Lebanon—Economic Reform and Infrastructure Investment Programme (LERII)

Client: Foreign, Commonwealth & Development Office

Duration: 2020-2024

Region: Middle East and North Africa

Country: Lebanon

Solutions: Economic Growth Governance

Lebanon is at a critical moment of its history—its economy is in crisis and its citizens are increasingly unsatisfied. It is facing a fiscal crisis with an increasing budget deficit of 11 percent of GDP and current account deficit of 25 percent of GDP in 2018, combined with the third-highest gross public debt in the world. Fiscal pressures are reflected in the lack and low quality of public goods and services, including inadequate infrastructure for electricity, water, waste, and transport, which particularly affects vulnerable people and harms businesses. Poor performance in the public sector, the lack of accountability in the management of resources, and corruption have further exacerbated the situation.

In response, and in the context of an increasingly unstable region, the Government of Lebanon has set out an economic reform vision and Capital Investment Plan identifying critical investments that will support growth and investment, providing employment opportunities for host communities and for Syrian refugees.

Awarded under the Foreign, Commonwealth & Development Office’s General Economic Development Framework, LERII assists the Lebanese government in implementing these key economic reforms, aims to reach agreement on the construction of key donor-financed infrastructure projects, and ensures that such projects are successfully built and operated. A more sustainable and higher-growth economy, accompanied by infrastructure investments, has the potential to significantly improve the lives of poor people, including girls and women and the large number of refugees currently in Lebanon.

With our partners—the Lebanese Economic Association, Economic Consulting Associates, Lebanese Earth Link & Advance Resources Development, and The Policy Practice—DAI provides technical assistance to the government ministries and agencies charged with planning and delivering infrastructure and economic reforms. This demand-driven assistance focuses on problems identified directly by the Lebanese government, so that national stakeholders are engaged in the solutions and more likely to sustain their results.

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Sample Activities

  • Employ a problem-driven and strategic approach to identify reform priorities where genuine traction for reform lies and in response to specific government requests.
  • Ensure national ownership and alignment with partners and the Government of Lebanon’s national reform agenda.
  • Design a methodology for real-time monitoring and rapid feedback loops based on an understanding of the barriers faced by groups participating in supported initiatives to accessing information and providing feedback.
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