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Lebanon has an outdated and fragmented public procurement system with considerable capacity and technology gaps, resulting in inefficiencies and high risks of corruption. As a consequence, the quality of the procurement system is below average (48/100) compared to the rest of the world and to a number of MENA countries.
A coherent and clear Public Procurement system, in line with international standards and based on sound legal and institutional foundations, is thought to achieve savings, provide more fiscal space to finance public investments, allow flexibility to assess, monitor, and manage fiduciary risks, budget uncertainties, and to reduce inefficiency and corruption, allowing better service delivery to citizens. Accounting for 20% of central government expenditures and 6.5% of the Gross Domestic Product (around US$3.4 billion) on yearly average, public procurement is a key policy instrument to ensure value for money, stimulate growth, attract investors and restore trust.
The Ministry of Finance committed to procurement reform, giving a strong signal of trust to both the private sector and the donor community. The Institut des Finances Basil Fuleihan was mandated by the Minister of Finance as National Focal Point for this exercise (decision 109/1 of 04/03/2019, decision 199/1 of 09/06/2020 and decision 620/1 of 02/11/2021) and collaborates with 14 institutions as part of a transformation process based on four pillars:
1. An evidence-based diagnostic of the public procurement system, using MAPS II instrument (Methodology for Assessing Procurement Systems), in collaboration with the World Bank (WB) and the Agence Française de Développement (AFD); MAPS exercise was completed in 2020 with a full-fledged report and recommendations for reform roadmap;
2. A new public procurement law 244/2021, in line with UNCITRAL Model Law (2011) and OECD Guidelines (2016) was drafted in 2019. It was submitted to Parliament in February 2020 and discussed in a special Parliamentary Committee from June 2020 till May 2021. The draft law was discussed in Joint Parliamentary Committees and voted by the General Assembly on June 30, 2021 then published in Official Gazette on July 29, 2021;
3. A public procurement reform strategy and action plan 2022-2024, was elaborated with the technical support of the World Bank (WB) and the Agence Française de Développement (AFD), based on MAPS assessment recommendations, Public Procurement Law provisions and consultations with concerned stakeholders. The strategy was transferred to Council of Ministers for approval. An Inter-ministerial committee was formed on February 8, 2022 to follow-up on strategy and action plan implementation.
July 29th marked the entry into force of the law and the creation of the Public Procurement Authority. Do not hesitate and visit its website: www.ppa.gov.lb
Visit our public procurement page for more information and resources.
You can also watch this series of 5 videos on the reform and the new law.
Episode 1:
Don’t miss the others
Resources
- القانون رقم ٢٤٤ تاريخ ٢٩/٧/٢٠٢١ معدلا بحسب قرار مجلس شورى الدولة رقم ٥/٢٠٢١ وبحسب تصحيح الاخطاء المادية الصادر في الجريدة الرسمية بتاريخ ٦/١/٢٠٢٢ (pdf)
- Technical note on the amendments brought to law 244/2021 (pdf)
- Progress report-Lebanon PP reform at risk-May2023 (pdf)
- Priorities of Public Procurement Reform Implementation for 2023 (pdf)
- ملاحظات معهد باسل فليحان المالي ل والاقتصادي حول اقتراحات التعديلات المقدّمة على قانون الشراء العام رقم 244 تاريخ 19 تموز 2021 (pdf)
- Public Procurement Reform in Lebanon - Progress Report – September-December 2022 - Arabic (pdf)
- إصلاح الشراء العام في لبنان: إصلاح وطني على المحك - تقرير حول تقدّم المسار الاصلاحي - أيلول 2022 (pdf)
- Public Procurement Reform in Lebanon - A Nationally led reform at risk - Progress report Sept. 2022 (pdf )
- دليلك إلى قانون الشراء العام 2021/244 (pdf)
- أجوبة عن قانون الشراء العام 2021/244 (pdf)
- Public Procurement Reform in Lebanon - Progress Report – March 2022: from legislation to implementation (pdf)
- القانون رقم 2021/244 معدلا بحسب قرار مجلس شورى الدولة رقم ٥/٢٠٢١ وبحسب تصحيح الاخطاء المادية وأسبابه الموجبة (pdf)
- Decision no. 14 of February 8. 2022 - Formation of an Inter-ministerial Committee for public procurement reform (pdf)
- Public Procurement Reform Strategy - April 2022 - Arabic (pdf)
- Public Procurement Reform Strategy - April 2022 - English (pdf)
- Decision no. 66 of May 20. 2022 - Approval of the Public Procurement Reform Strategy (pdf)
- Public Procurement Reform Progress as a key pillar of National Anti-Corruption Strategy (pdf)
- LCPS Analysis: Transforming Public Procurement: Lebanon’s Path to Efficiency, Social Value, and Transparency (Link)
- Public Procurement Law no. 244/2021 - July 19th 2021 - Official-Gazette - Ar (pdf)
- Public Procurement Law no. 244/2021 - July 19th 2021 - English translation (pdf)
- Decision of Constitutional Council 5/2021 - Official Gazette - Ar (pdf)
- Presentation- Public Procurement Law 244/2021- Aug 2021- Arabic (pdf)
- Presentation- Public Procurement Law 244/2021- Aug 2021- English (pdf)
- Presentation: Law 244/2021: Enhancing Transparency and Accountability in Public Procurement - Sept 2021 - English (pdf)
- Presentation: Law 244/2021: Enhancing cometition and the participation of SMEs in Public Procurement - Sept 2021 - English (pdf)
- Flash news : Voting of the new public procurement law in Lebanon (pdf)
- Preparing for the implementation of the public procurement law no. 244/2021 - briefing note - Sept 2021 (pdf)
- Presentation: Procurement for Prosperity: Lebanon's path toward efficiency, social value and transparency - GO LAB (pdf)
- Progress Report - Reforming Public Procurement in Lebanon - July 2021 - English (pdf)
- Progress Report - Reforming Public Procurement in Lebanon - Jan 2021 - English (pdf)
- Progress Report - Reforming Public Procurement in Lebanon - 2020 - Arabic (pdf)
- Progress Report - Reforming Public Procurement in Lebanon - 2020 - English (pdf)
- MAPS - Final Report - Maps seal (pdf)
- Executive Summary - MAPS Report - 2021 - Arabic (pdf)
- Executive Summary - MAPS Report - May 2021 - English (pdf)
- MAPS Lebanon - Assessment outcomes, way forward and lessons learnt (PPT)
- Mission AFD / Expertise France (Page)
- Webinar: Efficient Public Procurement Complaints and the Role of Independent Review Body: International good practices and roadmap for Lebanon (Webpage)
- Institutional Mapping of Procurement Stakeholders in Lebanon - conducted by Siren Associates, with the support of the World Bank (pdf)
- Briefing Note Lebanon Public Procurement Reform - May 2020 - Arabic (pdf)
- Briefing Note Lebanon Public Procurement Reform - May 2020 - English (pdf)
- Public Procurement Reform Road map - June 2020 - Arabic (pdf)
- Public Procurement Reform Road map - June 2020 - English (pdf)
- الشراء العام في لبنان: أداة سياساتيّة للنهوض والنمو المستدام (pdf)