Construction Mission to Libya: 26 - 30 June

It is fading in the memory now, but the Icelandic volcano in April not only ruined a lot of Easter holidays, it also wrecked our mission to Libya. It was very dispiriting to have weeks of planning destroyed in such an unexpected way, although our delegates were remarkably phlegmatic about it. Everyone accepted that this really was an Act of God, and within a week, after a series of communications between British Expertise, the UKTI section in Tripoli and other stakeholders, the mission had been rearranged for midsummer. Nothing is perfect of course, and the date change meant that we lost 4 of our 19 delegates. However we replaced them with 3 others, so ending with a strong and well-balanced group of UK construction companies.

I like Libya more each time I come. It may have a mixed reputation in business circles, but essentially there is a warm welcome, lots of potential and ongoing work, a great UKTI team, and a relaxed and friendly people. This mission was no different. Several British Expertise members were represented, including Scott Wilson, BDP, Kier and Curtins. I think it is my first ever mission with no female representation, perhaps fortuitously given we coincided with the World Cup. It has to be said that the language was very colourful during the group viewing of England’s disastrous match against Germany - in retrospect perhaps we should have carried on working!

Turning to business, it is clear there are major issues with payment currently coming to a head in Libya, with many major infrastructure projects on hold. A good example is the much-needed new Tripoli airport which has slowed down considerably with construction at one of the new terminals completely halted. Opening dates seem to be stretching further into the distance. However, it seems that the current hiatus is linked to Libya needing to restructure how it manages its infrastructure build, and all concerned believed the issues would soon be resolved. Although one or two companies had left, the sheer scope of the opportunities means that most are in it for the long term. After all, is it much easier in Dubai these days?

We visited all of the major Libyan organizations, including HIB, ODAC, LIDCO and ECOU, as well as a number of subsidiaries. All were welcoming and fielded their top teams. We also caught a glimpse of the future through a meeting with the Turkish company Renaissance Development, which is working hard on a huge and spectacular GBP 500m shopping mall, office and residential complex and hospital – Tripoli Gate. A recurring message we received was that UK companies are widely respected in Libya but were ‘too cautious’ in entering challenging markets such as this one - ‘if you take the plunge you will reap the benefits’. I suppose that time will tell.

In addition to the meetings above we had an excellent briefing and a very well attended reception. Many UK companies already established here, including British Expertise members Mott Macdonald, were willing to give up their time to give personal briefings to the group. Motts actually sponsored the reception as well, and their generosity was very much appreciated by all.

One of the crucial problems with Libya for UK companies is deciding what the next action is after a visit like this one. It is all very well making the initial contacts and taking a positive message back to the Board in the UK, but committing to a new market is always a risk, perhaps more so in an unpredictable place like Libya. It is a hard one to call, but there are good examples of companies who visited with me last year and are now firmly established. One 2009 delegate who I met on the flight out was on his 14th visit since last year, and his company had won 3 contracts – Libya now formed over 30% of the company’s revenue stream at a time when the market in the UK was extremely difficult. Talking to most the 2010 group, I did not find one who was not intending to return at least once. The general feeling was that Libya is one of those places which is too important to ignore.

All in all, this was perhaps the most satisfying and enjoyable mission I have done in my 2 years at British Expertise. It felt good to be able to get through the April volcano crisis, and still be able to deliver an excellent product 2 months later. The UKTI team in Tripoli is really second to none in efficiency, knowledge and ease of working with – there is real depth of expertise in the construction sector through Omran. My thanks – as always to them.

I cant deny there was slight resentment when the alarm went off early last Saturday morning. Suffering the grim trek to Heathrow, knowing the weather forecast is great, missing the World Cup, Wimbledon, Glastonbury etc, is never going to be fun. But this mission was really excellent and went as well as any I have done – it was fun as well. A fitting curtain call for the mission season as the Arab world starts to think about holidays and Ramadan. And I will not dwell on the misery of investing a sunny Sunday in London watching the football only to see it end in catastrophe. Much better to be on a mission to Libya. Almost...

Dominic James
BA 897 TIP-LHR
30 June 2010