Lebanon is facing an unprecedented economic, social and financial crisis. To lay the foundations for fiscal recovery and to fight corruption, the authorities have committed to public procurement reform with the support of AFD Group.
Context
The Lebanese State budget has long been under considerable strain with insufficient financial revenue to meet the country’s needs. Particularly rigorous management of public expenditure is therefore required. In the past, public procurement, which includes all contracts, partnerships and concessions signed between the state and the private sector, has accounted for a high proportion of state expenditure, at around 21%.
However, the previous public procurement system had many shortcomings: obsolete regulations, no digital system for managing contracts or independent regulatory authority, a lack of transparency and dialogue with the private sector, no accountability to citizens, etc. The system did not allow for fair competition or the acquisition of goods at a reasonable price. It needed to be modernized.
Description
Based on the findings of an assessment of the public procurement system conducted in 2019 using the international MAPS (Methodology for the Assessment of Procurement Systems) approach, AFD assisted the authorities in drafting a new law and reform strategy. After the law was passed in 2021, AFD and Expertise France got together to support its implementation by financing a team of French, Lebanese and international experts. At the request of the authorities, and in partnership with national partners (public procurement authority, institute of finance), these experts work on various issues such as operationalizing the independent regulatory authority, defining a national sustainable and responsible procurement policy, preparing the new e-procurement system, implementing a training program for buyers, and strengthening the system’s integrity.
Impacts
- Upon completion of this project, public procurement in Lebanon will be more efficient and transparent. The law will have been fully integrated into implementation texts and tools.
- An independent regulatory authority will oversee their application and more than 3,000 people will have been trained in the new practices.
- All public procurement data will be published via a centralized online system to make it accessible to citizens.
- These measures will lead to greater competition for tenders, lower procurement costs and fewer instances of corruption, ultimately improving the quality of public goods and services for the Lebanese people.
01/06/2021
Project start date
27 mois
Sectors
Lebanon
1 300 000
EUR
Ongoing
Republic of Lebanon
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on the same region
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on the same topic
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on the same financial tool
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