Parliamentary session 4 - 3

Lebanon has an outdated and fragmented public procurement system with considerable capacity and technology gaps, resulting in inefficiencies and high risks of corruption.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, to provide more fiscal space and flexibility to assess, monitor, and to manage fiduciary risks, budget uncertainties, inefficiency and corruption, allowing to finance public investments and enhancing 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.

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, and decision 199/1 of 09/06/2020) 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);
2. A new public procurement law in line with UNCITRAL Model Law (2011) and OECD Guidelines (2016);
3. Standard bidding documents based on previous documents prepared by the Ministry of Finance in 2013 under WB financing and OMSAR under EU financing and more recently by the Ministry of Education under WB financing;
4. Elaboration of practical recommendations to advance public procurement reform and create around it a theory of change.

Visit our public procurement page for more information and resources.