Following the ousting of Colonel Muammar Gaddafi, oil production has resumed – and rapidly. Libya’s re-entry into the world oil market has recommenced in an astonishing way, exceeding expectation, and causing experts to re-assess Libya’s capabilities. Opinions vary on the final trajectory, but the pace at which Libya is getting back on track is indisputable.

During the bloodiest period of the Libyan uprising, production reportedly plummeted to just 10,000 barrels per day (bpd). As recently as September, predictions pointed to the production of just 400,000 bpd by the end of this year and in November, pre-war levels were estimated to be reached only by the end of 2012. According to the head of OPEC, Abdullah El-Badri, however, these will now be achieved by mid 2012 – an opinion also supported by that of the CEO of Total SA, Christophe de Margerie.

Renewed participation from IOCs will be required if Libya is to return to the full output capacity predicted. As Libya regains stability, companies are looking to secure tenders they had obtained prior to the uprising. NTC officials have repeatedly stated that they will honour all existing contracts, while also promising to investigate those secured through corruption.  There has been much debate surrounding ambiguous statements made by the NTC; earlier this year they had promised to reward countries like France and Britain who supported the liberation with oil contracts, but have more recently affirmed that contracts would be awarded on a merit-only basis.

If Libya wants to encourage exploration and production by IOCs, they will have to issue added incentives to make investment more appealing. The revenue is currently split 90:10 for the government and oil companies respectively, and one analyst predicts that this figure will need to be closer to 70:30, if Libya has any hope of attracting the international investment it needs.

It is vital that production is ramped up as quickly as is possible, as the country’s economy relies primarily upon revenues from the oil sector. During the Gaddafi era, Libya enjoyed one of the highest per capita GDPs in Africa, as a result of its extensive oil revenues and small population of 6 million, but little of this wealth filtered down to the lower tiers of society.  How the new government addresses this in the future will be anxiously anticipated by all Libyans.

The new Libyan government must understand that they cannot rely solely on revenue from oil, and must consider alternative ways of accumulating finance.  Libya possesses Africa’s largest oil reserves, but is also sitting above one of the largest fossil water aquifers in the world, the Nubian Aquifer. It covers some two million square km of land and is thought to contain as much as 500 years of the Nile’s flow. It shares this with Chad, Sudan and Egypt.

In 1983, Muammar Gaddafi instigated a huge civil water works project, known as the Great Man-Made River (GMMR), which extracted water from the various underground basin reserves such as the Nubian Aquifer, and delivered more than 5 million cubic metres of water daily to the coastal towns.  The GMMR is reported to provide 70% of the Libyan population with water for drinking and irrigation.

Patrick Henningsen, 21st Century Wire editor and founder suggested to IPS that “Libya could start an agro-business similar to California’s San Joaquin Valley. Like Libya, California is essentially desert but because of irrigation and water works projects that desert valley became the largest producer of food and cotton in the world, making it the ninth largest economy in the world,”

“At the moment the only agro-markets in the Mediterranean zone competing to supply citrus and various other popular supermarket products to Europe are Israel and Egypt. In 10 or 20 years, Libya could surpass both of those countries because they now have the water to green the desert.”

In addition to its water and oil resources, Libya should also market itself as the future hotspot for tourists. The sunny climate, proximity to Britain, golden beaches and Roman ruins, are all big pull factors. Airlines like EgyptAir, Qatar Airways, Air Malta and Emirates, are all predicting a business and tourist boom over the next few years, and are increasing flights to Benghazi and Tripoli accordingly.

Libya has some tough decisions to make in the future; a tourist industry will struggle to flourish if the strict dress code and ban on alcohol continue to remain. With the militia still fighting, a booming industry seems to be a long way off, but Libya shows great promise.

By Siobhan Young, Consultant for Upper Quartile LLP.  Any opinions expressed are those of the author, and do not necessarily reflect the views of Libya Business News

Free Libya. This was one of the main rallying cries last year for the Libyan opposition, which with NATO assistance toppled the brutal 40-year reign of Muammar Gaddafi.

But four and a half months after Gaddafi’s downfall, Libya, under the leadership of the interim National Transitional Council (NTC), is facing the problem of reconciling the many different “free Libyas” envisioned by different publics, and addressing allegations of some “not-so-free” practices.

The eastern region of Cyrenaica, with its capital at Benghazi (the heart of the anti-Gaddafi movement) has declared itself a semi-autonomous region, prompting major protests in both Benghazi and Tripoli. Despite recent successes by the central government, armed militias still roam the country, and the capacity of the government in Tripoli to keep them in check has beenquestioned.

Indeed, the city of Misrata has been described as a virtual “armed city-state” in opposition to the central government. Furthermore, reports of human rights abuses committed against suspected Gaddafi sympathizers, including black African migrants from sub-Saharan Africa, abound.

But while the Libyan government currently seeks in earnest to address these conflicts, it may be less overtly political issues, such as climate change and water resource management, that hold the key to building unity.

SIGNS OF FORWARD THINKING

The enormous hurdles to Libya’s national unity, which are not entirely unexpected after the collapse of a regime in power for four decades, have not kept the nation’s government from at least attempting to address issues that exist outside the traditional framework of post-conflict reconstruction, such as climate change.

For example, last December, the interim Libyan government sent representatives to the UN climate conference in Durban, South Africa to promote a project called “The Libyan Climate Change Initiative” (though it received mixed reviews).

But despite this seemingly proactive approach, there remains a danger that some critical natural resource challenges Libya faces, ones that are very relevant to post-conflict reconstruction, will fall by the wayside during this period of instability and uncertainty.

In this context, one critically important question is: How will a new Libyan government manage the country’s water resources, and will the effects of climate change be incorporated into how it does so?

GADDAFI’S HAND ON WATER

As we detailed previously, certain resource issues, particularly that of water availability, must be addressed soon if Libya is to sit on a stable foundation. Incidentally, questions of water management can often help facilitate cooperation between conflicting factions, thus helping in the process of national reconciliation.

One such area of potential cooperation involves correcting the unsustainable excesses of the Gaddafi regime. Libya’s transitional leaders will likely agree to focus on righting Gaddafi’s many wrongs, and it will be important to note that Gaddafi’s iron hand extended far beyond his chilling disregard for human rights, and into the realm of natural resource management. The regime implemented massive, yet ultimately unsustainable projects to extract the country’s finite resources – water in particular.

For example, Gaddafi’s oil-financed Great Man-Made River Project, identified as one of the largest water engineering projects in the world, continues to function. But in Libya, a country identified as 93 percent arid, it is unclear how long this can be sustained.

Libya’s primary source of water is a finite cache of “fossilized” groundwater, the remnants of a more verdant Pleistocene past. Present day demand for groundwater, primarily for use in irrigating crops, has severely stressed this supply, and coastal aquifers have been progressively invaded by seawater.

According to the IAEA’s “Nubian Aquifer Project” over-extraction by Libya from the Kufra sub-basin, which Libya shares with Egypt, Chad and Sudan, has also led to “reduced water levels and the drying up of desert lakes linked to oases.”

In this context, any new Libyan government or constitutional assembly will, for the sake of its legitimacy and viability, need to address the fundamental issues of delivering a sustainable supply of water to its growing population, and managing the complex problems associated with sharing such a supply with other nations. This is a question that if answered well, can help bring the country together.

CLIMATE CHANGE AND DROUGHT

Enter climate change, which also presents a threat to Libya’s water availability.  While decreasing water availability is not the only predicted impact, it is a major one. According to a recent report by Joshua Busby et al, climate change projections for Libya are set to yield some bitter fruit (or lack thereof).

The report notes that from the present day to the middle of this century, some of the wettest and most populated areas of Libya along the Mediterranean coast are likely to experience increases in drought days from a current 101 days, to a whopping 224.

Doubling anything negative is a problem, but doubling drought days is a serious problem – particularly if one is heavily reliant on non-renewable groundwater. These findings have also been confirmed by a major National Oceanic and Atmospheric Administration study in the Journal of Climate from last October, that found climate change already responsible for prolonged drought in Libya’s most populous areas on the coast – observations consistent with future projections from climate models.

While Libya is by no means the country most vulnerable to climate change in North Africa (see the Sahel and the Horn of Africa), climate change-induced impacts on drought patterns in Libya, and much of the Mediterranean littoral, are projected to be some of the most dramatic.

Also, given uncertainties about the stability of a new government, Libya will need to prepare for the possibility of greater vulnerability in the future. Such a dire threat to Libya’s water security should serve to instigate cooperation between Libya’s currently conflicting voices.

REGIONAL IMPLICATIONS

Libya’s vulnerabilities may also extend well beyond its borders. For example, Libya already extracts an extensive amount of groundwater from the Nubian aquifer.  If climate change-induced drought reduces water availability and the Libyan government responds by drawing more water from the Nubian aquifer, this could cause tension with bordering countries Egypt, Chad and Sudan, all of whom share the aquifer’s waters.

Given the current political and economic instability of all four governments sharing the aquifer, this is a potential security issue that cannot be ignored. Agreement on avoiding this potential for regional conflict could be another unifying objective for Libya’s competing factions.

The dawn of a new Libya presents a unique opportunity to create a political tradition of good governance in the country – one that is transparent, respects human rights, holds free and fair elections, and enacts economic policies that work for all Libyans. It is also an opportunity for Libyans to transition not just to a post-Gadaffi era, but to a new era of resilience – one that uses its finite resources wisely, and adapts itself to a changing climate.

The potentially destabilizing impacts of this unprecedented shift in the global climate, particularly for countries and regions in transition that share essential natural resources, should not be underestimated.  Climate change may not be high on the agenda in Libya today, but it should not remain off the table for too long – Particularly as doing something about it, and the challenges it presents to important issues like water availability, can potentially help Libya in its search for unity.

(Source: AlertNet, Thomson Reuters Foundation)

Canada’s Pure Technologies Ltd said it will resume normal activities in Libya following receipt of a C$16 million payment from Man-Made River Authority, sending the infrastructure inspection company’s shares up 11 percent.

Pure has an inspection and monitoring contract with the Man-Made River Authority, which supplies most of Libya’s drinking water.

The payment constitutes 70 percent of the value of previous shipments made under a C$30 million contract awarded in 2010 for the supply of proprietary acoustic monitoring technology, Pure said in a statement.

Pure will also resume activities on the project, including shipment of the remaining monitoring equipment worth C$10.7 million held up since fighting broke out in Libya in 2011 and caused a temporary halt to operations.

Pure’s efforts in the Middle East and Asia over the last two years are expected to start bearing fruit in the coming year, and resumption of activities in Libya adds a very nice tailwind, Canaccord Genuity said in a note to clients, and raised the price target to C$6 from C$5.25.

Shares of Calgary-based Pure were trading up 27 cents at C$4.25 on Friday on the Toronto Stock Exchange.

(Source: Reuters)

Zulal Water Technology (ZWT) has announced that it had been awarded a contract by Waha Oil Company to provide three turnkey R.O Water plants at Waha’s Gialo, Waha and Essider [Es Sider] oil camps.

Waha Oil is one of Libya’s largest oil producers, and the award follows a competitive tender process undertaken to find a replacement for Waha’s existing GE-Ionics EDR plants. The total capacity of the three proposed Zulal plants exceeds 4,000 m3/day.

Waha Oil has requested that the plants be commissioned in as short a timeframe as possible, and ZWT is targeting completion of the project during Q4 2013.

Iftikhar-ul-Haq, Managing Director of ZWT, commented:

“This contract award reflects ZWT’s strong reputation and execution track record within the Libyan market. We very much look forward to working with Waha Oil again and are confident of completing the project on time and to the client’s satisfaction.”

Engineering Manager of Waha Oil commented:

“Our existing GE-Ionics EDR plants are in poor condition and in urgent need of replacement. We selected ZWT based on the strength of their technical proposal and their ability to install high quality water plants in a short time frame, which they demonstrated when installing an emergency water plant for us recently at Waha site.”

(Source: Zulal)

The delegation of eight UK-based companies led by British Water – the trade association for UK companies specialising in areas of the water industry – arrived in Libya on Saturday for a three-day trade mission.

Lila Thompson, international director for British Water, told the Libya Herald:

“I’m very much looking forward to learning about the plans to upgrade Libya’s water and waste infrastructure and the challenges that need to be addressed.

“The companies … are keen to work with Libyan partners to help address these and build sustainable infrastructure.”

British Water has described the visit, sponsored by UK Trade and Investment (UKTI), as timely, with “improved management of water resources and wastewater treatment high on Libya’s development agenda.”

(Source: Libya Herald)

The Waha Oil Company (WOC), Tripoli, announces that it intends to execute projects which include constructing water disposal plants of approximately 407,000 barrel and replace associated pipeline network on a turnkey basis as per below mentioned preliminary scope.

Preliminary scope of work:

To provide engineering design, procurement, construction, commissioning and start-up (EPCCS) of produced water disposal plants (SWD Plants) and lined containment pits at various production stations of WOC such as North & South Waha, North & South Defa, Samah, Belhedan, North & South Khalifa, Zaggut, Balat, Masrab, Harash and Faregh. Plants to be designed to dispose about 407,000 BWPD of produced water.

The replacement of the existing drain lines in North & South Waha ,North& South Defa Stations.

To provide engineering design, procurement and construction of lined containment pits at Bahi Station and at PL7-I, PL7-II & PL7-III Dahra field.

Application requirements:

Application for intent to participate in the prequalification for this tender.

Extract of valid Libyan commercial register.

Registration in the country of origin.

Well defined specialty, previous experience and number & place of projects executed particularly for similar works.

Financial status (balance sheet for the last two years).

Deadline to submit your application (PRFQ Applicaqrtion) : four weeks from date of announcement (no later than June 4th 2013)

Incomplete files will be rejected.

The invitation To Bid (ITB) will be sent only to the qualified companies based on prequalification results.

Companies registered and qualified by WOC recently are required to submit only the letter of intent indicating the registration №.

Documents to be submitted to secretary, tender committee of Waha Oil Company.

For any query please contact secretary, tenders committee

phone / 00218 21 2202013Fax (00218 21 3612275).

E-mail: rabdulgader@wahaoil.net

(Source: NOC)

The General Desalination Company of Libya (GDCOL) has restarted work on its projects for the first time since the revolution, and hopes to take on a consultant before the end of the year to provide project supervision and technical studies for a number of facilities.

Chairman Abdulmonem Ali Elhassadi (pictured) told Global Water Intelligence (GWI) that the company is in discussion with a number of consultants, and is still open to offers from others.

Projects include the expansion of existing plants and three proposed new installations in Tripoli, Benghazi and Misrata, with a combined capacity of just under 1 million cubic metres per day.

According to the GWI report, the current planning seems to foresee new desal projects as EPC contracts, rather than the ambitious plans for BOTs envisaged before the revolution.

(Source: Global Water Intelligence)

(Picture Credit: Marcopolis)

Water Resources Minister Hadi Hinshir [Abubaker Alhanishri] said on Wednesday that the water supply in Tripoli would be restored by either Thursday night or Friday.

Pumping of the Man-Made River water from the south of Libya had started last Saturday, with water reaching Tarhuna and Misrata.

He added that 30 companies had been tasked with distributing water to hospitals, schools and mosques over 18 different regions, and said that LD 1 million had been set aside for the rental of trucks to transport water. There was also an emergency supply of about 100,000 cubic metres available at the Ain Zara reservoir.

According to a report from Libya Herald, the Minister said that there was a plan for a water reservoir at Sidi Sayeh to hold 24 million cubic metres, which would guarantee 30 days of water for Tripoli.

Additionally, there was a plan for a 500,000-m3 de-salinisation plant so that, together with the local water wells, Tripoli could have three different sources of water; plans for similar desalinisation plants in other cities are now under discussion.

(Source: Libya Herald)

(Picture: Great Man Made River, Credit: Danmichaelo)

The European Union, Ministry of Local Governance and UNDP handover a water tank to Kufra Municipality

As part of its efforts to support local authorities to restore security, livelihoods opportunities and essential services delivery, the Ministry of Local Governance, the European Union (EU), and the United Nations Development Programme (UNDP) handed over today a fully rehabilitated water tank to Kufra Municipality.

The water tank will help the municipality to provide potable water for more than 16,000 residents of Aljawf area in Kufra center.

In a ceremony that took place at Kufra Water and Sewage Company, the Under Secretary of Kufra Municipal Council, Mr. Saad Abdulrasool said:

“This project will greatly contribute to the supply of drinkable water to large areas of Kufra main neighborhoods. I would like to thank the EU and UNDP for their commitment to improve the quality of basic service in Kufra.”

On his part, the Head of General Water and Sewage Company, Mr. Omar Aleidah said:

“Kufra water tank was established in 1960 and has been out of service since 1991 due to the lack of maintenance. This rehabilitation has been key to supply clean water again to the people living in the city.”

This initiative is part of the “Strengthening Local Capacities for Resilience and Recovery” project, funded by EU and implemented by UNDP in coordination with the Minister of Local Governance and Murzuq, Kufra, Benghazi, Sabratha and Tripoli municipalities.

Under this project, UNDP has already rehabilitated 27 key social infrastructures, provided 37 sets of equipment for health sector, and invested US$2 million in water and sanitation. 1.7 million People are already benefiting from the implementation of US$ 15 million worth of projects.

(Source: UNDP)

Libya: Ensuring access to clean water to promote health for communities in Sabha

To overcome the burdens on community members, to mitigate the adverse health and environmental impacts and to contribute to the improved quality of life, the EU together with its partner IOM has supplied the General Water and Waste Water Company (GWWC) in Sabha with waste water pumps for the main sewage system under the EU Emergency Trust Fund for Africa.

Recently, the director of GWWC received additional tools in the presence of municipal and community representatives:

"With the pumps and tires, we can work faster and run more shifts with the sewage trucks. That way we can cover more areas in the city, keep waste water rooms clean and help avoid streets flooding with black water. We know the effect of black water; we do not want what happened before to happen again".

These much-needed pumps have improved access to waste water services for almost 110,000 inhabitants. Living conditions have also been improved through the removal of solid waste and the creation of a public green zone in the Karama area in Sabha.

Given the context of the coronavirus pandemic, the EU is determined more than ever to continue to ensure that local communities have access to clean water so that they can meet their basic needs and adopt positive hygiene behaviours.

(Source: EU)

Statement by Yacoub El Hillo (pictured), Humanitarian Coordinator in Libya, on the disruption of water and electricity supply

More than two million people, including 600,000 children, who live in Tripoli and surrounding towns and cities, are suffering from water cuts for almost a week now.

The water supply, part of the Great Man-Made River, was disrupted by a group in the Shwerif area as a pressure tactic to secure the release of family members.

All mediation efforts until now do not seem to have produced a resolution to the dispute while millions of Libyans remain deprived of water.

Water should never be used as a pressure card nor as a weapon of war. It is particularly reprehensible to deliberately cut off water supplies from people anywhere in Libya.

This deplorable water cut is coinciding with a serious power outage in the western region, also imposed as a result of another individual dispute.

At this moment when Libya is fighting the threats of the COVID-19 pandemic, access to water and electricity is more than ever lifesaving, and such individual acts to collectively punish millions of innocent people are abhorrent and must stop immediately.

(Source: UN)

By John Lee.

The National Oil Corporation (NOC) has advertised new tenders:

• Land Transportation Services (Material & Fuel) to Wafa Field, Mellitah Oil and Gas
• Wastewater Treatment Plant for Nalut General Hospital, Eni North Africa B.V. Libyan Branch
• Renewal of Pipeline Supporting Structures at The Gas Plant Burn Bit, Sirte Oil Company (SOC)

(Source: National Oil Corporation)

As part of sustainable development programs of the National Oil Corporation ( NOC ), sponsored and financed by Repsol Consortium, coordinated and followed-up by the committees formed by Akakos Oil Operations Company.

On Thursday, December 31, 2020, at the National Oil Corporation headquarters in Tripoli, a contract was signed to drill 10 water wells in the south, distributed to the municipalities (Obari, Al-Griffa, Bint Bayh), in presence of the Chairman of the Board of Directors Eng. Mustafa Abdallah Sanalla.

This intervention comes to solve the water shortage problem in these areas, which have been suffering from it for decades. The drilling project is part of an integrated project that also includes the maintenance of 10 upper water tanks situated in these municipalities and to connect them with the wells, also to provide them with all pumps and all other needs.

This integrated project will alleviate the suffering of citizens in these areas and solve the problem of water shortages significantly.

The signing ceremony was attended by:
Ahmed Ammar, Chairman of the Management Committee of Akakos Oil Operations.
Mr.Mokhtar Abdedayem, Manager of the NOC's Sustainable Development Department
Al-Mahdi Smama, Deputy General Manager of Repsol.
Ashraf Khalifa al-Musleh, Mayor of Bint Bayh municipality.
Abdul Sattar El-Sanussi Ali, Dean of Municipality of Al-Greifa.
Fatima Al-Suwaiei, a deputy from Obari district.
Abdul Hafeeth Al-Saghir, a deputy from Obari district.
Nada Al-Atrash, Sustainable Development Department Manager, Repsol.
Yasmine Shalbeck, Sustainable Development Manager, Akakos.
Ali Abeid, president of Al-Merad Water Well drilling Company.
Hassan Mustafa Al-Sharif, Committee for Communication with the NOC.
Moftah Al-Sharef, Department of Sustainable Development at the NOC.
Mohamed Grada, Development Projects Committee, Akakos.
Masood Saeed Khairat, a member of municipal council Bint Bayh.
Abdul Karim Mohammed, Municipality of Bint Bayh.

(Source: NOC)

Over 4 million people, including 1.5 million children, will face imminent water problems if immediate solutions are not found and implemented.

The prolonged crisis has left the sector facing great challenges, leading to a significant decline in services. This is mainly attributed to the lack of required budgets for the purchase of equipment, operational materials and spare parts for regular maintenance. Suppliers are also struggling to open bank credits in hard currency to import equipment from outside the country.

The repeated attacks on the Manmade River systems caused about 190 wells to be rendered out of service (Al-Jafara - Al-Hasawna and Al-Sirir-Tazarbo), bringing this vital sector to the brink of collapse. The General Company for Water and Wastewater suffers from the deterioration of the water network, causing the loss of large quantities of water of up to 50 per cent.

In the sanitation sector, only 45 per cent of households and institutions are connected to the public network; the rest are connected to cesspits, which leads to pollution of groundwater reservoirs. Furthermore, most of the wastewater is discharged directly into the sea without treatment, negatively impacting the environment and marine life.

Desalination Plants suffer from lack of equipment needed to carry out maintenance and chemicals to sustain operations, thus decreasing their operational efficiency. For instance, the Bomba Bay plant has been rendered completely out of service, depriving over 63,000 people living in the five cities - Al-Tamimi, Bambah, Ras al-Tin, Umm al-Razm, Murtaba, and the eastern coast of Derna - from access to safe water. The estimated cost for the rehabilitation of the plant is $ 12 million.

This is taking place against the backdrop of the prevailing liquidity crisis that has put additional pressure on the financial ability of families to afford purchasing water by trucks, and, hence increasing their economic burden. Furthermore, the remaining 7 plants that provide water to cities of Abu Trabah, Sousa, Derna, Tubrok, Zletin, Alzawya, and Zwara are operating at 28 per cent of their design efficiency. They too will break down if no immediate intervention is undertaken.

The situation has been exacerbated by frequent power cuts and lack of fuel needed for operations. All these conditions could lead to a complete system breakdown and stop water supply and sanitation services to vulnerable families and children.

UNICEF Special Representative in Libya, AbdulKadir Musse, said:

"UNICEF calls on decision-makers in the Libyan government and international organizations to prioritize the WASH sector. The urgent provision of necessary funds to carry out maintenance will ensure continuity of adequate water supply and sanitation services. Communities will be able to practice daily healthy hygiene to limit the transmission of the coronavirus, and thus avoid a humanitarian disaster that would impact more than 4 million people, including 1.5 million children."

(Source: UNICEF)