| Year of assessment | 2019-2020 |
| Date of publication | February 2022 |
| Country procurement volume | 3.47 billion USD (2019) |
| Principal organisation | Institut des Finances Basil Fuleihan |
| Main partners | The World Bank (WB) |
Lebanon
Recognizing the central role that public procurement plays in public service delivery, financial management, and sustainable development, this MAPS MAIN assessment for Kazakhstan resulted in recommendations targeting the harmonization of procurement regulations, strengthening institutional capacity and coordination, enhancing procurement planning and monitoring, improving market access for suppliers, increasing transparency through e-procurement, and reinforcing accountability and integrity measures in procurement processes.
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Quick facts
Background
Why was a MAPS assessment initiated?
The MAPS assessment was initiated to address Lebanon’s outdated and fragmented public procurement system, which suffered from inefficiencies, corruption risks, and non-compliance with international standards. The assessment aimed to provide a comprehensive framework for identifying gaps, strengthening fiscal governance, enhancing transparency, and restoring international trust, as part of Lebanon’s commitment to public procurement reform made at the 2018 CEDRE conference.
Who initiated the assessment?
The Ministry of Finance of Lebanon mandated the Institute of Finance Basil Fuleihan to carry out the assessment with technical assistance from the World Bank. The assessment was supported by the Global Procurement Partnership-Multi-Donor Trust Fund (GPP MDTF).
Brief description of the country procurement system
Lebanon’s procurement system was outdated, fragmented, and inefficient. It operated with a weak institutional framework, overlapping mandates, and unclear stakeholder roles. The legal framework dated back to 1959/1963, failing to meet international standards or align with Lebanon’s international agreements. The system lacked policy and regulatory functions, an effective complaints mechanism, and proper integration with public financial management.
Other relevant country context
Lebanon has faced compounded crises, including a severe economic downturn, hyperinflation, and currency depreciation. The 2019 nationwide protests highlighted governance failures, while the 2020 Beirut Port Explosion further strained the macro-fiscal and socio-economic situation, adding urgency to the need for reforms.
Were there any disruptions?
Yes. Lebanon’s protracted economic crisis, political instability, and the Beirut Port Explosion in 2020 significantly disrupted governance and public administration, likely affecting the progress and implementation of procurement reforms.
Main results and impact
Outdated and Fragmented Legal Framework
Lebanon's public procurement legal framework is outdated, fragmented, and does not conform with international standards. The primary regulations date back to 1959 and 1963 and have been supplemented by various decrees and regulations, creating inconsistencies and loopholes.
Recommendations:
- Prepare and adopt a comprehensive, modern public procurement law and complement it with harmonized secondary legislation.
- Introduce a range of procurement procedures proportionate to contract value and nature.
- Standardize and formalize guidance for procurement processes, including selection and award criteria.
- Revise the complaints handling process to ensure independence and timely resolution.
- Introduce electronic procurement to improve transparency and efficiency.
Lack of a Policy Framework for Sustainable Public Procurement (SPP)
The current legal framework does not integrate principles of sustainability in procurement.
Recommendations:
- Introduce key sustainability principles in public procurement legislation.
- Develop and adopt regulations and guidance materials to incorporate social and environmental criteria into procurement.
- Align public procurement legislation with relevant international agreements ratified by Lebanon.
Weak Institutional Framework and Overlapping Mandates
There is no single institution responsible for procurement policy, leading to gaps, inefficiencies, and overlapping functions.
Recommendations:
- Assign a central entity responsible for procurement policy, coordination, and monitoring.
- Improve integration of procurement with public financial management, ensuring continuity of competitive procurement across fiscal years.
- Clarify and strengthen the mandates of institutions involved in procurement oversight.
Lack of Professionalization and Capacity Building
Procurement staff lack standardized training and professionalization.
Recommendations:
- Develop a comprehensive training program and certification process for procurement professionals.
- Establish professionalization requirements and career pathways for procurement officers.
Limited Use of Procurement Data and Analytics
There is no systematic collection and analysis of procurement data, limiting evidence-based decision-making.
Recommendations:
- Develop a centralized procurement database accessible to all stakeholders.
- Assign responsibility to a competent authority to analyze and disseminate procurement data.
Lack of Competition and Barriers to Entry
Procurement practices create barriers to competition, particularly for small and medium enterprises (SMEs).
Recommendations:
- Simplify and clarify eligibility requirements to encourage wider enterprise participation.
- Promote market engagement strategies to enhance competition.
- Improve accessibility of procurement opportunities through a centralized electronic platform.
Lack of Standardization in Procurement Practices
Procurement practices vary widely across entities, leading to inefficiencies and risks of non-compliance.
Recommendations:
- Standardize procurement processes, including planning, bidding, and contract management.
- Provide guidance and training to procurement entities on best practices.
Weak Oversight and Control Mechanisms
Oversight institutions lack authority, independence, and enforcement capacity.
Recommendations:
- Strengthen the independence and enforcement capacity of oversight bodies.
- Shift focus from procedural compliance to performance-based oversight.
- Develop an effective mechanism for follow-up and enforcement of audit findings.
Limited Transparency and Public Access to Information
Procurement data and decisions are not systematically published, limiting transparency.
Recommendations:
- Develop an open-access procurement information system to improve transparency.
- Ensure systematic publication of procurement plans, decisions, and audit reports.
Weak Mechanisms for Complaints and Whistleblower Protection
There is no independent complaints review mechanism, and whistleblower protection is inadequate.
Recommendations:
- Establish an independent complaints review body with binding decision-making authority.
- Strengthen whistleblower protection mechanisms to encourage reporting of corruption.
The Institut des Finances Basil Fuleihan - Ministry of Finance used the detailed findings of the MAPS assessment to draft a modern and unified public procurement law that was voted in Parliament in June 2021. MAPS findings and recommendations informed the development of a reform strategy and action plan with prioritised activities on the short term for achieving quick wins. Additionally, the strategy focusses on sound implementation of the public procurement law 244/2021, and includes initiatives for the medium term leading to the continuous improvement of the public procurement system.