Meet Mahmoud Jibril: The Man Who May Be Libya’s First Elected Leader

Following landmark elections this past weekend in Libya, results point to a coalition of moderates and secularists winning the majority of votes. The head of that camp is Mahmoud Jibril, a man once at the heart of the Gaddafi regime who defected to the rebellion last year

JAMES LAWLER DUGGAN / MCT / ZUMA PRESS

Mahmoud Jibril, who heads the centrist National Forces Alliance, holds a press conference in Tripoli, the Libyan capital, on July 8, 2012, one day after the Saturday elections

Back in 2010, TIME paid a visit to Mahmoud Jibril, a U.S.-educated policy wonk in Libya’s capital Tripoli who’d been drafted by Muammar Gaddafi’s government to overhaul the country’s state-run economy after decades of one-man rule. Sitting in his large office in the National Economic Development Board, Jibril laid out a vision for a Western-style government that would transform Libya from a stifling dictatorship into a thriving 21st century country. “There must be a legal frame with division of powers, and the right of free expression,” he told TIME then. “We are very late. We have to shorten the time span of things.”

As it happened, it took a bloody revolution and thousands of deaths, including Gaddafi’s, to shorten the time span for Jibril’s plan — something that seemed unimaginable in 2010. Now, Jibril might finally get his chance to put his vision into practice, thanks to last Saturday’s elections in Libya. Although it could take days for officials to confirm the election results, Jibril’s centrist National Forces Alliance appears certain to have won the vote for a 200-member General National Congress, and while Jibril hasn’t said he intends to be the new leader, the coalition’s victory puts him in place to head Libya’s first elected government in 60 years — and the first to emerge from the Arab Spring that is not dominated by a religious Islamic party.

(PHOTOS: Libyans Turn Out for a Landmark Election)

For the 60-year-old economist with a Ph.D. in political science from the University of Pittsburgh, that is a most surprising career trajectory indeed. Having left to study in the U.S. in 1975, Jibril later consulted several Arab governments in economic management and had little thought of returning to Libya. Then in 2007, he was lured home by the one man who appeared capable enough of pushing through drastic reforms — Gaddafi’s hugely powerful son Saif al-Islam. In his new job, Jibril told the U.S. ambassador to Libya, Gene Cretz, that Libya was “opening widely and very fast,” according to a diplomatic cable written by Cretz in 2009, published by WikiLeaks. In a markedly optimistic report, Cretz said Jibril had convinced him that there were lucrative business opportunities for American companies in Libya. “Jibril is a serious interlocutor who ‘gets’ the U.S. perspective,” he wrote.

Jibril believed that change was possible within the Gaddafi regime, something that has haunted him since. Many Libyans still question Jibril’s role as an insider in the dictatorship, as well as the fact that he hails from Libya’s most populous tribe, al-Warfalla, who claimed long allegiance to Gaddafi rule.

But by early 2011, Jibril had concluded that Saif’s ideas of reform — real or not — were doomed, so long as his father and the conservative henchmen surrounding him remained in power. Jibril slipped out of Tripoli in Feb. 2011 and joined the revolution in Benghazi, where he had been raised. Then, he quickly began pushing world leaders to back the rebels. Equally at home in Western capitals (as Cretz had suggested), Jibril clinched formal recognition for the rebels from President Nicolas Sarkozy in a crucial meeting at the Élysée Palace in March 2011, which presaged NATO’s bombing campaign weeks later. In Tripoli, Saif fumed to TIME that his closest associates — chief among them was Jibril — had betrayed him “big time.” But by then, Jibril’s diplomatic footwork had succeeded, and it was the Gaddafi regime, rather than Saif’s reform plan, that was doomed.

Jibril went on to head the rebel leaders’ National Transitional Council, but many of his colleagues criticized him for failing to delegate responsibilities properly. He quit the job after Gaddafi was killed last October, and began plotting his political future — one rooted in part on his huge success in turning last year’s rebellion into a full-scale revolution. “He was instrumental in getting international approval for the rebels, and everyone gives him credit for that,” says Sami Zaptia, managing editor of the Libya Herald, a new English-language online newspaper. Zaptia believes that Jibril’s tribal background makes him ideally suited to drawing Gaddafi’s old loyalists — including many Warfalla — into supporting the new Libya. “I don’t think you will find many people who will dispute Jibril’s skills as a planner, a strategist and a visionary.”

Even with those skills, Jibril’s new job, either as the leader or as a key strategist, will be no cakewalk. With massive oil reserves and only about 6.3 million people, Libya has the cash with which to implement economic reforms — a far different situation from, say, Egypt, which depends heavily on U.S. aid. Yet countless weapons remain in the hands of potentially hostile militia groups. And youth unemployment remains rampant, according to the African Development Bank.

Jibril will begin with one big advantage, however: a ready-made plan for the future, which he drafted as head of Libya’s Economic Development Board, using consultants from Monitor Group in Cambridge, Mass.; Ernst & Young; and the Oxford Group. At the time those groups were heavily criticized by some Libya watchers for believing that it was possible to reform Libya under Gaddafi — a criticism that proved correct. In an interview on the night Gaddafi was killed last October, Jibril told TIME in Tripoli that Gaddafi’s regime had blocked his reform proposals at every turn. “They took everything they received from us and just threw it in the garbage,” he said. He listed among other plans massive tourism development, solar-power and wind-energy projects along Libya’s long Mediterranean coastline, a drastic overhaul of the outdated education system and a program to mobilize millions of underemployed women. “This is a real road map,” he said. “We have the plan ready.” Now it’s time to dust it off.

Source: World Time 

Read more: http://world.time.com/2012/07/11/meet-mahmoud-jibril-the-man-who-may-be-libyas-first-elected-leader/#ixzz20JenJoEa

Elections to mark new start for Libya economy

For Tripoli businessman Salem Mohammed, Libya's first elections in a generation on Saturday will pave the way for what he believes the North African country should become - a new Dubai.

"We have oil, we have money, Libya can easily be just like Dubai," the 47 year old, who works in manufacturing, said.

"We just need foreign investors and hopefully they will now start coming and business will boom."

Nine months after the end of Libya's uprising, Mohammed hopes Saturday's election of a national assembly will mark a new start for an economy that stagnated under Muammar Gaddafi's 42-year autocratic rule.

Investors will be closely watching the outcome of the vote - with no indication of a leading contender - to see what it will mean for projects that were frozen during the fighting and for the vast opportunities likely to emerge in an oil-producing nation with the wealth to pay for construction and healthcare.

Libya's new rulers have said no major new concessions would be awarded until after the polls and are reviewing past deals.

Once elected, the new 200-member assembly will appoint a government to replace an interim administration that lacked the mandate to make major decisions, and expectations are for old projects to restart and for new contracts to be signed.

"There are a lot of projects (on standby), everyone wants to settle their projects from before," said Klaus Fodinger, head of the cement division at Austria's Asamer Holding, which resumed operations in Libya in October.

"If there are no institutions, no one to talk to, how do you settle deals from the past? The elections are a crucial event."

Many international businesses came to Libya in recent years, attracted by its huge energy reserves and a population, which although numbering just 6 million, has median incomes much higher than elsewhere in the region.

But the eight-month NATO-backed uprising sent foreigners fleeing.

While oil companies were the first to return and have helped Libya climb back close to pre-war output levels of 1.6 million barrels per day, others have not been as fast.

Government trade delegations from around the world have visited, vying for future contracts. As commercial flights have resumed, businessmen have also jetted in for short stretches. Most companies which had a foot in Libya before have mainly wanted to get their ventures back up and running as they await a clearer political and legal landscape.

Tarek Alwan, managing director of London-based consulting firm SOC Libya, said he had been approached by numerous companies seeking guidance on how to enter the Libyan market.

"Major ones are seriously interested but they have not committed yet because the situation is not fully stable, economically and politically," he said.

"They have been waiting for the elections so this will give them some sort of assurances that there will be proper elected (authority) to represent the country."

WAITING FOR THE GREEN LIGHT

Major construction, such as residential property and hotels, as well as transport projects are untouched since last year, awaiting the green light from the authorities to restart.

"Despite the fact that most major public-sector projects are on hold, there is nonetheless a great deal of planning going on across many ministries and government agencies, and this is a positive sign," said Alex Warren, of research and advisory firm Frontier, which runs The Libya Report business site.

"It suggests that once an elected government is in place, then many projects look set to start or be resumed."

The question is how quickly they will resume. The fasting month of Ramadan, when daily life usually slows, begins shortly after the elections.

The assembly is expected to be named at least two weeks from July 7 after ballot counting is finalised and an appeals process. Within 30 days of its first meeting, it will appoint a new prime minister who will form a government.

"For major projects and contracts, I don't see it really picking up, in terms of new tenders or companies returning, until the last quarter at the earliest," Warren said.

The election is expected to lead to reforms and investors want to know what those policies will be. In May, the economy ministry issued a decree enabling foreign companies to set up joint ventures, branches and representative offices in most sectors, more easily.

"Businesses are looking with great hopes towards the elections," David Bachmann, head of the commercial section at the Austrian embassy in Tripoli, said.

"However, they are aware that probabilities are high that even after the elections it might take some months - hopefully not years - before decisions are taken."

While public sector entities await, the private sector is flourishing, especially trade. Tripoli's port is heaving with activity and foreign produce is stocked on supermarket shelves. A cash crisis has eased and shops and cafes have re-opened.

Monoprix Tunisia, an affiliate of the French supermarket chain, wants to start opening 10 stores in Libya from late 2012, after uprisings in both countries delayed earlier plans.

On the construction side, small-scale private projects have taken off - homes are being built, businesses being refurbished.

HUGE POTENTIAL; SECURITY RISKS

Austria's Asamer, which operates cement factories in Libya through a joint venture, has gradually increased production since January.

"We see a huge potential - there are the needs of young population and a lot of infrastructure to be reconstructed. We expect a boom in construction activity," Fodinger said.

Gaddafi isolated Libya's economy from much foreign competition, reserving licences and contracts for his own circle, so the prospect of a more open market is attractive to new entrants.

Dependent on oil, Libya needs basic infrastructure development as well as investment in property, consumer industries and telecoms after a fifth of transmitter stations were destroyed in the war. It will also need foreign investment and expertise to increase oil and gas production.

Its tourism industry is largely unexplored, despite stretches of beaches and well-preserved Roman ruins.

Various fairs drawing international businesses have allowed companies to cultivate relations. Industry Minister Mahmoud Al-Ftise said there were plans to increase privatisations, and Libya was interested in more foreign investment.

"We would like to have a participation from foreign and local private business so we can see results because we would like to have competition among the business," he told Reuters.

However security remains a concern. Bouts of violence are deterring foreign firms from bringing back all their expatriates on the ground for now. For those who were once used to living in villas or flats in Tripoli, they now find themselves confined in secure compounds without their families.

Many businessmen travel with security advisers.

Libya's interim government has struggled to impose its authority on a country awash with weapons. Attacks on diplomatic and aid missions in the east have highlighted the ongoing volatility.

Last month, Tripoli's international airport was seized by an armed group for several hours.

"Security is a concern and when you hear of such violent incidents as we have recently, you worry and it may deter some foreigners from coming here," one European businessman said during a recent trip to Tripoli.

"But you have to weigh the risks against the opportunities."

Source: Reuters 

Betting On Libya's Future

The demise of Gaddifi has unleashed a treasure trove of opportunity, but one that’s fraught with risk.

By Robert Bailey

The demise of the Libyan dictatorship has thawed long frozen relations with the Gulf that could lead to wide-scale investment in a country whose political idiosyncrasies for decades denied it viable links to the region and the global economy.

An estimated $200 billion of investment opportunities will emerge over the next ten years according to the French Business Council, which recently took a large group of company representatives to Libya. They and others from countries that supported the overthrow of the regime are anxious to capitalise on the goodwill that has been generated.

In Dubai, a Libya Strategic Investment Forum was organised by the Chamber of Commerce recently, it also supported a Libya Infrastructure and Rebuild conference in the emirate.

The big question is whether the timing is ripe for these initiatives. Even though the National Transitional Council (NTC) is proposing a $54 billion budget in addition to an un-quantified emergency budget for 2012 it has little or no ability to enter into long-term contracts simply because it is an interim government.

Nevertheless observers believe that with its significant energy resources that have still to be exploited, and a potential to become an important aviation and logistics hub between Africa, the Middle East and Europe, Libya has the potential to rapidly expand its economic base.

However, there is a growing sense of unease at the slow progress in establishing any firm central authority. Recently there have been calls for eastern Libya to break away from Tripoli and there is concern is that Libya may face years of instability.

Until a functioning national army and police force is formed the existence of armed, tribally and community-based militias represent a threat to stability.

Members of the militia in Zintan, southwest of Tripoli, for example, still hold Saif al-Islam Qaddafi prisoner in spite of demands that he is handed over to the council in Tripoli.

In spite of uncertainties, work towards agreeing a constitution in mid-2012 goes on though the head of the NTC, Mustafa Abdel Jalil has stated that “if there is no security, there will be no law, no development and no elections.”

Even after such elections it may take some time before a new administration is bedded in and confident enough to award significant contracts.” The interim government in principle is unwilling to take decisions with long-term consequences, and lacks the resources to do so which is frustrating for the conduct of business,” says Oliver Miles a former British ambassador to Libya and now a director of MEC International.

SIGNS OF RECOVERY

But negatives can be overstated.

Physically the country is returning to normality. Telephone links have been reconnected between east and west and, at least, in Tripoli electricity supplies as well as water and sewerage networks are functioning.

Qatar Airways resumed flights to the Libyan capital in February. The airline had been among the first to re-open flights to Benghazi in the east. Alitalia has also restarted services to Tripoli.

Royal Jordanian is flying to Tripoli and Benghazi again as well as to Misrata. The latter has a large medical traffic carrying patients for treatment to Amman.

Emirates began flights to Tripoli again at the end of March. KLM/Air France and British Airways also resumed service. Meanwhile Turkish Airlines has launched scheduled freighter flights to Libya’s Mitiga airport, east of the capital.

Air Malta and Egyptair resumed flights to Tripoli last November and Lufthansa in February. Antonio Tassone, the German airline’s general manager in Tripoli, commented that “the resumption of our flights is a strong and important signal to Libya and the western business community that we are confident to be back.”

Progress on unfreezing assets combined with the unexpected speed with which oil production has returned to nearly three quarters the pre-revolution level, mean that the government is able more or less to pay its way are other positive indicators.

Having plunged below 100,000 barrels-a-day at the peak of fighting upstream production of crude is reported to be around 1.4 million b/d. Pre-war levels of 1.7 million b/d will be reached by the middle of 2012 predicts Christophe de Margerie CEO of France’s Total.

International oil companies with existing contracts are beginning to return. The National Oil Corporation has said that seismic surveys have resumed at concessions run by Arabian Gulf Oil Company while fresh exploration is due to begin in the Sirte basin. Italy’s Eni has resumed offshore exploration 100 kilometres offshore Tripoli.

The Libyan stock market reopened in March albeit in more modest premises on the outskirts of Tripoli. The market though had just five stocks with another eight still to provide up to date financial information.

General manager Ahmed Karoud says that five initial public offerings may come to the market this year including oil and construction companies. There are also plans to list the country’s two mobile operators.

However, optimism needs a reality check. Few are likely to commit to long- term large scale investments where there is chronic political instability particularly if property rights are difficult to enforce and where commercial infrastructure lags far behind others in the region.

GCC'S ROLE

It has been suggested that GCC investors may be more culturally adept working within the currently constrained business environment than Western companies. Whether this is true or not time will tell but there is certainly growing Gulf interest in Libya.

Arriving on Etihad’s inaugural flight to Tripoli in January and accompanied by a 100-strong business delegation, Anwar Gargash, UAE Minister of State for Foreign Affairs declared that “right now our target is to play an important part in Libya’s rebuilding and create viable long- term partnerships.”

The Gulf states, Qatar in particular, played a prominent role in the campaign to oust Gaddafi providing combat aircraft for the NATO air mission as well as material and logistical support to the rebels.

Doha’s help extended beyond military and diplomatic support by marketing a million barrels of oil for the NTC at a crucial phase allowing the rebels to pay salaries in Benghazi.

In addition, Qatar helped launch Libya al-Ahrar in Doha to transmit television programmes and news. The UAE’s telecoms company Etisalat helped restore mobile communications services providing a satellite feed for the rebels after Tripoli cut of cellular links.

In spite of the goodwill generated by such support, Gulf as well as Western interests will be nervous about the Finance Ministry’s review of all contracts signed under the previous regime.

How far this will focus on firms from countries that failed to support the rebels internationally and go easy on those states that provided diplomatic and material military support remains to be seen.

Before the uprising Qatari Diar Real Estate Investment Company had lined up $10 billion of investments with the Libyan Economic and Social Development Fund for a hotel and real estate developments near Tripoli

Dubai-based Al-Ghurair Group, hopes to restart output within months on a joint venture in Libya’s largest refinery at Ras Lanuf and to almost double the present 220,000 b/d capacity over four years.

The group is also assessing openings in other sectors including contracting, civil and mechanical engineering as well as food production. According to Mashreqbank CEO Abdul Aziz Al Ghurair, UAE investment could increase from $2 billion to $5 billion within five years.

In 2009, Abu Dhabi-based Oasis International Power was set to take over a planned power plant at Tripoli West to be built as Libya’s first independent power plant.

An engineering, procurement and construction contract valued at $1.4 billion was awarded to South Korea’s Hyundai Engineering & Construction.

Others are looking at new opportunities. Advisers working for Mohammed Alabbar, a Dubai businessman, chairman of real estate firm Emaar and a partner in Africa Middle East Resources (AMER), an emerging commodities supply chain company, have reportedly been assessing the viability of bauxite and other natural resources in Libya.

Abu Dhabi’s Al Maskari Holding is backing a $3 billion project to build an integrated energy hub involving solar and conventional generation to provide electricity for domestic use and export to Europe via southern Italy.

DP World has held exploratory talks with Libya’s interim officials on ideas for management of the country’s ports. Interim transport minister Yousef El Uheshi has said the sector needs billions of dollars of investment for the expansion and modernisation of ports and dredging to allow larger vessels access.

According to DP World’s chairman Sultan Ahmed bin Sulayem “we have always been interested in Libya and we are continuing our discussions with them.”

Conversations are likely to be extended though especially in a country where privatisation issues have yet to be tackled. “If they sort out their issues, you will see a lot of UAE companies coming in here, says Al-Ghurair,” but cautions “if it turns out to be a very slow process, they will go somewhere else.

Source: Gulf Business

Libya Seeks U.S. Investment in Areas From Oil to Tourism

Libya is seeking to boost its oil production by a third to 2 million barrels a day by year-end, surpassing last year’s pre-conflict level, Libyan ambassador to Washington Ali Aujali said.

How fast Libya returns to pre-war levels or surpasses them “depends also on the oil companies, how fast they are returning” to restart or expand operations, Aujali said, speaking at a Bloomberg Government breakfast in Washington yesterday.

Beyond oil, Libya is eager for American investment in tourism, health care and education, he said. The nation, whose governance is still in flux, plans to hold the first election for the national assembly next month after four decades of rule by dictator Muammar Qaddafi.

“The environment is great” for U.S. companies, in large part because the Obama administration is credited by Libyans with pressing for NATO military action that helped topple Qaddafi last year, Aujali said.

“They appreciate what the Americans did,” he said, and American flags are often flown alongside Libyan ones around the country.

Libya’s governor for OPEC, Samir Kamal, set expectations lower than Aujali did, telling reporters last week in Vienna that the government hopes to reach 1.6 million barrels a day by year-end.

Aujali said the North African nation has restored crude oil production to more than 1.5 million barrels a day, or 90 percent of official production figures before Qaddafi was ousted in a violent uprising. The months-long conflict sent production levels plummeting to 45,000 barrels a day in August, according to a monthly Bloomberg survey of oil companies, producers and analysts.

Rising Output

Libyan production was restored to 1.45 million to 1.55 million barrels daily by the end of May, according to figures from the Organization of Petroleum Exporting Countries.

Oil Minister Abdul-Rahman Ben Yezza said last week that Libya plans to spend about $10 billion to develop long-term oil and natural gas projects and increase its crude production capacity. He said the country also has a five-year plan to increase production to about 2.2 million barrels a day.

Aujali said “we need more investment” to develop the oil industry and fulfill a longer-term goal of restoring Libya’s crude production capacity to its historical high. The U.S. Department of Energy estimates it exceeded 3 million barrels a day in the 1960s.

Aujali cited ConocoPhillips (COP) (COP), Exxon Mobil Corp. (XOM) (XOM) and Occidental Petroleum Corp. (OXY) (OXY) as among U.S.-based multinational energy giants that have returned to Libya, and urged other U.S. companies to invest in all sectors of Libya’s economy.

American Opportunities

American companies need to “be more involved, to be more aggressive to visit Libya to see where they can make business,” he said, so they don’t lose opportunities to other countries such as Italy, which has been proactive in seeking business prospects.

Aujali cited health care, infrastructure, education and tourism as sectors in which the Libyan government is seeking foreign investment. He said tourism remains one of the least- developed industries, citing Libya’s 2,000 kilometers (1,243 miles) of beaches and its cultural attractions, including Leptis Magna, one of the best-preserved Roman ruins in the Mediterranean,

Aujali said Libya is seeking American universities and hospitals interested in assisting with training and technology and setting up branches or partnerships, as many have done in the Persian Gulf and North Africa.

Unfrozen Assets

Libya is looking to the U.S. and NATO countries to help rebuild after a bloody conflict that cost the nation billions of dollars in lost trade and revenue, according to the International Monetary Fund. The revolution killed 30,000 people and wounded 50,000 others, according to the Libyan government.

“You supported this revolution at a critical time,” he said. Still, “the new road is not built,” so the U.S. needs to stay involved to ensure the democratic transition is completed.

The Obama administration has done everything possible to assist Libya’s government, including making available $31 billion in Libyan government assets under U.S. jurisdiction that was frozen as a penalty on Qaddafi’s government, Aujali said.

The only Libyan assets that remain frozen by the U.S. are about $3 billion belonging to the Libyan Investment Authority, the government-managed sovereign wealth fund and holding company based in Tripoli, he said. The authority needs to be reorganized under a dependable board of directors before “we feel safe” asking for the funds to be released, he said.

Election Plans

Libya has scheduled elections for July 7. Aujali said 145 political parties have formed, with 3,000 candidates vying for 200 legislative posts. About 80 percent of eligible voters have registered, underscoring excitement about the democratic transition, he said.

Still, the situation remains volatile, Mustafa Abdul Jalil, chairman of the National Transitional Council, said in an interview with state-run Qatar News Agency June 17. Libya risks descending into civil war if the current unstable security situation persists, he was quoted as saying.

Aujali said his country has studied other nations’ models for reconciliation and justice following long dictatorships during which many were persecuted. Libya is “not starting from zero. There are many with experience in the history and we learn from them.”

‘No Revenge’

While some members of the old regime are under arrest, “there is no revenge at the time being against the Qaddafi regime,” he said. “Reconciliation is important. But in the first place, justice has to be made.”

Aujali said he expects a speedy resolution of the “misunderstandings” in the case of a team from the International Criminal Court in the Hague that was detained June 7 by Libyan authorities. Libya accused Australian defense lawyer Melinda Taylor of trying to smuggle documents to Qaddafi’s son Saif al-Islam Qaddafi in a Libyan prison. The Libyan government accuses Qaddafi’s son of directing the killing of thousands during his father’s regime and during the rebellion.

“The Libyan people, they have the right before anybody else to try Saif al-Islam in Libya,” Aujali said of the effort to try him in the international court in the Netherlands.

Source: Business Week

Libyan Ministry of Health explores collaboration opportunities with Dubai Healthcare City

A high-ranking delegation from the Libyan Ministry of Health visited Dubai Healthcare City (DHCC) to raise awareness about the status of the Libyan healthcare sector and engage in dialogue with healthcare institutions in the UAE.

Headed by the Libyan Deputy Minister of Health, His Excellency Dr Omran Turbi, the delegation comprised Dr Amal Naagi, the Ministry's Head of Medical Exhibitions, Dr Ashraf Shembesh, Director of Medical Services, and Dr Fauzia Tushani, Director of Media Relations. 

During their visit, the visiting officials hosted a seminar on 'Opportunities in the Libyan Healthcare Sector' to highlight the revolution's impact on healthcare services in the country and underline the requirements that were urgently needed for rebuilding the system. 

Dr Ayesha said: "DHCC is pleased to support the Libyan Ministry of Health. The seminar served as a strategic platform to increase cooperation between the Libyan Ministry of Health and the healthcare community in Dubai. It also helped to educate healthcare providers and professionals from the UAE and the Gulf region on the healtcare requirements in Libya."

The DHCC team led by Dr Ayesha Abdullah offered the delegation a tour of the healthcare park and provided a brief outline of the history, vision and achievements of the free zone.

Source: ameinfo.com

www.soclibya.com 

Arabtec eyeing Libya, Qatar projects

 

Arabtec Holding, the UAE's biggest builder by market value, is actively looking at oil and gas projects in Libya and hopes to win contracts in Qatar as the country prepares to host the soccer World Cup in 2022, the company's chief financial officer said on Thursday.

'Libya is a medium-term market for us on the residential side, but immediate for oil and gas. Our subsidiary Target Engineering is already looking at some projects in the sector,' Ziad Makhzoumi told Reuters on Thursday.

'Libya needs to rehabilitate its oil and gas facilities to start production again. We're looking at contracts in selected areas,' he stated.

Arabtec's entry into the North African market comes as foreign companies are gradually returning to Libya despite concerns over security and the possibility that the new authorities will review contracts signed during the rule of ousted leader Muammar Gaddafi.

Oil major BP announced last week that it would be resuming exploration work on its concessions in Libya, home to Africa's largest proven oil reserves. Algerian state energy firm Sonatrach also said it will resume exploratory drilling in the country.

Arabtec is also setting logistics and joint ventures in place in preparation to bid for Qatar's planned $100 billion infrastructure projects ahead of the 2022 World Cup, Makhzoumi said.

'We have two major projects in Qatar and we're bidding for some more,' he said. 'We're ready to bid for almost every possible sector,' he added

Goldman Sachs estimates that Qatar will spend about $65 billion to build stadiums, roads, bridges, apartments and hotels in time for the World Cup.

Arabtec is 20.8 per cent owned by Abu Dhabi fund Aabar Investments, which owns stakes in high-profile names such as German carmaker Daimler and commodities trader Glencore and has increased its Arabtec stake from 5.3 per cent since March.

Aabar's increased stake will have a positive impact on Arabtec's operations and will translate into more contracts, Makhzoumi said: 'It is in their interest, as Aabar, that we grow in the business. I can only see positive results out of that (stake increase).'

Arabtec, which more than tripled its first-quarter net profits to Dh84.1 million ($22.90 million), expects to sign the $3 billion Abu Dhabi airport expansion project contract this month, the chief financial officer said.

'It's all done, all agreed and just a matter of finalising paperwork,' Makhzoumi told Reuters.

Last month the Abu Dhabi government identified an Arabtec consortium, including Turkey's TAV Insaat and Athens-based Consolidated Contractors Company, as the preferred bidder.

'Our share is about one third of the contract, which will push our backlog to around 17 billion dirhams from the current Dh14 billion,' Makhzoumi said.-Reuters

Source: tradearabia.com

Libyan official urges US investment to create jobs for rebels

A top Libyan official urged U.S. companies on Monday to help create jobs for former rebel fighters who still have not laid down their guns, by making investments that could transform the country into a peaceful tourist destination.

"These young people, they need challenges. They need jobs. As long they have no jobs, they're going to have Kalashnikovs and they're going to be in the streets, probably creating check points," Libyan Deputy Prime Minister Mustafa Abushagur told the National U.S.-Arab Chamber of Commerce (NUSACC) in Washington.

In a fresh challenge on Monday to the interim Libyan government's authority, members of a Libyan militia known as the al-Awfea Brigade occupied Tripoli's international airport to demand the release of their leader, who they said was being held by Tripoli's security forces.

The militia action forced the cancellation of several international flights just as a NUSACC-led trade mission was due to arrive in the country for meetings beginning on Thursday in Tripoli, Benghazi and Misrata.

While Abushagur did not directly address the situation at Tripoli airport, he sought to reassure the Washington-based business group that Libya was making progress on the many security challenges it faces following last year's war that toppled Muammar Gaddafi after 42 years.

He also told the business representatives Libya was "ahead of schedule" in restoring oil production and had already reached 90 percent of pre-revolution levels.

Abushagur said Libya had massive investment needs in sectors such as infrastructure, telecommunications and health after four decades of neglect and the recent war.

"Our economy is based on one thing: pumping oil from the ground. We need to change that," he said adding that the aim was that in 10 years time, oil should account for only 30 to 40 percent of the economy, instead of roughly 70 percent now.

Abushagur said he saw lots of opportunity for Libya in areas such as tourism, mining and knowledge-based industries.

NUSACC is also targeting these sectors for its upcoming trade mission, along with agribusiness; architecture and design; automotive services and equipment; construction and engineering; defense and security; oil and gas and water and wastewater.

Another major challenge facing Libya is securing its borders from its poorer neighbors, Abushagur said.

He said most economic refugees from Africa who passed through Libya were seeking to reach Europe and many died during the dangerous sea crossing.

Meanwhile, many wealthy Libyans who fled the country during the civil war had yet to return, he said.

Abushagur said that Libya, as a new nation, was "very committed to human rights" and any citizen who had fled and was accused of a crime would get a fair trial if they returned.

At the same time, he said, when it came to those who "have stolen Libyan money, we are going to go after them because we believe that every dollar that belongs to Libya has to come back."

Source: Reuters

www.soclibya.com

Turkey, Libya sign cooperation accord

Turkey’s Minister of Science, Industry and Technology Nihat Ergün speaks during the second Turkish-Arab Industry Cooperation Conference in Benghazi. REUTERS photo

Turkey and Libya have signed a memorandum of understanding for cooperation in industry and technology. 

The memorandum was written during a visit by Turkish Science, Industry and Technology Minister Nihat Ergün to Libya on the sidelines of the second Turkish-Arab Industry Cooperation Conference held in Benghazi.

Ergün said the agreement would allow for the preparation of a strategy document and an action plan to create financial support devices for small- and medium-scale enterprises as well as setting up industrial zones and technology parks.

Ergün said Turkey was ready to share its experiences in industrialization with Libya, adding that an environment should be created where both countries would win.

Libyan Industry Minister Mahmoud Ahmad al-Fitisi said a new Libya was being established and they would like to receive technical assistance from Turkey, particularly in industry.

Meanwhile the economy minister said nine Turkish firms were taken off the list of institutions that Libya took hold of the assets of. The Libyan National Transitional Council had introduced a law and seized the assets of many firms active in Libya including Turkish firms, he said.

Other nations still on list

“We find it meaningful that other firms that Turkish firms do business with have been taken off the list,” he said.

Libya had taken a cautionary judgment on the assets of 338 institutions and individuals owing to suspicions that these entities had links with the Gadhafi regime.

Noting that Libya is a very significant market for the Turkish contracting sector, he said Turkish contractors had constructed many buildings which were ruined during the revolution free of charge. 

“We have talked [with the Libyan government] about Turkish contracting firms’ returning to Libya. Payments of progress billing are scheduled,” he said. 

Turkey will sign a deal regarding the payments of ongoing construction projects, he said.

The Ministry of Economy is working on all the losses Turkish firms have suffered in Libya, he added.

Source: hurriyetdailynews.com 

British Petroleum (BP) to resume operations in Libya

A BP logo is seen on a petrol station in London November 2, 2010.

Credit: Reuters/Suzanne Plunkett

By Hamid Ould Ahmed

BP is to resume exploration activities in Libya that it suspended because of last year's uprising, re-starting a relationship which under ousted Libyan leader Muammar Gaddafi landed the firm in the centre of a political storm.

BP's return is a milestone in the recovery of Libya's energy sector, though this was tempered by an announcement from Royal Dutch Shell (RDSa.L) that it would pull out of fields in Libya on the grounds that they were not worth developing.

BP closed down operations in Libya and withdrew its expatriate workers in February last year, days after protests broke out in eastern Libya which with help from NATO warplanes and missiles eventually forced Gaddafi from power.

The oil firm follows other majors, including Eni (ENI.MI) and Total (TOTF.PA) in restarting Libya operations, despite lingering worries about security and the possibility the new authorities will try to re-negotiate contracts signed under Gaddafi.

The head of Libya's National Oil Corporation, Nuri Berruien, and Michael Daly, BP's executive president for exploration, agreed in Tripoli on Tuesday to lift force majeure, the legal mechanism under which BP suspended its operations last year.

The agreement was a "significant milestone in BP's plans to return to the exploration of onshore and offshore blocks," Daly said in a statement.

BP's then chief executive Tony Hayward travelled to Tripoli in 2007 to sign a $900 million contract giving the company the right to explore onshore and offshore fields in Libya, home of Africa's largest proven crude reserves.

But the deal quickly became entwined in a furious political row about Abdel Basset al-Megrahi, the Libyan convicted of the 1988 bombing of a U.S. airliner over the Scottish town of Lockerbie.

Megrahi died in Tripoli earlier this month, three years after Scottish authorities released him on the grounds he was terminally ill and did not have long to live. He had returned to a hero's welcome in Tripoli.

Megrahi's release caused a storm of anger in the United States, where many of the victims of the Lockerbie bombing were from. The U.S. Senate Foreign Relations Committee launched an inquiry into whether there was any connection between Megrahi's release and BP winning the exploration deal in Libya.

The company and the British government have always denied any connection between the two, although BP did say it lobbied for Megrahi's transfer to Libya.

SECURITY SITUATION 'MANAGEABLE'

Libya now is preparing for its first ever democratic elections, but the new government is weak and struggling to keep in check armed volunteer militias.

A BP spokesman said security was going to be "the determining factor on how quickly we move."

"At the moment we feel security and safety is sufficiently manageable."

It was likely to be months before BP had everything in place to re-start its exploration work, the spokesman said.

"The first thing we need to do is re-establish the contracts for drilling and logistics," he said.

"We need to get contractors back in for the onshore and offshore drilling .. Then it's back to work as soon as possible."

Shell said its decision to pull out of its Libyan contracts did not show any lack of faith in the oil sector, and said it would keep an office open in Libya to look into new deals.

In a statement, the company said it would abandon drilled wells and stop exploration on its two Libyan licenses. It said its departure had nothing to do with security issues and was taken on a purely commercial basis.

"Despite an extensive seismic and drilling campaign in these licenses, results have been disappointing and further exploration cannot be economically justified," a Shell spokesman said. "We have agreed to actively pursue new upstream business opportunities."

Asked about Shell's decision, NOC chief Berruien told Reuters by telephone: "All I can say right now is that Shell is not withdrawing from Libya. They are staying."

Source: Reuters

www.soclibya.com 

Libya tries to calm wary investors over review

A man walks past the Azzawiya oil refinery in Zawiyah, 50km west of Tripoli. Reuters

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Libya is seeking to reassure investors concerned about a major review of nearly 10,000 business contracts that were signed by the government of the late Muammar Qaddafi.

A group of 20 people appointed by the National Transitional Council (NTC), the temporary government, is scrutinising the contracts to ensure fairness and hunt for evidence of corruption.

"We respect all agreement[s] and the contracts which have been signed by the old regime," said Mustafa El Huni, the deputy chairman of the NTC.

"Naturally there are some contracts which need to be reviewed, but even for those contracts, it will be in the spirit of mutual cooperation," he added. "We have no intention to nationalise or to do something radical. Even if it's an unfair agreement or unfair contract, we'll sit down with a spirit of cooperation and we'll come to agreement with those entities."

The contracts, which span sectors from hospitality to energy and affects investors all over the world, adds to the uncertainty surrounding Libya's future.

Next month, Libyans - including expats in places such as Dubai - are to select a national assembly that will draft the country's new constitution. The Libyan general prosecutor is also investigating domestic and foreign oil companies' records in connection with possible financial irregularities.

Security remains a concern in Libya, where just this month a demonstrator died during a protest outside the prime minister's office and a candidate for the national assembly was killed.

Until late last year, when the review was first announced, contracts with the government appeared to be one of the few things to remain stable in post-revolution Libya.

The NTC, which was established by the rebels during last year's uprising, has said since last summer that contracts signed with the old regime would remain untouched.

"Corruption is unfortunately still there, and unfortunately some of the wheelers [and] dealers who infested Libya in the old days are marketing themselves in the new Libya," said Aref Ali Nayed, the ambassador of Libya to the UAE.

Those signing deals need to ensure their projects share benefits with the Libyan people, he warned in Dubai recently. "If it does, then this project will have long-term success," said Mr Nayed.

"If it doesn't, watch out," he added. "You may be able to pull off the signing of the contract with this government, or with the transitional government, but in the long run you will lose."

If the Twenty Committee, as the 20-strong Libyan review group is nicknamed, were to check every single contract, the process could take three decades, said Adrian Creed, a partner at Clyde & Co, a law firm.

"Some high-level decisions have to be made about materiality or contract threshold because it won't happen otherwise," Mr Creed said.

"Libya has disappointed the investors' community twice before, so if you throw that in the bin it won't send a very good message to the market."

Some argue a good tactic for Libya may be to follow the example of the UK in its infrastructure spending reviews. There, a centralised system has worked through a team of accountants and consultants who swiftly check over contracts, said Hatim Gheriani, the head of global banking and markets for HSBC in Libya.

"Everyone knows what the terms are and therefore everyone gets a good deal," he said.

Mr El Huni sought to answer questions about the extent of the contract review by saying Libya as a nation would not veer towards extremism.

"It will be a moderate country," said Mr El Huni. "It will not be an extremist country economically, politically or even socially. We are a coherent society."

Source: The National

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