Business News

SCT Lands EUR 330M Deal in Libya

Ljubljana, 24 March (STA) - Slovenian construction giant SCT has struck an EUR 330m construction deal in Libya. While the company will present details in a press release later on Wednesday, media reports say SCT will build an eight-lane motorway section in Benghazi in NE Libya.

"This deal, and those related to it, are so extensive that there is enough work for our entire construction sector for the next five years," SCT boss Ivan Zidar told daily Finance on Tuesday at the opening of construction fair Megra in Gornja Radgona.

"You mustn't forget that I've been working in that (Libyan) market since 1968. My career and the career of Libyan leader Muammar al-Qadhafi are almost of the same duration, and without good references, SCT could not have gotten this deal," Zidar told Finance.

The SCT boss believes that Prime Minister Borut Pahor's visit to Libya in November 2009 also contributed to the deal.

Daily Dnevnik reports that Libya has already paid SCT an advance of some EUR 60m, while Slovenia's biggest construction company had to meet several conditions to get the deal.

Libya only allowed applications from companies with at least EUR 0.5bn in annual turnover, and the construction company is not to use machinery older than five years on the project. SCT generated EUR 534m in revenues in 2009.

The entire Benghazi motorway project is estimated at EUR 1.1bn, according to Dnevnik. This is SCT's second motorway deal in Libya. The company has already built a motorway connecting Tripoli to the city's airport.

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