- 16:00
In Lebanon’s postal sector, contracts don’t expire, they evolve into an eternal administrative limbo. LibanPost’s contract officially expired in 2019, but it remains extended without renewal, renegotiated without approval, and most importantly… without a successor. As the country waits—whether for Godot or a proper contract—LibanPost continues to run the postal service. In Lebanon, the expiration of a contract never really means the end of a mandate.
Rewind to July 2023: French logistics giant CMA CGM, through its subsidiary Merit-Colis Privé, was awarded the postal services tender launched by Lebanon’s Ministry of Telecommunications. It seemed like a turning point for the beleaguered sector: $12.8 million in promised investments, $6 million in guaranteed annual revenues for the state and a long-overdue modernization of the postal network.
But the relief was short-lived. Lebanon’s Court of Audit overturned the award, citing a rigged tender process—specifications “tailor-made” for the winner, limited competition and a bidder lacking relevant experience. Minister of Telecommunications Johnny Corm tried to push the deal through anyway, but failed.
A Full Reset
The result? A familiar outcome: the Council of Ministers reverted to renegotiating the contract with LibanPost, which continues to run the country’s postal services by default as Lebanon braces for a fourth tender attempt.
LibanPost, controlled by the Saradar Group and the Mikati family’s M1 Group, has held the reins since 1998. But this time, the terms have changed. “The state now earns $2.7 million annually, up from just $40,000,” said a source at the Ministry of Telecommunications.
A notable achievement! This is made possible by the new terms: “12% of revenues across all services (up from 5%), 15% discounts for public institutions and a more than twofold increase in the annual building lease—from $600,000 to $1.4 million,” according to the cited sources.
And Then… Another Tender?
“A new tender will soon be launched,” this phrase echoes repeatedly through the halls of the Ministry of Telecommunications. It will be the fourth since 2023. But not so fast! Before that happens, there’s still the need for yet another feasibility study, a new set of specifications and most crucially… funding. “However, no budget was allocated for this in 2024,” confirmed the sources.
But don’t worry, the ministry came up with a classic workaround. In true Lebanese fashion, it’s asking private companies to conduct the study for free, on the condition that they won’t bid afterward. For context, a similar feasibility study conducted by Deutsche Post in 1997 cost $4 million. It’s clear why the administration prefers to… indefinitely buy time.
Political Influence and Conflicting Interests
The administrative haze surrounding Lebanon’s postal sector appears to mask more than just bureaucratic delay, it suggests calculated political maneuvering. According to well-placed sources, a close associate of Parliament Speaker Nabih Berri is seeking control over the sector. Meanwhile, the state continues to forgo an estimated $6 million annually by refusing to hand over postal management to CMA CGM, a loss that seems to trouble no one. After all, when losses are shared among allies, accountability becomes optional.
As mentioned above, in July 2023, CMA CGM, through a consortium led by Merit-Colis Privé France, won the tender issued by the Ministry of Telecommunications. The group was set to replace LibanPost, which has run Lebanon’s postal services since 1998. However, the Court of Audit annulled the award, even after caretaker Minister of Telecommunications Johnny Corm submitted a request for reconsideration.
The Court cited multiple violations of procurement rules, including breaches of transparency, objectivity, fair competition and value for money. It further denounced the winning bid as “tailor-made and lacking in transparency, a clear breach of the established criteria for awarding public revenue contracts.” The Court also underscored the bidder’s lack of relevant experience.
Merit-Colis Privé France had also won the tender issued by the Ministry of Telecommunications on March 30, 2023, but due to procedural flaws in the terms of reference, that award was subsequently annulled.
A Never-Ending Story
In summary: an expired contract is still in effect, a tender won but was rejected, a strategic sector is overlooked. And a new tender promised, but indefinitely delayed, with no clear resolution in sight. This is how Lebanon manages its postal services: agonizingly slowly… yet inexorably heading toward oblivion. The ongoing debacle of the postal management contract highlights, once again, the Lebanese State’s deep-rooted dysfunction in handling public affairs.
In the meantime, if you're expecting an urgent letter, you might consider using a carrier pigeon—just make sure it doesn’t get caught up in yet another procurement process.
Comments