Enhancing Water Integrity: Modernizing Lebanon's Public Procurement System

Public Procurement in Lebanon's water sector plays a crucial role in infrastructure development. With recent initiatives and reforms focusing on transparency, accountability, and efficiency, the country aims to strengthen its legal and operational framework for procurement practices. These efforts include capacity building, specialized training, adherence to international standards, and participation in workshops focusing on water integrity.

• Water Integrity
• Public Procurement
• Lebanon
• Reform Initiatives
• Capacity Building

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1. Modernizing the Public Procurement System to Enhance Water Integrity in Lebanon Presented By Bechara Y. Samneh & Dana H. Deeb

2. Introduction Public Procurement refers to the purchase by governments and state-owned enterprises of goods, services and works. It starts with the assessment of needs, to award, and finally to contract management and post- evaluation. PP accounts for around 18% of the GDP in the MENA countries. CTB conducts all service, work, and supply tenders above the threshold of 100,000,000 LPB Pre-tendering: Reviews the content of the bid documents Tendering: Runs the tendering procedure

3. The Water Sector in the Lebanese Public Procurement In 2016 until April, 20 different water projects were awarded by CTB. Value reached 24,688,330,849 LBP or 16,458,887 USD. Distributed along the districts of: Baalbek, Zahle, Kesrouan, Jezzine, Maten, Koura, Bsharri, Hermel, Zgharta, Baabda, Jbeil, Aley, Chouf, West Bekaa, Bint Jbeil and Nabatieh. Projects included: well drilling, dam maintenance, water distribution networks & lines, stream protection walls, sewer lines, irrigation canals,

4. Present Reform Present Reform Initiatives PP Draft Law Initiatives CTB moves towards a regulatory authority role. Aims for a sound and efficient legal, institutional and operational foundation of the PP system. Procurement Principles accounted for: Transparency Accountability Fair competition Fair treatment Value for money Currently, draft law is being discussed by the selected ministerial committee.

5. Present Reform Initiatives Present Reform Initiatives Capacity Building Specialized training on procurement international best practices Study tours to selected countries Certificate programs in PP (by WB & CIPS) Complaint mechanisms Legal institutional framework Bid evaluation Sustainable procurement Contracting and negotiation Social responsibility Strategic sourcing Negotiation skills Supply relation management Participation in national and regional water integrity workshops (under SIWI)

6. Present Reform Initiatives Present Reform Initiatives Setting Specifications Abidance to LIBNOR standards. 36 different standards for the piping systems fall under: Underground drainage and sewerage Aboveground drainage and sewerage Water supply Soil and waste discharge Rainwater for above ground and external use Hot and cold water Standard enforcement by Law.

7. Present Reform Initiatives Present Reform Initiatives Enhancing Internal Practices Development of an Internal Management System Building an analytical system for reviewing bidding documents Creating a database for all tenders information at the CTB (bidders and their prices, results, awarded price, rejection reasons, tendering and technical committees, the awarding sessions). This will allow irregular pattern identification such as: Bid rigging Collusions Agreements Concerted practices (market rotation, market sharing, boycotting, phantom offers, and unusual mistakes) Enables the recognition of the major key players in the Lebanese water market.

8. Present Reform Initiatives Present Reform Initiatives New Website Development of a new website (funded by the WB under FMR2) Features of the website: Registration of contractors Posting advertisement Publishing procurement plans and awarded tenders Reporting statistical information Archiving procurement information Aims to enhance transparency and competition. Eases access to information. Gateway between the civil society and public administrations.

9. Present Reform Initiatives Present Reform Initiatives e-Procurement A new approach to regulating PP based on the use of information technology. It leads to: Lower prices A faster procurement process Reduced administration costs Enhanced transparency More competition, and Automatic collection of market data 5 key elements are: e-Notices e-Tenders e-Communication e-Submissions e-Reports Better VfM

10. Recommendations for Development Recommendations for Development Enhancing Internal Practices Implementation of the internal management and analysis system plan Development of a Market Analysis department Application of Need Assessment Simplification of bureaucratic procedures in the tendering process (Qualification Certificate)

11. Recommendations for Recommendations for Development Evaluation Criteria Development Accessing evaluation reports of the contractor s performance Awarding according to MEAT Establishing a point system to help in evaluation Adapting other criteria like qualitative, technical and sustainable aspects along with price

12. Recommendations for Recommendations for Development Sustainability Development Water is the most important resource in human lives Importance of sustainability in public procurement Sustainable public procurement is defined as the public procurement that achieves value for money on a whole life-cycle basis while generating benefits to the society and economy, and reducing the negative impacts on the environment. The gradual path to sustainability Legal Approach to Responsibility Approach Feasibility of the Responsibility Approach for the Lebanese case Systematic detailed reporting mechanism (GRI)

13. Conclusion A well-established PP system reduces corruption and enhances integrity. Reliability of the procurement process lies in the importance given to the pre-tender phase and procurement planning. Market analysis is the key for proper need assessment. Evaluation according to MEAT achieves VfM. Feedback and post-evaluations push contractors to better contract compliance. A solid e-procurement system enhances transparency, competition, and integrity.

14. Thank you