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Brooke F Adams  10/09/2006 03:13:08 PM  From  DB/Inbox:  Brooke F Adams

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UNCLAS        TRIPOLI 00563

SIPDIS
CXCAIRO:
    ACTION: FCS
    INFO:   AMB IPS ECON DCM

DISSEMINATION: FCS
CHARGE: PROG

VZCZCCRO372
RR RUEHEG
DE RUEHTRO #0563/01 2761246
ZNR UUUUU ZZH
R 031246Z OCT 06
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC 1291
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHRB/AMEMBASSY RABAT 0301
RUEHTU/AMEMBASSY TUNIS 0566
RUEHAS/AMEMBASSY ALGIERS 0318
RUEHEG/AMEMBASSY CAIRO 0435
RUEHAD/AMEMBASSY ABU DHABI 0006
RUEHDE/AMCONSUL DUBAI 0006
RUEHKL/AMEMBASSY KUALA LUMPUR 0001
RUEHVT/AMEMBASSY VALLETTA 0114
RUEHRO/AMEMBASSY ROME 0206
RUEHTRO/AMEMBASSY TRIPOLI 1460

UNCLAS SECTION 01 OF 02 TRIPOLI 000563 
 
SIPDIS 
 
DEPTARTMENT FOR NEA/MAG, COMMERCE FOR NATE MASON 
 
E.O. 12958: N/A 
TAGS: BEXP BTIO ECON EFIN EIND EINT EINV ENRG EPET
ETRD, LY 
SUBJECT: LIBYA: COMMERCIAL ROUND UP, AUGUST-SEPTEMBER 2006 
 
---------------------------- 
Oil and Gas Sector 
---------------------------- 
 
¶1.  Sources indicate that the National Oil Corporation (NOC) 
plans to introduce measures to require foreign companies 
operating in Libya to offer Libyans salaries equal to those paid 
to non-Libyans. (Source: NOC, 8/21) 
 
¶2.  Libya and Japan signed a memorandum of understanding on 
cooperation between the two countries in the fields of oil and 
gas, as well as nuclear and solar energy.  The memo also calls 
for cooperation between the two countries in transportation, 
communications, tourism, environment and human resources.  The 
two sides also discussed the possibility of financing an oil 
pipeline to link the south of Libya with the entrance to the Red 
Sea. (Source: Akhbar-Libya.com (quoting the Emirates News 
Agency), 8/20) 
 
¶3.  NOC has announced a third round for exploration and 
production of oil in Libya (EPSA-IV Round).  The new round 
includes 14 areas and 41 sections, for a total area of 
approximately 100,000 square kilometers.  NOC will announce the 
results on December 20, 2006.  (Source: Almanara.org (quoting 
aljazeera.net), 8/15) 
 
¶4.  An official Libyan source announced August 14 that the 
executive manager of Chevron expressed his company's readiness 
to transfer oil technology to Libya through its oil projects in 
the country.  He also stated that his company will work to make 
use of and to train the Libyan workforce. (Source: Almanara.org 
(quoting Alquds Alarabi Newspaper), 8/15) 
 
--------------------------------------------- ------------------ 
Construction and Infrastructure Development 
--------------------------------------------- ------------------- 
 
¶5.  Ranhill Bhd secured a deal worth $2 billion to construct a 
new township in Tajura, near Tripoli.  Sources familiar with the 
company said that the engineering group is also aggressively 
pursuing a similar contract in Libya worth $1.5 billion, in 
addition to exploring oil and gas opportunities and a railway 
contract.  Under the Tajura township contract, Ranhill will 
build some 40,000 homes for a Libyan government housing agency. 
"It is a straightforward housing project, but one that would 
open further opportunities for Ranhill," one source reported. 
"The company is taking a holistic approach in bidding for jobs 
that all of its units can take part in."  Sources also said that 
Ranhill expects to receive a start-up fund from the Libyan 
government of between 15% and 20% of the contract value. 
"Ranhill is making itself a preferred builder for the Libyan 
government," the source said, "and has the first right of 
refusal for several of the projects that the authorities have in 
the pipeline."  One source explained that the American decision 
to lift sanctions on Libya has created opportunities for 
construction companies. (Source: The Edge Daily, 8/23) 
 
¶6.  Libyana Mobile Phone Service provider signed an agreement 
with the German D.T. Khun [transliteration] to develop services 
and management.  The contract will last for two years.  Libyana 
currently provides its services to more than a million 
subscribers. (Source: Khaleej Newspaper, 8/14) 
 
--------------------------------------- 
Foreign and US Investment 
--------------------------------------- 
 
¶7.  The General People's Committee decided August 22 to 
establish a financial investment corporation.  The establishment 
will have a capital of 250 million dollars and will report 
directly to the General People's Committee. The corporation is 
intended to diversify income resources and increase revenues to 
the Libyan treasury. (Source: LJBC.net, 8/23) 
 
¶8.  Libyan Secretary of Economy, Investment And Trade Tayyib 
Safi Tayyib confirmed his country's willingness to learn from 
the example of the United Arab Emirates in the management of 
ports and free zones.  In a speech before the second conference 
on economic activities, Safi said that Libya must abandon the 
foreign investor complex and learn from the experiences of 
foreign companies and investors in transferring technology, 
especially in management and banking.  He stressed the 
importance of exploiting Libya's high present level of oil 
income, and of finding alternative income sources for the 
progress of the country. (Source: Albayan Newspaper, 8/9) 
 
¶9.  Tameer Holding Co. announced August 9 a $20 billion project 
in Libya.  The project represents the biggest investment in the 
Maghreb from the Gulf region.  The contract was signed by Omar 
Ayesh from Tameer and Hamed Alarabi Alhudeiri from the Economic 
and Social Development Fund.  (NOTE: Tameer and the Economic and 
Social Development Fund have formed a joint company, called 
Tadweer, or the Libya Real Estate Development Company. END 
NOTE.)  The project will be located in the Wadi Sharki area on 
the outskirts of Tripoli.  It covers a beachfront area of more 
than 40 square kilometers.  It will consist of a complete city 
with commercial centers and tourist attractions, as well as 
schools and hospitals.  Some of the buildings are designed to 
accommodate the most advanced technologies available. The city 
will serve a population of about half a million inhabitants. 
(Source: Libya-Alyoum.com, 8/10) 
 
------------ 
Tourism 
------------ 
 
¶10.  Secretary of the General People's Committee Dr. Elbaghdadi 
Elmahmoudi and the General Manager of the Swiss holding company 
Piroco [transliteration] announced that they will begin building 
the Andalus Tourist Center in Tripoli.  Libyan Tourism Secretary 
Ammar Iltayyif attended the ceremony, along with the Swiss 
Ambassador to Libya. The project is a joint venture between the 
Economic and Social Development Fund in Libya (30%) and the 
Swiss company (70%).  The tourist resort will cover an area of 
four hectares and include a 600-bed, five-star hotel.  The 
project will start in December, 2006 and is expected to require 
four years to finish.  It will also include a harbor big enough 
for 250 yachts.  The project, whose total value is 200 million 
euros, is expected to provide 1000 job opportunities to Libyan 
employees.  The Swiss company's investment period will last 70 
years. (Source: Almanara, 8/31) 
 
------------ 
Banking 
------------ 
 
¶11.  Qatar National Bank announced August 29 that it has 
received official permission to open a representative office in 
Libya. (Source: Libya-Alyoum.com, 8/30) 
BERRY