The Libya Rail Implementation Authority and the China Railway
Construction Corporation (CRCC) met last Wednesday to discuss ways in
which to reactivate the implementation of the rail project,
LANA reports.
The Chinese company has contracts to implement numerous parts of the
rail project from: Tripoli to the Tunisian border of Ras Jdair, Tripoli –
Khoms – Sirte and Al-Hisha-Sebha.
No details have been released regarding any outcomes, if any, that
resulted from the meeting. However, it was revealed that an attempt is
being made to reach a framework agreement that would enable the
reactivation of the implementation of the rail projects.
Sources at the Rail Implementation Authority told
LANA that the meeting was as a result of the decision by the Libyan government to
continue with the implementation of the rail projects.
That decision was
revealed last February 26
th by Transport Minister Abdel-Qader Ahmed at a press conference. He had revealed that he had already had talks with the
Russians regarding the restarting of their contracts.
Libya’s US$12 billion railway scheme was split between Russian
Railways (RZhD), tasked with building the line between Sirte and
Benghazi, and the China Railway Construction Corporation (CRCC).
The Chinese were awarded a contract in 2008 to build the line from
Sirte to Khoms and then on to the Tunisian border at Ras Jedir. The
Chinese also won the contract to build the 800-kilometre line between
Misrata and Wadi Shatti near Sebha.
The railways project, which was thought to have been mothballed after
the revolution, is now also being actively supported by Congress. In
February, GNC spokesman, Omar Hemidan,
said
that it had tasked its Communications and Transportation Committee to
choose a president and vice-president for the railways implementation
project.
Despite wanting to revive it, the transport minister warned the
Russians and Chinese in February not to increase their original contract
prices by claiming for compensation for the two-year delay, during
which costs of construction materials significantly increased.
He said that Libya would pay the companies 50 percent of what they
were owed if they restarted work again under the original terms, with
the rest of the fees being paid in two further 25-percent tranches.
The same offer has been made to Chinese, Turkish and other companies
involved in building housing and other projects, providing they drop
compensation claims. However, most have refused.
According to the minister, there is a Plan B if the Russians and
Chinese refuse the railway offer. There is an alternative project with
the Italians still on the table, he said, using Italian funds agreed as
part of the 2006 US$5 billion compensation deal for the Italian
colonialisation of Libya agreed between Qaddafi and former Italian Prime
Minister Silvio Berlusconi.
libya herald