Ali Nuseer, the Executive Director of the Libyan Industry Union (LIU) told Libya Herald, in an exclusive interview today, that his union fully supports the Central Bank of Libya’s (CBL) initiative to complete the hundreds of thousands of stalled housing projects through the supply by local manufacturers of materials.
The LIU’s support to the CBL initiative came in the form of an official letter sent to the CBL last Thursday (17 July). The letter came in response to the workshop held in Tripoli last Sunday (13 July) entitled “The Role of the Banking Sector in Revitalizing Stalled Housing Projects and Urban Development”. The workshop was organised by the CBL in cooperation with the Tripoli based Libyan government.
At the workshop, the CBL Governor, Naji Issa, announced that he was prepared to make available up to LD 5 billion for the completion of the hundreds of thousands of stalled (since the 2011 revolution) housing projects. It was also revealed at the workshop that the Tripoli government is aiming to complete 150,000 housing units by 2030.
In response, LIU Executive Director Nuseer confirmed the contents of the letter revealing the LIU ‘‘affirm their full support for the CBL Governor’s initiative, through which the development, reconstruction and completion of thousands of housing units will be revived throughout Libya
House-building raw materials can be manufactured locally at cost – plus a small margin
The LIU’s participation in the initiative, the letter to the CBL said, comes by providing a large portion of the project’s needs, with a small profit margin covering administrative and general expenses. These can be manufactured locally at cost.
More than 15 percent of value of housing units can be saved
Production operations are expected to save more than 15% of the value of the housing units, which will positively impact the selling price for Libyan youth and families benefiting from this initiative.
In light of the above, the letter’s action point said ‘‘we hope you (CBL) will kindly schedule a meeting with us (LIU) so we can present a presentation on the industrial companies that will participate in implementing this initiative’’.
Commenting on the letter, ‘‘The LIU’s initiative reinforces the Governor’s and the Council of Ministers’ initiatives. The goal is to ease the burden on housing programme beneficiaries’’, Nuseer explained to Libya Herald.
Local factories have international quality certification
‘‘Because most of the project’s needs can be manufactured locally, at cheaper and better prices than imported materials – the same quality as imported materials, and even better in some industries. Libyan factories have international and local certifications that enable them to manufacture excellent building materials at a lower price than imported materials’’, Nuseer insisted.
Saving on need for hard currency drain
Stressing the logic of the savings, he added that ‘‘The raw materials are local, and the skilled labour force is partly Libyan. This will in turn limit the drain on hard currency and provide jobs for local youth’’.
Therefore, ‘‘the LIU decided to participate in this national programme where prices will be very competitive, and payment will be local (in local currency) made on an invoice-by-invoice basis. Local manufacturing and sourcing ‘‘will reduce programme expenses in terms of warehousing, transportation, and security given that the local factory is the project’s warehouse’’.
Affordable housing for youth and families
Concluding, Nuseer said ‘‘we will save on currency drain, reduce construction costs and benefit Libyan youth and families by obtaining affordable housing’’.
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Tripoli based Libyan government plans to complete 150,000 housing units by 2030
Preparations for the second ‘‘Made in Libya’’ edition in Niamey, Niger progressing (libyaherald.com)
