New Beirut Airport Terminal On Hold After Disputes

Just 10 days after the Lebanese government announced that it would open a new terminal at Beirut’s International Airport, Minister of Public Works Ali Hamie has announced that the project has been put on hold due to the “differences in opinion” that have arisen since the project’s announcement.

— Ali Hamie | (@alihamie_lb) March 30, 2023

The airport terminal project, which was set to be led by Ireland’s daa International, was estimated to cost $122 million (of private investors’ money), create 2,500 new job opportunities, and start operations in 2027. The 19,000 sqm terminal would be initially operated by daa, and then transferred back to Lebanon after 25 years as part of a BOT (Build-Operate-Transfer) contract.

Since the project was announced, voices have come out of Lebanon questioning the legality of this project. Some have claimed that the project violated the new Public Procurement Law, due to a lack of transparency on how the tender was negotiated and accepted. Due to the nature of the project, some have argued that the tender must be more competitive, and follow stricter evaluation and acceptance criteria.

This is what Minister Hamie is referencing when he mentions the “legal dispute that has erupted in the country.” The Minister also added that the “project took on implications others than those hoped and aimed for. This quick flip flop on the airport terminal decision echoes Mikati’s reversal of the timezone decision just 4 days after it was decreed.

As Hamie “bravely” decides to stop with the contract and considers that “it never existed,” questions continue to circulate regarding the efficacy of the caretaker cabinet and the impact of the continuing vacuum in Lebanon’s executive branch.

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