Salwa Baalbaki wrote in “An-Nahar”: More than 3 decades after the establishment of Solidere to reconstruct downtown Beirut, the government chose to negotiate with the company before deciding whether or not to extend it, placing before it a new framework for the relationship that is not based on a long extension and specific projects that can be measured and the company held accountable for delaying them. Solidere’s request to extend its term for an additional 25 years did not receive direct approval, but rather the opening of negotiations covering an audit of the company’s accounts and assets, the financial and tax framework, unused real estate, and pending public and cultural projects. According to what Finance Minister Yassine Jaber told An-Nahar, the general trend does not seem to be towards removing Solidere from the scene, but rather towards a conditional extension and tightening of obligations that have not been implemented. He points out that “a number of conditions were originally linked to the company’s establishment phase, including underground parking, a public park whose area is estimated at 60,000 square meters in downtown Beirut, maintenance work, and others. These are files that are expected to be strongly present in the upcoming negotiations, especially since the company benefits from many exemptions that are supposed to contribute to the development of downtown Beirut in accordance with the goal for which the company was established.” One of the ideas proposed by the government is an initial extension for a period of 8 years, to be renewed for an additional 6 years by a decision of the Council of Ministers after verifying the company’s commitment to key performance indicators (KPIs). It also proposed imposing financial fines for delay or fundamental breach of obligations. Follow-up sources confirm that “the extension period, implementation mechanisms, and time limits are still part of the negotiations, meaning that the eight years are not a final decision as much as they are a formula put forward for negotiation. On the other hand, the clear political trend is to link any extension to what the company will actually implement, and not to extend it for a long time without conditions.” Before moving to any official procedure, the government asked Solidere to complete the legal and procedural requirements, first and foremost a tax clearance statement, an independent audit of the company’s accounts, assets, and real estate balance, in addition to a decision from the General Assembly requesting an extension in accordance with Law 117 and the company’s bylaws.
The audit is particularly important in light of the government’s desire to form an accurate picture of the company’s real estate assets, what has been developed, and what remains vacant or unexploited, before determining the terms of any new extension. The government approach does not stop at real estate projects, but rather looks forward to reintegrating downtown Beirut into the urban fabric of the city, through incentives to attract the middle class, institutions and small and medium-sized companies, and the establishment of an arts, crafts, design and fashion area, which includes professional studios and live studios..
