Post on 09-May-2015
LIBYA DESIGN AND ENGINEERING CONSULTANCY AND CONSTRUCTION
TRIPOLI OFFICE BUILDING DEVELOPMENT CASE STUDY
Overview
• In the midst of the global economic crisis Libya remains amongst
the few countries that continues to develop and grow due to its
untapped oil and gas reserves, which are fueling expansion in all
sectors of the economy.
• This presentation will focus on the booming Libyan construction
sector, taking office building construction as a case study, to
illustrate the diverse nature of the development of the Libyan
economy and will comparatively highlight growth in other sectors
such as tourism, housing and infrastructure.
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Economic Overview
• Revenues from the oil sector contribute about 95% of export
earnings, about one-quarter of GDP, and 60% of public sector
wages.
• Libya has one of the highest per capita GDPs in Africa,
making it an attractive choice for investors.
• Substantial progress has been made in recent years on
economic reforms as part of a broader campaign to reintegrate
the country into the international community.
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• Libya recently awarded “A-” sovereign credit rating by
Standard & Poor’s, one of the best credit ratings in Africa.
• Manufacturing and construction sectors, which account for
more than 20% of GDP, have expanded to include
manufacturing of foodstuffs, consumer products, construction
materials and the construction of administrative centers and
public housing units.
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Economic Indicators
• GDP (purchasing power parity): $92.01
billion (2008 est.)
• GDP (official exchange rate): $108.5
billion (2008 est.)
• GDP - real growth rate: 7.3% (2008 est.)
• GDP - per capita (PPP): $14,900 (2008
est.)
• GDP -composition by sector: agriculture:
1.5% , industry: 61.7% , services: 36.8%
(2008 est.)
• Labor force: 1.916 million (2008 est.)
• Public debt: 3.6% of GDP (2008 est.)
• Inflation rate (consumer prices): 10.5%
(2008 est.)
• Central bank interest rate: 4% (31
December 2007)
• Commercial bank prime lending rate:
6% (31 December 2007)
• Capital reserves: $18.04 billion (31
December 2007) .
• Oil – proven reserves: 41.46 billion bbl
(2008 est.)
• Natural gas – proven reserves: 1.419 trillion
cu m (Jan 2008 est.)
• Current account balance: $43.33 billion
(2008 est.)
• Exports: $66.13 billion f.o.b. (2008 est.)
• Exports - commodities: crude oil, refined
petroleum products, natural gas, chemicals
• Exports – partners: Italy 40.5%, Germany
12.2%, US 7.4%, Spain 7.4%, France 6.3%
(2007) .
• Imports: $20.64 billion f.o.b. (2008 est.)
• Imports - commodities:
Machinery, semi-finished goods, food,
transport equipment, consumer products
• Imports - partners:
Italy 18.9%, Germany 7.7%, China 7.3%,
Tunisia 6.8%, France 5.7%, Turkey 5.4%,
US 4.3% (2007)
• Reserves of foreign exchange and
gold: $99.45 billion (31 December 2008
est.)
• Exchange rates: Libyan dinars (LYD) per
US dollar - 1.2112 (2008 est.), 1.2604
(2007), 1.3108 (2006), 1.3084 (2005),
1.305 (2004)
• Telephones - fixed lines in use: 852,300
(2005)
• Telephones - mobile cellular
subscribers: 4.5 million (2007)
• State budget for 2009 development set at 21.5 Billion Libyan
Dinars. Ministry of Planning estimates public spending of 318
Billion Libyan Dinars spent in the next five years .
• Development also to be financed through foreign investment, loans
from local and international commercial banks and private equity
funds.
• Reports emerging from the Libyan authorities are positive, drawing
a picture of Libya being transformed into a big workshop.
• If congested harbors, cranes and cement silos are signs of extensive
building activities, then Libya is entering a construction boom.
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Legal Overview
• Law No.5/1997 Encouragement of Foreign Capital Investment
provides legal framework for foreign capital investors,
including tax and customs exemptions, protection from
expropriation and foreign arbitration.
• Law No.7/2004 Tourism Investment replicates the above in
relation to the tourism sector.
• GPC Decree No.443/2006 (and its amendments) provides for
minimum 35% Libyan equity participation in joint venture
companies carrying out certain activities such as construction.
Current Construction Development Projects
1. BURJ AL BAHER COMPLEX
2. BAB AL MADINA
3. TRIPOLIS TOWER COMPLEX
4. TWIN TOWER INVESTMENT PROJECT
5. ALGATHAFI TOWER
6. INVESTMENT OFFICE TOWER
7. OFFICE and HOTEL TOWER
8. TRIPOLI OASIS INVESTMENT
9. ALANDALOS TOURISTIC COMPLEX
10. AFRICA TOWERS
11. BAB TARABULAS
12. RESIDENTIAL AND COMMERCIAL COMPLEX
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CASE STUDY
• Case Study is the Burj Al Baher Complex.
• This study will also present general overview of Tripoli’s
current office building projects planned for construction in the
city.
Some already under construction.
Some are waiting for financial backing
Others in the planning stage.
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OFFICE DEVELOPMENT PROJECTS
1. BURJ AL BAHER COMPLEX
• Owner, Investor and Developer:
Hashoo Group Ltd.
• Contractor: Summa Libya for
construction for the early work
package.
• Shamel is the Engineer on
Record, and provides local design
input and technical support.
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• Project Components:
Office Tower 18 stories high and a 4-storey commercial
building with a combined total floor area of 27,000.00
SQ.M of office and retail space.
Parking of 700 spaces.
Hotel Tower of 29 stories high and 369 rooms.
Service apartments tower of 25 stories high and 100.
apartments of 1, 2 and 3 bedrooms.
Banquette hall for 800 persons and 8 conference rooms.
5 restaurants and a spa of floor area of 1,450 SQ.M.
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• Location: Semi Urban. The project is located on a 7 hectare plot, 4
KM east of Tripoli Centre. The site is located on a major coastal
thoroughfare running between Tripoli and Tajoura to the east.
This road will be connected to Tripoli by the under-construction
3rd. Ring Road.
• Estimated completion date: end of 2011.
• Remarks: Construction has started by digging 144 piles for the
three towers.
• Hotel & banquet hall are complete of the plinth level .
• Financing is being formalized with local and international bank.
The site is leased from the government for 70 years .
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2- BAB AL MADINA
• Owner: Bab Al Madina for
Development and
Management of Business
Centers; a joint venture
between NUH, Qatari Diar
and Al Futtaim Group.
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3- TRIPOLIS TOWER COMPLEX
• Owner: Economic and
Social Development
Fund (ESDF)
(Government)
• Investor / Developer:
ESDF
• Contractor: L.C.C.C.
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4. TWIN TOWER INVESTMENT PROJECT
• Owner: Simi Public
• Investor / Developer:
• Contractor: L.G.N.C – LAVALIN
• Project components:-Office tower.Parking: no. of spaces
not yet determined.
• Others: Hotel tower.
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5- ALGATHAFI TOWER
• Owner: Watasemo
Organization for Charity
Work and Magna Holdings
Ltd.
• Investor / Developer:
Watasemo Charity for Work
• Contractor : MAN
ENTERPRISE
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6- BURJ BOLIALA OFFICE TOWER
• Owner: Atadamon Co. for
Real Estate Investment.
• Investor / Developer:
Atadamon Co. for real
estate Investment.
• Contractor: Summa Libya
for construction.
• Under construction:15 fl.
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7- HYDRA OFFICE and HOTEL TOWER
• Owner: Real Estate
Investment Company and
Hydra (U.A.E).
• Contractor: Suma Libya.
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8- TRIPOLI OASIS INVESTMENT PROJECT
• Owner: ESDF, Tijrhi Group and Olympic Committee.
• Investor / Developer: Same as above.
• Contractor: not yet known.
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9- ALANDALOS TOURISTIC COMPLEX
• Owner: BEROKO Libya for Tourist Real Estate; Joint venture between ESDF and the Swiss company Beroko.
• Investor / Developer: same as above. .
• Project components:-
Office Building
Parking: no. of spaces not yet determined.
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10- AFRICA TOWERS
• Owner: United Libyan Tourist Investment Company
• Investor / Developer: United Libyan Tourist Investment Company
• Contractor: not yet known.
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11- BAB TARABULAS
• Owner: (LIDCO) ESDF.
• Investor / Developer: Same
as above.
• Contractor: JV of (LIDCO)
and RAMCO.
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12- RESIDENTIAL AND COMMERCIAL COMPLEX
• Owner: (LIDCO) ESDF.
• Investor / Developer: Same
as above.
• Contractor: (LIDCO)
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Tips For Doing Business in Libya
• Develop strong local connections and network• Rely on experienced and well renowned local
professional advisors such as consultants, lawyers and accountants
• Awareness of local culture and business practices
• Patience and flexibility for doing business in a developing country