Under the APPLE-C program (Apply Public Procurement Law to End Corruption), LIMS has released two policy briefs exposing recent efforts by the Port of Beirut and the Municipality of Beirut to bypass the Public Procurement Law. This legislation is intended to promote competition and prevent corruption in public sector contracting.

In the first policy brief, LIMS criticizes the decision of Temporary Committee for Management and Investment of the Port of Beirut to exempt itself from the Public Procurement Law as of September 2024. This decision is seen as a gateway to revive corrupt practices, inefficiency, inflated contracts, and unchecked spending that has been plaguing the port for years particularly in operations and construction deals. Lebanon’s challenging environment for international trade is largely attributed to the bureaucratic and expensive processes entrenched within its port system—a burden likely to persist if the port contracts remain unchecked.

LIMS has proposed dissolving the Port of Beirut’s temporary management committee, advocating for competitive bidding to open Lebanese ports to private investment. Competition among ports would attract investment, curb customs evasion and smuggling, and boost revenue generation. For instance, if the Port of Beirut’s management remains inefficient, traders could turn to alternative ports. Expanding options would not only improve efficiency but also bring substantial investment to underutilized ports like Tyre, Byblos, and Batroun. This strategy has the potential to transform Lebanon’s port system, fostering regional development.

The second brief sheds light on the Municipality of Beirut’s evasion of competitive bidding practices. The municipality has bypassed formal tender processes, opting to unlawfully award projects directly to preferred contractors through “advance payments”. Such practices have led to favoritism, and misallocation of public funds, with projects repeatedly awarded to a limited group of contractors. LIMS notes that the municipality also circumvents spending caps by dividing projects into smaller tranches, a tactic that hampers accountability and prevents the Public Procurement Authority from conducting adequate oversight.

LIMS concludes that the underlying strategy of these entities is to distribute public contracts to a close network of allies, bypassing genuine competition. This method frequently results in single-bidder contracts with inflated costs for taxpayers and subpar services for the public. By resisting competition, these public entities deny Lebanon the quality, efficiency, and fiscal responsibility that an open, regulated procurement process could provide. The APPLE-C program thus advocates for the full application of Lebanon’s 2022 Public Procurement Law, under strict oversight, to restore public trust and deliver value to Lebanese citizens.

• LIMSLB Exclusive: The Time Has Come For The Temporary Committee To Manage And Invest In The Port Of Beirut, And It’s Time To Conclude It, September 9, 2024: LIMSLB, Article AR
• LIMSLB Exclusive: The Municipality Of Beirut Is Bypassing The Law By Replacing Tenders With Sole Source Agreements, September 17, 2024: LIMSLB, Article AR