For a review of the main types of critical issues identified within the Group’s operations in Libya, refer to the information provided later in this section under the heading "Segment’s risk areas".
The subsidiary Impregilo Lidco Libya General Contracting Company (Impregilo Lidco), active in Libya since 2009, is a mixed company established by Impregilo with a 60% interest. A local partner owns the remaining 40%.
In the past, Impregilo Lidco won important contract for the construction of:
- Infrastructural projects in Tripoli and Misuratah;
- University campuses in Misuratah, Tarhunah and Zliten;
- Tripoli’s new "Conference Hall".
A description of the status of these contracts is provided in the aforementioned paragraph “Segment’s risk areas”.
Libyan Coastal Highway
In September 2013, a consortium of Italian companies, with the Group as the leader with 58%, including Società Italiana per Condotte d’Acqua, Impresa Pizzarotti & C, and Cooperativa Muratori & Cementisti (CMC), signed a contract to build the first lot of the new Libyan coastal highway called "Ras Ejdyer-Emssad Expressway project," with a total value of approximately €945 million.
The new highway will traverse 1,700 km of the Libyan territory from the Tunisian border to the Egyptian border, and its construction will be an integral part of the agreements reached between the Italian Government and the Libyan Government with the signing of the Friendship and Cooperation Treaty on August 30, 2008.
The lot to be built by the Group will be 400 km long and will run from the city of Al Marj to Emsaad on the Egyptian border.
The motorway will have two lanes in each direction plus an emergency lane, and the most significant works will include the construction of 14 bridges and 52 viaducts, 8 service areas and 6 parking areas. The contract will be financed by the Italian government.
In 2010, a contract was signed for rehabilitation of the Koufra Airport runways, in the amount of approximately €57 million.
After a long period of political instability that prevented the project from starting, the country’s client administrations resumed the previous commercial and contractual relations in order to relaunch the project.
The requisite guarantees have been provided and the contractual advance payment was received in July 2013.
As a result of the social and political instability in the country, the initial worksite setup works have been suspended.
The percentage of completion as of December 31, 2014 was 18.6%.
The contract for the Koufra urban development project was signed during 2013.
Design work will only start upon normalization of the country. The agreement for construction of the new runway at Tripoli Airport still needs to be formalized, with the Company awaiting receipt of the signed document. Orders related to the Impregilo Lidco General Contracting Company are described in the ‘Segment’s risk areas’ section.