New tenders put the Highway of Peace project back on the table
LIBYA – An economic report by the Italian news agency Nova has revealed moves to resume the coastal Highway of Peace project, which links Egypt with Tunisia through Libya, after the contract was terminated with Italian company Webuild, which had been awarded the first phase of the infrastructure works. A Libyan delegation is expected to visit Italy this month to discuss the next steps.
The report, whose main economic details were followed and summarised by Al-Marsad, said discussions are focusing on new tenders, the possibility of redesigning parts of the road and splitting implementation into sub-phases to be offered to Italian companies.
Widening the road in the east and reviewing the original route
It said Turkish companies had begun widening the road between the Egyptian border and the city of Tobruk, making it necessary to assess proposed changes to the original route to reduce traffic congestion.
Options under consideration, according to the report, include building new links and slip roads connecting Al-Marj with Suluq and Benghazi, to adapt the highway to new traffic needs.
Funding in the west and Todini’s works
The report added that intensive efforts are under way in the west of the country to secure the funding needed to begin the works entrusted to Todini Costruzioni Generali.
Financial and contractual dispute ended the Webuild agreement
It said the dispute with Webuild arose over economic and contractual issues during negotiations to reactivate the project, after the company proposed a price revision of about €2.4 billion, citing rising costs over the years.
The Libyan side accepted an intermediate financial solution and met a number of the Italian company’s demands, but the two sides failed to reach a final agreement, the report said.
Bank guarantees and the performance bond
The report said the many changes Webuild had requested to the contract and the tender conditions deepened the dispute, and that the Libyan side considered some of the requests unacceptable, particularly those concerning the guarantees protecting advance payments.
The matter ended with the termination of the contract and a legal dispute over enforcement of the performance bond, a bank guarantee of proper fulfilment of obligations provided for in the agreement, the report explained.
