Public Procurement Law reshaped Lebanon’s public spending

When Lebanon adopted Public Procurement Law No. 244/2021 on 19 July 2021, before its publication in the Official Gazette on 29 July and entry into force in August 2022, it replaced a fragmented procurement framework with the country’s first unified system governing how public institutions purchase goods, services and public works.

Drafted by the Basil Fuleihan Financial and Economic Institute with Lebanese and international experts, the legislation aligned Lebanon’s procurement system with international standards, including the UNCITRAL Model Law (2011) and OECD recommendations, while forming part of the broader reform agenda demanded by international partners.

From procedural reform to rebuilding trust

According to Lamia Moubayed Bissat, President of the Basil Fuleihan Financial and Economic Institute at the Ministry of Finance, the law represents something far greater than a procurement reform.

“Public procurement is not merely an administrative procedure for purchasing goods, services or public works,” Moubayed told The Beiruter. “It is one of the state’s most important tools for managing public money, translating public priorities into projects that serve the public interest, and demonstrating its ability to operate under fair and transparent rules.”

She argued that the legislation fundamentally changes the relationship between the state, public finances and citizens by establishing competition as the general rule, guaranteeing equal treatment for bidders, improving transparency and reinforcing accountability.

The importance of the law is about rebuilding the relationship between the state, public money and the citizen.

The legislation introduced 8 guiding principles (planning and integration, efficiency and competition, inclusiveness, accountability, sustainability, integrity, professionalism and transparency) while requiring procurement planning to be linked to state budgeting and investment decisions. It also centralizes procurement information through the Public Procurement Authority’s electronic platform, enabling greater public oversight throughout the procurement cycle.

According to Moubayed, one of the reform’s most important achievements was moving Lebanon away from fragmented procurement rules toward “an integrated system built on competition, equal opportunity, transparency, integrity and accountability.”

Protecting public money means more than choosing the lowest price

A recurring theme throughout the interview is that procurement should be judged by outcomes rather than procedures alone.

“Every amount spent through a public contract comes from taxpayers, borrowing or international assistance,” Moubayed said.

The objective is not simply to spend according to legal procedures, but to achieve the best possible value for public money in terms of quality, cost, timing and results.

She stressed that “the lowest price is not always the best outcome,” arguing that successful procurement should deliver effective public services rather than merely cheaper contracts.

The law therefore incorporates sustainable procurement principles by encouraging local production, supporting small and medium-sized enterprises, promoting women’s economic participation and rural development, while introducing social standards such as prohibiting child labor and requiring insurance against workplace accidents. It also encourages environmentally sustainable purchasing whenever economically justified.

Progress is visible, but success cannot yet be declared

While acknowledging tangible progress since implementation began, Moubayed rejected both excessive optimism and excessive pessimism.

It is too early to declare complete success only 4 years after the law entered into force, but it would also be unfair to ignore what has been achieved.

According to statistics published by the Public Procurement Authority on 21 October 2026, the central electronic platform had recorded 7,723 published procurement procedures, including 5,261 awarded tenders, representing an award rate of 68.12%. Meanwhile, 78.93% of registered procuring entities had published procurement notices on the platform, while the cumulative value of awarded procurement projects reached approximately $3.57 billion.

However, Moubayed cautioned against interpreting those figures as proof that corruption has declined or procurement has become fully competitive.

The available figures measure procedural transparency, but they do not by themselves demonstrate stronger competition, better integrity or higher spending efficiency.

She explained that assessing real progress also requires indicators measuring the average number of bidders, market competition, contract implementation, pricing, complaints, contract amendments and audit findings.

She also recalled that the national assessment conducted before the reform revealed that only 5% of the 210 qualitative and quantitative indicators assessing Lebanon’s procurement system fully complied with international standards, illustrating the scale of institutional reform required.

Implementation remains the greatest challenge

Although Law No. 244 established a modern legal framework, Moubayed believed implementation has become the defining challenge.

No law, however well drafted, implements itself.

She identified several obstacles, including limited administrative capacity, shortages of trained procurement professionals, incomplete digital infrastructure and institutional gaps.

The law entered into force during Lebanon’s unprecedented financial collapse in 2019, amid currency depreciation, declining institutional capacity and significant losses of experienced public-sector staff. “This does not justify poor implementation, but it explains why legislation alone cannot change administrative practices,” Moubayed asserted.

She also warned against what she described as “formalistic implementation,” where procurement documents are published online while tender specifications continue to restrict competition or contract execution receives inadequate oversight. “Transparency is not simply publishing a document. It means providing sufficient information for decisions to be understood, reviewed and those responsible held accountable,” Moubayed noted.

Strong institutions remain essential

Moubayed also distinguished between the different oversight institutions created under the law.

She welcomed the appointment of new members of the Public Procurement Authority for the 20260-2031 mandate in August 2026, describing it as an important institutional milestone. However, she noted that the Procurement Complaints Authority, responsible for reviewing procurement disputes independently, has yet to be established.

An independent and effective complaints mechanism is not an administrative detail. It is a fundamental guarantee of fair competition.

She noted that a 2024 implementation assessment found 95.6% of surveyed institutions reported receiving no procurement complaints, while 4.4% received between one and five complaints. However, she cautioned that these figures should not automatically be interpreted as evidence of flawless procurement, particularly given the absence of a fully functioning appeals mechanism.

For Moubayed, Law No. 244 remains one of Lebanon’s most important structural reforms, but its long-term success depends far less on legislative drafting than on consistent implementation. She thus concluded that “the real question is no longer simply how the state purchases goods. It is whether the state can demonstrate that it is a trustworthy steward of public money capable of transforming public resources into tangible public benefit.”