Catalyzing Change: PRISM Advocates Opening the Municipal Market to Private Businesses

PRISM Advocates Opening the Municipal Market to Private Businesses

Lebanon’s overarching economic crisis casts a shadow over municipalities, grappling with severe financial constraints that hinder their operations and investments. Resource scarcity amplifies concerns about meeting citizen needs, raising doubts about municipalities’ capacity to deliver essential services.

LIMS argued for a collaboration between municipalities and the private sector in three key areas: renewable energy, waste management, and water. The private sector can invest in these sectors on the local level, which would allow municipalities to save costs and increase revenues. This engagement will also have a positive impact on the local economy driving growth, generating jobs, and providing citizens with continuous, high-quality services. In some instances, this partnership has already yielded success. In Toula, for example, a solar energy farm provides uninterrupted service at half the usual cost. Likewise, Beit Mery effectively managed waste collection through citizen subscriptions, leading to cleaner streets and strict anti-littering measures.

LIMS also shed light on the existing legal framework governing partnerships between municipalities and private companies. For instance, Law 462/2002, though not enforced yet, broke the monopoly of National Electricity Company and permits for energy production and distribution by private entities. Additionally, Law 48/2017 on Public-Private Partnerships allows municipalities to get involved in joint projects. There’s also an ongoing effort to introduce a new law on renewable energy that would streamline the process even further.

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