Qatar will help revive Lebanon’s economy by fixing its power grid and rebuilding the war-damaged south, prime minister said

Qatar announced on Friday its intention to assist Lebanon in revitalizing its struggling economy, with a focus on improving the country's power grid and rebuilding the war-torn south. Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani made the announcement during a meeting with Lebanese Prime Minister Nawaf Salam in Beirut.

For years, Qatar has been a supportive nation to Lebanon, playing a mediating role in regional political crises. The Qatari government has also provided significant financial aid to Lebanon's army since the onset of the economic crisis in 2019.

In an initial step towards this collaboration, QatarEnergy has entered into an agreement with French company TotalEnergies to jointly develop a solar power plant in Lebanon. The primary goal is to create a substantial investment opportunity that would benefit both the Lebanese and Qatari economies.

Lebanon's state electricity company has been a major contributor to the nation's debt, owing to its outdated infrastructure and inefficient operations. The company's financial strain is exacerbated by its bloated workforce and the inability to pay for diesel fuel, resulting in limited electricity supply.

During the meeting, Qatar's prime minister also addressed the recent Israel-Hezbollah conflict, emphasizing the need for Israel to withdraw from Lebanon and halt its attacks. Qatar is actively working in coordination with the United States to facilitate the reconstruction process in southern Lebanon, aiming to enable displaced individuals to return to their homes.

Approximately 1.2 million people were displaced during the height of the conflict, with over 300,000 still requiring assistance according to the International Organization for Migration.