Freighting Update – Special Report Libya
After the revolution
There is enthusiasm in Libya and abroad to rebuild the country, but political and practical
barriers remain, writes Isabel Lesto.
LIBYA presents enormous poten- tial for British businesses but it is a country emerging from a trauma. UK companies re-entering the market, or setting up for the first time, will require patience, will need to do their homework and be sensitive to the enormous suffering that has taken place. The National Transitional Council (NTC) is anxious for foreign investors
to return to Libya, particularly in the oil and gas sector, so that it can increase foreign revenue streams. It has said it will honour all existing legitimate contracts. There is a lot to be done. Three cities, Misrata, Sirte and Zawia will
need rebuilding – Tripoli suffered little damage during the uprising. Ports and the airport will need significant investment in infrastructure and to replenish equipment. There are opportunities for companies in the short term reconstruc-
tion, especially in vital services such as water, sewerage and electricity. But the government is in the midst of a transition. Last week the NTC
unveiled its new interim government, within the 30-day timeframe it had given itself. It hopes to hold elections in eight months’ time. While it can start business talks, it has no authority to sign contracts – with the excep- tion of oil and gas and vital services. The other problem is that there is no money to sign contracts. Libya
has £170bn in foreign assets, but only around £15bn has been unfrozen and this is to buy products essential to Libyans’ immediate needs, and for
fuel.The NTC itself has asked that funds not be released until it knows where they are being channeled. Edward Oakden, Managing Director of UK Trade and Investment’s
Sectors Group, was very clear when he told a London conference in November: “We want to maximise commercial return from the enor- mous reconstruction effort. That is not the reason we went in – we went in to stop a massacre. Nonetheless we are trying to do everything we can to build not just a short-term partnership but one built on lasting foun- dations.” But he warned: “One’s got to realise that over the next year there is quite an uncertain backdrop. We shouldn’t expect that Libya is going to function properly and cannot expect to do business like in places that have not gone through a trauma, not just in the last eight months but the last 40 years.” Oakden was the keynote speaker at an event organised by Foley
Associates, which focussed on how British and international businesses could help Libyans rebuild their country. He identified seven key sectors in which UK companies could help;
infrastructure, health, oil and gas/ power, education, civil security and financial services. While Libya has a long way to go before it can prosper, there is opti-
mism from Libyans and foreigners alike. Tarek Alwan, Managing Director of SOC Libya, tells Lloyd’s Loading
List: I’m optimistic about the future because of the fact that we have a small population of 6 million people, no debt and estimated reserves of 46 billion barrels of oil and around 54 trillion cubic feet of gas.”
www.lloydsloadinglist.com SOC Libya is a London-based company with a branch in Tripoli. It
assists and supports international companies to enter the Libyan market. In October, Alwan returned to Tripoli to visit family he had not been able to see since before the uprising.“There was no army and no government but there was a sense of normality,” he says. “Libya was expected to fall into chaos, but it didn’t. People are kind,
godfearing and resilient. In Tripoli I was surprised to see how happy they were. Gaddafi was saying that Libya would be divided, but I have never witnessed Libyans so united. “We think the opportunities are bright and British companies are at
the top of our list in terms of credibility and quality. And Libyans are real- ly grateful to the UK for helping us to oust Gaddafi.”
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