Roads and Employment Project

Project Implementation Status

The Roads and Employment Project (REP) was approved by the World Bank’s Board of Executive Directors on February 6, 2017 and became effective on October 30, 2018. The original Project Development Objectives (PDO) were to: (i) improve transport connectivity along select paved road sections; and (ii) create short term jobs for Lebanese and Syrians. The project has been restructured five times since its effectiveness:

 

• On March 14, 2021, at the request of Ministry of Finance (MOF), the REP was restructured to respond to the impact of the economic and financial crisis and the COVID-19 pandemic on the agriculture sector and food security in Lebanon. A new PDO and component were added and US$10 million were reallocated from other components to provide direct support to farmers engaged in crop and livestock production. The initial project Closing Date of June 30, 2022 was also revised to June 30, 2023 to allow successful implementation of the activities
• On February 13, 2023, at MOF’s request dated October 19, 2022, the project was restructured again to extend the project closing date until May 31, 2024 to complete the remaining project activities and achieve the PDO.
• On March 22, 2023, the World Bank received a third restructuring request from MOF to expand the geographic project scope of the routine maintenance activities to cover international roads and the maintenance of expansion joints. The project was subsequently formally restructured on July 28, 2023, with no impact on the project closing date.
• On May 27, 2024, at MOF’s request dated January 5, 2024, the project was restructured to extend the project closing date from May 31, 2024 until November 29, 2024, to allow the successful completion of project activities, the disbursement of the remaining amount under the project, and the potential rehabilitation and maintenance of the roads affected by the ongoing hostilities in South Lebanon.
• On November 24, 2024, at MOF’s request dated October 23, 2024, the project was restructured to extend the project closing date from November 29, 2024 to June 30, 2025 following the delays caused by the conflict in the country. This restructuring would allow for the successful completion of Project activities and disbursement of the remaining amount under the Project, provided the situation allows the works to resume in affected areas by April 2025.

 

Commitments to date amount to US$190 million (95% of loan amount). Disbursements as of November 13, 2024 amounted to US$181 million compared to US$166.6 million on July 12, 2024, an increase from around 83% to 91% of the loan amount. Disbursements are expected to reach US$199 million by the new closing date of the project, including around US$10 million that remain in the Designated Account (DA) at the Central Bank of Lebanon and are not considered Fresh Dollars. The project has reached all its targets and all indicators in the results framework have more or less been achieved or over-achieved. The update is as follows:

 

• The project has rehabilitated around 525 km of roads (overachieving the initial target of 500 km) and maintained more than 800 km.
• The project has also generated around 1.28 million labor-days as of end-September 2024 (overachieving the target of 1.25 million labor-days).
• 882 labor-days of hands-on practical training have been delivered, in addition to 8,991 labor-days of training on social and environmental safeguards, and occupational health and safety, among other subjects.
• The vaccination program has been completed with around 1.5 million animal vaccine doses administered (150% of the target and 94% of the procured vaccines).
• 26,687 farmers have benefited from improved access to inputs.
• 4 packages of equipment were delivered between November 29, 2019, and July 27, 2020, including 15-wheel loaders, 10 snow blowers, 5 salt spreaders and 10 four-wheel drive vehicles. The regional offices of the Ministry of Public Works and Transport are using the equipment to respond to cold climate hazards.

 

The conflict in the country affected regions that are benefiting from road rehabilitation and routine maintenance works under the project. Works were halted in these regions until the ceasefire. Moreover, some roads that have been rehabilitated under the project were damaged by the hostilities, particularly in the cazas of Sour/Tyre and Bent Jbeil. A preliminary list of impacted roads has been prepared. More detailed assessments will be conducted by the bank as part of the Rapid Damage and Needs Assessment (RDNA).