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Economic Development

Rebuilding National Infrastructure

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Pillar Objectives

Our vision is to develop a national infrastructure base which will connect all Libyan cities and towns with paved roads, telecommunication facilities, electricity, and water while offering exceptional social infrastructure that provides access to quality education and social services to all citizens. Infrastructure projects that commit significant financial resources should be reviewed through a structured public investment planning process within the wider context of Libya’s development needs and priorities. Greater reliance must be placed on institutional financing and capital markets for resource mobilization and public-private partnerships for service delivery.

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Transformation Projects for Rebuilding National Infrastructure

Transformation Project Profile

Local development strategies must redress imbalances and disparities in economic and social prosperity. Different regions display unique characteristics, strengths, and opportunities and face varying challenges. Local development strategies can increase the role of municipalities in planning and development decisions that affect local communities.


Transformation Project Objective

  • Establish strategies for each municipality that provision for appropriate infrastructure to support growth
  • Adopt a coordinated approach to the provision of services and facilities based on a settlement hierarchy approach
  • Provide for the spatial requirements of activities and economic sectors that will contribute to economic diversification and development
  • Promote efficient use of land and planning for compact, higher density development

Transformation Project Profile

Many of Libya’s infrastructure projects have been placed on hold due to budgetary uncertainty from the closure of oil and gas infrastructure and instability. Once stabilization is achieved, Libya must prepare for sizable infrastructure investments that require close scrutiny. The large-scale infrastructure projects approved previously warrant a strategic review to ensure alignment with national development.

Transformation Project Objective

  • Scrutinize previously approved infrastructure projects to more thoroughly consider their engineering, financial, economic, social, and environmental dimensions within the wider context of development needs and priorities
  • Ensure financial resources are allocated to infrastructure projects within a sound public investment framework

Transformation Project Profile

World-class infrastructure is critically important to economic productivity and public service delivery. A national infrastructure fund that supports infrastructure projects of national, regional, and local significance can foster economic growth, job creation, and long-term prosperity. Projects funded through this mechanism could be cost-share based on national and municipal governments.

Transformation Project Objective
  • Ensure funding is available for larger, strategic projects of national and regional significance that would include projects related to drinking water, wastewater, public transit, and green energy
  • Ensure projects that improve water, wastewater, public transit, local roads, and other types of community infrastructure receive ample funding from the government
  • Enhance the viability of infrastructure projects by allocating funds on a merit-based system that takes into account the need for the project and ensures certain quality standards are

Transformation Project Profile

After several decades of neglect and damage caused by conflict, Libya requires significant infrastructure investment to provide appropriate social and economic infrastructure. In order to prioritize infrastructure projects and ensure that they both reach completion and have national support, they must be rigorously assessed relative to national development priorities.

Transformation Project Objective
  • Formulate a national infrastructure strategy and strengthen coordination between planning and implementing agencies
  • Establish a public investment program that requires systematic assessment of all public investments according to Libya’s development goals
  • Implement a public-private partnership framework
  • Develop a forward-looking, coordinated budget process linked to national development and the operational needs of spending agencies

Transformation Project Profile

Public-private partnerships offer the potential for rapid physical and social infrastructure development while limiting the burden on the national budget. Partnerships developed under build-own-operate-transfer agreements may be preferred to secure long-term national ownership over public resources. Partnerships for the delivery of services may also be beneficial for rapid delivery while long-term capacity is being built.

Transformation Project Objective
  • Reduce the capital burden on the government for the implementation of infrastructure projects
  • Provide immediate delivery for essential services allowing for strategic long-term planning
  • Provide a clear framework for a partnership that favors national ownership

Transformation Project Profile

Very high bandwidth broadband access is required by households and businesses to catalyze economic and social development. To ensure that households and businesses have access to key government services and to increase overall high-speed broadband access, a review of current network infrastructure and demographics should be undertaken to understand network capabilities, upgrade challenges, and priority areas to maximize access.

Transformation Project Objective
  • Develop a fully ICT literate nation through broad-based ICT education and awareness
  • Ensure adequate supply and availability of skilled human resources for the ICT sector
  • Promote the innovative use of ICT across all sectors
  • Provide world-class infrastructure and telecommunications facilities to build a competitive ICT industry
  • Ensure telecommunications facilities are accessible and affordable to all

Transformation Project Profile

A long-term integrated transportation strategy aligned with national economic development plans, land use planning, and population growth will encourage international and domestic investment, increase competitiveness, and reduce the environmental impacts of growth. Prioritization of industrial zones and public-private infrastructure investment can also help facilitate more rapid development.

Transformation Project Objective
  • Implement a rapid transit network as part of the transit system to provide a viable alternative to automobiles and reduce road congestion
  • Align land use and transportation planning decisions
  • Enhance the efficiency and coverage of the road network
  • Ensure an effective and sustainable goods movement network
  • Support municipalities in the development and implementation of travel demand management initiatives

Transformation Project Profile

Current energy tariffs represent approximately one-third of the market cost. By gradually reducing energy subsidies, Libya will reduce lost revenues and enhance energy efficiency. Tariff increases based on incremental levels of consumption, where households are offered subsidized rates for average consumption, ensures that subsidization covers poor households while encouraging energy conservation among others. Initial savings from subsidy reduction can be used to promote renewable energy.

Transformation Project Objective
  • Support poor households while promoting energy conservation and sustainability
  • Reduce excessive household energy consumption
  • Reduce current and future harmful emissions related to the burning of fossil fuels in power generation