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Public Procurement in Lebanon

Public Procurement in Lebanon represents a critical mechanism for public service delivery, infrastructure rehabilitation, and economic recovery within a lower middle-income economy facing prolonged fiscal and institutional challenges. Government procurement plays an essential role in maintaining public utilities, healthcare, education, and basic infrastructure.

The procurement system in Lebanon has undergone significant legal reform with the adoption of a modern public procurement law, aiming to enhance transparency, accountability, and competition. Procurement activities are carried out across all ministries and public entities, with large-scale works traditionally managed through specialized institutions.

For domestic suppliers, contractors, and international firms, government tenders in Lebanon offer structured opportunities within a regulated legal framework, particularly in donor-supported and reconstruction-related projects.

Country & Economic Overview

Lebanon’s economy has experienced severe contraction, making efficient public spending and transparent procurement particularly important. Public procurement remains a vital tool for channeling limited public resources and external assistance into priority sectors.

Public Procurement Governance Framework

The governance of public procurement in Lebanon is institutionally distributed across public authorities, with a dedicated oversight body.

The Public Procurement Authority is responsible for oversight, regulation, and guidance, while the Council for Development and Reconstruction plays a key role in implementing large infrastructure and development projects.

Legal & Regulatory Framework

The public procurement law in Lebanon is governed by Public Procurement Law No. 244 of 2021, which introduced a unified and modern framework for public purchasing.

• Sustainability and Value for Money: Embedded under Articles 15-17.
• Most Economically Advantageous Tender (MEAT): Provided under Article 134 of the Public Accounting Law.
• Bid Securities and Validity: Regulated under Article 22.
• Public Bid Openings: Mandated under Article 50.
• Domestic Preference: Provided under Article 16.

The law also establishes complaint mechanisms, disclosure requirements, and safeguards to enhance integrity and transparency across procurement procedures.

Procurement Procedures & Thresholds

Procurement procedures in Lebanon are formally regulated under Law No. 244 and apply to goods, works, and services.

• Open competitive tendering is the primary procurement method.
• Minimum advertisement period is 21 days.
• Standstill periods apply before contract signature.
• Direct contracting is permitted under legally defined exceptional circumstances.

Public procurement expenditure represents approximately 6.5% of GDP, reflecting constrained fiscal space and limited public investment.

E-Procurement System in Lebanon

Lebanon does not yet operate a fully functional national eProcurement system covering the complete procurement lifecycle.

Procurement information, legal guidance, and tender notices are published through official government and Public Procurement Authority channels, while implementation remains largely paper-based or project-specific.

Procurement Market Characteristics

Public procurement in Lebanon is shaped by fiscal constraints, donor involvement, and infrastructure recovery needs.

• Goods: Public supplies, fuel, and essential equipment.
• Works: Infrastructure rehabilitation and public works.
• Services: Consulting, engineering, and technical services.

International participation is common in donor-funded procurement, while domestic firms dominate smaller-scale contracts.

Transparency, Complaints & Oversight

The procurement framework provides formal mechanisms for oversight and complaint resolution.

Complaints are handled under Article 106 of Law No. 244, and procurement decisions above defined thresholds are subject to disclosure requirements.

Sustainability & Green Public Procurement

Sustainability considerations are incorporated into Lebanon’s procurement law at the policy level.

• Environmental and sustainability criteria recognized under Articles 15-17.
• Green procurement principles encouraged but not mandatory.
• Application varies by sector and project type.

Social & Ethical Procurement Considerations

The legal framework allows consideration of development and sustainability objectives but does not mandate quotas for women-owned or disadvantaged-group businesses.

• Social considerations may be applied under sustainability provisions.
• No mandatory labor standards or ethical sourcing requirements.

Key Challenges & Practical Insights for Bidders

• Macroeconomic instability and currency volatility.
• Limited public investment budgets.
• Strong reliance on donor-funded procurement.
• Evolving institutional capacity under the new law.

Practical bidding tips

1. Closely monitor donor-funded and reconstruction projects.
2. Ensure strict compliance with Law No. 244 requirements.
3. Engage local legal and technical expertise.
4. Factor currency and payment risks into bid pricing.

Overall, Public Procurement in Lebanon operates within a reformed legal framework aimed at improving transparency and governance, offering cautious but structured opportunities for capable and well-prepared bidders.