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Focus on HEALTHCARE Interview with Ministers Health - Transport

Trade & Investment Energy & Aviation EDITORIAL Issue 4 August / September 2013

Business EYE www.libyaherald.com TECHNOLOGY & SAFETY SOLUTIONS From the Editor CONTENTS Healthcare is a budgetary headache for almost every country in the 02 Focus: Healthcare world. But for Libya it is far worse. While places such as the UK or 02 Interview: Health Minister France or Canada have to contend with constantly growing health- care costs, an ageing population and massive demand for services, Libyan Swiss Medical Centre 09 there is an effective, working system in place. In Libya for 42 years, 10 St James Hospital Libya the health service which had started to blossom during the last years 11 Belgium healthcare of the monarchy was destroyed by the deadly combination of cor- ruption, neglect, mindless bureaucracy, de-skilling and an ideological 12 Dutch healthcare determination to ensure that nobody was allowed any responsibility 13 Medical tourism — just in case they used it. 14 Libya-Canada health cooperation 16 Energy Libya is having to build a healthcare system from scratch. Security is, of course, the immediate challenge for the government and Congress, 18 Electricity but a service that delivers quality healthcare locally (not just in Tripoli 20 Economy and Finance or Benghazi) is one of the primary demands of the Libyan people. The 20 Interview: Libyan Foreign Bank authorities know they have to deliver. But building a system from the ground up is going to cost billions of dinars. 22 Interview: Gumhouria Bank 23 Transport Everything is needed - training, skills, staff and buildings (new and re- 23 Interview: Transport Minister furbished) and at different levels: polyclinics, general hospitals, spe- cialised treatment centres, laboratories. 26 Construction Technology Safety 30 Trade & Investment Libya is blessed with a large number of doctors and specialists, al- 32 Interview: Tunisian ambassador though many are outside the country. Inevitably, to create a health- care service as quickly as possible, the Ministry of Health feels it has Advanced technology solutions to help your business to Help protect your staff, buildings and vehicles from attack to look abroad, to hospital groups and health service contractors, to grow and develop. Including computer networks and and theft. Partnered with the world’s leaders, AlMutmaina both build new facilities and refurbish old ones, and also to manage enterprise resource planning systems and are built on provides only the highest standard and quality products, Editor: many of them, at least in the short term. some of the world’s leading solutions from companies tested to the most stringent international standards to Michel Cousins including Cisco and Microsoft. ensure your absolute safety and satisfaction. [email protected] Major opportunities also exist for the private sector. Large numbers of +218 (0)91 770 3242 Libyans today travel to Tunisia, Turkey and elsewhere as medical tour- MAIN ACTIVITIES ists, willing to pay for the treatment they need rather than be cared Managing Editor: for in Libyan hospitals and clinics, which they do not trust. But if there Sami Zaptia were sufficient quality facilities in the country they would use them. [email protected] They would naturally prefer to be treated at home. That is why, with +218 (0)91 212 1272 new private hospitals and clinics being planned and built, it can be safely said they will succeed. Business Editor: Nigel Ash While we look at the health of the health service, we also look at how the rest of the economy is faring. Despite the security situation and [email protected] international news reports which undoubtedly cause some foreign businesses to think twice about working in Libya, the economy con- Chief Reporter: tinues to grow strongly, perhaps proving that if businessmen were Ashraf Abdul Wahab left alone to get on with the job, the country’s economic renaissance [email protected] would be even swifter.

Social Media: Nihal Zaroug [email protected]

Sales and Marketing: Yolanda Zaptia [email protected]

Creative Director: Michel Cousins Imad Ali Khan Editor-in-Chief [email protected]

© The Libya Herald The views expressed are not necessarily those of the Libya Herald. Hay Demashque, Al-Hadba Al-Khadra, PO Box 83510, Tripoli, Libya Cover photo; Ambulance in Tripoli (Photo by Aimen Eljali) Fax: + 218 (0) 21 491 0464 August / September 2013 Business Eye 1 FOCUS HEALTHCARE FOCUS HEALTHCARE

Laying the foundations for the are only obliged to start paying for them six tract and, in the absence of a clear announce- months after we receive the keys, and the ment, wondered if the contract had been “Having international payment is spread over 10-14 years”, the “tendered” or “awarded”. new Libya health service Minister said, pausing to underscore the vir- companies managing new tue of the deal. “There should be confidence in ministers hospitals, this would create – you either trust them or you don’t”, Dugh- a very positive Libya Herald interview Health Minister Nureddin Dughman Health Minister Dughman pointed out that man responded to the implied possibility of “220 companies tendered for these projects, the presence of corruption in the process. work environment” but most had offered to build prefabricat- “Corruption is not my job. It is up to the su- One of the most challenging sectors to reform for the new politicians of ed-type constructions, and they all wanted pervisory bodies to investigate that. I cannot Libya to finance the projects. This IHG pro- stop disbursing money from my budgets be- Libya is its dilapidated health sector. Health touches everybody’s lives ject has since attracted the financial sup- cause I am worried that some of it might be port of the US, Korean, German and Italian misspent. I will never be able to achieve any- This, he hopes, will reduce the need to send and it is an emotive subject for Libyans as millions of them have been governments.” thing in that case”, the Minister emphasised. so many students abroad. His view is that “experienced doctors and consultants should forced over the last few decades to spend their own money seeking better Building vs operating be sent abroad for shorter refresher courses”. Defending the IHG option the Minister en- He also questioned the system of nominating healthcare in neighbouring countries. Libyans wait urgently for signs of gaged in some verbal arithmetic. “Twelve medical students for overseas study. progress in the sector. hospitals for about LD 2 billion - I think this is a very good deal”, he claimed. He quoted a recent example of 300 Libyan By Sami Zaptia students being sent abroad, with only two “Another international hospital services com- being able to obtain posts at overseas hos- pany offered to operate the Tobruk hospital pitals. Not all Libyan medical students sent “The Libyan state is not formed yet and there- “Over the decades, as a result of the poor Working with international partners for about $ 40 (LD 50) million per year – that abroad were benefiting from the training, fore we are starting from the beginning and health service under Qaddafi, Libyans devel- Minister Dughman says he is aware that he is just to operate. If you multiply that by 12 the Minister said. However, he also pointed hopefully we are starting in the right way”, hospitals across Libya for 5 years, it will cost oped a culture of seeking health treatment is part of an interim government until Libya out that a number of friendly nations had re- says Health Minister Nureddin Dughman. LD 3 billion. When you compare it to the abroad”, Minister Dughman explained, re- drafts its constitution and holds elections. served a fixed number of places for Libyans “The existing hospitals and health facilities IHG deal, it makes the IHG offer a better deal ferring to the huge number of fellow citizens He understands that in his short stint, his so that they did have to compete with others need urgent solutions and renovations – who prefer to get their healthcare overseas, role is to prepare the foundation for future in my opinion”, proclaimed the Minister. that is what we are doing”, he stresses when for them. most often in Tunisia or Jordan. However, governments to build upon. asked about the state of the Libyan health- Minister Dughman was comfortable and the Minister felt that “not all medical cases care system. keen to work with international partners. He Health Insurance should be treated abroad”. “A few months ago we signed an agreement said that he was still seeking international with the EU to establish a Health Service The Minister was unsure about the market support and cooperation for dialysis, haema- “There has been much work done in the back- System. This will be a four-year programme. for health insurance in Libya. “It is a good tology and physical rehabilitation units. He ground on maintenance and renovation There will be a workshop held for the medi- idea”, he said but wondered if it would “fit hoped some more international companies which is not easily seen. We are also building cal sector to discuss the various contending in with the Libyan reality”. Libyans, like would come forward with proposals. health centres where none existed before. approaches and hopefully come out with himself, believed that, with its oil wealth, This all contributes to the improvement of what will best work for Libya. This will in- Libya should be able to provide a top qual- Attracting Libyan medical diaspora basic healthcare in Libya”, he explains, de- clude topics such as medical ethics, training ity health service, free for all. “I believe in a Tripoli Medical Centre fending his ministry’s performance. and the workshop will hopefully come up Regarding the large number of Libyan doc- free national health system”, he emphasised, Transparency and trust with a framework for the future to present to tors abroad who have chosen not to return “where the ordinary Libyan can receive free Foreigners are reluctant to come to Libya the GNC”. Reacting to criticism in Libya about the and work in its health sector, Dughman was healthcare”. because of the financial return and the secu- transparency of the project and lack of infor- confident that if Libya succeeded in estab- rity situation. Tripoli Medical Centre (TMC), In June, the Health Ministry signed an MoU mation from the Libyan Ministry of Health, lishing a “high standard” health sector, “they Nonetheless, there was a role for the private the Minister revealed “has not had any ma- with British-based International Health the Minister admitted that it could have would return”. health sector in Libya, he said, although he jor maintenance for years and it deals with a been better handled. “I am not for creating Group (IHG) for the financing, building and was firmly against it being subsidised by the third of Libya’s population. It used to have a a big fuss about things”, he said. “It is after The Minister was also confident that by hav- operating of 12 hospitals across Libya. Minis- state. “The banking sector will be the source contract with an international company for all just a Memorandum of Understanding. ing international companies managing new ter Dughman explained how that came about. of finance for a future private health sector,” continuous maintenance. It will need an in- There will be much more information forth- hospitals, this would create a very positive he said. ternational company to resume providing “Libya’s resources, including finances, are coming when a contract is signed.” work environment, one that would attract maintenance”, the Minister added. limited, yet the demands of the public are many Libyan doctors back home. Neverthe- Private hospitals would attract a number of high. Our oil exports are currently fluctuat- Having mentioned the less-than-inviting less, Dughman was careful to stress that it Health Minister, Nureddin Dughman Libyans. He also felt given Libya’s wealth of Libyans going abroad for healthcare ing due to the industrial actions. In my opin- security environment, did the Minister was important to look after the Libyan doc- doctors and specialists, despite many work- “We are also continuing to deal with the cases “In 2012, LD 2.3 billion was ion, I do not think it is possible to be able to think IHG could execute its contracts at the tors who were in Libya now. of war wounded – this has decreased in size build hospitals within our national budgets.” present time in Libya? “If they commit to a ing abroad at the moment, that there was the compared to the early post-revolution days, spent on the war wounded contract, they will implement. Both sides Medical training basis of the country developing its own medi- nevertheless it is still quite a sizable file that and healthcare for Libyans “Therefore, when a foreign company made would have to keep to their commitments”, The issue of the cost-effectiveness of Libya cal tourism industry. attracts considerable time, effort and por- abroad, and it is expected a presentation and offered to finance, build he added. sending thousands of medical students “I hope that the private health sector in Libya tion of the health budget”. “In 2012, LD 2.3 to be about LD 1 and operate a series of hospitals for us in abroad, only for the majority to remain billion was spent on the war wounded and Libya, I thought it was a very good offer. All The IHG agreement had attracted much there, has been the subject of intense debate will develop like that in Tunisia and Jordan healthcare for Libyans abroad, and it is ex- billion in 2013” they demanded was the land on which to comment in the local media and social in the country. Dughman says he is keen to and be able to compete with them. I hope that pected to be about LD 1 billion in 2013”, the build them. They offered to construct, equip networks. Libyans queried the low-key an- “support and improve the quality of medical it can launch health tourism in Libya attract- Minister stated. and operate the hospitals for five years. We nouncement of such a potentially huge con- study within Libya”. ing visitors from neighbouring countries.”

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Health Ministry plans new hospitals Libya - Ministry of TMC Contract By Michel Cousins Health Projects 2013 Jain Infraprojects, a Calcutta-based com- he Qaddafi regime used to put out facing the health service is the lack pany, was awarded the maintenance con- statistics indicating that Libya had of training. But the state of the fa- The Ministry of Health (MOH) has been allocated a LD 1.1 billion ($ 880 million) tract for Tripoli Medical Centre (TMC) the best health system in Africa cilities is also a serious issue. Last budget for a total of 802 development projects for 2013. There are currently 195 ex- in February. The company said it has and the highest number of hospi- month, Dughman said that some isting projects, many of which are from previous years, totaling LD 324 million. How- recruited some 250 technicians and engi- Ttal beds per capita. It was a lie. For proof of of Libya’s hospitals “were not fit for ever, there are 607 new projects available in 2013, totaling over LD 780 million. neers to carry out the work for the 5-year just how bad the Qaddafi regime was, look no use by human beings”. contract, worth LD 13.7 million a year, but further than the Benghazi Medical Centre. Libya: Ministry of Health projects - 2013 it was still awaiting the letter of credit be- Some Libyan healthcare specialists fore being able to activate operations. This was a hospital begun by a government in say that Libya has sufficient hos- Description Number of projects Amount (LD million) the last year of the monarchy that wanted to pitals and hospital beds; all that is 1 Current projects 195 324.87 Jain Infraprojects is part of the Jain give the city a hospital as good as anywhere needed is to refurbish them. Refur- Group of Companies whose client list in the world. Forty-two years later, it was not bishing old hospitals is invariably 2 New projects 607 780.38 includes some of the largest Indian insti- even half finished. Only now is that happen- far more expensive than building tutions. This is its first hospital contract Total 802 1,105.25 ing. Qaddafi did not care about the health of anew. For this reason, plus the po- outside India. Libyans, which is why so many headed to Tu- litical desire to see a geographi- Source: Ministry of Health Budget & Accounting Department July/August 2013 nisia and elsewhere for treatment – a situa- cal spread of proper hospitals, the UK-based International Hospital Group (IHG) event panel According to Health Minister Nureddin tion that still continues. Ministry of Health is looking to Dughman, TMC, which deals with a third There are two designs, one for the eight 150- These projects, spread across Libya are for hospitals, medical complexes and health build new ones across the country of Libya’s patients, is in urgent need of bed hospitals, the other for the four 200-bed ministry offices. Projects vary from providing various medical equipment and tools The demand today from Libyans is for a sys- extensive renovation and rehabilitation. units. The former would have most of the and machinery. Examples include maintenance, renovation, refurbishment and re- tem that delivers quality healthcare where it In June it signed a deal for between nine and The Indian company had won the tender medical specialities of a normal general hos- pair works. See table below for top 20 projects ranked according to amount of project. is needed and when it is needed. It is going to twelve hospitals with the UK-based Inter- to renovate the TMC back in November pital. The 200 bed ones would have some cost billions. The system is effectively start- national Hospital Group (IHG). The latter, a 2011. However, it had been stuck in Libyan extras, such as coronary care and oncology ing from scratch. The scale of the task was healthcare company and a contractor, man- bureaucracy ever since. There had even units. Libya: Ministry of Health – Top 20 planned health projects starkly revealed by Health Minister Nured- aged the hospital in Marj before the revolu- (with budgets approved but contracts not necessarily signed) been reports of the Audit Bureau wanting din Dughman a couple of months ago when tion and, although working worldwide, has to put it out to tender again. This, Dugh- For its part the Ministry says what was Amount he pointed out that over LD 100 million had focussed particularly in the Middle East and man said would have caused unacceptable agreed was an MoU but points out that the Description Location (LD mil- been spent in health sector equipment in the Africa. problems and delays. previous few months, but no one was going bigger deal, if it goes ahead, is exceptionally lion) good value for Libya (see Interview with Health to notice it because it had been gone on items The deal, if fully implemented would be on 1 Rental of medical equipment for hospitals Various 42.0 Minister Nureddin Dughman on page 2). such as lifts and air conditioning as well as a BOT (Build, Operate and Transfer) basis 2 Purchase of medical equipment Various 37.5 housing for medical staff. Like everything and be worth LD 2 billion. It would be one of If the design contract is converted into a con- 3 Operation of Tripoli Medical Centre TMC, Tripoli 35.0 else, all this had been left to rot. the biggest single contracts signed by Libya struction and operating contract, IMG says post-revolution, and certainly the biggest by 4 Maintenance of medical utilities Various 30.7 Need to invest in health training and facilities it would begin work on a first hospital con- New A&E department the Ministry of Health. currently in each of the three areas, then a 5 Purchase and install x-rays Various 30.0 In the view of the two former post-revolution second, third and fourth and that each would 6 Maintenance of medical equipment Various 25.0 for Misrata hospital health ministers, Drs Nagi Giumma Barakat It has attracted criticism, mainly on the basis take 18 months from start to finish. During 7 Service transport for Ministry and hospitals Various 20.0 and Fatima Hamroush, the biggest problem that there was no transparent tendering pro- that time staff would be trained. The 150-bed cess. Some opponents state, on no apparent hospitals would employee 600-800 people, 8 Urgent maintenance & purchase of equipment Various 15.0 legal basis, that an interim government does the 200-bed units, 800 to 1,000. IHG would Various not have the power to award such a large con- 9 Maintenance, development & 15.0 run the hospitals for five years on behalf of equipping of Tripoli medical centres New medical tract. Responding, IHG point out that so far the ministry and then hand it over to it at the 10 Renewal & development of electrics and mechanics Various 15.0 they have only been given a design contract. end of the period. laboratory opens The construction and operating parts have 11 Equipping, developing and adapting Various 15.0 still to be awarded, it explains, and that the Whatever the opposition to the project says, operating theatres in 10 hospitals in Nalut ministry is still examining the country’s ex- there is no doubt that the majority of Liby- 12 Purchase of incinerators for 60 hospitals Various 15.0 act needs. Even the hospitals’ designs have ans want the present government to spend Benghazi A new medical laboratory, specialis- not been approved, let alone their number or heavily, and now, on a healthcare service that 13 Preparation of medical complex 13.0 Misrata’s Central Hospital ing in infectious diseases, opened this location. What IHG have done so far, it says, works. Training is important, but ordinary 14 Preparation of medical complex Benghazi 13.0 July in the Jebel Nafusa town of Nalut. is simply make proposals for 12 units. The new Accident and Emergency de- Libyans want well-staffed, well-equipped 15 Preparation of medical complex Tripoli 13.0 The new Central Medical Laboratory trustworthy hospital and clinics that they partment at Misrata’s Central Hospital Tripoli will also analyse medical samples and New hospitals nationwide can access locally. 16 Preparation of medical complex 13.0 was opened by the Minister of Health, raise awareness about health issues. These twelve are: in the east - in Benghazi (a 17 Preparation of medical complex Tripoli 13.0 Nureddin Dughman, in late June 2013. It The opening ceremony for the new is fully-operational for patients from the 200-bed hospital), Beida (200 beds), Ajda- The wheel is turning. Many hospitals are 18 Preparation of medical complex Tripoli 13.0 facility was attended by senior mem- biya (150 beds) and Gubba (150 beds); in the being refurbished and discussions are un- city and neighbouring towns and has five bers of the Nalut local council, includ- centre - in Misrata (200 beds), Zliten (200 derway with a number of international op- 19 Preparation of medical complex Tarhuna 13.0 operating theatres and an intensive care ing the Director of Health Services in beds), Bani Walid (150 beds) and Sirte (150 erators to manage some of them. But new 20 Renewal, maintenance, development Various 12.0 unit, as well as beds for up to 120 patients. the region and managers of the area’s beds); and in the west - in Tajoura (150 beds), hospitals – and in new locations – are need- and replacement of 30 laundries health centres. Azziziya (150 beds), Ghariyan (150 beds) and ed. In a Libya that wants to decentralise, the Zintan (150 beds). Ministry has its eyes firmly fixed on that goal. Source: Ministry of Health Budget & Accounting Department July/August 2013

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Future of the Medical The 10th Libyan Tripoli hospital’s lack of medicine Supply Organisation? Healthcare Exhibition 2013 expecting 500 fails cancer kids By Sami Zaptia exhibitors By Umar Khan he Health Minister, Nureddin they would have to monitor every single Dughman, favours ending the hospital allocated a budget. By Sami Zaptia ripoli Medical Centre (TMC), one their main concern is making sure their chil- monopoly of the Medical Sup- of the largest hospitals in North dren are receiving the proper treatment. One ply Organisation (MSO). It is Dughman stresses that oversight, moni- Africa, is failing children suffering parent, identified only as Um Maryam, com- “These shortages result from the central government body that pur- toring and anti-corruption measures are he 10th Libyan Healthcare Exhibition T from cancer, with drastic short- plained about the hospital’s lack of support. chases pharmaceuticals for Libya’s en- not the Ministry of Health’s primary con- 2013, to be held 10-12 September at a lack of coordination and ages of essential medication. She travels all the way from Ghariyan to visit tire state health sector at international cern. Instead it is getting the right medi- the Tripoli International Fairground T we try to minimise her daughter. “I borrow money for each visit market prices and supplies them to pub- cines to the right patient at the right hos- Tis expected to attract a large turnout. The According to both parents and medical staff, to Tripoli and sometimes we are told to buy it as much as lic hospitals at either hugely discounted pital –and in time. He sees a supervisory exhibition, covering 10,000 square metres, is slow procurement procedures mean that es- medicines from outside,” she said, adding prices or for free. It was established by role for the MSO in the future with re- supported by the Ministry of Health and is possible” sential daily dosages are often missed. The that she could not afford to buy these. Some- Qaddafi in the 1980s when he national- gards to the purchasing and distribution the biggest annual heath event in Libya. paediatric oncology ward, which deals with times, she said, hospital staff tried to help by ised the imports of pharmaceuticals. of medicines to hospitals, with the MSO childhood cancers, often lacks medicines, sourcing medication from elsewhere. concentrating on sensitive medicines, The organisers, Waha Expo, told the Libya the Ministry of Health, Mohammed Khubali, with doctors relying on supplies arranged The MSO’s budgets over the years have which, he says, make up a quarter of Lib- Herald that they anticipate over 500 exhibi- confirmed that there was a problem with by non-governmental organisations (NGOs) Problems with procurement been huge, reaching LD 700 million in ya’s state spending on pharmaceuticals. tors from over 30 countries, including from supplies of medicines. “These shortages re- and social workers. 2011. However, the MSO has a poor track Germany, France, Italy, Turkey, USA, Egypt, There are not many NGOs currently working sult from a lack of coordination and we try record, having consistently failed to ad- Updating the Standard Medicines List Tunisia, Greece and Korea. in the medical sector in Libya, and help from to minimise it as much as possible,” he said. In need of urgent attention civil societies is also very limited. TMC man- equately supply pharmaceuticals to the The Health Minister confirmed that his Khubali, however, refused to give any further The paediatric oncology ward itself is in need agement, however, should not need any help health sector despite its huge budgets. It Ministry had issued its first tender (“Ten- Exhibitors will include the world’s leading details. of urgent attention and presents a grim pic- from civil societies to procure medicines, be- was also alleged to be a bastion of corrup- der No 1”) for the purchase of medicine by manufacturers, wholesalers and distributors. ture. Outdated equipment, rusty beds and cause of its allotted budget from the Ministry tion, buying low quality products from the MSO eight months ago. However, the In addition to the exhibition, the event will Another Ministry official, Nooreddin Mo- broken furniture are common sights, with of Health. middlemen at exorbitant prices with fat committee charged with this had found include workshops, commercial presenta- hamed, said that the hospitals themselves the department’s overall appearance further kickbacks. difficulties ordering medicines from the tions, social programmes and the presenta- are responsible for such shortages. “It de- tainted by paint peeling off the walls. Sluggish procurement systems and a lack of existing Standard Medicines List. This tion of scientific papers. pends on the supply report from hospitals,” coordination between the hospital manage- Hospitals understand their own needs is the list from which the MSO Tender he said, “some are very professional and ac- Decor and furnishings are the last thing that ment and health ministry officials seem to Dughman would like hospitals to be in Committee must choose the medicines it After the 17 February Revolution, the expec- tive and don’t face any problems, while oth- parents will complain about, however, as be the root of the problem. An official from charge of their own purchasing of phar- wishes to import. The list was out of date tations of Libyans of the living standards that ers are slow. Patients suffer because of them.” maceuticals. “The existence of and reli- and suffered from discrepancies, so the they require and the kind of health service ance on the MSO frequently led to medi- Ministry of Health invited all potential they should enjoy have risen immensely. And cine shortages”, he explained. “Individual local and international pharmaceutical there is great pressure on the government hospitals understand their own individu- suppliers to help draft a new one. “They to spend and improve the health system al needs best”, he added. Even in leading are still working on updating the list”, the urgently. Benghazi Brain tumour surgery countries such as the UK or France, an Minister explained. MSO equivalent does not exist”, the Min- On the one hand, the state is expected to in- ister pointed out. Dughman noted that some brand owners vest billions of dinars to upgrade the old di- lapidated system and provide a healthcare offers hope for cancer patients had objected to the new draft list which system that is appropriate for a country of He admits that the trend to reduce the had omitted their products. However, he By Reem Tombokti MSO’s role was initiated by the Qaddafi saw no reason not to add omitted medi- Libya’s GDP in 2013. Equally, in the new Lib- regime during 2006-2009. But he equally cines or brands “if some existing Libyan ya, the private sector is expected to expand at great speed now that it is free to play its full n August, another operation to remove a brain tumour admits that while the regulators now only hospitals were already using them and was successfully performed by a Libyan surgeon at a have to monitor one body – the MSO – still need them”. role in the new free market enterprise Libyan economy. Benghazi hospital. During the four-hour surgery, Seraj under the new decentralisation proposal, Al-Zintani, one of just a handful of Libyan specialist brain and nerve surgeons, removed the tumour from the brain Value of MSO pharmaceuti- Pharmaceutical expenditure The number and quality of private sector I Year clinics is expected to increase and improve of a 25 year-old woman at Benghazi’s Al-Hawari hospital.“This ﺍﻟﺣﻛﻭﻣــﺔ ﺍﻟﻠﻳﺑﻳـــﺔ ﺍﻟﻣﺅﻗﺗـــﺔ ﻟﺠﻨﺔ ﺷﺆون اﻟﺼﺤﺔ (cal imports (LD million) per head (LD ”,neighbouring states is one of the most difficult operations ever performed in Libya ﺩﻳـﻭﺍﻥ ﺭﺋــﺎﺳـــﺔ and ﺍﻟـــﻭﺯﺭﺍءwith peer ﺑﺎﻟﻤﺆﺗﻤـﺮa parاﻟﻮﻃﻨــﻲ اﻟﻌـﺎمon 2003 250 44 such as Jordan, Tunisia and the UAE. spokesperson at Al-Hawari hospital, Hani Al-Ereibi, told the 2004 250 46 Libya Herald. “It shows what Libyan doctors and hospitals are Brain tumor, Al-Hawari hospital Brain tumor surgery capable of doing.” He added that usually people travel abroad 2005 250 49 Supported by formed six similar operations. He added that there were five or

LAT for brain surgery. 2006 260 49 six doctors in the country capable of performing brain surgery.

2007 300 55 In the operating theatre Zintani, who trained in Ukraine, was Such successful surgeries offer new hope for cancer sufferers 2008 500 90 assisted by another Libyan doctor, Rabiha Al-Qaddafi, and a in the country. Libya has a limited capacity to deal with cancer 2009 600 107 Syrian doctor, Anas Al-Rifai. According to Ereibi, this was not patients, forcing many to seek treatment abroad. Some hos- the first time that brain surgery had been performed in Libya. pitals that do have facilities to treat cancer sufferers are not 2010 700 122 He said that at Al-Hawari Hospital alone, Zintani had per- always able to provide sufficient medication, even for children. 2011 700 121(*) Supported by Source Ministry of Health: (*) based on a 2011 population of 5.812 million

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LAT “We asked ourselves why couldn’t we build a clinic in Libya to allow Libyans to get the same level of healthcare services as in Tunisia.”

competent treatment for their local employ- ees and using the insurance service of com- Supported by panies, such as BUPA which had established operations in Libya.

In 2006, the centre added two operating the- atres to enable major operations, often with keyhole procedures.

Expansion plans Libyan Swiss Medical Centre Despite a drop in the demand for its services en years ago, two Libyan business- was set under a decree from the Privatisation since the revolution, the LSMC is working men found themselves stuck at and Investment Board and opened for busi- on plans to expand its Ben Ashour site by the Tunisian border and started to ness in August 2003, in the upmarket suburb acquiring a neighbouring property. Roujbani check out other people waiting to of Ben Ashour. says the clinic will be extended to include an Texit Libya. The majority was on their way for Accident and Emergency and Intensive Care medical treatment. Originally known as the Libyan-Swiss Diag- units. nostic Centre, from the start it boasted state- One of them, Mohamed Roujbani, recalls: of-the-art facilities. These include radiol- He believes, however, that the government “We asked ourselves why couldn’t we build ogy, MRI, computerised tomography, X-Ray, needs to look at including private healthcare Platinum Sponsor a clinic in Libya to allow Libyans to get the providers in the wider national public health Golden Sponsor Service Sponsor mammography and panoramic dental X-Ray. same level of healthcare services as in Tuni- The centre also has an internationally-certi- system. sia.” The market was certainly there, thanks fied advanced analysis laboratory as well as a to the falling quality of the state-funded pub- dental surgery and clinics for thalassothera- “In my opinion,” he explains, “the govern- lic healthcare system. py, dermatology and gastroenterology. ment needs to call for a conference of the health sector to look into the possibility of The centre, which temporarily changed its a plan in which it participates with the pri- name to the Libya-British Medical Centre vate health sector and insurance companies The clinic will be extended when Libyan–Swiss relations plummeted to provide health insurance for all Libyans.” after 2008 over the Hannibal Qaddafi affair, LSMC has joined with other private clinics to Organizer to include an Accident and is staffed by Libyan medical professionals as lobby the government. Emergency and Intensive well as expatriate doctors and visiting doc- tors from Switzerland. These include spe- Another issue private clinics face is recruit- Care units. cialists from the universities of Zürich and ing Libyan medical professionals who prefer Media Partner Geneva. Recalls Roujbani: “In the first year to work in the public service on more gener- after we began, the Swiss team gave train- ous employment terms. Thus, says Roujbani, Opened in August 2003 ing to the staff. Their technical cooperation his clinic relies on expatriates. Earlier this Roujbani, now General Manager of the with their Libyan partners also included the year it hired 34 nursing staff from the Phil- Swiss-Libyan Medical Centre, says the idea transfer of complex cases to Switzerland.” ippines, adding: “Filipino nurses are among of a private clinic in Tripoli was pitched suc- the best and most competent with regards to cessfully to some Swiss business contacts. Demand for the centre’s services grew brisk- their training, besides their good mastery of The Libyan Swiss Medical Centre (LSMC) ly with international companies seeking the English language.”

August / September 2013 Business Eye 9 FOCUS HEALTHCARE FOCUS HEALTHCARE St James Hospital Libya: Belgian healthcare makes its a Maltese-Libyan venture expands mark in Libya By Houda Mzioudet By Michel Cousins ierre Baldacchino, the General ealthcare Belgium is an organi- There has, however, been more to Health- The Tripoli centre is expected to provide Manager of St James Hospital in sation that is almost certainly care Belgium’s work in Libya than dealing training for other IVF units. In fact, train- Tripoli’s Ben Ashour district, sat unknown to most Libyans, apart with the casualties of war. ing Libyan IVF staff is already happening. behind his desk smiling. He was from health officials and a num- Healthcare Belgium has liaised closely with Pspeaking to one of the hospital’s employees Hber of war-wounded. But that is going to the IVF centre in Misrata which, since open- in Arabic. The 34-year-old Maltese is a dy- change. It is involved in plans to build a pri- ing in June last year, has performed over namic and busy accountant, heading a hospi- vate hospital in Tripoli as well as help run an “Skills are the issue, 1,100 procedures. Two of its doctors returned tal that has been in Libya now for eight years. IVF fertility clinic there and set up and man- not equipment” from Belgium in July after working with new age a new dialysis centre in Zawia. technologies there. "We were present throughout the Libyan rev- olution. I was here until the end of the con- In fact, the organisation, an association of Healthcare Belgium is also expected to help flict," Baldacchino remembers. The hospital several public and private Belgian hospitals Experts in reproductive medicine run a dialysis centre in Zawia. Again, it is not staff, he says, helped train doctors and sup- and clinics, as well as medical and pharma- a matter of hardware - “They have phenom- plied medicine to the besieged population of ceutical companies, has been making its Belgium is viewed as a world leader in repro- enal new equipment,” says Fleerackers - “it is Misrata. mark on the Libyan healthcare sector since ductive medicine. It has already exported the training.” the start of the revolution. It treated some expertise, largely through training and edu- Libya, only 40 minutes flying time from 60 war-wounded, many of them paralysed by cation. At Kuwait's Royale Hayat Hospital, Malta, seemed to be a strategic location for their injuries. “It was not a major undertak- the Centre for Reproductive Medicine was The model whereby Libyan specialists, both Maltese businessmen in the health sector to ing compared to those of some other coun- set up in 2009 in partnership with the Brus- doctors and technicians, are trained in Bel- invest. tries,” says Herwig Fleerackers, the General sels University Hospital. In vitro fertilisation gium and then used to train others in Libya is Manager of Healthcare Belgium, “but it was (IVF) is an area of expertise of particular in- seen as a major tool in building a top-quality Opened hospital in Libya in 2005 a very effective one”. terest now in Libya. Health Minister Nuri- health service here. deen Doghman lists it among the country’s In Malta, St James hospital was founded in healthcare priorities and there are plans for Major role for the private sector the 1980s by the current group chairman and Children as well as adults were among those IVF centres in several towns. chief gynecologist-obstetrician, Joseph Mus- treated. Fleerackers recalls a boy with a bul- It is perhaps not surprising then, given that St. James Hospital, Ben Ashour, Tripoli cat. Muscat started from his house in Zabbar, let lodged behind his ear who had been seen many of its members are from the private One will be in Tripoli where a first new clinic a village in southwest Malta. In 2002, work by doctors in Turkey, Austria and Germany, sector that Healthcare Belgium firmly con- is due to open by the end of October. “We began on what is now an 80-bed full service Meanwhile, the St James clinic in Palm City Baldacchino, however, regrets that many but without success. “It was very delicate curs with the growing view that in Libya the surgery. Without the operation at the Uni- are going to provide training, education hospital. In 2005, the group opened its first (West Tripoli) offers a GP clinic, nursing ser- Libyans still prefer to go to Jordan, Tunisia private sector is going to play a major role in versity Hospital in Brussels he would prob- and management support,” says Fleerack- private hospital in Libya adopting the motto vices and a pharmacy. or Turkey for treatment — because they say providing medical services. “collaboration between Maltese and Libyan they need a small holiday out of Libya. ably have died. We saved him.” ers. “We will train doctors and technicians in Belgium but also send Belgian doctors and healthcare professionals”. St James Hospital Group plans to open a new “We think that the private sector can be a trig- Neurosurgery accounted for about 40 per- technicians to Tripoli to train people there.” 50-bed hospital with two operating theatres The other problem, he notes, is that while ger for the development of the system”, ex- “Our focus was on joint collaboration,” Bal- in the Hay Demashque area of Tripoli in Libya has some very good health care spe- cent of all cases, giving back the wounded movement and function. A major issue Skills are the issue, not equipment, says plains Fleerackers, noting the quality of the dacchino explains. “It is not only about St the second quarter of 2014. The LD 35-mil- cialists who studied abroad, many others are private IbnSina hospital in Benghazi which, still reluctant to return and work in Libyan though, Fleerackers points out, was post- Fleerackers. He notes that the technology James Hospital bringing Maltese or foreign lion project is a joint venture with Libyan he says, could be a model for private hospi- doctors. We have Libyan healthcare special- partners. health care facilities. But the hospital is mak- conflict trauma – dealing with the mental in the current IVF centres in Misrata and tals elsewhere in the country. ists who provide care to Libyan patients.” ing inroads into the situation. Baldacchino suffering of those who had been on the front Benghazi is “top-quality, maybe better than Libyan specialists operate in the hospital Overcoming challenges reports that the hospital had just recruited line. we have in Belgium”. Healthcare Belgium hopes to play a role in alongside foreign consultants, holding clin- two Libyan specialists from the UK. One of the challenges he met when he first these developments. There are plans for a ics on a weekly basis. came to Libya, said Baldacchino, was the lack multi-million-euro private hospital in Trip- of English-speaking staff with the right quali- oli, built to Belgian specifications and oper- St James Hospital offers state-of-the-art fa- fications. “So we brought Maltese as well as cilities and health services similar to those ated by Belgian hospitals. It will open in late other European professionals to give on-the- 2014 or early 2015. In its first stage it will found in other private clinics in Libya and job training to our local staff,” he explains. operates three branches. have 80 beds and offer full diagnostic cover as well as day surgery and a maternity unit. But establishing a foreign business venture Both Libyan and Belgian investors are back- Three branches in Tripoli area in the Qaddafi-era, in a country that was ing the project. The Ben Ashour branch, is where the hos- emerging from ten years of international pital’s main activities are located, including sanctions, did not prove as difficult as might Pierre Baldacchino, the General Manager administration and offers a wide variety of have been expected. The 2002 Foreign In- Given the current mistrust of almost all Liby- medical services. St James Hospital in Jan- vestment Law allowed foreign companies to St James Hospital Group will an state hospitals, a private Belgian-operated zour has physiotherapy services and state-of- set up without a Libyan partner and St James open a new 50-bed hospital with facility in Tripoli is certain to draw the clien- the-art equipment for ophthalmology under Hospital was one of the first to take advan- two operating theatres in the tele. That, and an IVF centre, is likely not the guidance a Dutch specialist. The centre tage of this provision. Hay Demashque area of Tripoli only to make Healthcare Belgium a familiar also has a cosmetic and dermatology clinic. name, it will probably open the door to fur- ther Belgian health projects in Libya. Healthcare Belgium

10 Business Eye August / September 2013 August / September 2013 Business Eye 11 Focus HEALTHCARE focus HEALTHCARE Dutch to start hospitalisation Tunisian medical tourism: project for Libyan patients a thriving sector that continues By Sami Zaptia to lure Libyan customers

By Houda Mzioudet he Dutch Libyan Cooperation quickly,” he adds, “to find the appropriate Council (DLCC), the aim of which hospitals where the required specialist treat- ibya is Tunisia's second most impor- Libyan health tourists two recuperating in one of Djerba’s up-mar- is to grow relations between Libya ment can be made available immediately, be EuroMediCare Provider is tant trade partner after the Europe- ket hotels, favoured by many more affluent and the Netherlands, is one of the it in the Netherlands or any other country in The country has targeted Libyan visitors preparing to open regional an Union. Tunisian exports to Libya Libyans recovering from medical procedures. initiators of a potentially large-scale health- the world”. since 2008, when the National Office of Tu- T include agricultural and industrial care project to send Libyan patients to hos- offices in Tripoli, Benghazi, nisian Tourism (NOTT) opened its first office products. But, for the Tunisians, there are pitals in the Netherlands and other countries, He explained: “Maastricht UMC will there- L in Tripoli. Its Libyan director since late last more important invisible exports. After the both inside or outside the European Union. fore not only liaise on our behalf with all Sebha and other Libyan year, Ezzeddine Grami tells the Libya Herald: lifting of international sanctions on Libya in In the absence of a other university hospitals and top clinical “The Libyan health tourism market is very towns. 2003, Libyan tourists flocked to Tunisia in “This is about Libyan patients who need high- institutions in the Netherlands, but they important.” As soon as the economic sanc- healthcare system that ever greater numbers until the outbreak of ly specialist medical treatment not available will, if necessary, also mobilise their vast in- tions had been lifted, affluent Libyans joined the Revolution. in Libya at the moment” says Herman Klijns- ternational network of university hospitals. Algerians in turning to the Tunisian health- Libyans can have confidence ma, chairman of the DLCC. “Together with Maastricht UMC has already been active in care system, because of what they viewed as in, it is Tunisia that today the Libyan medical doctor Hakim Aljadk, we Saudi Arabia for many years, partly together to open regional offices in Tripoli, Benghazi, the limitations of their own hospitals and started a company called ‘EuroMediCare with KPMG Global Healthcare. So they know Sebha and other Libyan towns.” clinics. provides it. Provider’ which is focussed uniquely on pro- each other very well, which ensures a smooth viding these Libyan patients with the spe- and efficient cooperation”. Financing for this potentially huge project is Nowadays, it is not simply the wealthy who cialist treatment they urgently need”. now being discussed with several private and travel from Libya to Tunisia for medical at- Libyans lack confidence in local healthcare public sector parties in Libya and the Neth- tention. The Libya Herald met Salem Omar, This month, a first group of around 20 pa- It is not just life-threatening diseases like Dr Aljadk, who works at the Abusleem Uni- tients is due to arrive in the Netherlands, from Tarhuna. In his late 40s, he was travel- erlands. “KPMG will advise us on this”, says Khadija’s that are being treated in Tunisia. versity Trauma Hospital in Tripoli, was re- followed by a further 200 in September and ling to Tunis where his younger sister Khadi- Klijnsma. “The experts see no problem what- Almost anyone, certainly in Tripoli and west- sponsible for coordinating the care of Libyan October. They will be selected by one of the ja, who is being treated for cancer in the St soever, because they expect the company to ern Libya who can afford it, heads over the fighters wounded in the revolution and who several regional Central Committees of Augustin Clinic in the Tunis suburb of Men- be able to finance itself almost right from the National Office of Tunisian Tourism border if they have a serious illness. In the needed treatment overseas, for instance in Medical Treatment in Libya. It is expected zah. Doctors in Libya had failed to diagnose beginning. absence of a healthcare system that Libyans the Netherlands, Germany and India. that EuroMediCare Provider will be com- what was wrong with Khadija, so Salem took Tunisian clinics attract international patients can have confidence in, it is Tunisia that to- missioned by this and other Libyan regional her to Djerba for a spa cure. A doctor there “This has made us decide that if everything There was also a growing flow of medical day provides it. “His vast recent experience with the hospital- Health Committees to organise and coordi- referred her to a private clinic where her can- goes well and EuroMediCare Provider will tourists from Libya seeking a wide range . isation of Libyan patients outside Libya, to- nate the hospitalisation of many more Liby- cer was spotted and treatment begun. of treatments in private Tunisian clinics in There is, however, one fly in the healthcare gether with our cooperation agreement with an patients in the coming years. be up and running successfully, a fixed per- the capital Tunis, as well as Sfax and Sousse. ointment: the Ras Jedir border crossing. It is the Dutch Maastricht University Medical centage of all revenues will automatically Omar now travels regularly between his The impetus was the declining standards of subject to frequent closures. Thus, according Centre and with KPMG Global Healthcare be set aside for the company’s charity fund, home and his sister’s clinic. To save money healthcare back home. Tunisian clinics had Division, mean EuroMediCare Provider has Preparing regional offices dedicated to healthcare-related projects, to on accommodation, he rents a house in the to Grami, NOTT figures show a year-on-year be chosen together with the advice of Libyan also become popular with Europeans seek- working-class neighbourhood of Cité Ibn drop in Libyan visitors this January of al- created a strong top-quality global network “We have been told by a senior representative ing everything from complex surgical pro- Khaldoun rather than stay in a hotel. So far, most 18 percent. The figure improved slightly of highly specialised healthcare specialists of the Libyan Health Ministry that there is experts. “After all”, adds Klijnsma, “although cedures to health spa treatments. The island he says he has spent some LD 8,000 on every- in February. Nevertheless, no one is yet dar- which is available to Libyan patients”, says a strong need in Libya for a professionally- the organisation is a commercial one, our of Djerba, just over a two-hour drive from thing, but he insists, it is still cheaper than if ing to predict that both general and medical Klijnsma. managed central planning and coordination primary objective is looking after Libyan Tripoli, had become famous for its thalasso- Khadija had been treated privately in Libya. tourism from Libya will soon return to pre- facility which will take care of the hospitali- patients who need specialist care, to hope- therapy and seawater cures. It seems certain, however, that when he re- revolution levels. Grami says he prefers to be Special international network sation of Libyan patients abroad. That is why fully be able to continue to live a happy and turns with her when her treatment is com- cautious and accepts that at the moment the “At all times we have to be able to act very EuroMediCare Provider is preparing now healthy life”. With the outbreak of the revolution, up to pleted, they will not be spending a week or Libyan market is volatile. 900,000 Libyans fled to Tunisia but, inevita- bly, medical tourism plummeted. However, immediately after the conflict, Tunisian clin- ics like those elsewhere in the MENA region, particularly Jordan and Turkey, benefitted from the Libyan government’s programmes sending the war wounded overseas for treatment.

There were still half a million Libyans regis- tered as living in Tunisia last year. However, Tunisia’s own revolution and the political tensions which followed have dampened the flow of tourists, both medical and rec- reational from Europe. Tunisia is still work- ing hard to rebuild itself as a major tourist destination. Dutch EuroMediCare Provider logo Ezzeddine Grami, Director National Office of Tunisian Tourism, Tripoli

12 Business Eye August / September 2013 August / September 2013 Business Eye 13 focus HEALTHCARE

Confidence in Libya-Canada health cooperation: Canadian Ambassador Michael Grant By Sami Zaptia

anadian Ambassador Michael explained. In March, five Canadian organi- Grant is proud of the relationship sations (UHN, the Libyan-Canadian Medi- between Libya and Canada, espe- cal Association, Accreditation Canada, Inter cially in the health sector. “Many health and the Royal College of Physicians CLibyan doctors have trained and are still & Surgeons of Canada) conducted a two-day training in Canada. During the revolution workshop in Libya, which culminated in the many came back to help, including on the signing of an MoU on training with the Min- front lines. This relationship encouraged istry of Health. Canada to do more in the Libyan health sec- tor”, he explained. To coordinate this help, Focused on improving the health system the Libyan Canadian Medical Association “Health is about building long-term relation- (LCMA) was formed, since when it has been ships. Canadians are proud of their health highly active. sector”, the ambassador said. He was confi- dent that the Canadians and Libyans were New Libyan Canadian agreements now starting to put meat to the bones of Recently, a Libyan-Canadian agreement was the MoU. These agreements are expected to Signing Canada-Libya MOU signed between the Libyan Ministry for the be comprehensive, covering management, Wounded and UHN (University Health Net- training, fellowships in Canada, and Public work). UHN represents a group of Toronto- Private Partnerships for building Libyan “Over the last 20 years, these based hospitals that take Libyan conflict hospitals. Canadian health consortia casualties to Canada. Unlike other nations, where there have been some problems in the “This is about a long-term vision for Libya’s have built up much processing of Libyan injured, the Canadians health sector,” Grant explained. “Others are experience working in the have enjoyed a polished routine and estab- here,” he said referring to the competition, Gulf and, therefore, this led lished good relations, including a smooth “but it is a big sector and there is enough for payment process. everyone to do. Canada is concentrating on to thinking about improving the current system – giving spe- working in Libya” “Over the last 20 years, these Canadian health cialised training to Libyan doctors to refresh consortia have built up much experience them. I expect we can see firm contracts working in the Gulf and, therefore, this led coming up – I think they are on the right path to thinking about working in Libya”, Grant and going in the right direction.”

Libya - Exhibitions & Conferences (September – December 2013) Date Title Location Contact 9-11 September 2013 Libya Franchise Corinthia Hotel, Tripoli www.franchise-ly.com 9-12 September 2013 The Build Expo-Misrata Misrata International Fairground www.buildexpo.libya 10-12 September 2013 10th Libya Healthcare Exhibition 2013 Tripoli International Fairground www.maf.ly 16-18 September 2013 Libya Forum, Oil, Gas & Sustainable Growth Corinthia Hotel, Tripoli www.cwc-libya-forum.com 17-18 September 2013 FDI Libya London, UK www.fdilibya.com 23-26 September 2013 4th Big 4 Show Rebuild Libya Tripoli International Fairground www.big4showlibya.com 1-3 October 2013 Consume Expo Libya Tripoli International Fairground www.consumexpolibya.com 22-24 October 2013 Tripoli Fair for Advertising, Printing & Marketing Tripoli International Fairground www.libyatifa.com 24-25 October 2013 Libya Security & Defence London, UK www.libyasecuritydefense.com 26-30 October 2013 Libyan Dates & Associated Industries Tripoli International Fairground www.de.lepc.ly 5-9 November 2013 6th Libya Motor Show Tripoli www.motorshow.ly 12-14 November 2013 3rd Libyan Household Exhibition 2013 Tripoli International Fairground www.householdlibya.com 28 Nov – 1 December 2013 Tripoli Motor Show Mtiga Airport, Tripoli www.tripolimotorshow.com 4-7 December 2013 Libya CONS 2 Tripoli International Fairground www.libyacons-tr.com 16-18 December 2013 12th Arab Structural Engineering Conference Dat El Emad, Tripoli www.asec12.ly / www.asee.ly

14 Business Eye August / September 2013 ENERGY ENERGY

Eastern refineries Together with offshore oil production in western Libya and gas pro- Lack of output from Agoco’s eastern fields has worsened an already duction at Mellitah’s West Libya Gas Project, this is the only part of Government tries to lift bad situation at Libya’s eastern refineries. The small refinery at To- the whole industry which, for the time being, is operating as it should. bruk is not working and the 220,000 b/d Ras Lanuf Refinery, Libya’s largest, is also down. Having closed for routine maintenance, its John Hamilton is a contributing editor at African Energy www.africa- workers went on strike and it has not reopened. However, even if it strikes but oil problems persist energy.com, and a director of Cross-border Information:www.crossbor- does restart, it cannot operate for long. It “went down for planned derinformation.com . maintenance and didn’t come on again. Even if it does come back it By John Hamilton has only five days of crude in storage,” said the international oil mar- ket source. It is supplied with a blend from Messla and Sarir rather July was a disastrous month for Libyan oil production as output fell below than from fields closer to it in the central part of the Sirte Basin.

400,000 b/d due to strikes at some of the major export terminals. The Supplies from western Libya authorities hope to resolve some of the complaints motivating the blockades, Problems at fields and terminals in the west of Libya have mostly been due to protests rather than technical issues. MOG’s El Fil (or however, officials are not yet confident of regaining full control and in the Elephant) field was shut in because of a dispute between local Tebu tribes and security personnel provided by the Zintan Military Council. short term the outlook is uncertain. As this edition of Libya Herald Business Exclusive distributor in According to a document posted on Facebook, the Zintan militia at El Libya for: Eye went to press, there has been a marked deterioration in output, with Fil have requested 30 SUV vehicles, the employment of thuwar in the strikes and blockades at export terminals and oilfields. company, training of thuwar – including overseas – at the company’s Parker Hannifin expense, health insurance and a range of other benefits and conces- Instrumentation and sions. It said these things were necessary as compensation for costs

incurred since they took over security at the field in November 2011. n July, before the start of Eid, Deputy Oil and Gas Minister block exports to gain leverage in constitutional negotiations. If true, Domnick Hunter Shakmak said the situation at the field was “under control”, although Omar Shakmak said that he expected protests at the Sidra and more disruption is therefore almost certain. filtration products Ras Lanuf terminals to be lifted first. Speaking to the industry production had not resumed. However, it was reported on 11 August that an agreement with staff had been reached and that production newsletter African Energy, he said “I don’t have details yet, but Other terminals have witnessed blockades at various times over the would resume. Ihopefully these two terminals will resume operations”. However, past several months. As with the current shut-ins, they were caused international media reported on 8 August that the Es Sider crude by armed groups supposedly responsible for providing security at the El-Fil oil is exported via the Mellitah terminal which also deals with stream which is exported from the terminal had “collapsed” due to sites. In March, a fire-fight between Zintan and Zuwara armed groups condensate from the Wafa field. This production has also been inter- a strike at the terminal. The Wall Street Journal said that production shut the Mellitah gas complex near the Tunisian border for eight days. rupted. In late July, Amazigh activists blocked the condensate pipe- from Waha Oil Company –normally amounting to about 300,000 b/d, line at Nalut, demanding that their language receive full recognition had ceased as storage at the terminal was full. Sidra has 19 storage Clients include Mellitah Oil & Gas, Mabruk, Ras Lanuf, Waha The Marsa Al-Herigah terminal in Tobruk was closed by members of in the proposed new constitution. tanks with total capacity of 6.2m bbls. Petroleum Facilities Guard in early August. On 7 August, Shakmak described the situation there as “not 100 percent under control.”In Some reports have suggested that production at the As-Sharara [email protected] www.taparkco.com Repercussions for IOCs the first week of August, the week running up to Eid, the government field operated by Akakus Oil Operations and Repsol may have been Waha is owned by National Oil Corporation (NOC) and a trio of US sent out delegations with cash to pay protestors at the terminals. affected by similar problems. But on 7 August a Repsol spokesman Tel: +218 91-212-1272 Fax: +218 21-4910464 companies: Hess, ConocoPhillips and Marathon Oil. According to However, this approach of paying off the guards does not appear to confirmed that “the fields operated by Akakus are working normally Hay Demashque, Al-Hadba Al-Khadra, one industry analyst, a lack of confidence in Waha’s ability to produce have taken affect. and producing at normal levels”. The Zawiya refinery which is sup- Tripoli - P.O. Box 83510 - Libya reliably, thanks to strikes, may have motivated Marathon’s uncon- plied by crude from Akakus is also reported to be working as usual. firmed intention to sell its stake in the joint venture. Differences at Agoco Output from Marsa Al-Herigah is also being affected by major prob- Other companies which export from Sidra include Total’s Mabrouk lems at Agoco, which operates the large Sarir and Messla fields locat- Oil Operations and Wintershall. The Libya Herald was told that nei- ed about 400 kilometres south of Benghazi. ther company had problems at its fields, but they were being affected by the closure of the terminals. A strike at the Ras Lanuf terminal had Union officials at the company have threatened to progressively cut also shut in 200-300,000 b/d of production from fields operated by production unless the company was allowed more autonomy from Arabian Gulf Oil Company (Agoco), Wintershall and the NOC-Sun- the National Oil Corporation (NOC) and its chairman Ahmed Al- Developing renewables in Libya cor joint venture, Harouge Oil Operations. Magbry be retained in his place. There is however, serious dissatis- faction in the Libyan oil industry about Agoco’s senior management. By Sami Zaptia A third debilitating strike interrupted production from companies According to one source, NOC has already made three attempts to which export via the Zueitina terminal. These include Zueitina Oil replace Magbry, but each time the decision has been vetoed by the Oil aced with criticism about rolling power cuts during Libya’s public finances might not be able to meet this invest- company which is part owned by Occidental Petroleum, and Mellitah and Gas Ministry. Ramadan, Electricity Minister Ali Muhairig has said ment, he said foreign investors were ready to participate. Oil and Gas (MOG), a joint venture with Italy’s Eni. According to one that demand for electricity in Libya in the peak sum- industry source, production from MOG’s 100,000-b/d Bu Attifel field Fmer months was over 6,000 MW and that renewable energy’s Agoco’s board is reported to be divided and its personnel are also Libya’s renewable energy prospects will be explored further was then shut in. Shakmak said that resolving the blockade at Zueiti- split between those who support the current management and those contribution was at best about 54 MW. in the International Conference and Exhibition on Renew- na would “need some more time”. Strikes have continued and spread. who accuse it of giving large wage increases to some workers in the able Energy “Towards Sustainable Energy from the Desert”, fields, while neglecting others. It is also blamed for a failure to resolve Speaking in July, the Minister revealed investments in two taking place in Tripoli, 28-30 September. Organised by the Disputes about more than wages fundamental technical problems which are now seriously restricting renewable schemes. Firstly a renewable energy project un- Libyan Desertec University network, topics for the event The problem facing the authorities, according to a Libyan political output. A company source said that “production is very low because der way in Houn, and a 40-MW project starting in Sebha. are expected to include closer consideration of policies and analyst, is that the protests are not only about wage levels and em- of demonstrations and the old problem of electricity. They fixed According to Muhairig, Libya has huge potential in this field, legislation, technologies, applications, capacity-building, fi- ployment, but are also a way of activists demonstrating autonomous some fields but then there is another problem in another field. The but it needs billions in investment. While in the short-term, nancing and public awareness. control over energy production in the east of Libya. He said that po- equipment and surface facilities are old in general.” litical groups pushing for federalism in Cyrenaica had an incentive to

16 Business Eye August / September 2013 August / September 2013 Business Eye 17 energy energy

cubic meters of gas, now we are receiving cuts because, Muhairig explained, the high- budget was used exclusively to pay for the only 190.” complained the Minister referring est levels of consumption in Libya were in fuel for the electricity subsidy. “We get noth- Electricity shortages – to the July Zueitina oil terminal stoppage. the greater Tripoli area. Excess electricity ing from it”, stressed the Minister. He also of between 400 - 500 MW was being trans- emphasised that his Ministry only received ferred from the east to the west. However for its budget in May. technical reasons, and the way the grid sys- solving mission impossible? Libya’s electricity sector tem was designed, that was the limit of what Despite the torrid time that the Electric- could be transferred. By Sami Zaptia “had suffered more than LD ity Minister came in for during the power- cut punctuated month of Ramadan, he was 1 billion’s worth of damage The Electricity Minister expressed his sur- nonetheless happy to highlight the fact that during the (17 prise at the high rate of increased electricity he was responsible for supplying power to lectricity cuts are never popular and consumption in Libya, and especially in the February 2011) the nation’s water supply, and that this has no more so than during the peak revolution” west. He explained that in 2012 Libya’s total heat of summer and the fasting consumption was 5,600 MW and that this been operating normally. month of Ramadan. When Electric- had shot up to 6,200 MW by July 2013. There Eity Minister Ali Muhairig took up office last was a huge leap in consumption – up to 25 But despite the demands, Muhairig said that December he was faced with a major mission percent in some areas – he said. a great deal has been achieved in a very short to supply adequate electricity by the follow- A 350 to 500 MW deficit period of time. He regarded what his staff ing July. The fuel shortage resulted in a 350 to 500 Unpaid bills and unplanned buildings had done in that short period as a record MW deficit. “We have generators and we are This was partly explained by the number of achievement. unable to use them fully. The money the gov- This was never going to be easy. Building unplanned buildings including the springing ernment had invested in importing the APR power stations takes years and the Minister up of rows of shops in areas previously clas- mobile generators was wasted, because the had only seven months until summer. Moreo- sified as residential zones. Unplanned build- fuel strike had cancelled their intended posi- ver according to Muhairig, Libya’s electricity ings mean that the electricity company could tive effect – it is as if Libya had not imported sector “had suffered more than LD 1 billion’s not forecast and plan in advance for future them”, the Minister lamented. worth of damage during the revolution”. consumption, Muhairig explained. Despite these obstacles, the mobile genera- APR’s mobile generators While 2011 electricity bills were written off tors were successfully installed in Tripoli, When Minister Muhairig inherited the job by the state because of the revolution, in (Fornaj), Khoms, Zliten, and Samnu near from his predecessor, Awad Barasi, he also 2012, only 5 percent of users paid their elec- Sebha. Muhairig said the APR generators inherited the decision to import 250 MW tricity bills, he added. The Minister did not had been “installed in a record time with of generators from APR Energy. In March, have an exact number for 2013, but said that three shifts working around the clock. We APR Energy’s chief executive officer, John since the revolution only a few users had cannot create miracles. We have no control Campion, said the company was honoured paid their bills. He said that the total debts over things outside our sphere”, he stressed. to serve as a partner to Libya as it rebuilt for the General Electricity Company Of and developed its economy. “This project is Libya(GECOL) together with the Ministry of Excess capacity in the east ground-breaking for the country in terms of Electricity were LD 4 billion and explained both scale and scope,” he stated at the time. The east of Libya had avoided the power that the LD 2 billion allocated in the 2013 APR’s electrical mobile generator Ali Muhairig was so keen that the new gener- ators arrive on time that in May he revealed that some had arrived on board an Antonov plane at Mitiga airport. They had all been expected to arrive by ship. But Minister Mu- The Second Libya Oil and Gas Forum ter the Libyan oil and gas market. This, hairig also decided to increase generating ca- Decision- is set to take place 16-18 September according to the IMF, makes up more pacity by ordering a further 200 MW’s worth 2013 at the Corinthia Hotel in Tripoli. than 70 percent of Libya’s economy of generators. The Minister felt that 450 MW APR’s electrical mobile generator The first Libya Forum , in September should have been enough but, if not, there makers to meet and generates almost all the state’s 2012, opened by the then Oil Minis- would only be some minor power cuts. revenue. have been used as a political tool with which destroyed. Added to this there have been ter, Abdulrahman Bin Yezza, and NOC to fight the new state and with which to help repeated attacks on electricity installations, at Libya Oil & head Nuri Berruien, succeeded in The event will also involve industry Justifying his decision to purchase mobile mobilise public support against the new pillage of property, equipment and vehicles drawing senior delegates from across experts from major international oil power units, he said that there were exam- authorities. as well as the stealing of overhead power Gas Forum the hydrocarbon industry in Libya as companies, such as Italy’s Eni and ples for Libya to look at. For example Tuni- lines for the copper cables. well as abroad. sia had purchased from the same supplier. Just in July alone, Minister Muhairig report- Spain’s Repsol, and service companies. Japan, the US, Pakistan and Iraq had also ed that the Central Control headquarters, Effects of insecurity This year’s event will include the pre- They will provide insights into work- bought similar equipment. which deals with the entire electricity sup- ing in the Libyan oil and gas industry. “Some (regular) power stations have been By Sami Zaptia sent Minister of Oil and Gas, Al-Arusi, ply in Libya, was attacked by an armed group. operating for 50,000 hours and had not been and Nuri Berruein. They will provide Topics for discussion include the re- Arson, theft and sabotage There was then a second attack on the Tripoli serviced since 2011”, the Minister noted. “We an overview of Libya’s hydrocarbon quirements for technology and human The destruction of Libya’s electricity sector South station with the Electricity Company’s are unable to service them since the Siemens sector and the opportunities available capital development needed to meet did not stop with the end of the revolution. vehicles being stolen. There were also at- and Alstom personnel are unwilling to travel for potential investors looking to en- Libya’s future production targets. Common criminals and some suspect, en- tacks on the Garabulli and the Sirte power to Libya due to the security situation”. There emies of the new “Free Libya”, realised the stations; the later was substantially damaged. is also the issue of industrial disruptions to political sensitivity of power cuts. Power cuts It was then again attacked and equipment fuel supplies.“We were receiving 315 million

18 Business Eye August / September 2013 August / September 2013 Business Eye 19 ECONOMY & FINANCE ECONOMY & FINANCE

New LFB board sets strategy for growth CBL issues first ever foreign Libya Herald interview Libyan Foreign Bank Director General Mohamed Ben Youssef exchange licences By Ashraf Abdul Wahab By Sami Zaptia

he Central Bank of Libya (CBL) is- quired by banks. There is also a list of goods ince it was established almost 40 sued the first licences for foreign that are approved by the CBL for the official years ago, the Libyan Foreign Bank exchange bureaux on Sunday 21 transfer of currency through local banks. For has accumulated a wide-ranging July. Foreign exchange had been example an account holder is not free to in- international portfolio of financial Tthe monopoly of banks during the Qaddafi struct his bank to transfer a large amount Sinstitutions. era, so this is the first time the CBL has li- of currency, say $100,000, from his account cenced this activity to non-banking opera- without providing a proforma invoice for Its network of 45 banks spans 28 countries. tors. There were 480 applications from all goods. And after the arrival of these goods Among the most prominent of the bank’s over the country, with the demand for licenc- at the port, they will only be released by holdings are its majority stakes in the Rome- es so over-subscribed in Tripoli and Beng- customs once a certificate is provided prov- based Banca UBAE and British Arab Com- hazi that the CBL had to organise a public ing that the money had been transferred mercial Bank in Bahrain. The Italian bank draw for the limited number it was offering CBL public draw for licences through a bank. has long processed settlements for liftings of in 2013. In Tripoli, only 72 of the 195 appli- giving state-owned enterprises and cronies Libyan oil and gas on behalf of the National cants were awarded licences. of the regime a preferential exchange rate. A large transfer of $100,000 or above, with- Oil Corporation. out the intention to import goods into Libya, This preferential rate created a huge cor- Despite the existence of a monopoly on for- would normally be transacted through the rupt black market whereby foreign currency, However under the old regime, the Libyan eign exchange services by banks, regulated vibrant, reliable and speedy black market. Foreign Bank, which is fully-owned by the by the state through the CBL, a huge black overwhelmingly US dollar, leaked into the Central Bank of Libya, suffered from poor market in foreign exchange has been thriv- open market. It will be interesting to see if the CBL is management decisions, influenced in part ing in Libya for decades. During the Qaddafi planning to loosen its control on currency by outside interference from those close to regime, the state controlled and manipu- It is worth noting that foreign currency ex- transfers or whether strict transfer limits Qaddafi. It was in no small measure because lated the exchange rate of foreign curren- change is still restricted by the CBL, because will be enforced on the new foreign exchange of this, that the bank struggled to cope with cies restricting its flow into the market and proof of entry of goods into Libya is still re- bureaux. the effect of the economic sanctions imposed during the uprising. These have all now been lifted. Libyan Foreign Bank, Director General Mohamed Ben Youssef New management team making changes Since the revolution, a new management ist training in Islamic banking and Sharia- As part of the drive for this new business, team was put in place under Director Gen- compliant financial products. This move is of Libyan Foreign Bank this May opened a eral Mohamed Ben Youssef. This has set crucial importance as Libyan Foreign Bank new branch in the Misrata Free Trade Zone. about reconstituting Libyan Foreign Bank’s is currently seeking to acquire a significant Youssef says that typical deals will be for be- investments, unraveling often complex in- minority stake in an Islamic bank with some tween LD 5 and LD 20 million. ternational cross-ownership arrangements, 450 branches around the world. as well as the restructuring of the bank itself. The bank, along with the rest of the financial sector, is awaiting a raft of moves from gov- As Ben Youssef explains, the bank’s internal ernment including the classification of busi- We’re often there systems had been woefully underdeveloped. “The best and shortest nesses and, of fundamental importance, a Therefore it is undergoing a transformation resolution to the issues of clear title to land before a business with, for instance, the introduction of state- way to success and property. Of no less importance, says of-the-art information and communications in banking is Youssef, is the establishment of civil courts becomes successful. technology. The new management team has through a focus on that can adjudicate quickly on financial dis- and still there When also introduced a far closer focus on human putes and guarantee the rights of lenders if resources and career development. training” borrowers fail to meet their obligations. they do. We don’t just help businesses start their ©2013 EYGM Limited. Reserved. All Rights Investing in human resources Funding expansion plans ascent. We take your goals to heart and use “The best and shortest way to success in Libyan Foreign Bank’s ambitious expansion our experience to help you at every stage banking,” says Youssef, “is through a focus Lending to new businesses plans will also need a capital restructuring. of your journey. Because we believe our on training. The United States requires com- Libyan Foreign Bank itself has always been Only $3 billion of the nominal $8.7 billion greatest success is helping you achieve yours. panies to allocate two percent of their capital a wholesale bank, lending to companies and is currently paid up. Youssef says that he ex- Find out more at ey.com. for training and that is what we are seeking state institutions. Youssef says that as the pects the rest of the capital to be put into the to do as well”. Libyan economy refocuses away from its bank by 2014. + 218 21 334 4130 almost total dependence on hydrocarbons, [email protected] Besides a programme to upgrade the skills of it will be important for the institution to be On a capitalisation basis, the bank is already some 400 staff with overseas training, there involved in lending to Small and Medium- one of the largest Arab financial institu- is now in-house education in such areas as size Enterprises (SMEs), where the greatest tions. With the full take up, Libyan Foreign marketing and credit controls. Personnel demand and the greatest economic growth is Bank will become one of the top 100 banks have also been sent to Bahrain for special- going to come. worldwide.

20 Business Eye August / September 2013 August / September 2013 Business Eye 21 ECONOMY & FINANCE TRANSPORT

LD 100 bn available to finance local economy Flying business class Libya Herald interview Gumhouria Bank Chairman Musbah Akkari Libya Herald interview Minister of Transport Abdulgader Ahmed By Sami Zaptia By Sami Zaptia n 17 July, Libyan Airlines took de- livery of its second Airbus A330- itting in the business class section of 200 and the Libya Herald was in- the latest Airbus A330-200 to be de- vited to sit in business class next livered to Libyan Airlines, Gumhou- Oto Transport Minister Abdulgader Ahmed ria Bank Chairman Musbah Akkari for a short flight over Tripoli with a group of Slooked even more contented than most of VIPs. the invited guests.“We provided finance for the purchase of this plane”, he said proudly. “The arrival of this Airbus changes the profile “There are other banks involved in the loan: of the fleet”, exuded the Minister sitting in Sahara (BNP-Paribas), National Commercial the front row. “This (the A330) is long haul,” Bank, Wahda and the Libyan Foreign Bank, said Ahmed, himself a former pilot. but we are the leading lender”, Akkari added. Flying long haul Financing for Libyan Airlines Asked what were Libya’s plans for the plane, The loan he was referring to was a LD 1.4-bil- the Minister confirmed that the airline was lion credit to Libyan Airlines to help finance “studying plans to fly to Canada in coopera- its aircraft purchasing programme. The bank tion with Tunisair”. chairman explained that Libyan Airlines is purchasing 14 aircraft. “It has received sev- This news had been leaked by Tunisian me- en A320s and two A330s and there are four dia a few days earlier, but was not confirmed A350s and another A330 to arrive in 2014 by any Libyan sources. The reports had been and 2015”, explained the man providing the that it would be the other state-owned Lib- single biggest chunk of money. yan carrier, Afriqiya, that was talking to the Tunisians. Transport Minister, Abdulgader Ahmed Libyan banks have been coming in for criti- cism recently for sitting on pools of cash and The Transport Minister had a different view- Airport was obviously safe enough for lead- leaving the economy hungry for financial ing international carriers such as British Air- point. “We prefer that this (flying to Canada “We also hope to return our support. “People say we don’t lend”, retorted in conjunction with Tunisair) is done using ways, Lufthansa and Etihad to fly into. Libya Akkari, “but when we find appropriate guar- Libyan Airways rather than Afriqiya as this clearly has the latest aircraft, purchased at a long haul flights to China cost of hundreds of millions, yet its airlines antees, we lend. Look at this huge loan (to plane carries the Libyan name”, he said. and South Africa Libyan Airlines), for example”, he said. are forced to wet-lease aircraft, at great cost, in order to service destinations. and are studying “We also hope to return our long haul flights Ready to lend to China and South Africa and are studying flights to the USA” The Transport Minister agreed that Libya “Where there are adequate guarantees, we flights to the USA”, he added. was not benefiting from its investments in are very happy to lend,” he explained. “We Gumhouria Bank Chairman, Musbah Akkari its latest aircraft but steps were being taken have initiated discussions with various min- One of the possible reasons that Libyan to solve the problems that the Libyan Civil The ban was originally supposed to have end- istries, for example the Ministry of Housing, state-owned carriers were seeking to fly to Aviation Authority was having. ed last November. Last month, the Director to propose loans and projects in the housing Ready to help the development of Libya Canada in conjunction with Tunisair is the sector as well as the Ministry of Economy to “So you see, Gumhouria Bank is ready to give General of the Libyan Civil Aviation Author- fact that they are currently serving a “self “We are going to sign an agreement with an propose loans for SME projects and to help loans so long as there are adequate guaran- imposed ban” from flying to Europe. Irish organisation to help raise the standards ity, Captain Nasereddin Shaebelain, said he the unemployed and for development. tees. We are ready to fund large projects on at the Libyan Civil Aviation Authority”, the expected it to remain in place till the end of our own or jointly through a syndicate. We Working to meet European standards Minister revealed, and “we hope to be able to this year because the recertification process “We have also made proposals for loans to are ready to help the development of Libya.” At the risk of spoiling the Transport Minis- end the flight embargo within two to three the Ministry of Electricity for three solar ter’s celebratory mood, I raised this conten- months”. for Libyan pilots and crews was taking longer power stations, and we are also meeting the The Gumhouria Bank Chairman also con- tious point with him. Tripoli International than anticipated. Ministry of Transport to discuss the possi- firmed that Libya and its financial sec- ble loan to finance a proposed port in Shahat tor, private and public, have the money (Cyrene).” to self-finance their future growth and development.“The Libyan banking sector can provide loans of up to LD 100 billion”, Akkari explained. “This can go up to LD 400 “Where there are adequate billion with leverage” he added. “We can help Gumhouria Bank provided guarantees, we are raise the standard of Libya’s economy and finance for the purchase of the help its development and economic diver- latest Airbus A330-200 to be very happy to lend” sification to a high standard within four to delivered to Libyan Airlines. five years”, predicted a confident Gumhouria Bank Chairman. Tripoli Port aerial view Libyan Airlines new Airbus A330-200 LibyaHerald in-flight e-reader

22 Business Eye August / September 2013 August / September 2013 Business Eye 23 TRANSPORT TRANSPORT

The Most Prestigious Meeting Libya Herald British Airways increases for the Libyan Oil Industry & London-Tripoli flights International Partners

Produced By Fully Supported Starting 2 September, Brit- Sunday as these are popu- & Endorsed By Business Eye ish Airways is to add a fourth lar travel days for business weekly flight between Lon- customers. don and Tripoli. The new flying high! Monday service will leave The additional British Air- London at 08:50 and arrive ways flight indicates a con- in Tripoli at 13:25. It will tinuing growth in business Libya Herald Business Eye then depart the Libyan capi- interest in Libya, with Afri- tal at 15:30, arriving at Lon- qiyah and Emirates also an- magazine will now be available to don Heathrow’s Terminal 5 nouncing new flights. Alita- international airline passengers as at 18:15. British Airways says lia has doubled the number it scheduled its Tripoli-Lon- of its flights on the Tripoli- 16-18 September 2013 | Tripoli | Libya an e-magazine via their in-flight don services on Mondays, Rome route by adding a sec- Petroleum Leadership & Tuesdays, Thursdays and ond daily flight. Maximising Unconventional Law Human Capital entertainment screens. Production Gas & Contracts Development Libya Herald Business Eye displayed on in-flight reader By Sami Zaptia For further information on the Libya Forum 2013 contact Phillip Clarke on + 44 20 7978 0056 or [email protected] he Libya Herald has signed an his- Air travellers, confined to their seats for most their flight. Now travellers to and from Libya Emirates to restart Tripoli route Gold Sponsor Silver Sponsors toric agreement with the world’s of the flight are eager to be entertained in a and beyond will be able to read Libya’s fore- Emirates, the Middle East’s largest airline is restarting its services to foremost specialist in-flight enter- multiplicity of ways. Today’s modern fleets most English-language business publication Tripoli at the beginning of September, with special promotional fares tainment software and solutions of aircraft provide an array of in-flight enter- from their seats before they land. to Dubai and China. From September onwards, Emirates will service Tprovider, DTI. tainment on their medium-long haul flights Tripoli three times a week with a short stopover in Malta, using a through their in-flight entertainment mod- So, lookout for Libya Herald Business Eye Boeing 777-200ER. The flight will leave Dubai every Sunday, Tues- Bronze Sponsors As a result, the Libya Herald Business Eye ule. The digital version is the same as the magazine during your next trip on your in- day, and Thursday at 09.30 arriving in Malta at 13.25 and departing magazine will now be available to interna- printed version, complete with all articles, flight entertainment screens. As we join you Malta at 14.45 to arrive in Tripoli at 15.55 The return flight will leave tional airline passengers as an e-magazine images and advertisements – but with added onboard, flying high in the sky, keeping you Tripoli International Airport at 17.25 and will land in Dubai at 01.00. via their in-flight entertainment screens. To functions such as zoom, scroll and multi- informed on Libya’s business scene. www.cwc-libya-forum.com the best of our knowledge, the Libya Herald page view. will be the first ever Libyan publication to be made available digitally on board interna- The Libya Herald maybe only 18 months old, tional flights. but in that time it has raced ahead to become Afriqiyah ups the market leader in its niche with its daily DTI caters to over 100 airlines around the news website www.libyaherald.com attract- world with approximately 400 million pas- ing over 200 million hits since its launch on European services sengers seeing DTI content each year. Their 17 February 2012. Kufra airport upgrade contract By Tom Westcott digital publications reader eReader means activated with Italian company that passengers can have access to a wide dig- It has embraced the latest digital technolo- Libyan state-owned airline Afriqiyah Airways has boosted its Eu- ital library of newspapers, books and maga- gies and combined with DTI, the world’s ropean services with a new Friday flight to London and two weekly By Sami Zaptia zines – now including Libya Herald Business leading in-flight solution provider to offer onward connections to Khartoum. Eye available first on Libyan Airlines. travellers a digital reading experience during The contract to upgrade Kufra International Airport, origi- Libyan Airlines in-flight entertainment screeen It added the fourth flight to its Tripoli-London service in July, to nally signed in 2010, was reactivated on 22 July, when Kufra accommodate the extra passengers expected over the peak season. International Airport Director, Salheen Ebhiri signed the Initially, take-up of the new Friday flight was slow but within three “site handover” with Bruno Alberto Salis, Libyan Branch Man-  Business consultancy & advisory weeks flights from Gatwick were full, Head of Afriqiyah’s UK opera- ager of the Italian construction company Salini. The signing tions Alan Mates told the Libya Herald. The flight, just confirmed for ceremony was attended by Ezzeldine Abu-Rawi Giwa, repre-  Q&A ­ Market research surveys Afriqiyah’s winter schedule, has now been made permanent. sentative from the Transportation Projects Implementation  Event management & trade missions Authority, the head of the Intelligence and Security Affairs Of-  Design, deliver & manage training Afriqiyah has also started flying from London to Khartoum via Trip- fice, Khalil Muftah, and an official from the Italian Embassy  Cultural awareness & doing business oli, resuming the first of its sub-Saharan routes which stopped in in Tripoli. 2011 just days after the start of the revolution. The London-Khar- Local insights + international expertise .  News, media & marketing toum connection is a twice-weekly, semi-direct flight with passen- The contract is for the re-building of the airport’s main run- transferring knowledge gers changing planes in Tripoli.“The Tripoli connection is now the way, the parallel driveway and the side driveways as well as raising awareness Know Libya quickest way of getting from London to Khartoum,” said Mates. He the aircraft taxiing area and the airport’s lighting system. Ac- Research, Training & Consultancy added that Afriqiyah is looking at adding further African destina- cording to Salini Impregilo, work at the airport should start by developing skills tions towards the end of the year. the end of August 2013 and is expected to be completed within building opportunity Hay Demashque, Tripoli – Libya 20 months. The project is good news for Kufra International www.knowlibya.net [email protected] Fax: 021 491 0464 Afriqiyah’s European flights are all being serviced by an Airbus A319, Airport which received its first Libyan Airlines aircraft from Sami Zaptia Mob: 00 218 91 212 1272 wet-leased from Tunisair. The aircraft, less than a year old, has 12 Tripoli on the 5 July after a nine-year suspension of flights. www.knowlibya.net business seats, which has enabled Afriqiyah to once again start offer- ing business class seats.

24 Business Eye August / September 2013 August / September 2013 Business Eye 25 CONSTRUCTION CONSTRUCTION

Italian company has announced it Third Ring Road contract to be re-tendered is ready to build coastal motorway By Sami Zaptia he Housing and Infrastruc- ture Board’s (HIB) Chairman, By Sami Zaptia Mahmoud Ajaj, has said that the remaining section of the Tripoli n Italian consortium led by Sa- in Libya and Italy, would be wholly financed a historic presence in Libya, where it has TThird Ring Road project would be re-offered lini Impregilo Group is ready to by the Italian government. It includes a two- constructed a number of major infrastruc- to companies to re-tender. build the first section of the new percent performance bond and an advance of ture schemes. These include the airports of 1,700-kilometre coastal highway, 15 percent, equivalent to €145 million. Benina, Misrata, Sirte and Sarir, the ports of Libya’s HIB is the implementing arm of Lib- Astretching from the Tunisian border to that Khoms and Brega, industrial complexes in ya’s Ministry of Housing and Utilities. It is with Egypt. The contract, worth some €963 The designs for this first section are com- Ras Lanuf and Misrata and the sewerage and estimated to have projects worth up to LD 50 million (LD 1.6 billion), is for the 400-kilo- plete, according to a statement from Salini water supply system in Benghazi. billion ($40 billion). The Tripoli Third Ring metre stretch from Marj to Musaid on the Impregilo, and the necessary documentation Road project was awarded in 2007 and was Egyptian border. It will include the construc- for a general tender process to be opened at Salini Impregilo is currently refurbishing being undertaken by the Libyan-Brazilian tion of 12 bridges of 2.2 kilometres in length, the end of September, are being prepared. Kufra airport, while commercial and con- Construction and Development Company Tripoli unfinished motorway construction eight service areas and six parking areas. tractual negotiations are also reportedly un- (LBCD), a joint venture operation between However, in view of the present security situ- derway with regard to other major projects. es and service roads. Before work stopped ture that was awarded the Tripoli Interna- Brazil’s Odebrecht (60 percent) and the The consortium includes Societa Italiana per ation, there are doubts whether the contract because of the 17 February Revolution, it tional Airport project in 2007. Through its Condotte d’Acqua, Impresa Pizzarotti and will stipulate the contractors start work 30 The second phase of the coastal highway will Urban Development Holding Company employed up to 2,000 multinational workers. Portuguese subsidiary, Bento Pedroso Con- (UDHC) (40 percent), a subsidiary of HIB. Ajaj said that Brazilian contractor Odebrecht and Cooperativa Muratori & Cementisti. Sa- days after the signing. Other contracts have be the section from the Tunisian border to strucoes (BPC), Odebrecht held 50 percent, lini Impregilo Group has a 58-percent share been signed in Libya recently but questions Misrata. would be given a chance to re-tender for the Turkey’s TAV 25 percent and Lebanon’s in the contract. Work is expected to start remain about foreign companies’ ability to The $350-million project involved the con- project. within 30 days after signing the contract and, operate in the present circumstances. struction of 23.8 kilometres of two three- Consolidated Contractors Company (CCC) according to a statement on the Libya Prime lane highways, with 21 bridges and overpass- Odebrecht was also part of the joint ven- 25 percent share in the JV. Ministerial website, the project will take be- Additionally, there are hundreds if not thou- The Salini Impreglio contract, tween two to three years to complete. sands of pre-2011 stalled projects all over Libya awaiting recommencement. Many which is expected to create Coastal motorway project foreign contractors await compensation and 2,000 jobs both in Libya The coastal motorway project was agreed by payment settlements as well as a secure en- Qaddafi and former Italian Prime Minister vironment within Libya before considering and Italy, would be wholly Silvio Berlusconi in August 2008 as com- starting or restarting operations pensation for the colonisation of Libya by financed by the Italian Italy. As such, the Salini Impreglio contract, Long track record in Libya government. which is expected to create 2,000 jobs both The Salini Impregilo Group itself can boast

Local companies win road tenders

In July, the Tenders Committee of the Roads and Bridges Authority announced that it had awarded 48 other projects to local companies. The Ministry of Communications and Transport’s Media Advisor, Adel Mahjoub, said that the companies would start work soon. The Libya Herald ob- tained an official list of the winning companies, which in- cludes a short description of the projects and their locations.

The values of the contracts were not disclosed. The projects, widely spread across Libya, do not include new road-build- ing projects. They are contracts for maintenance, prepara- tion, cleaning and the painting of road-markings.

Aerial view of roads in Tripoli

26 Business Eye August / September 2013 August / September 2013 Business Eye 27 CONSTRUCTION CONSTRUCTION Stalled projects must resume: Zeidan AECOM coming back? By Sami Zaptia AECOM, one of the world’s leading project management firms, plans to return rime Minister Ali Zeidan has Libya in the current security situation, and stressed the need for Libya to re- whether his government was considering to Libya after pulling out because of the 17 February Revolution. sume stalled projects, saying that any special security measures specifically the 2103 budget had allocated LD for foreign employees should they chose to By Sami Zaptia P20 billion to such projects as well as ones return to their projects. in progress. There could be problems, he warned last month, if Libya did not continue It remains to be seen if there is a slight shift practice,” he said. “We will have a contract- with them. It could end up facing court cases in policy by Congress under its new presi- ing and procurement department once we from foreign contractors, he said; the coun- dent, Nuri Abu Sahmain, who is more busi- are up and running in Libya.” try’s assets abroad could be frozen to help ness friendly in view of his own business pay claims. However, he stressed that his background and stronger business connec- Thompson revealed that companies which government would not pay for such schemes tions than his predecessor. had pre-qualified previously would not have by using funds allocated in the budget for to prequalify again. “They will have to be projects in other areas. looked at again to ensure that their pre-qual- ification is still valid, but they won’t have to His comments are seen as being directed start from zero,” he explained. partly at Congress members who have been unwilling to release funds for foreign con- Burj Bahar twin towers, Tripoi Quizzed by international delegates about tractors to resume projects, and partly at the which projects were to be given priority, foreign contractors themselves as well the Thompson said that work had already been general Libyan public to demonstrate that it done on that. He confirmed that there would was not his fault that projects had not been restarted. be a focus on what are regarded as key pro- Prime Minister Ali Zeidan jects. He also revealed that AECOM has been Zeidan is known to be is in favour of working in Libya with HIB for the last 18 Zeidan is known to be is in favour of releas- ing some of the money owed to foreign con- releasing some of the money owed months. The list of priority projects, he said, Jim Thompson, Chief Executive Global Programmes for AECOM tractors, as per an agreed formula of 50 per- to foreign contractors, as per an was ready to be executed and will be pushed cent upon commencement of work and the agreed formula of 50 percent upon ahmoud Ajaj, Chairman of the major contracts that have been suspended forward very quickly. Housing and Infrastructure estimated at about $40 billion. There will be balance thereafter in tranches. What Zeidan commencement of work and the Board (HIB), announced dur- a re-scoping of requirements and local com- did not explain, however, is how he expected balance thereafter in tranches. ing this summer’s MEED Con- panies will have plenty of opportunities to foreign companies to send employees to Mference that the giant US project manage- participate.” Annual construction needs Building underconstruction,Tripoli ment firm was coming back. He said it would be providing project supervision, training However, he warned that some of the joint of the nation were beyond and knowledge transfer – with over a thou- ventures running a number of these projects sand Libyans likely to receive training. No were no longer “functional” and that they the state budget – set at LD details of the length or the value of the con- would have to be reshaped and rebuilt. Nev- 66 billion in 2013. Shapoorji Pallonji ready to restart work tract have since been released. ertheless, he was clearly optimistic. “In the past, we were constrained” said Thompson, By Sami Zaptia The HIB head admitted that the scale of “Today, it is a whole new Libya. Libyans have projects Libya has to complete or wishes to been given the authority and the responsibil- Restarting projects “We are ready to move back” said Steven ready have our employees here. They Libya to improve before they come back, embark upon were well beyond its own hu- ity to drive these projects as we would do all Pushed further by delegates, to give an idea Miller, Senior Vice-President of Shapoor- have been here throughout the revolu- SP is insistent that it is willing to recom- man resources. “We need help”, he said. AE- over the rest of the world.” of when the first projects would be cleared ji Pallonji (SP), of his company’s desire tion”, added Miller. “But we are ready to mence their projects immediately. Asked COM will have a role in assessing contractors to re-start, Thompson was less forthcoming. to resume its construction contract in move fully back in and work now – in this by the Libya Herald to clarify his com- and is also expected to help Libya negotiate Need for modern procedures However, he did say that all projects would Libya. Speaking in Tripoli at the June present security situation. But we need ments on SP’s preparedness to do so giv- with its present contractors regarding their be re-calibrated. “We will have to come up MEED “Libya Projects 2013” conference, the promised 50 percent – the formula en the current security situation, Miller claims and status. with a creative method of restarting priority Miller said the Indian company was sim- suggested by the Libyan government”, he reiterated that his company “would have “We hope to put in place a projects. Starting from zero to a $5 billion or ply “waiting for the promised 50 percent stressed. to enhance some of the security meas- Growing role for the private sector consistent procurement $6 billion spend per year is going to be chal- upfront payment by the government”. ures which would have to be built into Ajaj forecast that the private sector will be- lenging and demanding on human resource SP operates in Libya as SP Libya Com- the costs”. However, he was adamant that gin to play an increasingly greater role in the system based on and skills capacity.” Miller was referring to the formula sug- pany for General Construction, a joint SP would be “ready to move in within 30 construction business, adding that the an- international best gested by the Libyan government in an venture with the Libyan Investment and days”. nual construction needs of the nation were practice” The AECOM executive ended on a sober attempt to induce contractors to return Development Company (LIDCO). It is beyond the state budget – set at LD 66 bil- note: “It will be difficult, if not impossible, and resume projects. This promised 50 working on the Bab Trabulus Project Asked about his type of contracts and lion in 2013. Ajaj also added that HIB had re- for these contracts to proceed if there is no percent upon return to be followed by located on the Airport Road, as well as a pricing structure that SP was working ceived only LD 1.5 billion in the 2013 budget, security,” he warned. Asked by the Libya two subsequent 25 percent payments. large tower block project in Benghazi. with, Miller replied that SP was work- whereas it had requested about LD 32 billion Thompson also warned that change would Herald if AECOM had received any specific ing with a fixed price lump sum contract. for its projects. not occur overnight. Progress depended on a guarantees or assurances regarding security, “We have not received this yet. We have Whilst most other contracting companies “We don’t have cost-plus contracts. We are modern, procedure-based programme. “We Thompson replied: “I had no specific assur- been waiting for this for months. We al- are waiting for the security situation in committed to our prices.” Jim Thompson, Chief Executive Global Pro- hope to put in place a consistent procure- ances that have been given. We are hopeful grammes for AECOM, said: “There are 300 ment system based on international best and optimistic that security will be improved .

28 Business Eye August / September 2013 August / September 2013 Business Eye 29 TRADE & INVESTMENT TRADE & INVESTMENT

A ban on imported olive oil and dates to promote local produce should be government policy says Hayda. For Libyan products to be success- To promote the Libyan date sector, the Libyan Export Promotion ful in local and foreign markets, the government has to provide more Centre is organising an exhibition for Dates and Associated Libyan Food Expo support to growers and manufactures, he explains. However, local Industries in Tripoli, 26-30 October 2013 - www.de.lepc.ly businesses are looking for more than aid and subsidies. They also need direction and capacity building, he said. showcases Libyan products Promoting Libyan producers By Nihal Zaroug and Reem Tombokti The LEPC promotes around 600 Libyan companies and, within the food industry, it works to assist not only olive oil and date producers, but also honey, fish and traditional crafts producers.

The centre’s main role is to help source local buyers and foreign mar- kets but also provides other services including help participating at international fairs, quality certification and business development.

Sidr honey is known for its taste and medicinal properties.

Libyan pasta production Libyan pasta maker Rawasi is less reliant on LEPC’S services. It cur- rently operates a plant in Tripoli’s Tajoura area and imports all its raw ingredients from Italy. Rawasi plans to open a second factory in Benghazi, purely to manufacture a variety of spaghettis. It currently makes 14 different kinds of pasta at its Tripoli plant. The company has been operational since the end of the revolution and start store Libyan honey sales in Libya during Ramadan. Unlike other local producers at the expo, the pasta manufacturer is already selling its products abroad, notably in Chad and Niger.

Premium quality local honey Alruttab Sons have yet to export large quantities of their premium honey. Despite having a wide variety of honey and honey bi-products, Ahmed Salem, told the Libya Herald only a few kilos of honey have been sold in Saudi Arabia, Egypt and Palestine. Such small quantities, says LPTEC ‘s head of studies and research, are not significant and are typically intended for promotional use.

In Libya, Alruttab Sons is well established and, as Libya Herald spoke with Salem, visitors stopped and bought jars of Sidr honey valued at LD 20 per kilo. Sidr honey is known for its taste and medicinal prop- erties, and Salem expected honey sales to continue rising, especially Bottles and cans of Libyan olive oil Libyan pasta and dates during Ramadan.

“Try the best olive oil in Libya,” said Hamid Taher, who owns 3,500 ol- However, despite the claim of superior quality of oil, Taher has not International food producers optimistic ive trees in Sebha. The quality of Libyan olive oil, he claims, is better been able to secure sales outside of Libya. That, he says, is because For Czech breakfast cereal manufacturer Emco, the Libyan market than the Tunisian oil sold in Libya. That is because it is only pressed competing with imported Tunisian olive oil has not been easy. To cre- looks promising. Based on its success in Morocco and Egypt, senior once, he says. He sends his olives to be pressed in Samnou, near Fez- ate employment and encourage local olive oil producers, he believes export manager Ludek Spejzl, believed cereal sales in Libya would zan’s capital in southern Libya. that only Libyan oil should be sold in the country. be rewarding. Initial market testing in Tripoli, Benghazi and Misrata, had indicated enthusiasm for the products, said Spejzl; they were He made his enthusiastic offer to theLibya Herald in the Libyan pro- The same demand was repeated to the Libya Herald in a discussion competitively priced and of a quality comparable to the top brands ducers’ pavilion at the Libyan Food Expo at Tripoli International Fair with Basher Hadya, the head of studies and researchers department currently sold in the country. Emco has opted to use the port of Mis- in June. It showcased international as well as local food products. at the Libyan Export Promotion Centre (LEPC). Like Taher, Basher rata, instead of the congested port of Tripoli to import its goods. believes that there should be no foreign competition for Libyan olive oil and dates. V&F Portelli, a Maltese company exhibiting organic foods, beverages and snacks for children, is looking to introduce Organix to the Libyan It is estimated that Libya produces 22 million Libya has an abundance of both and, at times, farmers have been market for the first time. The novel products have been embraced by forced to scrap produce because of a lack of buyers. It is estimated hospital chef Ali Emgadmy, says Mario Portelli, particularly the glu- litres of olive oil a year but vast quantities of that Libya produces 22 million litres of olive oil a year but vast quan- ten free range, as there is a lack of choice for kids. Portelli, adds that it do not make it on to supermarket shelves. tities of it do not make it on to supermarket shelves. A considerable all of Organix’s products are naturally coloured, flavoured, sugar-free amount, in fact, is bought by Tunisian dealers and processed and re- and have no added salt. With a rise in child obesity rates, Organix may packaged as Tunisian oil. be just what the doctor ordered.

30 Business Eye August / September 2013 August / September 2013 Business Eye 31 TRADE & INVESTMENT TRADE & INVESTMENT Tunisia looks to closer South Korea ready to help Libya face tough environmental challenges economic ties with Libya By Houda Mzioudet

Libya Herald interviews the Tunisian Ambassador in Libya, ibya faces pressing challenges over The ambassador later told the Libya Herald Ridha Boukadi water supplies, sewage treatment that “with Korea’s accumulated high stand- and garbage disposal according to ard of know-how and technology, we can the Korea-Libya Environmental cooperate in capacity-building and provide There is something of a special relationship between Libya and LCooperation forum, held in Tripoli in June. training and education opportunities in this Tunisia. As neighbours there are close historic bonds of culture and The event was organised by the South Ko- sector”. trade, particularly between Tunis and Tripoli. Today, certainly for rean Ministry of Foreign Affairs in conjunc- Libyans in the west of the country, Tunisia is just a short drive away tion with the Korean Ministry of Environ- KEITI’s executive director, Jae-Sung Park, and a prime vacation destination and the main place they choose to ment, the Korea Environmental Industry highlighted Libya’s lack of infrastructure, and Technology Institute (KEITI) and Ko- saying “The Libyan government has got a go for medical care. There is also an economic synergy. Tunisia has rean Trade Investment Promotion Agency lot of things to build. Many things are under so many skills that Libya lacks, while Libya has the investment that (KOTRA). planning. It will take time.” Tunisia needs. The building blocks for a Common Market between the two exist. Opportunity to cooperate KEITI will be inviting Libyan officials from the Housing and Infrastructure Board and The forum provided an opportunity for CEOs By Houda Mzioudet the environment sector to visit South Korea Tunisian Ambassador in Libya, Ridha Boukadi and decision-makers from seven South Ko- to see its achievements in its environmental rean companies, and 18 Libyan organisations work. “Based on this cooperation, we can up- South Korea’s Ambassador to Libya, Lee Jong-kook ibya and Tunisia have major op- “It will make us more able to face challenges, training. “Developing a common educational to network and discuss prospective coopera- grade bilateral relations,” Park stressed. portunities that they can explore be they economic, social, security or political. system between Tunisia and Libya, where tion on environmental issues. together, but there are also some We are in what we call a period of coalitions: Libya witnessed the destruction of its edu- In the same vein, KOTRA’s director, Sukwoo “Environmental issues need big challenges to be tackled first, ad- the more you succeed in finding coalitions, cational system in the last four decades, is a South Korea’s ambassador to Libya, Lee Han, emphasised the South Korean govern- to be tackled and solved Lmits Tunisia’s ambassador in Libya, Ridha the more you avoid surrounding threats.” long-term project,” he argues. Jong-kook warned: “Environmental issues ment’s willingness to work directly with Lib- Boukadi. Boukadi cites the recent events in the region need to be tackled and solved urgently, par- ya. “We want to help build new Libya. We do urgently, particularly in the with the Malian crisis, where security co- It is his view that by establishing common ticularly in the water resources, solid garbage not do it to gain money but to find new ways water resources, As with so much else, Tunisian projects in operation between Tunisia and Libya could teaching curricula and putting in place mu- and sewage treatment”. He also stressed the of cooperating with Libya in the environ- solid garbage and Libya were suspended during the revolution. have been beneficial especially in fighting tual recognition of diplomas, much could importance of sharing values of economic ment sector. Korea is involved in all sectors Since then security fears have kept most en- terrorism. be achieved. Moreover, he maintains there development and democracy between Libya in Libya and we want to act as a bridge be- sewage treatment” trepreneurs waiting for improvements. “Sev- is ample opportunity for Libyan and Tuni- and Korea for “a better cooperation”. tween Korean and Libyan companies.” eral Tunisian investors are not reassured sian scientific institutions to work together because the situation on the ground is not Tunis has suggested a on projects, as well as unifying training and clear,” says Boukadi, “Moreover, the media research. He cites the project to establish a does not send positive messages to Tunisian “harmonisation” of Libyan medical college in Medenine (south-eastern Dutch-Libyan business conference held in The Hague investors. The reality is that the situation is Tunisia) as an important step towards co- By Sami Zaptia not that catastrophic,” he adds. and Tunisian investment operation between Tunisia and Libya in the legislation, to allow each fields of health and education. ver 40 individuals representing 30 companies and organi- It was agreed that another roundtable conference in the near future But security is not, he says, the only reason sations either interested or already working in Libya, met would be useful. The organisation of a business delegation to Libya for the reluctance of Tunisian businessmen country to enjoy the same Developing border regions in the Dutch capital, The Hague, on 25 June for a round- was considered for 2013 or 2014. Some Libyan speakers urged Dutch to return. Investment laws in Libya, which privileges. There are also, he believes, considerable op- table conference, chaired by former Dutch Deputy Prime companies to invest in building relationships and rapport with Libya have been viewed as discouraging foreign portunities to develop jointly regions on OMinister, Laurens Jan Brinkhorst. Also present were the Dutch now, as companies from other nations have been doing. Some recent- direct investment need to be reviewed. each side of the frontier which historically Ambassador to Libya, A.H.M. Lansink, the Libyan Chargé d’Affaires ly signed contracts between non-Dutch companies and Libya were Boukadi points out that Tunis has suggested to the Netherlands and representatives from the Dutch Foreign highlighted as examples. Investing in education and health have been neglected by governments in both a “harmonisation” of Libyan and Tunisian Tripoli and Tunis. One initiative, already put Ministry. investment legislation, to allow each country Boukadi believes that Tunisia has much to of- on the table by Tunisia, is the development Against this background, talks are also underway between the DLCC to enjoy the same privileges. fer other North African states: “We want to of a free trade zone at Ben Guerdane, on the The conference was organised by Herman Klijnsma, head of the and possibly the Libyan General Union Chambers of Commerce, In- share our experience of development with Tunisian side of the border, near the Ras- Dutch Libyan Cooperation Council (DLCC), and was the third meet- dustry and Agriculture to enter into a partnership agreement. Encouraging integration our neighbours. Post-independence Tuni- Jedir crossing. ing since 2011. Boukadi stresses the importance of “creat- sia adopted the development of human re- ing correspondence” between Tunisian and sources, by allocating 37 percent of the state “Through our common effort,” asserts Bouk- The companies and organisations attending represented a wide range Libyan institutions, legislation and officials. budget to education and training of human adi, “we can ease tension between border of business sectors including; shipping, transport, logistics, medical, “This is paramount for a successful integra- resources.” He continues: “This is what we area populations and Libyans who visit Tu- water, engineering, construction, agricultural, oil and gas, education, tion,” he explains.” It can include social can refer to as human security, where educa- nisia and who often are subject to violence training, security and environmental specialists. Also present were coverage and financial transactions in both tion and health became the priority for the by some living in these areas.” He cites sadly representatives of the Netherlands-based Libyan investment com- countries.” development of the nascent modern Tuni- the adverse consequences of closures of the pany Lafitrade Holdings BV and its parent company LFICO, a sub- sian state.” RasJedir frontier post. As a result an alterna- sidiary of the LIA, Libya’s sovereign wealth fund. The event was an The ambassador has no doubt about the ad- tive maritime route had to be established be- opportunity for all to discuss the situation in Libya, introduce their vantages of the two countries coming closer: He sees particular potential in education and tween the Libyan port of Khoms and Tunis. companies and share experiences of working in Libya. DLCC logo

32 Business Eye August / September 2013 August / September 2013 Business Eye 33 TRADE & INVESTMENT TRADE & INVESTMENT

FDI Libya engages US government Libya Holdings launches fundraising and private sector in preparation By Sami Zaptia Tripoli to London 4 times per week Libya Holdings Group Ltd. (LHG), an investment partner for London September conference for leading international companies wishing to serve the From 2 September 2013. Libyan market, has launched a fundraising to support “the fast growth of its operations”. To make a reservation

LHG was established during the Libyan revolution in 2011 please contact us on epresentatives from the US and (Senior Fellow at the Atlantic Council’s Rafik ment and the Department of Energy where by Ahmed Ben Halim, the son of the only living former Libya came together on 2 August in Hariri Center for the Middle East), Chuck he extended invitations to the upcoming FDI premier of the Kingdom of Libya and an active participant 021 335 1277/78/79 Washington DC to discuss the fu- Dittrich (Executive Director, US-Libya Busi- Libya conference. in the rebuilding of post-revolution Libya, and Ali Ojjeh, a ture of Libya’s economic progress. ness Association), Hoda Atia Moustafa (Sen- former energy investment banker at Goldman Sachs. or visit us at ba.com. RThe meeting was called by the organisers of ior Counsel, Legal and Claims Group, MIGA, International interest World Bank Group) as well as representa- They had previously co-founded The Capital Partnership the Foreign Direct Investment (FDI) Libya The attendees included a range of US busi- tives from the FDI Libya team including the in 1998, creating a leading asset management firm invest- initiative, Pace Group and Dar al Arab, who ness leaders and experts from a variety of Director of Projects, Tariq Mohammed from ing in venture capital, private equity and public securities. have worked for over a year to focus the in- international multi-sector organisations the Pace Group. The meeting was held as a Commenting on LHG’s announcement, Ben Halim said ternational community on investment in while discussions covered a wide spectrum precursor to the FDI Libya conference that that “the Libyan economy is moving steadily through a sta- Libya’s development projects. of issues surrounding the current political will take place in London on 17-18 September bilization phase that is seeing civil security and basic trade and economic development of the new Libya. 2013. ever more deeply embedded.” FDI Libya, which hopes to act as a key plat- Participants included CEOs, directors and form to promote the Libyan government’s executives of companies and organisations development agenda in all sectors from in- Deputy Minister Shakmak briefed the audi- “The country has vast natural resources and during this such as the World Bank, the IMF, Marathon first phase of its emergence we believe that it will need to frastructure, energy and education to health- ence on the Oil and Gas Ministry’s current Oil, ConocoPhillips, Patton Boggs, Citigroup invest particularly in its oil and gas sector and in its hous- care. There have been three launch events: in priorities and future direction. He also dis- and C. Davis & Associates. Discussion topics ing, power and transportation infrastructure.” He contin- Tripoli, London and Dubai and also two high- cussed the need and opportunity for invest- ranged from the current security landscape ued: “International partners will be essential in providing level roundtables to discuss issues pertinent ment throughout Libya. “The opportunity in Libya to what that means for investors. expertise to help the country and we are working closely to Libya’s development and the growth of in- for investment in Libya includes all major sectors throughout Libyan society whether The FDI Libya initiative has been assisting with such companies to invest in Libya. The combination ternational partnerships. These took place at it be private or public. This means that Liby- the new administration with these goals. of access to new funding together with the experience and the Tripoli Chamber of Commerce in Libya ans and the international community have connectivity of our local and international operations will and the House of Lords in London. to work hand in hand to see a prosperous Libyan ministers and government officials as help us to move even faster.” Libya,” said Shakmak. “Companies who do well as their US and international counter- Investment opportunities decide to invest in Libya will find people who parts were said to be greatly appreciative of Ben Halim believes that combining access for internation- The most significant part of the Washington are ready to develop their country, excited to the work done so far by the FDI Libya team al firms with an ability to co-invest with local entities will meeting was a panel discussion involving see foreign investment and modernisation in putting the need for foreign investment boost the country’s economic evolution through future re- Deputy Oil and Gas Minister Omar Shakmak, and a commitment to realise a long awaited into Libya on the agenda and expressed their building and growth phases. National Oil Corporation executive board New Libya.” Shakmak was also invited to support for the September conference. member Mustafa Sanalla, Karim Mezran meet with officials from the US State Depart- For more information see www.fdilibya.com LHG says that it aims to provide commercial partners with local knowledge, a network of contacts, on-the-ground op- erational support and capital, “all of which are required to create and grow successful enterprises in Libya”. It also maintains that it is an active strategic advisor to both local and international companies. LHG says that it is actively engaged with numerous leading international partners “Companies who do to develop large infrastructure projects and strategic decide to invest in Libya investments. will find people who are The new fundraising, by way of a private placement, “will ready to develop their allow LHG to broaden its resource base to provide access country, excited to see to international firms, principally in the oil and gas, finan- foreign investment and cial services and construction sectors”. LHG says that it has already benefited from investments made by individu- modernisation and a als and institutions from the GCC, most notably Saudi Ara- commitment to realise a bia. “Discussions with a number of new investors” to sup- long awaited New port its growth are now underway throughout the region Libya.” and more widely, LHG says.

FDI Libya panel in Washington

34 Business Eye August / September 2013 August / September 2013 Business Eye 35 Interested in advertising….. See who else is reading the Libya Herald Business Eye available in print and pdf download from www.libyaherald.com One page: from LD4,000 / $3200 Half page: LD2,500 / $2,000 Quarter page: LD1,500 / $1,200 Business EYE Full information on: www.libyaherald.com/advertising

Some – not all - of the companies and organisations which have received printed copies of the Libya Herald Business Eye magazine …6,000 copies distributed to…

Libyan Government / GNC ƒƒThe British Arab Commer- ƒƒEtihad ƒƒThe Prime Minister’s office cial Banking – BACB ƒƒQatari ƒƒThe Minister of Economy ƒƒHSBC ƒƒBritish Airways ƒƒThe Foreign Minister ƒƒFrans Bank ƒƒEmirates ƒƒThe Minister of Planning ƒƒBaraka Bank ƒƒTurkish Airlines ƒƒThe Minister of Housing and Utilities ƒƒAfriqiyah ƒƒThe Privatization and Investment Board (PIB) Legal and Accounting ƒƒLibyan Airlines ƒƒThe Minister of Electric- ƒƒTumi Law Firm ity and Renewable Energy ƒƒErnst & Young Car Rental ƒƒThe Minister of Culture ƒƒClyde & Co ƒƒAvis ƒƒThe Minister of Justice ƒƒDeloitte ƒƒBudget ƒƒThe Minister of Health ƒƒHertz ƒƒThe Libyan Investment Authority (LIA) Construction /Engineering ƒƒThe Libyan African Invest- ƒƒThe National Real Estate Investment Couriers ment Portfolio (LAP) & Construction Company – NRIC ƒƒTNT ƒƒThe Privatization and Investment Board ƒƒBechtel ƒƒUPS ƒƒNumerous GNC members ƒƒHill International ƒƒDHL ƒƒNational Oil Corporation (NOC) ƒƒTepe Prefabrik ƒƒThe Ministry of Oil & Gas Automotive Business organisations ƒƒBMW Hotels ƒƒLibyan Businessmen Council ƒƒVW ƒƒCorinthia Hotel ƒƒThe Tripoli Chamber of Commerce ƒƒAudi ƒƒRadisson BluHotel ƒƒThe General Union of Cham- ƒƒToyota ƒƒAl Waddan Hotel bers of Commerce ƒƒRixos hotel ƒƒCommittee of Libyan Businesswomen Communications & IT ƒƒPlasma Hotel ƒƒThobacts Hotel ƒƒHatif Libya Embassies ƒƒLibyan Spider ƒƒThe US embassy ƒƒAl Wadi Communications International Oil companies ƒƒThe British embassy ƒƒNATS ƒƒBP ƒƒThe Italian embassy ƒƒStatoil ƒƒThe Italian Foreign Trade Office – ICE Multi-sector ƒƒWintershall ƒƒThe French embassy ƒƒOMV ƒƒHommer/Gree (Mersin) ƒƒThe Portuguese embassy ƒƒAkida (LG) ƒƒTotal ƒƒThe Spanish embassy ƒƒEni North Africa ƒƒDaikin ƒƒThe South African embassy ƒƒAl-Ghazaly Group ƒƒSchlumberger ƒƒThe Japanese embassy ƒƒRepsol ƒƒJotun paints ƒƒThe Korean embassy ƒƒRoya graphics ƒƒHess ƒƒThe Korean Trade Association – KOTRA ƒƒPetrobras ƒƒThe Dutch embassy Insurance ƒƒRom Petrol ƒƒThe Canadian embassy ƒƒOrdano Oil ƒƒThe Turkish embassy ƒƒSahara Insurance ƒƒTurkish Petroleum Company ƒƒBeltone Insurance Tel :+ 218 21 340 78 78 ƒƒThe Indian embassy ƒƒThe Austrian embassy Banks ƒƒThe Swiss embassy International NGOs ƒƒThe Central Bank of Libya ƒƒThe Bangladeshi embassy ƒƒUNDP ƒƒThe Libyan Foreign Bank ƒƒThe Pakistani Embassy ƒƒEU radissonblu.com/hotel-tripoli ƒƒBaraka Bank ƒƒGumhouria Bank Airlines Events ƒƒFirst Gulf Libya Bank ƒƒAlitalia ƒƒATEX Libya Build ƒƒLibya Qatari bank ƒƒAir Malta ƒƒMEED Libya Projects 2013

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