Financing of the water sector
Regardless of the challenges in the water sector, the current economic crisis is pushing the sector to the brink of collapse. Insufficient revenue in a currency that continues to devalue is making it impossible to carry out the maintenance work that requires existing water infrastructure networks. The private sector has stepped in to fill critical gaps left by state institutions, with multinational private companies benefiting significantly from a dysfunctional sector. However, the Involvement of the private sector in the Lebanese water sector has traditionally been slow.
The absence of adequate local finances, a water policy and strong administration has led to water sector heavily dependent on foreign funding. Since 1992, it is estimated that around USD 3 billion in foreign funds have been directed to the water sector. The funding for the planned projects in the NWSS 2020 is also assumed to be from international sources, with limited projects funded locally.