Lebanon - Highway Project

CIRCULATING COPY TO BE RETURNED TO REPORTS DESK DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Not For Public Use FILE COPY Report No. P-1179-a REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF LEBANON FOR A HIGHWAY PROJECT April 5, 1973 This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  /i CURRENCY EQUIVALENTS Currency Unit - Lebanese Pound (L.L.) Monthly Average 1970 US$1 L.L. 3027 L.L.1 = US$ 0.306 1971 US$1 = L.L. 3.23 L.L.1 = US$ 0.310 1972 US$1 = L.L. 3.03 L.L.1 = US$ 0.33 (The rate has fluctuated between L.L. 2.6 and 2.75 to the US$ since February 13, 1973) 1/ The Lebanese Pound is a freely fluctuating currency.  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF LEBANON FOR A HIGHWAY PROJECT 1. I submit the following report and recommendation on a proposed loan to the Republic of Lebanon for the equivalent of $33.0 million to help finance construction of the Tabarja-Tripoli expressway together with main- tenance facilities, feasibility studies and detailed engineering of other high priority highways, and a highway organization and maintenance study. The loan would have a term of 25 years, including four years of grace, with interest at 7.25% per annum. PART I - THE ECONOMY 2. A "Memorandum on Current Economic Position and Prospects of Lebanon" (EME-26a) has been distributed to the Executive Directors in September 1970. An economic mission visited Lebanon in October 1972 and is currently preparing its report. Country data are presented in Annex I. 3. Lebanon's economic system is essentially an open, free-trade system, in which the private sector plays the major role and government policy aims primarily at ensuring fiscal and monetary stability. In the Middle East setting, this and the absolute freedom of exchange and capital transfer have particularly helped in making the country the most important financial and entrepot centre in the region, attracting substantial foreign capital, and creating opportunities for various financial and trade services. This role has been supported by the country's attraction as a tourist centre, the relatively high level of education and the general atmosphere of religious and political freedom, safeguarded by constitutional rule and a Parliamentary system of government. The Government has sought to encourage private enterprise in agriculture and industry by policies that aim at stabilizing prices of agricultural products and that provide incentives to promote private invest- ment in industry. 4. The services sector includes banking, real estate, tourism, educa- tional and health services, transport, commerce and transit trade, and accounts at present for almost two-thirds of gross domestic product. Commerce alone contributes 31% of GDP. The banking system developed rapidly in the 1950's and up to 1966 under a systen of virtually complete freedom. However, severe competition for deposits among banks, over-extension of investments, and low liquidity led to a banking crisis toward the end of 1966 and was followed by the introduction of banking controls. A rapid growth in commercial bank deposits since then, together with a lag in the extension of domestic credits has created excess liquidity.  - 2 - 5. The other major sectors are agriculture, industry and construction. The contribution of agriculture to GDP has declined from 12% in 1964 to 8% in 1971 in spite of improved production technologies, due to constraints on growth imposed by the limited area of arable land and by the incomplete harnessing of rivers. Fruits and vegetables are major crops and are exported, mainly to neighboring countries. Industry accounts for about 16% of GDP, and is primarily concentrated in such light industries as food processing, textiles, and construction materials. In recent years, industrial production increased about 8% annually, and exports rose by about 30% annually. Con- struction accounts for about 5% of GDP. It grew rapidly with investment, partially foreign, in office buildings, housing, and hotels. 6. In the decade ending in 1966, the Lebanese economy grew at over 6% annually in real terms. However, between 1967-70 a slowdown was brought about by the banking crisis and the 1967 war in the M-liddle East. As a result, real growth in GDP averaged about 3% per year. The formation of a coalition Gov- ernment in November 1969 ended an eight months' period of political crisis, and together with the partial abatement of tensions in the region and higher oil income in the Middle East, restored confidence and encouraged capital inflows, mainly from Arab oil-producing countries and from Lebanese emigrants. An economic recovery took p:Lace in 1971, particularly in tourism, industry and construction. GDP, in real terms, grew over 7% in 1971 and appears to have maintained this rate in 1972. Following a decline in investment between 1965 and 1968 (from 22% to '17% of GNP), the investment rate increased to 19% of GNP in both 1970 and 1971. The private sector accounted for about 80% of the total. National savings which accounted for 13% of GNP in 1965 rose to 14.5% of GNP in 1971. 7. The public sector in Lebanon has a somewhat limited role, and its relative importance has not increased in recent years. In the three years 1969-1971 total expenditures of government (including annexed and autonomous budgets) were equal to 20% of the GDP, while capital expenditures were about 3% of GDP. The Central Government's revenues have risen by about 6% per year from 1966 to 1970. However,, while Central Government's current expenditures increased substantially, its capital outlays decreased slightly. Defense expenditures represent about: 3% of GDP and expenditures on education, health and social affairs amount to about 4%. The Governrment's consolidated current budget has consistently shown a surplus which averaged about L.L. 100 million a year, covering about two-1:hirds of its capital expenditure. S. Lebanon's balance of payments is characterized by high imports and a large trade deficit. This deficit, however, is more than offset by a sur- plus on services, particularly receipts from tourism and transportation, net investment income and royalties from oil transit rights, a large but volatile inflow of short-term capital, and relatively small inflows of long-term capital and remittances from Lebanese working abroad. As a result, Lebanon's balance of payments has been almost always in surplus and this is reflected in the growth of foreign exchange reserves and net foreign assets of the commercial banks. Net foreign assets grew by 26% in 1970, 33% in 1971 and 25% in 1972 when they reached L.L. 4 billion (US$1.4 billion), equivalent to twenty months of imports.  - 3 - 9. Development planning in Lebanon has concerned itself with an indi- cative investment program for the public sector. It was initiated with the 1958 plan, which was only partially implemented and was followed by the 1964 plan, which was interrupted by the 1967 war. In 1972 the Government adopted a six-year plan (1972-77) which includes a public sector investment program of L.L. 1,740 million, accompanied by indications of the direction and size of private investment, estimated at L.L. 5,460 million. The main aims of the Plan are: to maintain the country's 7% real annual growth rate, to improve further the distribution of income and education, to maintain a high rate of employment, to encourage the balanced development of the different regions of the country, and to diversify the econo.ny so as to reduce its heavy dependence on trade and services by modernizing agriculture and encouraging industrializa- tion. Of the total public investment 21% has been allocated to transport and communications, 20% to health and other social services, 15% to agriculture and irrigation, 14% to education, and 10% to electricity and power. 10. The public development expenditures envisaged by the plan average L.L. 290 million (US$97 million) a year, while past annual investments have usually been under L.L. 200 million, showing a slight decline from L.L. 185 million (US$62 million) in 1969 to L.L. 175 million (US$58 million) in 1971. Administrative efficiency and coordination have been some of the constraints to an accelerated rate of development expenditures in the past and would have to be considerably improved in the future to prepare projects and implement the higher level of public investment. Nevertheless, given the dyna.mism and size of the private sector, and assuming no serious outbreak of hostilities in the region, the achievement of the Plan's growth target could be feasible. Public investmenits are to be financed mainly from surpluses in the budget of the Central Government and the autonomous agencies. The Plan also envisages a moderate level of medium and long-term public borrcwing, both local and foreign. 11. A high rate of population growth - about 2.5% per year -- and of internal migration have created urban congestion, particularly in Beirut. As a result, the urtan infrastructure such as the water supply and sewerage systems and roads, particularly in Beirut, have been overstrained, and attention is needed if such strain is not to affect tourism and business services, as well as living conditions. This is to be met by The Plan's objective of a balanced sectoral and regional development which requires an acceleration in the development of infrastructure and social services, parti- cularly in transportation, education and utilities. 12. Total external uebt outstanding at the end of 1971 was US$73 mil- lion of which about US$10 iiillion was undisbursed. Debt service payments were estimated at US$10.1 million in 1971, equal to 1.6% of exports of goods and net non-factor services. This is a reflection of conservative policies of the Government regarding foreign borrowing and also past difficulties of obtaining abroad needed long-term funds for use in its infrastructure program. The debt service is low, and the country's debt-servicing record is good. Lebanon is creditworthy for borrowing substantial amounts on conventional terms.  - 4 - PART II - BANK GROUP OPERATIONS IN LEBANON 13. The Bank has so far made two loans to Lebanon totalling US$33.6 million equivalent for power development and education. $$21.1 million was outstanding on February 28, 1973. The education loan for $6.6 million was signed on January 24, 1973, but it has not yet been declared effective. Annex II contains a summary statement of Bank loans and IFC investments as of February 28, 1973, and notes on the execution of the on-going education project. 14. Since independence in 1946, the Government has consistently pur- sued a conservative financial policy and, until recently, was reluctant to incur foreign debt. Consequently, public investment was kept within the limits set by budget considerations. The drop in the annual current budget surplus in recent years entailed a decline in investment in the public sec- tor. The delay in the present highways project which the Bank has been con- sidering since 1963/69 was one of the consequences of these factors. However, with the restoration recently of a healthy economic climate and internal po- litical stability, particularly after the 1972 elections, the Government is giving more attention to public sector investment, to be financed partly from domestic sources which are IIow more readily available from internal borrowing and budget surpluses, and partly from long-term foreign borrowing, including Bank loans. Lebanon is also a lender to the Bank and in mid-January 33 com- mercial banks operating in Lebanon subscribed to a private placement of Lebanese Pounds 75 million (US$24.9 million) of 6-7/8% Bonds due in 1978. 15. With this change in circumstances, the main focus of the Bank's activity in Lebanon would be to participate in projects that serve to improve income distribution and reduce disparities between the urban and rural popula- tion, and in much needed infrastructure and social services investments. Most of these are included in the Six Year Plan and are essential for the growth of private investments in the productive sectors. The Bank would provide long-term funds, now in particularly short supply. We would encourage the Government to make much needed long-ternm infrastructure investments, and we would also support their efforts to improve institutional arrangements for mobilizing long-term local lunds needed to achieve the Plan's public invest- ment targets. Through its involvement in projects in social services and infrastructure sectors -- such as highways -- the Bank would also contribute to improving the present techniques used for project preparation, evaluation and implementation, thereby enhancing the capacity of the administrative machinery to handle more efficiently the comparatively larger volume of public investments contained in the 1972-77 Plan. 16. The Bank has no other loan planned in FY73. The South Beqa'a Ir- rigation Project is under consideration for FY74; it consists of a 23,000 hectare sprinkler irrigation scheme in an advanced agricultural area in the Upper Litani Valley in Central Lebanon. It would irrigate a greater area than exists at present, ensure a more certain water supply (based in part on a dam financed by the Bank under the 1955 Litani power project - Loan LE-129) and malce possible an increase in cropping intensities.  - 5 - 17. Given the predominant role of the private sector in the Lebanese economy, and in the absence of sufficient local sources of long-term capital, considerable interest has been shown in IFC financing in recent years. During 1971 IFC received proposals for a number of projects and approved its first two investments in the country. IFC's $0.93 million loan to Filitex SAL was ap- proved in April 1971 to finance a $2.4 million cotton spinning mill; in June 1971, IFG approved a loan of $1.2 million to the Lebanese Ceramic Industries Co. SAL for a $2.2 million project to modernize and expand the company's wall tiles manufacturing facilities. PART III - TRANSPORTATION IN LEBANON 18. The major part of Lebanon's population and economic activity is located along the coast in and around the capital, Beirut, which is also the site of the biggest harbor in the country and its only civilian airport. Most transport along the coast, as well as the important transit traffic originates in or is destined for Beirut. The main domestic transport arteries are the north-south corridor along the coast and the east-west corridor between Beirut and the Syrian border which also serves transport to and from Syria, Jordan and Iraq. Both corridors are served by road and rail. The small size of the coun- try leaves no scope for internal air transport, there are no navigable rivers, and coastal shipping is negligible. 19. Lebanon has two main ports, Beirut and Tripoli, of which the former is by far the more important. Total freight traffic at Beirut, exclusive of oil, increased by 5.8% per annum during the last decade and amounted to three million tons in 1970. About 30% of this total represents transit traffic which has increased markedly since the closure of the Suez Canal in 1967. Beirut also has Lebanon's only civil airport which is one of the most important in the Ifiddle East. Two important oil pipelines terminate in Lebanon, one at Tripoli from Iraq, and the other near Saida from Saudi Arabia. 20. The railway network is small (413 km), divided in three separate systems using two different gauges, in poor condition and has declined steadily in importance. Since the railway operates with a large deficit, the Government has initiated studies to determine the nature of the problem and whether operations can be made more viable. Assurances were received that the Government will keep us informed on the progress of the railway studies. They have asked the Bank to review the studies' conclusions and recommendations, once they are completed. 21. Planning in the transport sector is carried out by the various agencies responsible for the different modes. Until recently, investment decisions were made on an ad hoc basis. During the last five years, however, a number of highway projects have been subject to technical and economic feasibility studies in consultation with the Bank; and a study to determine the future development of the port of Beirut is about to begin. In the past, there was little coordination between agencies concerned with planning of  - 6 - investments in transport infrastructure and with- urban development. The Government is paying increasing attention to the need for adequate planning and coordination as traffic volumes and urbanization increase rapidly, and large investments are required in transport infrastructure. 22. Highways are the main mode of transport. The length of the highway network is about 7,100 kin, of which about 5,800 km are paved. About 2,000 km are classified as international and primary roads, and the remainder as secondary and local. The north-south coastal highway and the east-west Beirut-Syrian border highway with its northern branch through the Beqa'a Valley are the trunk roads of the highway network. More than 80% of the highway network consists of two-lane bituminous paved roads, many of them developed from tracks with only a few engineered improvements. They are usually narrow and winding, with steep grades in the mountainous areas where landslides, rockfalls and snow in the winter frequently interrupt traffic. Along the coast, roads are subject to periodic flooding and poor drainage. Wayside encumbrances and poor signalling further limit the capacity of some important road sections. Reconstruction to higher standards of part of the primary road system is required, but most of the remaining highway network could be substantially improved through better maintenance and relatively minor betterment works. 23. Between 1961 and 1971 the vehicle fleet increased at an average annual growth rate of 9.5%. The number of passenger cars has increased most rapidly, and now represents 89% of the total fleet. Trucks account for 10% and buses for 1% of the vehicle fleet. Gasoline consumption has increased at a rate of 11.6% annually from 1961 to 1971, in line with the growth of private cars and taxis over this period. 24. Responsibility for construction and maintenance of highways is shared by the Directorate General of Highways and Buildings (DGHB) and the Conseil Executif des Grands Projets (CEGP). The DGHB is one of the General Directorates of the Ministry of Public Works and Transport (MPWT), whereas CEGP is a semi-autonomous agency under the supervision of the Minister of Public Works and Transport. The CEGP is concerned with administration and control of major construction projects which are assigned to it by the Council of Ministers. It was created as a specialized agency for particularly large projects which could --- by operating outside the civil service structure -- employ qualified professional personnel at competitive salaries. It has a staff of about 20 engineers and employs consultants for most design and supervision work. Projects under its responsibility have been properly executed. 25. Except for the major projects assigned to the CEGP, responsibility for planning, design and maintenance of highways is entrusted to the DGHB. The DGHB is divided into two directorates, one for buildings and one for highways. The Directorate of Highways (Dli) has divisions for highway planning and programming, engineering, construction, maintenance, highway safety and a highway laboratory. Low salaries and lack of opportunity to participate in the important works reserved for the CEGP prejudice the recruitment and  - 7 - retention of capable professionals in the DH, which has therefore been unable to carry out its duties efficiently. This problem will be reviewed by consultants under the proposed highway organization and maintenance study (see paragraph 34 below). 26. The Government's Development Plan (1972-77) envisages a total in- vestment of LL 350 million in the transport sector, or about 20% of total proposed public investments over the plan period. Of this total, LL 250 million have been earmarked for improving the most congested parts of the highway network. PART IV - THE PROJECT 27. In 1967, the Government of Lebanon asked the Bank to participate in the financing of a highway project. The project was appraised in 1968 but was not carried beyond that stage because the Government could not, under the circumstances then prevailing, provide the necessary local funds. In early 1972 the Government informed the Bank that this problem had been over- come and a project preparation mission visited the country in July 1972. The project was appraised in September and negotiations were held in Washington in March 1973. The Lebanese delegation was headed by lIr. Fouad Naffah, IMinister of Finance. 28. The main purpose of the proposed project, which would be the first lending by the Bank Group in the transportation sector in Lebanon, is: to increase the capacity of the most congested sections of the existing coastal highway; to carry out economic and technical studies of high priority high- way projects which could be suitable for future Bank financing; and to carry out studies to identify necessary institutional improvements in the transport sector. A Loan and Project Summary is attached as Annex III together with a map showing the location of the project. A report entitled "Appraisal of a Highway Project - Lebanon" (63a-LE), dated I-larch 29, 1973, is being dis- tributed to the Executive Directors separately. 29. The project consists of: (a) construction of a four-lane divided expressway between Tabarja and Tripoli (about 57.5 km), including supervision by consultants; (b) construction of a highway maintenance center in Batroun and the purchase of maintenance equipment for the center; (c) a feasibility study of the Beirut Bypass Highway (about 18 km) and detailed engineering of priority sections;  - 8 - (d) detailed engineering of the Beirut-Syrain Border Highway (about 60 km); and (e) studies of highway organization and maintenance, including the preparation of a highway improvement and maintenance program. 30. The total project cost (excluding $13.3 million for right-of-way acquisition) is estimated al: $64.2 million equivalent. The proposed loan will finance the foreign exchange component of $33.0 million, and the rermainder will be provided by the Government. 31. The proposed Tabarja-Tripoli expressway will be the first phase in the construction of a modlern highway network serving the densely popu- lated coastal plain and providing improved connection with Syria and other Middle East countries. The proposed expressway will link Tripoli, the second largest city and an important industrial center, with the four-lane divided highway that already exists between Beirut and Tabarja (16 km). The existing highway from Tabarja to Tripoli now carries over 10,000 vehicles per day. It has a single two-lanle paved carriageway and is poorly aligned and narrow. It crosses the railway 15 times, passes through many towns and villages and is heavily congested. After the expressway is opened and through traffic diverted to it, the existing road will be maintained for local traffic. 32. Primarily to ensure adequate maintenance of the expressway, a main- tenance center will be established in Batroun, ,midway between Tabarja and Tripoli. Consultants have previously prepared preliminary plans for the center and the loan would provide for its construction as well as for pro- curement of the necessary maintenance equipment. These plans will be re- viewed by the consultants of the highway maintenance and organization study in order to ensure that they are consistent with their recommendations. 33. The planned construction during the next decade of three main high- ways reaching Beirut fronL the north (Tabarja-Tripoli), from the south (Khalde- Tyr) and from the east (Beirut-Syrian Border) rmakes it necessary to undertake now a study of a highway to bypass the city, including its connections with the urban street system. The loan provides for the financing of a feasibility study of the Beirut Bypass as well as for detailed engineering of the priority sections that will be deterrnined by the feasibility study. 34. The Beirut-Syrian Border highway is part of the international high- way between Beirut and Damascus, the main artery for international traffic to neighboring middle-eastern countries, which has gained added importance since the closure of the Suez Canal. The road also serves densely populated areas and suwmmer resorts as well as Lebanon's main agricultural area (the Beqa'a plain), and constitutes an important factor for the economic and social development of Lebanon. A feasibility study of the highway showed that its early improvement would be highily justified. The proposed loan provides for the financing of detailed engineering to be carried out by consultants. The reconstruction of the Syrian section of this international highway is expected to start in 1973 with financing being provided by an IDA Credit (298-SYR of April 1972).  - 9 - 35. The Highway Organization and Maintenance Study to be carried out by consultants would include: (a) preparation of a five-year highway maintenance and improvement program, based on a detailed road in- ventory; (b) review of the organization and operation of the DH and recommended improvements thereof; and (c) determination of the need for maintenance and workshop equipmenit purchases and for workshop construction necessary for carrying out the proposed highway main- tenance and improvement program. The study would be carried out in two stages, each lasting about one year. The principal objectives of the second stage will be to assist in the imple- mentation of the highway maintenance program developed under the first stage. 36. Execution of the project will be the responsibility of two Govern- ment authorities: (a) The CEGP for the Tabarja-Tripoli expressway, the maintenance center, the procurement of maintenance equipment, and the pre- investment studies of the Beirut-Syrian Border Highway and the Beirut Bypass; and (b) The Ministry of Public Works and Transport for the highway organiza- tion and maintenance study. 37. The consulting services under the project will be provided by qualified and experienced consultants satisfactory to the Bank. 38. Works on the Tabarja-Jbeil section of the Tabarja-Tripoli express- way began in November 1972, while those on the remaining project sections are expected to start in the first quarter of 1974. Construction is expected to be completed by late 1976. Bids for maintenance equipment will be invited in early 1975 and procurement is expected to be completed early in 1976. All studies under the project are expected to start in 1973 and to be completed by late 1976. 39. Due to the urgency of starting construction, international bidding for the Tabarja-Jbeil section was invited in April 1972, and proposals were received in June 1972. The CEGP awarded construction contracts totalling $9.5 million equivalent to the lowest bidders which were from Germany and Greece. These were reviewed within the Bank and found compatible with Bank requirements. The Government has asked the Bank for retroactive financing of expenditures incurred after November 1, 1972 on the construction of the Tabarja-Jbeil section including consulting services. An amount of US$800,000 has been included in the project for this purpose. 40. For the remaining sections of the expressway, the CEGP will award unit price contracts on the basis of international competitive bidding fol- lowing the Bank's "Guidelines for Procurement". The size of these contracts is expected to attract experienced firus. The Government intends to retain  - 10 - duly qualified local consultants for construction supervision. The mainte- nance equipment will also be procured on the basis of international competitive bidding in accordance with the Bank's Gtuidelines. For the purpose of bid evaluation domestic bids for maintenance equipment would be accorded a margin of preference by adding 15% of c.i.f. costs or the actual customs duties, whiclhever is lower, to foreign bids. Lebanon has a preferential tariff agree- ment with the League of Arab States, but no procurement under the proposed loan is expected to be made from the participating countries. 41. Disbursements will be made on the basis of 50% of the cost of con- struction contracts, 100% of the CIF cost of maintenance equipment and the actual foreign exchange cost of consulting services. The estimated schedule of disbursements is shown in Annex III. 42. The project reinforces the road infrastructure necessary for the service activities that are the main-stay of the Lebanese economy and account for almost two-thirds of GCDP. Because it is located in the most densely populated areas of the country, the project will directly benefit a signi- ficant portion of the population. The expressway was selected, from various alternatives, as the most appropriate transport mode. The economic return on this investment, including time-savings for non-leisure travel, is cal- culated at 21%, and the first year economic return at 13%, indicating that construction is economically well justified and appropriately timed. If time savings were excluded from the benefits and assuming an increase in construction costs of 15% and a decrease in benefits of 25%, the economic return would still be 11%. Benefits from decongestion of local traffic, increase in safety and comfort, and reduction in maintenance cost of parallel roads, have not been included in these figures. The pre-investment and main- tenance studies are justified since they will contribute to increased effi- ciency in highway administration, as well as assist the Government in the necessary improvements, expansion and maintenance of its highway network. PART V - LEGAL INSTRUIM4NTS ANT) AUTHIORITY 43. The draft Loan Agreemeint between the Bankl and the Republic of Lebanon, the Report of the Cortmmittee provided for in Article III, Section 4 (iii) of the Articles of Agr-eement and the text of a resolution approving the proposed loan are being distributed to the Lxecutive Directors separate- ly. The draft agreement conforms to the normal pattern for loans for high- way projects. 44. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank.  - 11 - PART VI - RECOMMENDATION 45. I recommend that the Executive Directors approve the proposed loan. Robert S. McNamara President Attachments  ANNEX 1 Page 1 of 2 COLNTRY DATA - LEBiAON AREA 2 POPULATION J DENSITY 10,460 km 2.8 million (mid-1971) 269 per km Annual Rate of Growth: 2.5%(from 1960 to 1971) 716 per km2 of arable land POPULATION CHARACTERISTICS HEALTH (1969) Crude Birth Rate (per 1,000) 35-40 Population per physician 1,320 Crude Death Rate (per 1,000) 10-14 Population per hospital bed 24o Infant Mortality (per 1,000 live births).. INCOME DISTRIBUTION (year) DISTRIBUTION OF LAND OWNERSHIP (1966) % of national income, lowest quintile %.. % owned by top 10% of owners 57 highest quintile .. % owned by smallest 10% of owners 1 ACCESS TO PIPED WATER (1968) ACCESS TO ELECTRICITY (year) % of population - urban 85 % of population - urban - rural .. - rural NUTRITION (year) EDUCATION 0970) Calorie intake as % of requirements .. Adult literacy rate % 69.0 Per capita protein intake .. Primary school enrollment % 87.6 2/ GNP PER CAPITA in 1971 US $ 618 GROSS NATIONAL PRODUCT IN 1971V ANNUAL RATE OF GROWTH (7. constant prices)A US $ Mln. 7. 1960-65 1965-70 1971 GNP at Market Prices 1,748 100.0 6.o 4.1 7.4 Gross Domestic Investment 317 18.1 O. 1.3 3.6 Gross National Saving 271 15.5 .. 5.9 18.3 Current Account BalanceW 46 2.6 Exports of Goods, NFS 585 33.5 10.2 7.1 17.8 Imports of Goods, NFS 692 39.6 10.0 3.7 12.7 OUTPUT, LABOR FORCE A-ND PRODUCTIVITY IN 1970 Value Added Labor Force V. A. Per Worker UST$IMln. % Thous. % US $ % Agriculture 136 9.1 101.8 17.8 1,336 48 Industry 304 20.4 136.2 23.8 2,232 81 Services 1,048 70.5 300.4 52. 3,488 126 Unemployed . _ ____ _ 5._ Total/Average 1,488 100;O 571.7 100.0 2,764 100 GOVERNMENT FINANCE _ C G n General Government Central Govern_ment ( LL.. Mln.) X of GDP L.L. Mln.) 7. of GDP 1971 1971 1969-71 1971 L971 1969-71 Current Receipts 1,020.7 18.7 18.3 768.0 14.1 13,6 Current Expenditure 337.0 15.4 15.6 aL 3 114 1.7 Current Surplus 1S2.9 3.4 3.0 130-7 2.4 1.7 Capital Expenditures 132,1 2.4 3.1 59.3 1.1 1.2 External Assistance (net) 17.0 0.3 0.3 1/ Estimate of the World Bank Atlas 2/ World Bank Atlas conversion 3/ Provisional estimates F Not comparable with Balance of Payments statistics / Since national accounts at constant prices are not available, following rates of growth are estimates. 3/ Includes Central Government, annexed and autonomous budgetsj excludes municipalities and some minor accounts. not available not applicable  ANhX 1 Page 2 of 2 COUNTRY DATA - LEBANON August MONEY, CREDIT and PRICES 1965 1969 1970 1971 1971 1972 (Million