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KOTRA: High Expectations on $120 bil. Libya Reconstruction Work

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2011-08-24

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As the situation in Libya enters its final phase‚ the war-torn country is now expected to become a huge market for construction companies.
The Korea Trade-Investment Promotion Agency said on Tuesday‚ that reconstruction projects in the oil‚ housing‚ harbor and electricity sectors worth a total of 120 billion US dollars‚ are to start off in Libya‚ after Moammar Gadhafi's regime has collapsed.
And the amount of construction in the country is about the same as building three to four metropolitan cities in Korea.
Before the conflict broke out this February‚ 21 Korean companies landed several contracts worth around 10.5 billion dollars‚ which made up one-third of all construction orders in Libya.
Most of the companies that obtained orders‚ such as Hyundai Engineering and Construction and Won Construction‚ had to halt their work.
Accordingly‚ KOTRA expects Korean companies will eat up a share of the new reconstruction market worth up to 40 billion dollars.
The agency added that expectations over the new orders from Libya are high‚ despite hot competition and a new government settling in‚ as Korean firms have built up credibility over a long time doing a number of projects in the country since 1991.
The agency went on to say‚ that the importance of Benghazi‚ the base city for rebel forces‚ should be noted‚ as it was completely isolated from development for 40 years.
The demands for development will also be high in the area because over 70 percent of Libya's oil deposits are concentrated there.
Hwang Ji-hye‚ Arirang News.
Reporter : emilyfwang@arirang.co.kr

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