Once a critical public utility connecting people to the state, Lebanon’s postal sector has become a textbook case of how infrastructure meant for public good can be repurposed to serve narrow political and economic interests. Since the end of the civil war, the sector has gradually fallen into the hands of private interests with strong ties to Lebanon’s ruling elite (1).
Postal services in Lebanon date back to 1845, when the French government opened the first post office in the Port of Beirut (1). After gaining independence in 1943, Lebanon brought the postal sector under the Ministry of Communications and joined the Universal Postal Union in 1946 (1). However, the civil war disrupted postal operations, leaving the infrastructure in disarray. In 1998, the Lebanese government signed a Build-Operate-Transfer (BOT) contract with a Canadian company to revive and modernize the system (2).
Despite the ambitious agreement, the government failed to uphold its side of the deal. The Canadian partner pulled out, selling its shares to Lebanese private sector actors, including Bank Audi, a major player with deep political connections. Instead of transitioning postal operations back to the public sector, the government extended the contract with LibanPost, without a tender, until 2016, granting the company lucrative rights such as collecting service fees for administrative transactions (2)(3).
By 2002, the lines between LibanPost and the political class became increasingly blurred. One of the country’s prime ministers acquired a stake in the company through his private firm (1)(2). Over the next two decades, the state received only symbolic revenues, while LibanPost reaped millions, turning a once-public utility into a profit machine for the powerful (3).
When the extended contract expired in 2020, the government chose not to renew it. Yet, LibanPost continued operating de facto, thanks to a vacuum in state planning and weak political will to retake control (4). With no independent regulatory body in place and accountability frameworks collapsing, the company maintained its grip on a sector rich in public data and administrative functions (2)(4).
In Lebanon, postal services go far beyond delivering letters. LibanPost is linked to numerous state-related operations, from issuing official documents to processing utility payments. This makes control over the postal network a gateway to influence across public institutions (1).
Efforts to retender the sector in recent years have repeatedly failed. Several attempts to launch transparent bidding processes were marred by legal hurdles, political favoritism, and lack of oversight (1)(4). In 2023, Lebanon’s Court of Audit voided the most recent attempt to award a new contract, citing serious irregularities (4).
Fixing Lebanon’s postal sector isn’t just a matter of reform, but a litmus test for governance. Reclaiming this service as a transparent, accountable public utility is key to restoring institutional integrity. The challenge lies not only in revisiting contracts, but in dismantling the deeper networks of political and financial patronage that have kept the state captive for decades.
References
1. Halabi, S., Monson, L., & di Serracapriola, V. (2024). *Packaged for Greed: The Hidden Agendas Behind Lebanon’s Postal Sector Power Grab*. Badil (The Alternative Policy Institute). https://thebadil.com/ar/investigations-ar/packaged-for-greed-the-hidden-agendas-behind-lebanons-postal-sector-power-grab/
2. Ferzli, E. (2019). *Official Confusion in Managing the Postal Sector*. Al-Akhbar. https://www.al-akhbar.com/Politics/275904
3. Ferzli, E. (2021). *20 Years of LibanPost’s Reign: The State at the Service of a Company*. Legal Agenda. https://legal-agenda.com/20-عاماً-من-سيادة-ليبان-بوست-الدولة-في-خ/
4. Ferzli, E. (2023). *After 25 Years of Monopoly: Is LibanPost About to Lose the Mail Tender?* Legal Agenda. https://legal-agenda.com/بعد-25-عاماً-من-السيطرة-على-القطاع-هل-تُق/
Postal services in Lebanon date back to 1845, when the French government opened the first post office in the Port of Beirut (1). After gaining independence in 1943, Lebanon brought the postal sector under the Ministry of Communications and joined the Universal Postal Union in 1946 (1). However, the civil war disrupted postal operations, leaving the infrastructure in disarray. In 1998, the Lebanese government signed a Build-Operate-Transfer (BOT) contract with a Canadian company to revive and modernize the system (2).
Despite the ambitious agreement, the government failed to uphold its side of the deal. The Canadian partner pulled out, selling its shares to Lebanese private sector actors, including Bank Audi, a major player with deep political connections. Instead of transitioning postal operations back to the public sector, the government extended the contract with LibanPost, without a tender, until 2016, granting the company lucrative rights such as collecting service fees for administrative transactions (2)(3).
By 2002, the lines between LibanPost and the political class became increasingly blurred. One of the country’s prime ministers acquired a stake in the company through his private firm (1)(2). Over the next two decades, the state received only symbolic revenues, while LibanPost reaped millions, turning a once-public utility into a profit machine for the powerful (3).
When the extended contract expired in 2020, the government chose not to renew it. Yet, LibanPost continued operating de facto, thanks to a vacuum in state planning and weak political will to retake control (4). With no independent regulatory body in place and accountability frameworks collapsing, the company maintained its grip on a sector rich in public data and administrative functions (2)(4).
In Lebanon, postal services go far beyond delivering letters. LibanPost is linked to numerous state-related operations, from issuing official documents to processing utility payments. This makes control over the postal network a gateway to influence across public institutions (1).
Efforts to retender the sector in recent years have repeatedly failed. Several attempts to launch transparent bidding processes were marred by legal hurdles, political favoritism, and lack of oversight (1)(4). In 2023, Lebanon’s Court of Audit voided the most recent attempt to award a new contract, citing serious irregularities (4).
Fixing Lebanon’s postal sector isn’t just a matter of reform, but a litmus test for governance. Reclaiming this service as a transparent, accountable public utility is key to restoring institutional integrity. The challenge lies not only in revisiting contracts, but in dismantling the deeper networks of political and financial patronage that have kept the state captive for decades.
References
1. Halabi, S., Monson, L., & di Serracapriola, V. (2024). *Packaged for Greed: The Hidden Agendas Behind Lebanon’s Postal Sector Power Grab*. Badil (The Alternative Policy Institute). https://thebadil.com/ar/investigations-ar/packaged-for-greed-the-hidden-agendas-behind-lebanons-postal-sector-power-grab/
2. Ferzli, E. (2019). *Official Confusion in Managing the Postal Sector*. Al-Akhbar. https://www.al-akhbar.com/Politics/275904
3. Ferzli, E. (2021). *20 Years of LibanPost’s Reign: The State at the Service of a Company*. Legal Agenda. https://legal-agenda.com/20-عاماً-من-سيادة-ليبان-بوست-الدولة-في-خ/
4. Ferzli, E. (2023). *After 25 Years of Monopoly: Is LibanPost About to Lose the Mail Tender?* Legal Agenda. https://legal-agenda.com/بعد-25-عاماً-من-السيطرة-على-القطاع-هل-تُق/
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