LIBYA

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1st february 2013

issue 03

PROVIDING COMPREHENSIVE COMMUNICATIONS STRATEGIES AND SOLUTIONS IN CHALLENGING AND TRANSITIONAL ENVIRONMENTS

Getting Libya Online

Ibrahim A. El Mayet Tripoli, Libya 30.01.2013 With additional input from: Ahmed El Hasairi

Contents
P2 International Perspective
British Prime Minister David Cameron visits Tripoli Britain has warned of a potential threat to its embassy in Tripoli Dutch Ambassador discusses bilateral relations with NOC Chairman Libya and UAE to work together to improve Libyas healthcare sector Uganda ready to cooperate with Libya

Given the level of coverage dedicated to the role of social media in the uprisings of the Arab Spring it may come as a surprise to many to learn that internet penetration across the population in Libya is below 15%.
There is no doubt that social media sites like Facebook and Twitter have become a major platform for political expression, debate and information (in some cases deliberate misinformation). Many Ministries and institutions have a Facebook page and Facebook groups are a buzz with activity from which the majority of Libyans remain excluded. According to the website socialbakers. com which measures social media statistics, 88.5% of Libyan internets users are Facebook users; however this only represents around 12% of the population. Upgrading Libyas inferior telecommunications and internet infrastructure, and expanding internet penetration across the country is the major focus for Libyas state owned telecoms companies including Hatif Libya responsible for telephone lines nationwide

and the countrys main internet service providers (ISPs) Libya Telecoms and Technology (LTT) and Al Jeel Al Jadeed for Technology both of which are subsidiaries of Libyas General Post & Telecommunications Company (GPTC). Hatif is currently conducting maintenance on damaged infrastructure including existing subsea cables and working on a number of infrastructure projects including the laying of 18,000 kilometres of fibre optics cable. While LTT have committed to continue contracted work with Chinese firm ZTE to expand Libyas Wimax network which currently accounts for about 80% of Libyas internet coverage, Al Jeel Al Jadeed are working towards implementing 4G (or Long-Term Evolution LTE) having invested some $200 million into the Next Generation Network (NGN) running across the Country from Tunisia to Egypt. continued on page 4

P3 Regional Focus
Tunisian Transport Minister announces new shipping line between Libya and Tunisia Traffic flowing at the Ras Jedir border crossing between Tunisia and Libya Egyptian embassy in Tripoli deporting over 300 Egyptian nationals

P4 Getting Libya Online cont. P5 P6 The Interview

Minister for Communications & Informatics Usama Siala

P7 P9 Business in Brief
P7 - Benghazi Economy, Oil & Gas, Gas production figures, Pharmaceuticals, Banking, IT P8 - Oil & Gas, Transport P9 - Oil & Gas, Finance, Housing

P10 Upcoming Events

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SocIAL MEdIA STATISTIcS LIbyA

Population Total Facebook Users Penetration of online population Penetration of population Position in the list Source: www.socialbakers.com 6,461,454 787,320 88.49% 12.18% 90

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Libya and UAE to work together to improve Libyas healthcare sector 29.01.13 Nuradin Daghman, Libyas Health Minister met with the UAE Ambassador on Sunday to discuss bilateral relations in the field of health care. The UAE Ambassador stated that the Embassy is ready to assist UAE companies wishing to work in Libya.

International Perspective
britain has warned of a potential threat to its embassy in Tripoli 28.01.2013 Days after the Foreign Office urged British nationals to leave Benghazi a Foreign Office spokesman claimed a specific threat had been made against the embassy saying, Were aware of a potential threat to the British embassy in Tripoli and we are liaising closely with the Libyan government, The Foreign Office, which already warns against all but essential travel to the Libyan capital, said its travel advice remained unchanged. Libyan officials said they were not aware of such reports. Speaking to Reuters Libyas Deputy Minister of Interior said The British embassy has not informed us of any threats towards it and there has been no coordination between us. dutch Ambassador discusses bilateral relations with noc chairman - 26.01.13 Nuri Beruin, Chairman of Libyas NOC, met with the Dutch Ambassador to discuss bilateral relations between the two countries. Particular emphasis was put on working in the oil and gas and petrochemical industries. The Netherlands also have aspirations to work with Libya in other sectors such as health care.

british Prime Minister david cameron visits Tripoli 31.01.2013 In a show of support for Libyas new government, David Cameron made a surprise one-day visit to Libyas Capital Tripoli today despite recent reports of threats to the British embassy and consulates. Flying in from Algiers he met with Libyan Prime Minister Ali Zidan and Minister of Interior Ashour Shwail attending a parade at the Tripoli police academy. He promised to do more to help the country, which is trying to build a functioning democracy after decades of dictatorship. Uganda ready to cooperate with Libya 30.01.2013 Meeting with Libyan Prime Minister, Ali Zidan, on the sidelines of the 20th African Union (AU) summit in Addis Ababa on Monday, President Yoweri Museveni welcomed the positive developments towards the normalisation of the situation in Libya, although he expressed concern over the intensifying insecurity in North Africa. He stressed the need for African countries to always give a chance to dialogue within the framework of the internal, regional and international mediation efforts where conflicts arise. Zidan reiterated his governments call to Uganda and Africa at large to receive and support the new Libyan government as part of the AU. He also said Libya was ready to work with Uganda for the mutual benefit of the two countries.

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Traffic flowing at the ras Jedir border crossing between Tunisia and Libya 27.01.13 Authorities from both Libya and Tunisia agreed to re-open the Ras Jedir border crossing. The meeting attended by a variety of Tunisian and Libya officials led to the border crossing being opened, and traffic is now flowing in both directions.

Regional Focus

Tunisian Transport Minister announces new shipping line between Libya and Tunisia - 26.01.13 Transport Ministers from Libya and Tunisia met last Friday to discuss the opening of a new shipping line between the two countries as well as a possible co-operation between Tunisias CTN and the Libyan National Shipping Company for transporting crude oil between Skhira and Bizerte.

Egyptian embassy in Tripoli deporting over 300 Egyptian nationals 27.01.2013 Responding to Libyas recent crackdown on people travelling to Libya without legal documents the Egyptian embassy in the Libyan capital, Tripoli is deporting 304 individuals for various reasons including the absence of legal papers to stay. Sources in the Egyptian embassy in Tripoli, said thanks to the efforts of embassy staff working in cooperation with the Libyan authorities over the past two weeks they deported 182 people from Tripoli and 80 from Misurata with forged visas, and another 42 illegal residents from other areas around Libya.

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The EIG is the first direct, high-bandwidth optical-fibre undersea cable system from United Kingdom to India. The $700 Million cable system is expected to significantly enhance capacity and diversity between the countries of three continents. The 15,000 kilometres long EIG cable system is the first high band-width (3.84 terabits per second) cable system using dense wavelength division multiplexing technology connecting the United Kingdom with India via the Mediterranean Sea with connections at Gibraltar, Portugal, Monaco, France, Libya, Egypt, Saudi Arabia, Djibouti, Oman and the United Arab Emirates.

Getting Libya Online

Wimax was first introduced in Libya in 2009, however with LTT previously being the sole provider, and given the high level of surveillance of internet traffic by the Gaddafi regime; internet penetration was low with only 5.5% of the population having access to the internet. Those who did have access to the internet endured the slowest connection speeds in the MENA region. Despite criticisms that Wimax technology is outmoded, work is commencing on installing 300 new Wimax towers in addition to the existing 346 towers spread across 18 locations should help to boost capacity and coverage. In addition the services offered by GPTC subsidiary Al Jeel Al Jadeed as well as a host of newly licenced private ISP providers will give consumers more choice. A competitive market place should improve both the service and cost of internet in Libya.

International connection
Libya currently has three submarine cables (operational and planned) connecting Libya to the rest of the world:

Mazara, Italy - Tripoli, Libya 40Gbps Europe-India Gateway (EIG) which has a landing site in Derna-Chania, Greece submarine cable project
(Selphium) The Tripoli-Mazara cable is currently operational. The EIG Tripoli landing station was activated in 2010 and the Europe segment of the cable entered service in 2011. The landing sites for these cables are either owned by GPTC or one of its subsidiaries. Tripoli with total design capacity of 3.84Tbps

business bridges
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Building

Libya

The LBBC is the only trade association devoted exclusively to promoting bilateral trade and investment between the UK and Libyan business communities.

50 Broadway, London SW1H 0RG T: +44 (0)20 7152 4051 E: secretariat@lbbc.org.uk www.lbbc.org.uk

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The Interview

Usama Siala
Libyas Minister of Communications and Informatics This week Libya Business Weekly met with Libyas Minister of Communications and Informatics, Usama Siala at his office following last weeks Taqniya Expo 2013 (the 7th Annual telecommunication and information technology exhibition) which attracted 90 local and international companies representing 220 brands, to discuss the challenges and priorities of the for the telecoms sector in Libya. Having graduated from Tripoli University faculty of telecoms engineering in 1993, Mr. Siala worked at the ministry of education for two years before moving into the private sector working for Schlumberger as a wire-line engineer for three years. He then spent ten years with Ericsson progressing from a role as technical engineer to a care account manager before joining Cisco. During the 2011 Uprising Mr. Siala worked with the Stabilisation team coordinating efforts to reinstate telecoms in Western Libya leading a team of engineers from Libyan mobile phone companies Al Madar and Libyana which helped to re-establish communications in the Nafusa Mountains (Western Libya) and LbW: What is the remit of the Ministry of communications & Informatics? US: The Ministry has two roles, firstly in a regulatory capacity setting regulation, awarding licences and monitoring the sector, the Ministry is also responsible for the state post and telecoms companies, I am Chairman of the General Post and Telecommunications Company (GPTC) which is the holding company for eight subsidiaries: Hatif Libya [landline and cable provider], Libyan Post, The Libyan International Telecoms Company, Libyan Telecommunication & Information Technology Company, internet service providers - Libya Telecoms & Technology (LTT) and Al Jeel Al Jadeed for Technology, mobile networks - Almadar Aljadeed and Libyana for Mobile Phones, and the Infrastucture Company for Invesment & Services. LbW: What are the current priorities for the Ministry? US: We are working a draft for a new telecoms law to be presented to the Prime Ministers office; it will then go to Congress for approval. We need a modern legal framework which will coordinate activities between the government and private sector. We need to encourage the private sector. We are also setting up a new Cyber Security Agency and a new regulatory body to establish specific rules and take action on hacking and online security. But our main priority right now is to focus on deliverables to the end users; we are working to restore damaged sites, and improving our organisation and operations to provide a high quality service. LbW: do you have any specific political affiliations? US: No, I am independent. I was nominated for the position by the NFA, I worked with Mahmoud Jabril as part of the Stabilisation team during the uprising, but I do not have any particular political affiliations, in this position I have to work with people from all parties across the political spectrum. restore traffic to Misurata. His efforts during the uprising and considerable technical skill and industry experience led to his nomination for the position of Minister by the National Forces Alliance (NFA) the political coalition led by Mahmoud Jabril.

21.01.2013 Minister Siala opening the 2013 Taqnia Exhibition in Tripoli

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LbW: What were the outcomes of the Taqnia 2013 exhibition? US: The exhibition is sponsored by the Ministry of Communications and Informatics; this was the first Technology exhibition since the liberation of Libya and was a good opportunity for companies to showcase projects. We held a special session to discuss the first draft of the new telecoms law with participants at the exhibition and get valuable feedback from end users. There were a lot of Arab companies visiting the exhibition looking to meet local companies and establish relationships. LbW: finally, what message can you give to international companies interested in engaging in the sector? US: We are open to ideas, but we need to see proper laws and regulations in place to ensure the rights of both the government and investors. We are working as fast as possible to put this in place.

The Interview
LbW: can private companies currently operate? And will private companies be allowed to own and develop private infrastructure for telecoms and internet services? US: Yes, so far we have awarded 16 licences for private ISPs and we are currently processing another four. The first private ISP company in already operating in Tripoli in Ben Ashour [a district in Tripoli]. Private Companies cannot lay fibre, this will be owned by GPTC, and anyway Libya is a large country, it would not be economical for private companies to lay their own cables. Private companies can go from the point of contact and own their own infrastructure. LbW: What is being done to improve internet penetration and connection speeds? US: LTT are currently expanding the Wimax network which currently covers 18 cities, by the end of Q2 we expect coverage to reach 120 cities bringing an additional 300,000 users online. We are also expanding the ADSL network adding 1000 new wifi hotspots adding 60,000 70,000 users, and this is just the government, private sector will add more. LbW: Wimax has many critics who say the technology is obsolete, is adding Wimax capacity the right strategy? US: Well, these projects are on-going so we cannot stop them now, Wimax usage worldwide is in decline, but they will boost capacity. We have not yet finalised our ICT strategy, this will be developed over the next 6 9 months. We will be developing 3.5G (HSPA+) and 4G (LTE) hotspots. LbW: What is being done to improve landline networks? US: The copper networks sustained a lot of damage and repairs are on-going, 2 weeks ago Hatif Libya launched a campaign to fix faults in the copper network and launched a system for the public to report faults. It is important; a good copper network is also needed for good ADSL.

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Commercial banks ie. consultancy+ given power to conduct international remittances - 26.01.13
Libyas Central Bank has granted commercial banks authority to conduct foreign remittances. This is to cater for Libyas ever increasing demand for foreign imports especially in regards to medicine, security and technology. However, there are conditions and limitations set out by the Central Bank including a $100,000 cap per transaction and $250,000 annual limit.

Business in Brief First Deputy PM Awad Albarasi discusses political and economic issues with Benghazi Local Council 28.01.2013
Albarasi met with the deputy head of the Benghazi local council Mr Saad Elseeti, on Saturday to discuss the social, political and economic problems of the city. Elseeti told Al Tadamon news agency that the main reason for the meeting was to discuss the return the institutions, including the National Oil Corporation to Benghazi.

French pharmaceutical firm Sanofi look to set-up in Libya

- 28.01.13 Being the first drug company to be established in the Arab world, French drug company Sanofi have said they are now studying a potential project in Ajedabia [Eastern Libya], to produce medication for diabetes and stress related disease.

Libyan gas production reaches 2.3 billion cubic feet per day
27.01.2013 Speaking to Al Tadamon news agency on Saturday Libyas Minister for Oil and Gas Abdulbari Alarusi confirmed that Libyas gas production reached 2.3 billion cubic feet per day. Under existing agreements 850 million cubic feet is exported to Italy. 800 million cubic feet of gas is used to supply the electricity sector, cement and water desalination, with a further 650 million cubic feet of gas distributed to companies to supply oil fields and ports with electricity. It is estimated that 2.3 million cubic feet of gas is currently flared; Alarusi stated that the ministry is looking to create projects to take advantage of these quantities.

Korea hopes to establish a Libyan IT Center as Korean firms move back into Libyan market - 28.01.13
The Korean Ambassador to Libya announced a Libyan IT Center project is likely to happen. Despite getting to an advanced stage of talks with Libyas previous interim government, there have been obstacles stopping this project moving ahead. However, the Korean Ambassador feels confident it will now happen. He also said that other major Korean companies, such as Daewoo, have already returned to Libya and have high hopes for the country.

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Prior to the 2011 Uprising, BP were active in Libya having signed a $900 million agreement with Libyas National Oil Company (NOC) in 2007. Following the liberation of Libya, BP reached an agreement, in May 2012, with the National Oil Corporation (NOC), under the new authority of the Interim Government and National Transitional Council, to resume their operations in Libya.

Total meet with NOC to discuss cooperation in Libyas Oil and Gas market - 29.01.13
Chairman and CEO, of French firm Total, Christophe de Margerie, and Libyas NOC Chairman, Dr. Nuri Beruin, met on Tuesday to discuss ways in which Total can cooperate with Libya. Of particular interest to Total is the field of exploration, a point that was at the forefront of discussions on Tuesday.

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Plans to start work in September 2013 have now been put on hold due to the growing security risks in the region. BPs decision to postpone operations in Libya has been further supported by the British Foreign Office raising their security alert for Libyas second city Benghazi, advising all British nationals to leave the area if possible, stating that there was a Specific and Imminent threat for Westerners in Libya.

Tuareg demand benefits from Libyas Southern oil profits

- 29.01.13 The Tuareg Advisory Council met with the Oil Minister Abdulbari Al-Arusi on Tuesday demanding benefits for young Tuaregs living in Libyas Southern region. It has been requested that some of the profits gained from the southern region should be invested in local healthcare, education and agriculture. They hope that jobs, along with adequate training and employment with oil companies working in the area, will be available to them. The Tuareg will be relied upon to play a key role in securing the Southern region including oil facilities and the threat from islamist organisations.

Sweden to help Libya in the field of transportation - 26.01.13

Abdulgader Ahmed, Libyas Minister of Transport, met with a Swedish delegation intent on assisting Libya to develop transport in the country. The Swedish Ambassador also stated the desire from Swedish companies to work with Libya in other sectors as well, such as security.

Under the agreement first signed in 2007, BP aimed to explore around 54,000 square kilometres of the onshore Ghadames basin and offshore Sirte basin. In comparison, the acreage awarded in the North Ghadames block alone was the size of Kuwait and the offshore Sirt basin the size of Belgium or nearly three North Sea Quadrants. The agreement required BP to spend $50 million on education and training projects for Libyan professionals during the exploration and appraisal period and a further $50 from commencement of production upon success.

BP to launch review into drilling plans in Libya in the wake of Algeria attack - 26.01.13
BP have launched a review into plans to continue exploration in Libya following the terrorist attack in Algeria on a Gas Facility which resulted in 36 people being killed including four BP employees.

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UAE which co-owns and operates the plant. Libyan staff were calling for equal pay and better conditions. The Prime Minister

Oil Minister Reveals plans for new petrochemical plants

In a press statement on Saturday Oil Minister Abdulbari Alarusi revealed plans to establish new petrochemical plants, including the establishment of ammonia and urea plants in the Eastern city of Ajdabiya to feed the eastern region. It is hoped that the plant will help to create new jobs for people in the area of Ajdabiya and Zueitina.

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confirmed that the Company had agreed terms and the situation had been resolved. He called upon Libyans to be patient while the government waited for the 2013 budget to be approved by Congress.

NOC backtracks on transparency pledge 25.01.2013

Officials in the Libyan NOC said that their government will not reveal the details of oil sales this year, marking a retreat from previous commitments to promote transparency after years of blackout on oil deals under the Gaddafi regime. Speaking to Reuters NOC chairman, Nuri Berruien, said any secrecy clauses were introduced at the request of clients, not the NOC, and that most of last years buyers would continue to purchase its oil. Berruein also confirmed that an annual report detailing NOC activity over the last year would be published on the NOC website. However following the disbanding of the committee set up by the National Transitional Council (NTC) to deal with past corruption the current authorities are yet to establish a new committee leaving plans to deal with former corruption on hold.

Libyas main oil refinery Ras Lanuf back on line after strikes caused a shutdown 31.01.2013
The 220,000 barrels per day plant was shut down last week due to a technical fault, but remained offline when workers went on strike over pay and conditions. Prime Minister Ali Zidan commented on the issue during a government press conference yesterday, saying that the action was taken against the Libyan Emirati Refining Company, a joint venture between Libya and the

Local knowledge gets you a long way in Libya.

IE consultancy Plus (IE) is a young, dynamic business development agency, supplying market research, representation, advisory and support services to international clients looking to establish or extend their commercial presence in the emerging markets of the new Libya. With offices in Tripoli and London and supported by associates based throughout Libyas key commercial locations, IE boasts a unique profile founded on the experience and vision of its management team and developed on the collective expertise of its extended network of consultants. For more information on how we can help you to do business in Libya contact us now in either London or Tripoli London offIcE
15 Bedford Square, London WC1B 3JA United Kingdom T: +44 20 7193 6404 E: info@ie-consultancy.com Skype: ieconsultancy

Konooz Investment Holding

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26.01.2013

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approval had been granted for the resumption of works being under review since early 2012. It is expected that this will allow 60,000 standard housing units and an additional 6,500 prefabricated units to be completed nationwide during 2013. Priority will also be given to related infrastructure work to support housing development including roads and utilities. conducted by some 600 contractors whose contracts have been

Company to launch first Islamic investment fund in Libya

Having obtained an initial permit from the Libyan Stock Market to establish the first Islamic investment fund in Libya with a capital of LYD 500 million, Konooz is hoping to launch the fund soon pending approval from the Central Bank of Libya. The fund which will be open to both local and international investors (up to an overall limit of 49%) will focus on developments such as hotels and malls primarily in Benghazi and its environs which have suffered from decades of underinvestment.

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Upcoming Events
LIbyA, TrIPoLI 11.02.2013 13.02.2013 First International Exhibition Of Libyan Ministry of Interior - The supply affairs department of the ministry of interior is holding the 1st annual exhibition for police clothing and equipment at the Tripoli International Fairground. For more information visit the website at: www.3cexpo.ly During the period of (11-13) February 2013 On Tripoli International Fair Land

Ministry of Housing & Utilities gives approval for resumption of housing contracts 31.01.2013
Speaking at yesterdays government press conference, the Minister of Housing and Utilities, Ali Hassan Al-Sharif confirmed

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