Public-private partnerships (PPPs) in Lebanon have encountered numerous challenges, raising concerns about irregularities and cronyism across various sectors. Recent developments in the management of postal services, maritime transport, and mechanical inspection underscore the limitations of these partnerships, prompting the need for enhanced competition and transparency. LIMS explained that the attempt to outsource the management of postal services to a private company faced significant setbacks. The tender process was ultimately repealed as the sole bid received failed to meet the specified requirements. Notably, the current operator, Liban Post, was unable to participate due to a lack of revenue sharing with the government, as highlighted in the Audit Bureau’s report.LIMS also released a policy brief on the maritime transport sector that experienced a lack of competition, with only one bidder, CMA-CGM, vying for the tender. The control of maritime transport operations in Lebanon by CMA-CGM, including container terminals in Tripoli and Beirut, raises concerns about monopolistic tendencies.Similarly, the issue of insufficient competition extends to the mechanical inspection sector as well. While efforts have been made to improve the tender process, the exclusive appointment of a single company to manage inspections would lead to long queues and inconveniences for vehicle owners. To address this issue, the ministry announced that more centers will be created. However, this solution would be costly and inefficient.LIMS argued that Lebanon should consider a paradigm shift to foster healthy competition and benefit end users. In the case of postal services, instead of awarding the entire sector to a single company, the country should open the doors for multiple companies to enter and compete. Similarly, in the mechanical inspection sector, allowing licensed auto repair shops to perform inspections would introduce much-needed competition. Furthermore, Lebanon should embrace competition in maritime transportation by opening up all its ports, including Tyre, Saida, Jounieh, Batroun, and the rest. By encouraging competition in these sectors, Lebanon can ensure that end users receive improved services, increased options, and competitive pricing. The infusion of competition will drive innovation, efficiency, and accountability, benefiting both the public and the economy as a whole.
- LIMS Exclusive: Outsourcing The Mechanical Inspection: A Useless Investment In A Time Of Few And Financial Scarcity, May 24, 2023: LIMSLB, Article AR
- Dr. Patrick Mardini On The State’s Dues To The “Liban Post”: Postal Revenues Before Outsourcing Were 8 Billion Lebanese Pounds Annually, And After Outsourcing They Became Zero, And The Expenditures Are On The State, May 26, 2023: Al Afkar, Article AR
- LIMS Exclusive: CMA-CGM Sole Exhibitor, May 27, 2023: LIMSLB, Article AR