ANKARA

Lebanon has received approval from the World Bank for a $250 million loan to address the country’s electricity problems, Finance Minister Yassine Jaber said on Thursday.

"This loan will give strong momentum for the reform steps taken by Lebanon to rehabilitate the (electricity) sector," Jaber said.

"We are confident that this loan will be highly beneficial in advancing and supporting the reforms we are implementing in Lebanon's electricity sector," he added.

The loan agreement was signed by Jaber with Jean-Christophe Carret, the World Bank country director for the Middle East Department.

Carret described the agreement as "a pivotal moment in the Bank's partnership with Lebanon" and a decisive turning point toward implementing the vital reforms needed for Lebanon’s electricity sector.

According to the state news agency NNA, the loan agreement includes establishing a nationwide electricity control unit, improving the accounting and bill collection system, and developing solar energy units.

Over the past couple of years, the frequency of power outages in Lebanon has significantly increased due to the government's financial distress, which led to its inability to provide foreign currency to import fuel.

Lebanon's power production earlier ranged between 1,600 and 2,000 megawatts daily, but the fuel shortage in recent years has gradually reduced production to unprecedentedly low levels.