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Lebanon has an outdated and fragmented public procurement system with considerable capacity and technology gaps, resulting in inefficiencies and high risks of corruption.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, 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, 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); MAPS exercise was completed in 2020 with a full-fledged report and recommendations for reform roadmap;
2. A new public procurement law in line with UNCITRAL Model Law (2011) and OECD Guidelines (2016) was drafted, and is being discussed in Parliament;
3. Standard bidding documents based on previous documents prepared by the Ministry of Finance in 2013 under WB financing and OMSAR under EU financing in addition to other practical tools to ensure sound reform implementation;
4. Elaboration of practical recommendations to advance public procurement reform aas a whole-of-government and whole-of-economy reform, and as a key enabler of economic sustainable recovery.

Visit our public procurement page for more information and resources.