Thursday, April 22, 2010

GWI Newsletter -- Spotlight on Libya (Part 2)

Libya is not afraid of big projects. Just take a look at its massive US$11bil 4,000km Great Manmade River (GMMR) project to supply groundwater from the South to the Northern agricultural areas. In spite of this, Libya is still anticipated to face a shortfall of 2mil m3/day of water, which will worsen to 11mil m3/day by 2025. Moreover, there are signs that the water sources feeding the GMMR are being drawn down too quickly.

Initially wary of desalination, an extensive network of desalination plants has now be planned for the next 10 years. And specifically, they are only interested in reverse osmosis technology, which the highest echelons of the Libyan government are convinced is the best method, despite alternative technologies proposed by potential developers. Many international desalination developers have been knocking at Libya's doors, including Singapore's Hyflux, who inked a Memorandum of Agreement (something similar to pre-qualifying for a tender) at SIWW 2009 for two desalination plants in Libya.

But as with any country's forays into new areas, Libya has its share of difficulties. In this case, it is the procurement model. Even after two years, the General Desalination Company is still undecided on its procurement strategy.  International companies are hopeful for a privately-financed Build-Operate-Transfer model, but a recent EPC tender for a desalination plant suggests that international companies may be better off sourcing good local contractors as partners in the short term.

Main Sources:
Libya Weighs Up its Water Supply Options
A New Look for Desal in Tobruk
Libya's $11 Billion Water Lifeline
Hyflux in JV to Develop 2 Seawater Desalination Plants in Libya

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