By Libya Herald reporter:
Tunis, 2 May 2015:
Many contracts for major projects signed during the Qaddafi-era were overvalued, concluded Libya’s Audit Bureau in its 2014 report released on Thursday.
Poor contracts and the projects were not researched and were without clear aims and vision, without social values or analyses or sustainable development, it added.
It reported that Libya had signed contracts valued over LD 154 bn of which LD 103 bn are still outstanding.
As an example of the overvaluation of projects and contracts, the Audit Bureau highlighted the prices of Libya’s three main airport contracts.
It revealed that as part of an assessment by consultants Mott & Arup carried out for the Ministry of Finance, it discovered that airport contracts were overvalued by up to 128 percent.
|Airport Contract:||Over value of contract|
|Benghazi airport||128 %|
|Tripoli airport||57 %|
|Sebha airport||27 %|
Source: Audit Bureau 2014 annual report
There were also errors in design, incomplete designs, a lack of co-ordination and a lack of project management in projects.
The Audit Bureau recommended that more projects such as the 400,000 housing units projects, which it estimated at LD 80 bn, are financed by alternative non-state finance in order to save the state’s finances. [/restrict]