#libya Libyan GNMTC May Go to Court over Rescinded Cruise Ship Contract by STX #Europe

Tripoli—Sources at the Libyan General National Maritime Transport Company (GNMTC) say that the company may go to court for winning back a contract worth over a half billion euro for building a new cruise ship. Recently, STX Europe announced that MSC Croisières and STX France have entered into a contract for construction of a 140,000 grt cruise ship that is currently being built at the Saint-Nazaire shipyard and that will now be named MSC Preziosa. It is the same cruise ship that was originally ordered by the Libyan state-owned GNMTC in 2010. But the contract was rescinded by the shipbuilder, STX Europe, in June 2011, saying the reason for canceling that deal was a default of payment by GNMTC. The source who declined to be named told The Tripoli Post that “the case of this cruise ship represents another example of what you may call lost Libyan assets which need to be looked after and recovered.” Commenting on the reason cited by STX Europe, a default of payment, for rescinding the contract, he said “of course, GNMTC would not have been able to make a payment, particularly in June 2011, when Libya was undergoing a violent revolution and all its assets were frozen by a Security Council resolution. According to MarineLog web site, STX France said in June 2011 that “it was confident that it would be able to find a new buyer for the vessel and construction has continued.” “The new ship represents an investment of €550 million and will be delivered at the end of March 2013," says Pierfrancesco Vago, CEO of MSC Cruises. The original contract was signed in July 2010 by GNMTC General Manager Ali Muftah Balhadj and STX France General Manager Jacques Hardelay in the presence of France's Secretary of State for Transport Dominique Bussereau. The signing of the contract at the time became the subject of a congratulatory release from the Elysee Palace, noting that the order for this new ship, would provide approximately four million work hours, helping to consolidate for the next two years the workload of STX France and the entire shipbuilding sector in the St-Nazaire industrial area, which represented more than 6,000 jobs. The Elysee Palace statement also said the contract with GNMTC, which was then under the control of one of dictator Gaddafi’s sons, was "part of the ongoing development of Franco-Libyan relations in all areas in accordance with the wishes of the two heads of state. It illustrates the growing ties between France and Libya, and their common desire for cooperation and friendship.” Explaining how the contract was taken away from the Libyan GNMTC, Vago said "negotiations with STX France have lasted over nine months; a significant but understandable period of time considering the importance of the investment and the unexpected nature of the takeover,” as quoted by MarineLog. MSC Preziosa will boast 1,751 staterooms, 17 guest elevators – including a private elevator for MSC Yacht Club guests – and 14 guest decks. Forty-five percent of MSC Preziosa’s total construction is now complete, and her mechanical zones are 70% complete. The best, however, is yet to come! MSC Cruises will soon begin the fitting and furnishing of the 1,094-foot long, 124-foot wide ship and work its unique Mediterranean magic on turning MSC Preziosa into a stylish masterpiece and a perfect mix of advanced technology, elegance and exclusive services.    tripoli post.