Productive sectors and other sectors 135CDR September 2007

Ports and Airport

Ports

The total value of contractsawarded by CDR in the ports sectoramounted to about US$ 7 million.However, other major contractsawarded for the development ofBeirut and Tripoli ports, financedthrough foreign loans, weresupervised by the relevant portadministrations. The total value ofthe latter contracts amounted toabout US$ 175 million and most oftheir works are complete. Thegovernment will concentrate itsefforts during the next phase ondeveloping and extending TripoliPort to create a maritime outlet fortransit shipments to Iraq.

Achievements to Date

Rehabilitation and extension ofBeirut Port: This project comprisedthe dredging and rehabilitation ofBasins No. 1, 2 and 3, and thecompletion of Basin No. 4 to be used

as a container terminal, in addition tocompletion of the related breakwater.The contract was awarded to theEntrecanales/Cubiertas joint ventureand work started in early 1997.Beirut Port Authority receivedtechnical assistance covering overallsupervision of the design fromMarseille Port Authority, whilesupervision of the works wasprovided by Dar al Handassah (Shair& Partners). The cost of the projectamounted to US$ 91.1 million,partially funded by a loan from theEuropean Investment Bank (45million euro), while the balance wascovered by the Beirut Port Authorityout of port revenues.

Beirut Port Authority further awardeda contract for the construction of thefirst phase of Basin No. 5. The 600mlong x 15m deep quay will be used asa container terminal. The total cost isestimated at approximately US$ 50million, financed by the Beirut Port

General aviation building

Productive sectors and other sectors136 CDR September 2007

Authority.

Beirut Port Authority (provisionaladministration for operating andexploiting Beirut Port) launched atender in mid-2004 for themanagement and operation of theport container station. Thisfollowed the procurement andinstallation of basic equipment forthis station which prepared thenecessary conditions required forstart-up operations.

In August 2004, the contract wassigned with the winning bidder (ajoint venture of the British Mersey-MDHC and IMA of the USA). Thecompany started its actual activitiesat Beirut Port on 14/12/2004 underthe name of Beirut Port InternationalManagement and the volume ofwork is expected to exceed 500,000TEU units during 2005.

Rehabilitation and Development ofTripoli Port: To ensurenavigational safety, dredging worksand removal of sediment andaccumulated debris in thecommercial basin and entrancechannel commenced in the autumnof 1997. Also, the wrecks of fivesunken vessels were lifted and thebasin was dredged to a depth of 10m at a cost of US$ 2 million.

The government commissionedSogreah, a French consulting firm,to prepare a master plan for thedevelopment of Tripoli Portfinanced under the French protocol.The completed master plan iscomprised of the following:- Increasing the depth of theentrance channel from 10 to 13meters;

- Construction of a 600 m long quayextending from the existing porttowards Abu Ali River;

- Construction of an externalbreakwater (1000 m), andcompletion the northern breakwaternear Abu Ali River.

As a first step, work started in 2001on deepening the basin and theentrance channel at a cost of aboutUS$ 20 million.

Development and expansion ofTripoli Port: The Marseille Portadministration completed afeasibility study for the expansionof Tripoli Port. The EuropeanInvestment Bank approved a loanof 45 million euro to finance theexpansion works. These works aredivided into 2 lots:

Lot 1: Comprises expansion worksof the temporary road for theexisting main breakwater andextending both the existing mainand secondary breakwaters. Theworks on this lot were awarded inApril 2004 (over US$ 23 million) tothe Jan de Nul/ Hydromar jointventure. The contract forsupervision works was funded outof port revenues.

Lot 2: Comprises the constructionworks of a new 600 m long quay,excavation and deepening of the portbasin to accommodate ships up to15m draw. The works (around US$24 million) were awarded to ChinaHarbour Engineering Company. Thecontract for supervision was fundedout of port revenues.

Projects under Execution

Feasibility studies related to thedevelopment of tourism activities atTyre Port are currently underpreparation.

Projects in Preparation

Development of Saida and Tyre

Ports: Studies have been carried outfor the development of Saida Port.

Fishing Ports: Among the proposalssubmitted by the Ministry of PublicWorks and Transport are plans todevelop several fishing ports alongthe entire Lebanese coast.

Rafic Hariri InternationalAirport

The total value of contractsawarded for the development ofRafice Hariri International Airportamounted to about US$ 775million. The master plan of BeirutInternational Airport provided forincreasing the annual passengercapacity to 6 million in the firstphase. It is expected that thecapacity will be gradually increasedto 16 million passengers by 2035.

Achievements to Date

The first phase of the projectincluded construction of a newpassenger terminal and two newrunways: one to the east of theexisting runway, and the other onland reclaimed from the sea todivert flights from the skies of thecapital. As a result, the airport isnow able to receive about thirtyplanes simultaneously, stationedeither at the embarkation gates or inthe aircraft parking yards.

Works were started in 1994 and arenew complete; some ancillaryworks are currently underway.Work on the first phase of thepassenger terminal is complete andthe new terminal building was putin service in 1998. The secondphase of the passenger terminal hasbeen completed and increased thepassenger capacity to six million ayear. Various facilities, includingtwo additional luggage conveyorscontracted at the end of January

Productive sectors and other sectors 137CDR September 2007

2000 were completed on 30 June2000. The west runway was put inservice during 2001.

The works carried out on othercomponents of the airport are:- Radar building: Completed inSeptember 1996;- Civil Aviation Security Center:Completed in October 1996;- Civil aviation maintenancebuilding: Completed in June 1997;- Fire and rescue training building:Completed in July 1997;- Fire station for land services:Completed in July 1997;- Automatic postal sorting office:Completed in November 1997;- Power station: Completed inDecember 1997;- Infrastructure for passengerterminal and utilities building(electricity, water, main andinternal roads) has been in servicesince the beginning of 1998. Thewestern loop leading to thepassenger terminal was completedin February 2000;

- Two main water reservoirs andtowers are now in service;- Other ancillary buildings andairport guard and security buildingshave been handed over to theAirport Authority;- Two Ouzai tunnels under the westrunway opened were to traffic inDecember 1997;- Ouzai-Khaldeh interchange atCosta Brava was opened to trafficin December 1997. Khaldehinterchange was opened to traffic inSeptember 1999 and the link to theold Saida road was completed inDecember 1999;- The embankment protectionworks for the Ouzai road werecompleted during 2000;- The car park and the aircraftrefueling facilities were completedon the basis of a concession (BOT).In addition, various contracts forconsultancy services or supply ofaeronautical equipment have beenawarded (funding under the FrenchProtocol);- Consultancy services for

modernizing the civil aviationadministration;- Training equipment for the civilaviation security center (fourcontracts).- Meteorological equipment(contracts for phase 1 and phase 2).- A VIP pavilion was completed inMarch 2002.- Another VIP pavilion (publicflights) is under handing cover.- Landscaping works of the VIPpavilion.- Routine periodic tests of airnavigational equipment simulators(maintenance and operation).- Consultancy services in thearbitration case related to therehabilitation and development ofBeirut International Airport.- Improving maritime protectionand building a quay for the rescuestation boats related to the newwestern runway of the airport.- Providing an information systemfor aerial navigation, includingaddendums 1, 2 and 3.- Operation and maintenance

Airport Sector overview

completedTotal

*No Amount *No Amount

in progress

*No Amount prog

Contracts awarded from January 1992 to December 2006

3 7.210 96%13Technical assistance 21.128.3

Institutional strengthening

3 9.6 97%1 2.4 7.22Training and institutional strengthening c

9 18.6 9 18.6w

Undefined

1 1Project undefined w

7 13.949 85%56Capital investment 517.8531.7

Rehabilitate airport

1 1Rehab airport & replace East runway c

6 91.0 6 91.0w

West runway and other works

15 3.5 87%12 2.2 1.33Airport development : West runway & other works c

30 433.6 94%27 422.8 10.83w

4 3.6 30%3 1.7 1.91AFTN - airport communications w

4 111.76 90%10Operation and maintenance 7.7119.4

Operation and maintenance

5 3.2 70%3 2.5 0.82Operation and maintenance of facilities c

5 116.1 90%3 5.2 110.92w

Sector Totals 14 132.965 90%79 546.5679.4

Externalfunding

Airport contracts awarded in 2006Contract amount

(in USD)Start Date

Technical assistance 20,848Undefined

Undefined

Equipments for Beirut International Airport Security 20,848w

20,848Sector Totals

Productive sectors and other sectors138 CDR September 2007

services of the new building andancillary structures in Rafic HaririInternational Airport withaddendums 1 &2 and supervisiontasks. - Supervision services related to therehabilitation of the radar controland surveillance system at RaficHariri International Airport.- Geophysical surveys of the neweastern runway area of the airport. - Upgrading works of thesurrounding fencing of the airport

Projects in Progress

Within the framework of the airportrehabilitation project and theconstruction of a new easternrunway, the financial andengineering assessment of the civilworks of the VIP building was

awarded.Works have also been initiated forthe rehabilitation of the asphaltpavement of the aircraft corridor(M) in the section parallel to thegeneral aviation area.

In respect of the operation andmaintenance of facilities thefollowing projects have beencontracted:• Operation and maintenance of thenew terminal building andassociated facilities at Rafic HaririAirport (Annex C) including therelated supervision duties.• Rehabilitation of the airport radarcontrol and surveillance systems(Annex No.1) • Supervision duties related to therehabilitation of the airport radar

control and surveillance systems.

Projects in Preparation

Currently the following contractsare under preparation:

• Implementation and rehabilitationof civil works for the landingrunways and corridors.• Construction of hangars forgeneral aviation companies (firstphase)• Rehabilitation and modernizationof the information exchange center(AMSS) at Rafic HaririInternational airport.• Rehabilitation of the storm waterchannel and aircraft parking areas atthe TMA hangars at Rafic HaririInternational airport.

Ports Sector overview

completedTotal

*No Amount *No Amount

in progress

*No Amount prog

Contracts awarded from January 1992 to December 2006

11Technical assistance 0.30.3

Port studies

1 0.3 1 0.3Ports traffic study and master plans c

1 0.814 59%15Capital investment 6.16.9

General investment

3 0.1 3 0.1Navigation safety c

4 3.7 4 3.7w

Rehabilitation of Beirut port

1 0.1 1 0.1Rehabilitate the Port of Beirut c

1 0.1 1 0.1w

Rehabilitation of other ports

3 0.1 3 0.1Rehabilitate the port of Tripoli c

2 2.0 2 2.0w

1 0.8 59%0.81Rehabilitate the port of Tyre c

Sector Totals 1 0.815 59%16 6.47.2