Lebanon cancels $122mn Beirut airport terminal over ‘corruption’ scandal

The country’s caretaker Minister of Public Works and Transport, Ali Hamie, announced the termination of the contract on Thursday, citing “legal controversy taking place in the country.”

Beirut airport terminal cancelled over ‘corruption’

However, the absence of a competitive bidding process for a contract valued at more than $100 million drew criticism from civil society groups and members of parliament.

Lebanon had announced the construction of a new terminal at Beirut’s airport last Monday, which was set to welcome about 3.5 million passengers annually by 2027.

“Despite the project of constructing the new terminal for travellers is of great importance … I announce courageously that we terminate the contract and that we consider it not to be in effect,” Hamie wrote on Twitter.

Critics said the agreement between Lebanese Air Transport and Irish airport company DAA International circumvented a 2021 law on public procurement, opening the door to corruption and nepotism.

Ten civil society associations signed a statement that expressed deep concern “at the serious violations” of the law. They said the move “opens the door to corruption and nepotism and allows illegal use of public funds.”

Beirut Airport has not been expanded for over two decades

For the past three years, Lebanon has been going through an economic crisis that has caused over 80 percent of the population to live in poverty. The infrastructure has been greatly affected by this crisis.

The airport in Beirut, for example, has only one terminal that was built in 1998 and has not been expanded for over two decades. This has resulted in issues such as overcrowding and delays.

Although the construction of a new terminal was considered as a remedy to these problems, its abandonment emphasises the ongoing challenges that Lebanon faces with corruption and favoritism in public procurement.