Lebanon - Country Commercial Guide
Selling to the Public Sector
Last published date:

Selling to the Government

The Council for Development and Reconstruction (CDR), a public authority established in 1977, is the government body responsible for major public infrastructure projects in Lebanon.  The CDR reports to the Council of Ministers (i.e. cabinet) and coordinates its sector-based actions with the relevant ministries.  Generally, the CDR publicly solicits offers before awarding major construction contracts. 

Parliament passed a modern public procurement law (PPL) consistent with international standards in June 2021, updating Lebanon’s public procurement system for the first time since the 1960s.  The law took effect in July 2022, aiming to standardize procedures that all public institutions must follow when purchasing goods and services.  A Ministry of Energy and Water tender to purchase fuel for electricity generation was conducted in November 2022 under the PPL, and the tender was published on the public procurement authority website: www.ppa.gov.lb.  However, local media have highlighted instances questioning the government’s strict adherence to PPL requirements, including a preliminary, non-binding arrangement to build a second terminal at Beirut International Airport, which was subsequently cancelled.  The Public Procurement Management Administration (PPMA), known as the “Tender Board,” has the authority to review terms of reference and evaluate bids for government contracts.  For any project above LBP 100 million, government ministries are required to submit the tender conditions to the public procurement authority, but the ministries are not required to accept the guidance of PPMA.  U.S. companies can apply directly for these tenders or can rely on local agents to bid on their behalf.  Ministries may solicit for services valued below LBP 100 million without a tender.

Lebanon does not abide by the World Trade Organization (WTO) - Government Procurement Agreement (Lebanon is not a WTO member). 

U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy.  A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies.  The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts.  Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.            

Financing of Projects

The Council for Development and Reconstruction (CDR), the government’s executive body for redevelopment, has a total of $1.2 billion in loans and agreements ratified by Parliament but not yet disbursed.  An additional $300 million in loans from international donors and development banks await Parliament’s approval.  The CDR has a limited absorptive capacity and targets annual spending at approximately $750 million.  Since 1992, CDR completed 6,043 contracts valued at $20.7 billion mainly in infrastructure, irrigation, and air transportation projects.  CDR currently has ongoing contracts valued at $160 million.

About 13 foreign financing sources are involved in CDR’s development plan, with 9 sources contributing to over 90 percent of the CDR’s total foreign financing.  Primary contributors include the World Bank; the Arab Fund for Economic and Social Development (AFESD); the Kuwaiti Fund (KFAED); the European Investment Bank (EIB); the Islamic Development Bank; the Saudi Fund for Development (SFD); and the Governments of Saudi Arabia, Italy, and France.  For more information about CDR, you can visit CDR’s website.  

Multilateral Development Banks and Financing Government Sales.

The International Finance Corporation (IFC), the private sector-focused wing of the World Bank Group, has invested over $1 billion in supporting Lebanese firms.  The IFC also works to streamline business registration and improve access to finance for MSMEs (micro and small and medium enterprises) and women-led businesses.  The IFC also provides assistance to develop the regulatory framework for the Tripoli Special Economic Zone (TSEZ).   Moreover, the IFC supported local commercial banks in the initial issuance of “green bonds” for projects that have positive climate impacts.  The IFC previously advised the High Council for Privatization and Partnerships (HCP) for the expansion of the Rafic Hariri Beirut International Airport and the Ministry of Energy and Water for the construction of two gas power plants.  None of those projects came to fruition, however.

The European Bank for Reconstruction and Development (EBRD) began operations in Lebanon in 2017.  It focuses on support for private sector competitiveness, sustainable energy supply, and the quality and efficiency of public service delivery.  As of September 2022, EBRD had invested a cumulative 837 million Euros in 11 projects in Lebanon, including investments in a Green Economy Financing Facility, a green bond, an SME credit line, and in trade finance.  In 2018, EBRD launched its EU-funded Advice for Small Business program to provide businesses with the knowledge needed to reach their growth potential, ranging from strategy and marketing to financial management to energy efficiency improvements.

Price, payment terms, and financing can be a significant factor in winning a government contract.  Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB).  The Guide to Doing Business with Multilateral Development Banks provides an overview of working with MDBs.  The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five MDBs: the African Development Bank; the Asian Development Bank; EBRD; the Inter-American Development Bank; and the World Bank.  Learn more by contacting the: