By Sami Zaptia.
London, 25 August 2020:
With Turkey and Libya negotiating seriously on the return of Turkish companies to resume their stalled contracts in Libya, Libya Herald has conducted an overview of what we know about negotiations so far by the newly formed Turkey-Libya Working Group.
What are the demands of the Turkish contractors and what has Libya proposed? What is the roadmap envisaged?
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- Turkey-Libyan Joint Working Group created by the two countries to resolve obstacles facing Turkish contractors resuming their stalled contracts in Libya.
- The Turkish Contractors Association (TMB) is the representative of Turkish companies with stalled contracts in Libya
- Obstacles include payment of old debts
- They also include provision of security for Turkish company employees
- Turkish companies have also been promised new projects
- But only if they resume work in Libya on existing stalled projects
- This gives a huge advantage to Turkish companies
- Libya is the first country Turkish contractors worked abroad back in 1972
- Libya is the 3rd most country where Turkish contractors have worked
- Projects are put at USD 28.9 billion by the TMB
- Before its internal turmoil Turkish companies had business volume of up to $4 billion annually in Libya.
- The TMB says Libya is important to them today as it had been in the past.
- Turkish contractors wish to return to Libya and resume their work: TMB
- Total amount of unfinished projects for Turkish companies in Libya is USD 19 billion.
- Uncollected debt is USD 1 billion
- Collateral amount is USD 1.7 billion
- Total amount of inventory and other losses such as machinery, equipment and other losses is around USD 1.3 billion
- Currently, Turkish companies are paying a commission of USD 50 million per year for guarantee letters.
- TMB wants a roadmap to be put forward as a result of the Memorandum of Understanding within 3 months to solve contractors’ problems
- Libya says it is serious and wants Turkish contractors to return
- Libya will begin a comprehensive zoning programme to prioritize infrastructure projects.
- Libya says that the World Bank and international organizations will provide support in financing this resumption programme.
- Libya has said that the Joint Working Group between the two countries is working to create a roadmap for losses incurred by of Turkish companies in Libya.
- Libya says solutions on losses through negotiations between Turkish companies and their Libyan employers, on the basis of contracts, will be sought.
- Libya will prioritize projects close to completion, especially in ‘‘safe zones’’
- Libya says new projects will also be on the agenda, especially in infrastructure
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https://www.libyaherald.com/2020/08/25/turkey-given-priority-in-libya-contracts-security-provided-for-electricity-projects-serraj/
https://www.libyaherald.com/2020/08/22/turkish-companies-prepared-to-return-to-complete-stalled-projects-in-libya-libyan-finance-ministry/
https://www.libyaherald.com/2020/08/18/eastern-cbl-to-investigate-libyan-banks-problems-with-turkish-letters-of-guarantee/
https://www.libyaherald.com/2017/02/08/libya-and-turkey-set-up-committee-to-oversee-return-of-turkish-companies/
