No Result
View All Result
Monday, October 2, 2023
24 °c
Tripoli
24 ° Tue
24 ° Wed
24 ° Thu
24 ° Fri
  • Advertising
  • Contact
LibyaHerald
 
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

LIA invests in stalled LIDCO Tripoli Gate project – restarting construction sector projects

bySami Zaptia
September 9, 2021
Reading Time: 5 mins read
A A
LIA invests in stalled LIDCO Tripoli Gate project – restarting construction sector projects

LIA and LIDCO sign agreement to complete the stalled Tripoli Gate project (Photo: LIA).

48
SHARES
208
VIEWS
Share on FacebookShare on Twitter

By Sami Zaptia.

LIA and LIDCO sign agreement to complete the stalled Tripoli Gate project (Photo: LIA).

London, 9 September 2021:

 

  • LIA invests in LIDCO’s Tripoli Gate 2 project
  • Project includes Zumurud shopping mall, 3 office blocks and 5-star hotel
  • Project restarted by new Aldabaiba government this March after 10-year halt
  • Project is owned by LIDCO/ESDF – part of the multi-phase Tripoli Gate 1/2 & 3 project
  • The mixed-use project is implemented by Turkish Renaissance company
  • Project located at Airport Road traffic lights
  • Project started in 2010 and halted by 2011 revolution
  • LIDCO was run by current prime minister Aldabaiba (coincidence?)
  • Restart is part of Aldabaiba’s ‘‘Reviving Life’’ plan to restart stalled projects
  • Aldabaiba sees reactivation of economy / creating jobs for youth as part of peace plan
  • Ramifications for other stalled projects/foreign contractors: Analysis

 

The Libyan Investment Authority (LIA) announced yesterday the launch of its ‘‘Peace Building’’ project. The project comes within Prime Minister Abd Alhamid Aldabaiba’s Reviving Life development plan.

RELATED POSTS

LIA local investments to be activated within legal process

Interpol arrest warrant against LIA head Ali Mahmoud cancelled

The project involves LIA signing an agreement with the Libyan Investment and Development Company’s (LIDCO) to finance the part completion of LIDCO’s stalled Tripoli Gate 2 (Bab Tripoli) project. This includes three office blocks, the Zumurud (emerald) shopping mall and a five-star hotel.

The LIA will contribute to the project through the injection of a cash investment. It did not reveal the invested amount.

‘‘No development without peace and no peace without development’’

Speaking at the contract signing ceremony yesterday, LIA chairman Ali Hassan Mahmoud said there can be ‘‘No development without peace and no peace without development’’, underscoring the Prime Minister’s message that Libya needs to restart its economy and employ its youth in the process in order to achieve development and peace simultaneously.

‘‘Reviving Life’’ development plan

It will be recalled that on 27 August Libyan Prime Minister Abd Alhamid Aldabaiba announced the launch of the ‘‘Reviving Life’’ development plan.

‘‘We have developed a solid plan to move the wheel of development and start reviving stalled projects in Libya.

We announce the launch of the development programme for the last quarter of 2021 under the name ‘‘Reviving Life’’ after securing sources of income despite the lack of approval of the 2021 budget.

Development projects will target roads, schools, hospitals, clinics, digging water wells, installing desalination plants, and others’’. Aldabaiba had said.

As part of the Reviving Life plan, two of Libya’s largest state-owned project implementing agencies, the Housing and Infrastructure Board (HIB) and the Organization for the Development of Administrative Centres (ODAC), announced the restart of projects across Libya.

HIB announced that it is reactivating 69 existing projects in eastern Libya, while ODAC announced that it was reactivating 70 existing projects in eastern Libya worth LD 459 million.

The prime minister Aldabaiba connection

Coincidently, or not, Prime Minister Abd Alhamid Aldabaiba, used to be Chairman and General Manager of LIDCO. The prioritisation of his former company’s projects implemented by a Turkish company has been the subject of much comment in Libya.

Ramification for other foreign contractors with stalled projects?

Analysis

[restrict paid=”true”]

The announcement by Prime Minister Aldabaiba of the restart of LIDCO’s Tripoli Gate stalled project in March this year, and the announcement of his ‘‘Reviving Life’’ development plan last month, as well as the decision by the LIA to launch its Peace Building plan to invest capital in LIDCO’s Tripoli Gate project will be watched closely by many a foreign contractor with stalled Libyan projects.

Foreign contractors will be studying if their projects could also be prioritised and receive an injection of capital to restart them.

It is unlikely that every stalled Libyan construction project will be restarted soon. Some will never see the light of day.

Feasibility studies and prioritization of projects

Successive Libyan governments since the 2011 February revolution that overthrew the Qaddafi regime have created committees and conducted feasibility studies in Libya’s US$ 100 bn-plus stalled projects. Attempts have been made to prioritise them. Many contractors may wish to see the results of these feasibility/prioritisation studies to see where their projects are ranked.

Country-wide demand for housing

For example, there are many projects that are between 50-80 percent completed and there have been calls for the completion of these projects – or at least their prioritisation.

On top of these are all the nearly complete housing projects. These are seen as the least complex projects to complete and the ones that can be easily sold upon completion – thanks to Libya’s acute housing shortage.

Domestic investment

Moreover, there is a hunger by local investors to invest in incomplete housing projects, including by local Libyan banks. These are likely to be some form of PPP investment. At least one real estate investment fund has been created by private Libyan banks (see links below).

Settling foreign constructors’ debts

However, before any of this can happen, a legal and financial solution needs to be reached to settle the debts of foreign constructors.

One possible solution discussed with Chinese companies has been compensation for outstanding debts through the award of new contracts (see link below). [/restrict]

 

After a ten-year halt: LIDCO’s Zumurrud Tripoli Gate project resumes work – Foreign contractors will be watching closely | (libyaherald.com)

PM Aldabaiba announces ‘‘Reviving Life’’ development programme for Q4 2021 | (libyaherald.com)

HIB to reactivate 69 projects in eastern Libya | (libyaherald.com)

HIB prepares report on 17,000 housing units for PPP investment | (libyaherald.com)

See: Breakthrough housing deal agreed by Government and Chinese company | (libyaherald.com)

‘‘The deal, in which the thorny issue of compensation is addressed by granting additional contracts, is seen as opening the door to completing numerous other housing and infrastructure projects with Chinese and foreign companies.’’

Chinese business looks to return to Benghazi | (libyaherald.com)

Massive LD 50-billion development of Tobruk unveiled; railway to Sudan to be built | (libyaherald.com)

Breakthrough housing deal agreed by Government and Chinese company | (libyaherald.com)

Tadawul Real Estate Fund signs agreement with the state Inma Real Estate Fund | (libyaherald.com)

Several solutions discussed to activate Libya’s real estate sector at final day of Tunis conference | (libyaherald.com)

The Second Libyan Real Estate Development Forum – 5 to 6 February in Tunis | (libyaherald.com)

LD 250 m private sector real estate investment fund launched | (libyaherald.com)

Benghazi investment and reconstruction conference calls for less state dependency | (libyaherald.com)

Payment, rather than security is seen as barrier to return of foreign companies to Libya | (libyaherald.com)

Continuing his flurry of reactionary decrees: Serraj creates new Ministry of Housing and Reconstruction | (libyaherald.com)

Libya to activate stalled housing projects through local companies | (libyaherald.com)

 

 
Tags: featuredLIA chairman Ali Hassan MahmoudLIA Libyan Investment AuthorityLIDCO Libyan Investment and Development CompanyZumurrud Shopping Mall LIDCO
Share19Tweet12Share3

Related Posts

Libyan Airports Authority head visits London International Security Exhibition
Business

Libyan Airports Authority head visits London International Security Exhibition

October 1, 2023
On the day of first direct Tripoli to Rome flight, MoU signed between Libyan Civil Aviation and its Italian counterpart
Business

On the day of first direct Tripoli to Rome flight, MoU signed between Libyan Civil Aviation and its Italian counterpart

October 1, 2023
Italian jewellery show: Tripoli Old City 1 to 14 October
Business

Italian jewellery show: Tripoli Old City 1 to 14 October

October 1, 2023
As U.S. calls for unified east-west Libyan effort, eastern Libyan government postpones Derna reconstruction conference to November
Business

As U.S. calls for unified east-west Libyan effort, eastern Libyan government postpones Derna reconstruction conference to November

October 1, 2023
Qatar Civil Aviation to conduct Libyan airports inspection in October, signs MoU with Libyan counterpart
Business

Qatar Civil Aviation to conduct Libyan airports inspection in October, signs MoU with Libyan counterpart

September 29, 2023
Facilities Security Authority meets Russian and Italian ambassadors – discusses training and provision of security to returning companies
Business

Facilities Security Authority meets Russian and Italian ambassadors – discusses training and provision of security to returning companies

September 28, 2023
Next Post
10,000 Tramadol tablets per day factory intercepted at Tripoli port with tip from foreign intelligence – Syrian owner arrested

10,000 Tramadol tablets per day factory intercepted at Tripoli port with tip from foreign intelligence – Syrian owner arrested

Ministry of Oil says NOC board will be reformed and Sanalla still suspended - will Sanalla survive Aldabaiba's planned reshuffle?

 

Advertise on LibyaHerald

Reach thousands of our site visitors daily

240 x 400px

Advertise Here
ADVERTISEMENT

Top Stories

  • Direct flights from Tripoli to Rome to resume on Saturday

    Direct flights from Tripoli to Rome to resume on Saturday

    89 shares
    Share 38 Tweet 21
  • Internal Security arrests NOC Chairman’s Office Manager for corruption in supply of medicines for Derna and its environs

    64 shares
    Share 26 Tweet 16
  • Qatar Civil Aviation to conduct Libyan airports inspection in October, signs MoU with Libyan counterpart

    52 shares
    Share 21 Tweet 13
  • Italian Cabinet gives green light for a state of emergency to intervene in Libya, allocates € 5 million

    49 shares
    Share 20 Tweet 12
  • Russian rescuers end mission in Libya: Russian Foreign Ministry

    37 shares
    Share 15 Tweet 9
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

Libyan Airports Authority head visits London International Security Exhibition

On the day of first direct Tripoli to Rome flight, MoU signed between Libyan Civil Aviation and its Italian counterpart

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    No Result
    View All Result
    • Login
    • Sign Up
    • Cart
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Sign In with Facebook
    Sign In with Linked In
    OR

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Sign Up with Facebook
    Sign Up with Linked In
    OR

    Fill the forms bellow to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?