Sayegh Praises Court’s Ruling on Dubious Hydroelectric Project, Calls Out Political Overreach

Kataeb MP Salim Sayegh met with Jeita Mayor Walid Baroud, expressing support for the municipality following the Court of Audit’s decision to annul a controversial contract awarded for the restoration of the Jeita hydroelectric power station. The contract, awarded to the Union of Municipalities of Beirut's Southern Suburbs, had raised serious legal and political concerns, prompting public outcry and a formal review by the Court of Audit.

Sayegh commended the Court of Audit’s "exemplary" ruling, emphasizing that canceling the contract prevented a serious legal breach and held the Ministry of Energy accountable for its "unacceptable haste" in pushing the project forward. He further criticized the state’s treatment of local authorities, describing it as “abusive."

The lawmaker said that the court's decision signals a shift against corruption, favoritism, and disregard for the law. He expressed hope that it would set a precedent for future judicial rulings and contribute to a shift toward greater transparency and accountability in Lebanon’s public sector.

Sayegh also voiced strong opposition to what he saw as an attempt to seize control of vital public infrastructure, criticizing the Ministry of Energy for moving forward with the contract without consultation or adherence to legal norms. He argued that the Beirut Southern Suburb Municipalities Union lacked the authority to engage in commercial activities outside its jurisdiction and described the contract as a “blatant and unlawful violation.”

For his part, Baroud, who welcomed Sayegh’s visit, thanked the lawmaker for his support and condemned the contract, which he said had been awarded in clear violation of legal and procedural standards. He noted that the Jeita Municipality had a more comprehensive and cost-effective plan for the power station, but was excluded from the process, further highlighting the questionable nature of the deal.

At the heart of the controversy lies a shady contract, lacking proper competitive bidding, which was awarded under dubious circumstances to an entity with no legal or technical qualifications for the work at hand.

In what has been described as a politically motivated deal, Hezbollah was reported to have orchestrated the agreement for the construction, rehabilitation, and maintenance of the hydroelectric power station. Caretaker Energy Minister Walid Fayad awarded the contract to the Union of Municipalities of Beirut's Southern Suburbs through a negotiated agreement, bypassing standard procurement procedures and without informing the Jeita Municipality or its key figures, including former minister Ziad Baroud. Baroud revealed that neither the municipality nor local authorities were consulted on the deal, highlighting the lack of transparency in the process.

The contract was awarded without following necessary legal and procedural steps. The Jeita Municipality had presented its own proposal for the rehabilitation of the power station at a more cost-effective price of $2.5 million. However, Fayad's contract, valued at $3.706 million, was criticized for being inflated, despite offering a lower energy output than the municipality’s plan. Furthermore, the Union of Municipalities of Beirut’s Southern Suburbs, as an administrative body, is not legally permitted to undertake large-scale infrastructure projects, violating Legislative Decree 118/1977, which limits the union's scope to coordinating efforts among municipalities, not executing such projects.

In response to public outrage over the contract, the Court of Audit stepped in to review the project. On January 22, the Court formally rejected the contract, citing multiple violations. The court found that the contract lacked competitive bidding, failed to provide clear terms, and involved an entity without the necessary technical expertise to carry out the work. It also noted that the Union of Municipalities of Beirut's Southern Suburbs was outside its jurisdiction for this project.