in your jurisdiction? This may include, but may not be limited to, the following risks: force majeure, political risk, currency convertibility risk, regulating or permitting risk, construction\/completion risk, supply or feed stock risk or legal and regulatory risk).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Lebanon, lenders should be aware of several key project risks in project financings due to the region&#8217;s political instability. The volatile political situation and the ongoing security threats can significantly impact projects, presenting risks such as force majeure, currency convertibility, and construction delays. In fact, the economic crisis and the recurring security challenges that Lebanon has been facing may disrupt project timelines and execution.<\/p>\n<p>While, in theory, there are no restrictions on the flow of funds or currency conversion, several legal and practical considerations must be taken into account:<\/p>\n<p><strong>&#8211; Currency Convertibility Risk:<\/strong> Although Lebanon operates as a free-market economy, informal capital controls have been imposed by the financial sector since October 2019, particularly limiting dollar withdrawals from bank accounts existing prior to October 2019. These measures, despite the Lebanese Constitution affirming a liberal economic system, hinder international transactions and limit the movement of funds.<\/p>\n<p><strong>&#8211; Regulatory Compliance:<\/strong> Law No. 42 of 24 November 2015 on Declaring the Cross- Border Transportation of Money mandates that any funds entering or exiting Lebanon above US$15,000 (or its equivalent in other currencies) must be declared to Lebanese customs. Additionally, according to Law No. 44 of 24 November 2015 on Fighting Money Laundering and Terrorist Financing, banks and financial institutions are required to report any suspicious transactions, regardless of amount, to the Special Investigation Committee (SIC) at the Central Bank. This compliance burden can complicate project financing.<\/p>\n<p><strong>&#8211; Construction and Completion Risk:<\/strong> Ongoing conflicts and political instability can lead to construction delays, cost overruns, and difficulties in securing necessary permits or approvals. Lenders must carefully assess these risks when financing projects in Lebanon.<\/p>\n<p><strong>&#8211; Political Risk:<\/strong> The uncertain political landscape can result in sudden changes in government policies or regulations that may adversely affect projects.<\/p>\n<p><strong>&#8211; Absence of Digital Currency Laws and legal implementation:<\/strong> Lebanon currently has no specific legal framework governing digital or cryptocurrencies. The absence of regulations on digital currencies creates legal uncertainty, which could complicate project financing by increasing risk for lenders and investors, particularly in transactions involving digital assets or blockchain-based solutions.<\/p>\n<p><strong>&#8211; Force Majeure:<\/strong> Projects in Lebanon are also subject to significant force majeure risks. Events such as political instability, civil unrest, natural disasters, or other circumstances beyond the control of the project parties could delay or disrupt project execution. These risks increase uncertainty for lenders and may complicate the structuring and financing of projects in the jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any governmental \/ regulatory consents required and are any financing or project documents requirement to be filed with any authority in order to be admissible in evidence in a court of law, valid or enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Lebanese law, obtaining the consent of an authority or third party is generally not required to submit a document as evidence in a court of law. However, the admissibility and strength of a document as evidence depends on whether it meets all necessary conditions, including formal requirements, which the judge has the discretion to assess, accept, or reject. For instance, if the objective is to challenge the validity of a written document, this must be done using another written document. Conversely, to establish a fact, evidence is more flexible.<\/p>\n<p>Certain documents must be formally registered to be valid, including specific security interests such as share pledges, mortgages and guarantees over real estate, and security interests in certain types of movable property.<\/p>\n<p>It is worth noting that proofs in commercial matters are unrestricted (&#8220;la preuve est libre en mati\u00e8re commerciale&#8221;) pursuant to Article 254 of the Lebanese Code of Commerce and Article 257 of the Lebanese Code of Civil Procedure. However, while the principle of unrestricted evidence applies, it must still comply with legal principles and cannot contravene common law rules regarding the lawful means of obtaining evidence.<\/p>\n<p>Although there is no clear precedent regarding the admissibility of electronic evidence, even in commercial matters, it appears that such evidence can be considered by the judge as preliminary proof. This is particularly due to the principle of unrestricted evidence in commercial law. Nevertheless, judges retain broad discretion to assess, accept, or reject electronic evidence based on its reliability and compliance with legal requirements, given that no implementing decrees were formally issued to date.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there are any specific foreign exchange, royalties, export restrictions, subsidies, foreign investment, that are relevant for project financings (particularly in the natural resources sectors)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In certain sectors, investments are governed by specific regulations, particularly in the natural resources sector. In Lebanon, natural resources are owned by the state and are managed under governmental monopolies. However, the private sector can acquire certain rights through an award issued by the Council of Ministers. These rights, defined in detail, are granted following a proposal submitted in response to the Council\u2019s invitation. Both foreign and local companies are subject to the same conditions and requirements.<\/p>\n<p>Taxes, royalties, and customs duties apply to the import and export of natural resources. For instance, the state retains ownership and exclusive rights to oil, gas, and other petroleum resources, as well as their management.<\/p>\n<p>In fact, the Petroleum Taxation Law No. 57\/2017 outlines the royalties and taxes applicable to oil and gas extraction activities, as well as customs duties and penalties for violations. These include income tax, taxes on salaries and wages, stamp duty, property taxes, and value-added tax (VAT).<br \/>\nThe Petroleum Taxation Law No. 57\/2017 mandates the use of the accrual basis of accounting for recording financial entries. This requirement extends to contractors, subcontractors, and operators associated with right holders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please set out any specific environmental, social and governance issues that are relevant. For example, are project companies subject to certain ESG laws, reporting requirements or regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Lebanon faces a range of environmental, social, and governance (ESG) challenges, which are relevant to project companies operating within its jurisdiction. These challenges include air pollution, groundwater contamination, inadequate solid waste management, bribery, corruption, and political contributions. Despite these issues, Lebanon has demonstrated efforts to address them by signing and ratifying various international treaties and conventions containing ESG clauses. However, implementation and enforcement remain significant concerns.<\/p>\n<p>From a regulatory standpoint, Lebanon has made progress in drafting ESG-related laws and frameworks, including:<\/p>\n<p>1. Law No. 78\/2018 on the Protection of Air Quality: This law aims to monitor air pollutants and assess their levels in the Lebanese atmosphere, reflecting an effort to address air quality concerns.<\/p>\n<p>2. Law No. 44 (29 July 2002) on the Protection of the Environment: This broad law provides a foundation for environmental protection, promoting sustainable practices and reducing environmental degradation.<\/p>\n<p>3. Law No. 664\/2005 Establishing the Mediator of the Republic: This governance-focused law seeks to enhance accountability and transparency by providing effective mediation between the administration and citizens. However, its implementation decree is yet to be ratified, limiting its practical application.<\/p>\n<p>While these laws represent progress, challenges such as enforcement gaps and incomplete regulatory frameworks underscore the need for companies to adopt robust internal ESG practices. Project companies should also stay informed about Lebanon\u2019s specific ESG laws and any associated reporting requirements, ensuring compliance and contributing to sustainable development in the region.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has any public-private partnership models or laws been enacted in the jurisdiction, and if so, are they specific to certain industry sectors?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Lebanon has enacted a public-private partnership (PPP) model through Law No. 48 on Public-Private Partnerships (PPP), which was published in the Official Gazette on 14 September 2017. This law establishes a clear and comprehensive legal framework for PPP transactions, regulating most aspects and phases of such projects. The aim of the law is to attract foreign investment and specific expertise to Lebanon, enhancing the efficiency and success of public projects.<\/p>\n<p>The PPP Law is not limited to specific industry sectors; it applies broadly, allowing flexibility to accommodate various types of projects across different sectors. However, its implementation has primarily focused on sectors such as infrastructure, energy, and transportation, which are pivotal to Lebanon\u2019s development goals.<\/p>\n<p>Companies interested in participating in PPP projects in Lebanon should ensure compliance with the detailed provisions of the PPP law, which is designed to foster transparency, mitigate risks, and promote collaboration between the public and private sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will foreign judgments, arbitration awards and contractual agreements to arbitrate be upheld?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign judgments, arbitration awards, and contractual agreements to arbitrate can be upheld in Lebanon, subject to specific conditions outlined in the Lebanese Code of Civil Procedures (CCP) and applicable international treaties.<\/p>\n<p><strong>1. Foreign Judgments:<\/strong><br \/>\nPursuant to Article 1014 of the Lebanese CCP, foreign court orders must obtain an executionary form from the relevant Lebanese court to be enforceable. To secure this, the following criteria must be met:<\/p>\n<ul>\n<li>The judgment must be issued by specialized judges under the law of the country where it originated.<\/li>\n<li>It must have acquired the strength of a res judicata (final decision) and be enforceable in the issuing country.<\/li>\n<li>The rights of the defendant (e.g., proper notification and defense) must have been upheld.<\/li>\n<li>It must not conflict with Lebanese public order.<\/li>\n<li>Reciprocity must exist between Lebanon and the issuing country, meaning that the foreign country&#8217;s laws allow the enforcement of Lebanese judgments within its jurisdiction.<\/li>\n<\/ul>\n<p><strong>2. Foreign Arbitral Awards:<\/strong><br \/>\nAccording to Article 814 of the CCP, foreign arbitral awards are recognized and granted enforceability in Lebanon if:<\/p>\n<ul>\n<li>The existence of the award is duly proven.<\/li>\n<li>The award does not violate Lebanese public order.<\/li>\n<\/ul>\n<p>Lebanon\u2019s adherence to the New York Convention of 1958, since November 1998, reinforces its commitment to recognizing and enforcing foreign arbitral awards, provided they meet the conditions outlined in the convention and local laws.<\/p>\n<p><strong>3. Contractual Agreements to Arbitrate:<\/strong><br \/>\nAgreements to arbitrate are generally respected under Lebanese law, in line with its arbitration-friendly framework. However, their enforcement may depend on compatibility with public policy and compliance with procedural requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is submission to a foreign jurisdiction and waiver of immunity effective and enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Submission to a foreign jurisdiction and waiver of immunity are recognized and enforceable under Lebanese law, provided they satisfy specific legal conditions.<\/p>\n<p><strong>1. Submission to a Foreign Jurisdiction:<\/strong><\/p>\n<p>Lebanese law upholds clauses designating foreign jurisdictions for dispute resolution, as long as these clauses:<\/p>\n<ul>\n<li>Fulfill the general validity conditions for legal acts, such as legality, absence of defects, and consistency with Lebanese public order.<\/li>\n<li>Do not infringe on public policy principles in Lebanon.<\/li>\n<li>Ensure that the rights of defense are respected during the proceedings.<\/li>\n<\/ul>\n<p>Judgments issued by foreign courts pursuant to such agreements can be enforced in Lebanon through the grant of an exequatur (execution order) by the Lebanese Civil Court of Appeal, as per Articles 1009\u20131024 of the CCP. This process does not involve revisiting the case merits, provided the conditions of Article 1014 of the CCP are met.<\/p>\n<p><strong>2. Waiver of Immunity:<\/strong><\/p>\n<p>Waivers of immunity from jurisdiction or execution are permissible under Lebanese law if they:<\/p>\n<ul>\n<li>Comply with the general legal requirements for validity.<\/li>\n<li>Do not conflict with Lebanese public policy.<\/li>\n<\/ul>\n<p><strong>3. Enforcement and Review:<\/strong><\/p>\n<p>The Lebanese courts may enforce foreign judgments based on these clauses, subject to the following restrictions:<br \/>\nCourts cannot review the merits of a foreign judgment unless required under specific circumstances, such as:<\/p>\n<ul>\n<li>The judgment relies on falsified documents or new conclusive evidence emerges.<\/li>\n<li>Inconsistencies or contradictions are identified in the judgment.<\/li>\n<li>Reciprocity requires Lebanese judgments to undergo review in the issuing country before enforcement.<\/li>\n<\/ul>\n<p>Clauses of submission to foreign jurisdictions and waivers of immunity are effective tools for fostering an environment that encourages international agreements in Lebanon, provided they respect Lebanese legal principles and procedural safeguards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify what you consider to be (a) the key current issues for project financing in your jurisdiction; and (b) any emerging trends or topics which should be considered or focused on by project financing stakeholders in this jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project financing in Lebanon faces significant challenges due to the country\u2019s economic and political crises. The severe devaluation of the Lebanese pound, hyperinflation, and the paralysis of the banking sector have drastically constrained local financing options. Political instability further hampers project approvals and implementation, while limited access to international funding, due to sanctions and poor credit ratings, complicates efforts to attract investment. The energy sector, with its chronic shortages and outdated infrastructure, exemplifies the urgent need for financing but also highlights the risks involved.<\/p>\n<p>Emerging trends provide opportunities despite these hurdles. Renewable energy projects, supported by international donors and development agencies, are gaining traction as a response to power shortages. Public-private partnerships (PPPs) are increasingly seen as a way to attract private investment, though legislative reforms may be necessary to strengthen their framework. Decentralized financing models, particularly at the municipal level, and innovations in digital and fintech solutions, such as crowdfunding, are also creating alternative avenues for funding smaller-scale projects.<\/p>\n<p>To address these issues, stakeholders must focus on mitigating risks through tools like political risk insurance and currency hedging, while enhancing the legal framework to encourage investment. Prioritizing high-impact sectors like renewable energy, water, and waste management, and leveraging international development aid, will be essential to rebuilding investor confidence and enabling sustainable project financing in Lebanon.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify in your jurisdiction what key legislation, subsidy regimes or regulations have been implemented (or will \/ plan to be) for projects in connection with the energy transition and\/or specific projects due to energy security?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><span data-contrast=\"auto\">Lebanon has taken steps to support the energy transition, focusing on diversifying energy sources and promoting sustainable practices. Key legislation and regulatory initiatives include:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ol>\n<li><b><span data-contrast=\"auto\"> Renewable Energy Laws and Policies:<\/span><\/b><\/li>\n<\/ol>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Law No. 462\/2002<\/span><\/b><span data-contrast=\"auto\">:\u00a0Establishes\u00a0the legal framework for electricity sector reform and the integration of private entities into energy production. However, its implementation\u00a0remains\u00a0incomplete, creating a barrier to sectoral progress.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">National Renewable Energy Action Plan (NREAP) 2016-2020<\/span><\/b><span data-contrast=\"auto\">: Aims to increase renewable energy to 12% of Lebanon\u2019s energy mix by 2020. Despite delays, this plan continues to guide renewable energy strategies.\u00a0At the recent edition of the Lebanon Grand Energy Event 2025, the Ministry of Energy and Water confirmed once again its commitment for renewable energy by adopting and launching the third edition of the NREAP. The current NREAP 2025-2030 is an action plan aiming to provide an\u202fin-depth assessment of the 2020 targets and the determination of challenges and success factors.\u00a0The NREAP 2025-2030 offers three different scenarios for renewable energy development, with a realistic scenario targeting a target of 40% RE share from the total electricity consumed by 2030.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Lebanon Renewable Energy Outlook (LREO)<\/span><\/b><span data-contrast=\"auto\">: A strategic collaboration with IRENA that explores potential increases in solar, wind, and hydropower capacities.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">National Energy Efficiency and Renewable Energy Action (NEEREA) Financing Mechanism:\u00a0<\/span><\/b><span data-contrast=\"auto\">The National Energy Efficiency and Renewable Energy Action (NEEREA)\u00a0is\u00a0the national financing mechanism approved in 2011 to offer loans and grants through Lebanese commercial banks for private sector investments in energy efficiency, renewable\u00a0energy\u00a0and certified buildings.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Green Economy Financing Facility (GEFF):<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-contrast=\"auto\">GEFF Lebanon<\/span><span data-contrast=\"auto\">\u202fwill be supported by a team of specialized consultants including engineering, environmental,\u00a0financial\u00a0and marketing experts, who will offer Bank Audi and its clients direct support and advice throughout the green project lifecycle using best-in-class technologies. The technical\u00a0assistance\u00a0package is supported by the EBRD Shareholder Special Fund.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ol start=\"2\">\n<li><b><\/b><b><span data-contrast=\"auto\">Distributed Renewable Energy Systems:<\/span><\/b><\/li>\n<\/ol>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"16\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Distributed Renewable Energy Law\u00a0(Law 318\/2023)<\/span><\/b><span data-contrast=\"auto\">: A groundbreaking law that enables individuals and businesses to generate renewable energy and feed excess power into the national grid. This law encourages decentralized energy generation and reduces reliance on Lebanon&#8217;s strained electricity system.\u00a0However, to date, the\u00a0implementation decrees of said law are not yet\u00a0issued\u00a0and\u00a0it is still not yet possible for individuals and business to transfer excess power generated into the national\u00a0gird.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"16\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Net Metering Regulation<\/span><\/b><span data-contrast=\"auto\">: Provides\u00a0additional\u00a0incentives for renewable energy producers, further fostering decentralized solutions\u200b<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ol start=\"3\">\n<li><b><span data-contrast=\"auto\"> Energy Efficiency Measures:<\/span><\/b><\/li>\n<\/ol>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"17\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Law No. 48\/2017<\/span><\/b><span data-contrast=\"auto\">:\u00a0Facilitates\u00a0Public-Private Partnerships (PPPs) in energy efficiency and renewable energy projects.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"17\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Energy Conservation Law:\u00a0<\/span><\/b><span data-contrast=\"auto\">Administered by the Lebanese Center for Energy Conservation (LCEC), this law focuses on reducing energy consumption and enhancing efficiency. It supports renewable energy projects such as solar water heating and efficient appliances while integrating with the National Energy\u00a0Efficiency Action\u00a0Plan (NEEAP).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">4. Hydrocarbon and Gas Framework:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1080,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Law No. 132\/2010<\/span><\/b><span data-contrast=\"auto\">: Governs offshore oil and gas exploration, with revenues\u00a0anticipated\u00a0to fund renewable energy projects and infrastructure improvements.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1080,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ol start=\"5\">\n<li><b><span data-contrast=\"auto\"> Regulations on Climate Action and Emissions Reduction:<\/span><\/b><\/li>\n<\/ol>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"18\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Lebanon\u2019s Nationally Determined Contribution (NDC)<\/span><\/b><span data-contrast=\"auto\">\u00a0under the Paris Agreement: Sets a target to reduce greenhouse gas emissions by 20-30% by 2030.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"18\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Law No. 444\/2002 (Environmental Protection Law)<\/span><\/b><span data-contrast=\"auto\">: Supports sustainability-focused projects, particularly those reducing carbon emissions.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">7.Future Plansand Legislative Proposals:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"19\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Draft Renewable Energy Law<\/span><\/b><span data-contrast=\"auto\">: Under development, aims to streamline the approval and investment process for renewable energy projects.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"19\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">National Hydrogen Strategy<\/span><\/b><span data-contrast=\"auto\">: Explores hydrogen energy as a future\u00a0component\u00a0of Lebanon&#8217;s energy mix.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">8. International Collaboration and Support:<\/span><\/b><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"20\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">EU and UNDP Partnerships<\/span><\/b><span data-contrast=\"auto\">: Focus on capacity-building programs and the implementation of sustainable energy projects.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"20\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">CEDRO Program<\/span><\/b><span data-contrast=\"auto\">: Funded by the UNDP, promotes energy efficiency and the deployment of renewable energy in Lebanon\u2019s public and community spaces.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:1440,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[720,1440],&quot;469777927&quot;:[0,0],&quot;469777928&quot;:[0,8]}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Lebanon\u2019s evolving legal framework, including initiatives like the Distributed Renewable Energy Law, highlights its commitment to advancing energy sustainability. Despite challenges such as economic instability and infrastructure deficits, the growing emphasis on renewable energy, decentralization, and efficiency marks progress in addressing Lebanon\u2019s energy transition\u200b.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335557856&quot;:16777215,&quot;335559685&quot;:720,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify if there are any material tax considerations which need to be taken into account for a project financing in your jurisdiction, and if so, how such tax issues can be mitigated.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Lebanon, tax considerations play a significant role in structuring project financing, with potential impacts on both the cost and feasibility of projects. One key consideration is corporate income tax, which is levied at a standard rate of 17% on profits generated by entities involved in project financing. Tax planning measures, such as asset depreciation and eligible deductions, can be utilized to minimize taxable income. Furthermore, structuring projects through Special Purpose Vehicles (SPVs) can optimize tax liabilities, especially for complex or multi-party projects.<\/p>\n<p>The Value-Added Tax (VAT), currently set at 11%, applies to goods and services, including construction materials and related services. While this increases initial project costs, businesses can mitigate the impact by claiming input VAT credits for VAT incurred during procurement. This mechanism reduces the net VAT burden, especially for projects with substantial material costs.<\/p>\n<p>Withholding taxes also require careful consideration, particularly for payments such as dividends, interest, and fees to non-residents, which are taxed at rates ranging from 3.4% (for goods), 8.5% (for services).Double Taxation Treaties (DTTs) between Lebanon and other countries can provide relief by reducing withholding tax rates or eliminating double taxation. Structuring agreements with foreign contractors or lenders in line with applicable treaties is essential to leverage these benefits.<\/p>\n<p>Import duties and customs taxes on equipment and materials for project implementation can add to costs. However, exemptions or reduced rates may be available for projects of national importance or those designated as public utility services. Engaging with authorities early in the project to secure such benefits is an effective mitigation strategy.<\/p>\n<p>Municipal taxes may also apply to real estate and operations linked to projects. Negotiating investment incentives or exemptions with local authorities can reduce this burden. For projects tied to renewable energy, Lebanon\u2019s energy transition initiatives offer potential tax incentives, such as reduced rates or exemptions for qualifying equipment and energy-efficient initiatives.<\/p>\n<p>In conclusion, navigating the Lebanese tax landscape for project financing requires a proactive approach. Engaging tax advisors, leveraging DTTs, seeking exemptions, and strategically structuring projects can help mitigate tax-related risks and enhance financial sustainability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of funding structures (e.g. debt, equity or alternative financing) are typical for project financing in your jurisdiction. For example, are project bond issuances, Islamic finance and \u2013 in the context of mining deals \u2013 streams or royalties, seen as attractive (and common) options for stakeholders? Are you seeing private credit in project financing in your jurisdiction or other alternative financiers? If so, what types of projects are they looking to finance and what are the key structuring issues of such financings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Typical funding structures for project financing in Lebanon include a mix of debt, equity, and alternative financing methods. The financial ecosystem leverages both domestic and international resources to support various types of projects.<\/p>\n<p><strong>Debt Financing:<\/strong><\/p>\n<p>Taking into account the current economic crisis in Lebanon, typically, the banking sector plays a significant role in project financing, providing facilities to both Lebanese and international companies. Additionally, loans from international donors and development banks are a key source of funding, often supporting infrastructure and development projects. Prominent contributors include:<\/p>\n<ul>\n<li>The World Bank<\/li>\n<li>The European Investment Bank<\/li>\n<li>The Islamic Development Bank<\/li>\n<li>Regional and bilateral development funds, such as the Saudi Fund for Development and the Kuwaiti Fund.<\/li>\n<\/ul>\n<p><strong>Equity Financing:<\/strong><\/p>\n<p>Equity investments are facilitated through various legal structures, such as Soci\u00e9t\u00e9 Anonyme Libanaise (SAL) and Soci\u00e9t\u00e9 \u00e0 Responsabilit\u00e9 Limit\u00e9e (SARL), which are commonly used by foreign investors. These structures allow for partnerships between local and international stakeholders in project development.<\/p>\n<p><strong>Alternative Financing:<\/strong><\/p>\n<p>While Lebanon does not have a highly developed market for project bonds or royalty structures, Islamic finance is an emerging and attractive option. The presence of institutions like the Islamic Development Bank demonstrates the potential for Sharia-compliant financing mechanisms to support projects in Lebanon.<\/p>\n<p>Although Lebanon has access to various financing methods, the choice of funding structure typically depends on the nature of the project, stakeholder preferences, and the availability of funds from these diverse sources.<\/p>\n<p>In view of the banking crisis that occurred in Lebanon, public trust in the domestic banking sector was substantially degraded. Consequently, a significant number of citizens have been refraining from utilizing traditional banking services and instead demonstrated a pronounced preference for private credit mechanisms.<\/p>\n<p>Furthermore, the economy has increasingly transitioned into a predominantly cash-based system, a development that raises additional legal, financial, and compliance concerns. The prevalence of cash transactions, combined with ongoing currency instability, has exacerbated currency-related risks and contributed to an overall environment of financial unpredictability.<\/p>\n<p>This loss of confidence also prompted a shift toward alternative investment vehicles, including substantial activity in cryptocurrency markets and real estate acquisitions.<\/p>\n<p>The sharp and persistent fluctuations in the exchange rate further amplified these trends, leading many individuals to convert their assets into gold as a perceived hedge against currency depreciation. As a result, the overall financing landscape underwent a material shift, moving away from institutional bank-based funding and toward market-driven and decentralized sources of capital.<\/p>\n<p>During this period, investment interest expanded into various emerging sectors, including food and beverage (F&amp;B) enterprises, renewable energy projects, and trending or high-growth sports-related ventures, among others.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any regional development banks or export credit agencies, and if so, what is their role in project financing in your jurisdiction and beyond.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Lebanon, insurance law plays a critical role in project financing, particularly in sectors such as construction, energy, and infrastructure. Key considerations include:<\/p>\n<p><strong>1. Mandatory Insurance Requirements:<\/strong> Certain projects, especially in construction and energy, are subject to mandatory insurance under Lebanese law. This includes insurance for third-party liability, workers&#8217; compensation, and property damage.<\/p>\n<p><strong>2. Risk Management and Allocation:<\/strong> Insurance serves as a tool to allocate and manage risks among project stakeholders. Common policies in project financing include political risk insurance, performance bonds, and coverage for natural disasters, which are particularly relevant in Lebanon\u2019s political and environmental context.<\/p>\n<p><strong>3. Public Order and Contract Validity:<\/strong> Insurance contracts must comply with Lebanese public policy and legal standards. Provisions that conflict with public order or contain ambiguities may be deemed unenforceable by Lebanese courts.<\/p>\n<p><strong>4. Regulatory Oversight by the Insurance Control Commission (ICC):<\/strong> The Lebanese Insurance Control Commission (ICC) regulates the insurance industry to ensure compliance with legal requirements and protect policyholders\u2019 interests. The ICC also ensures the solvency of insurers and prevents fraudulent practices.<\/p>\n<p><strong>5. Reinsurance:<\/strong> For large-scale projects, local insurers often partner with international reinsurers to manage risks, particularly those related to political instability or large liabilities. Reinsurance provides a safeguard for extensive risks that local insurers may not be able to cover on their own.<\/p>\n<p><strong>6. Force Majeure and Tailored Coverage:<\/strong> Given the unique risks in Lebanon, such as political instability and natural disasters, force majeure clauses and customized insurance policies are essential. These policies ensure that risks specific to Lebanon are covered, offering protection to all parties involved in the project.<\/p>\n<p><strong>7. Claims and Dispute Resolution:<\/strong> Disputes regarding insurance claims may arise in project financing. These disputes are often resolved through Lebanese courts or arbitration, depending on the contractual terms.<\/p>\n<p><strong>8. Insurance as Security for Financing:<\/strong> Lenders often require certain insurance policies as a condition for financing projects. These insurance policies act as security, ensuring that the project is protected against risks that could affect its financial viability.<\/p>\n<p>Overall, insurance law in Lebanon is essential to managing project risks, complying with regulatory requirements, and providing security for stakeholders involved in large-scale projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any issues with entering into any hedging arrangements in this jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Parties commonly rely on contractual protections to mitigate risks arising from fluctuations in external economic factors such as exchange rate variations or changes in the value of payments at the time they become due which may otherwise disrupt the balance of the contractual obligations between them.<\/p>\n<p>In this regard, it is a standard practice to include clauses that allocate and mitigate risks arising from unforeseen circumstances, economic fluctuations, or extraordinary events. These clauses provide both parties with a clear framework for managing contingencies, reducing disputes, and ensuring continuity of the project. The key types of clauses typically incorporated include:<\/p>\n<p><strong>&#8211; Hardship Clause:<\/strong> It allows parties to renegotiate contractual obligations if performance becomes excessively burdensome due to events beyond their control, such as dramatic cost increases, supply shortages, or changes in economic conditions.<\/p>\n<p><strong>&#8211; Force Majeure Clause:<\/strong> It suspends the contractual performance when extraordinary events occur that are beyond the control of the parties, such as natural disasters, political unrest, pandemics, or government actions, with no fault on the non performing party.<\/p>\n<p><strong>&#8211; Price Adjustment Clause (Escalation Clause):<\/strong> It allows for the adjustment of contract prices based on predefined external factors, including currency fluctuations, inflation, or commodity price changes. Such a clause allows the contractual obligations, particularly payment obligations, to adjust in response to future circumstances or market variables, including but not limited to the price of gold, market indices, or other relevant economic indicators.<\/p>\n<p><strong>&#8211; Risk Allocation Clauses:<\/strong> It establishes how specific risks are shared or allocated between parties, particularly risks arising from unforeseen events or changes in project circumstances.<\/p>\n<p>The inclusion of such clauses is permissible and recognized under the applicable Code of Obligations and Contracts, which provides legal grounds for contract adaptation in the event of significant and unforeseeable changes in circumstances<\/p>\n<p>Accordingly, while hedging arrangements may be utilized, they should be structured with appropriate contractual safeguards to address regulatory gaps, economic volatility, and the absence of a fully developed derivatives regime in the jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">9701<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/124464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=124464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}