Dominated by civil war and political instability since the 2011 revolution, Libya’s project market is largely on hold until some semblance of stability is restored and a stable government is established. As a result, the vast majority of known projects in Libya are on hold or cancelled. Project that have proceeded have benefitted from specific conditions unique to them.
About $9.2bn of major projects are planned or underway in Libya. Of these, about $8bn of projects are under construction, with $1.2bn planned. The construction and gas sectors together account for about 97 per cent of all projects planned or underway in Libya.
About $1.8bn of project contracts have been awarded in Libya since 2008 that have not been cancelled or placed on hold, an average of about $166m of awards a year. The value of annual project contract awards peaked in 2008 at $570m, when it was boosted by the award of the contract on the $260m Misurata Rolling Mill.
With devastated infrastructure, abundant oil and gas reserves, and close proximity to the giant EU market, there is no questioning Libya’s potential as a projects market.
With the country divided by political, religious and tribal factions, all well-armed and battle hardened, it is difficult to see conditions improving soon for projects in Libya.
If implemented as planned, the proposed deep sea port in Susah will be Libya’s first PPP project. The port will be developed in three phases, with the initial phase expected to commence in 2022. Phase 1 of the project is estimated to cost $200m. The succeeding two phases of the port will cost another $1.2bn.
Libya’s National Oil Corporation (NOC) and Italian oil company Eni have signed two memorandums of understanding (MoUs) concerning hydrocarbon production in Libya.
The biggest projects planned in Libya are:
• North Oil Company’s $600m Benghazi Business District: NOC HQ Building
• Mellitah Oil & Gas BV’s $300m Mellitah Complex Expansion & CO2 Management Integrated Development Project
• Mellitah Oil & Gas BV’s $140m Bouri Gas Utilization Project
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“MEED Projects allows Saudi Aramco to effectively evaluate our capital resource program. In concentrated markets such as the Middle East, we have to compete harder to get the best resources. Having the complete MEED Projects package ensures we have full visibility of the projects market and the correct balance of contractors working on Saudi Aramco’s projects.”SAUDI ARAMCO
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