The deal was negotiated over a year ago when Lebanon began to face a fuel and energy crisis.
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A final version of the deal was signed in Beirut on Tuesday by Lebanese Energy Minister Walid Fayad and officials from Syria and Egypt.
According to the Energy Minister, the deal's significance comes from the fact that it will guarantee four more hours of electricity per day, compared to the only two hours currently available.
The move is part of a broader endeavor that involves a separate agreement with Jordan seeking to increase supply from 8 to 10 hours per day over the next few months.
"We hope that after today all the obstacles will have been overcome in order to be able to receive World Bank financing and definitive guarantees from the U.S., especially with regard to sanctions," the Lebanese minister said.
For both agreements to get off the ground, World Bank financing and the U.S. guarantees not to unleash unilateral sanctions pursuant to the Caesar Act, which bans dealings with Syria, are needed.