The Path Choice Of Chinese Enterprises Returning To Libya

Gaddafi's death means that Libya's new regime will be gradually approaching, big scale The reconstruction of is about to begin. In view of the fact that the tribes and political factions with complex relations are fighting for economic interests in full swing under the banner of reconstruction, the instability of its political environment is becoming more and more serious. As for the loss of investment projects in Libya after the war, it is of great significance for Chinese enterprises to get involved in the war.

Recently, economic reference daily (microblog)

The reporter went to the front line to interview with some people in the industry who knew about the local factional struggle, so as to provide some ideas and paths for relevant Chinese enterprises to "return" to Libya. Now there are large-scale enterprises in China enterprise Representation of the country's political circle compensate for It may become a model for other enterprises to follow.

Compensation Negotiation starts; enterprises complain that it is difficult to find people

It is a systematic project for Chinese enterprises to return to Libya, which requires coordination and support from various parties. From the current situation, the prospect of enterprises returning to Libya is not optimistic.

According to the reporter's understanding, compared with other domestic enterprises that have projects in Libya, in addition to a domestic private communication enterprise partially restored business in Libya, CCCC group's action is relatively rapid, and other enterprises have not yet returned to Libya.

"At the invitation of the relevant authorities, the assessment team of four members of the CCCC group arrived in Benghazi, Libya, and held talks with the authorities here." Zhang Baozhong, deputy general manager of Overseas Project Department of CCCC, told the economic reference news that "this is because CCCC established extensive contacts in Libya before the war and was able to maintain close contact with the Libyan authorities during the war."

Before CCCC came to Libya this time, the other party made a compensation commitment and hoped that the company could help Libya to undertake some recovery projects. "After coming to Libya, it was beyond imagination." Zhang Baozhong said, "the first difficulty for enterprises to return to Libya is the security factor. At present, Libya is extremely unstable and there is no order in the whole country. Although the war is over, there are still security risks. Many Libyans often shoot guns into the air. "

"They had planned to fly from Benghazi to Tripoli in the near future, but due to the random shooting of many Benghazi people, the flight was cancelled for security reasons." Zhang Baozhong said that in his contacts with some important figures in the ruling authorities, he felt that it was unexpected or even unprepared to seize and kill Gaddafi so quickly, because the authorities were not ready for the post Gaddafi era.

Disunity within the Libyan authorities will be a difficulty for businesses. Zhang Baozhong said, "the assessment team of CCCC originally planned to discuss with a candidate for Minister of the transitional government, but was blocked by his colleagues. Some officials of the transitional Commission said that the people to be interviewed by CCCC may not become ministers of the transitional government, and there will be no substantive results in the talks with them. "

Zhang Baozhong believes that enterprises are facing an embarrassing situation that they cannot find suitable negotiation partners in Libya. Due to the serious power struggle within the Libyan authorities, it is difficult to ensure that the results of the talks can be implemented even if the enterprises and some key figures have reached an agreement. These figures may not take office as they wish in the transitional government, and even if they can hold important positions in the transitional government, they will not play an important role in the new government in the future.

Zhang Baozhong said that under the bad security situation in Libya, no matter how generous the other party offers and how much money, the enterprise will not return and risk the life and safety of its employees. Zhang Baozhong believes that regardless of security factors, if enterprises can return to Libya, they will also face many practical problems. The main reason is that the original contract price is too low. "At present, the price of raw materials in the international market is rising, and the cost of labor is also rising. If we continue to implement the original contract price, it will be difficult for the enterprise to make a profit. Although the relevant parties in Libya agreed to increase the price of the original contract, the enterprise only received oral rather than written commitment. "

The lack of building materials is another obstacle for enterprises to return to Libya. He said, "through field inspection, CCCC's project site in Libya is relatively well protected, and the original building materials are also preserved. But these materials can only be used for a few months, and then they are not suitable for further use. For enterprises, this is another loss. " According to him, there are no building materials on the Libyan market at present and need to be imported from abroad. However, the number of Libya customs staff is insufficient, and it is very difficult to import building materials.

Zhang Baozhong pointed out that enterprises also face difficulties in construction period. Affected by the war in Libya, the enterprise could not complete the project according to the original time limit, so it had to negotiate with the Libyan owners to extend the construction period by half a year to two years.

Zhang Baozhong said that Libya will form a transitional government in the future, but the transitional government can only restore the old projects, and the new projects will be decided by the new government after that. Therefore, enterprises that have not undertaken projects in Libya before should not rush. "The return of enterprises to Libya is a systematic project, which requires coordination and support from various parties. From the current situation, the prospect of enterprises returning to Libya is not optimistic. " Although the Libyans are celebrating Gaddafi's death, some people with knowledge background he contacted are more worried about the future of Libya. {page_ break}

It is not clear that the members of the new government can find the right talents in the chaos

At present, the Libyan authorities are divided into four major armed factions, and one faction is formed in the eastern region, namely the Benghazi faction. In the western region, it is divided into three groups, mainly misrata, zintan and Tripoli. These factions will participate in the formation of the new government in the future.

In the face of the difficulty of finding people for Chinese enterprises, the reporter specially consulted some party members who are familiar with the local factional struggle.

From the perspective of the members of the Democratic Party of Libya, general Ali bin Laden has the right to refer to the new regime. From a small point of view, there are more than 200 members of their own political groups, which are the largest among similar groups and are expected to play an important role in the new regime.

At present, the Libyan authorities are divided into four major armed factions, forming a faction in the eastern region, namely the Benghazi faction. They are mainly divided into three groups, namely, the faction of zuritan and the faction of Tripoli in the West. In fact, the most important reason why the Gaomi faction does not want to control Tripoli is that they do not want to live in Tripoli. Misrata want their own people to be the Prime Minister of the transitional government to replace jabril. Regardless of the choice of prime minister, misrata faction will have an important voice in the new government, posing a challenge to the Benghazi faction.

AI Ming analyzed the future of the new government personnel in power. He said that Ali taguni, the current Minister of oil and finance of Libya's "national Transitional Council" executive committee, has a better prospect in the transitional government. Taguni once taught at the foster School of business, University of Washington. He has lived in the United States for a long time. He is an expert in management economics, macroeconomic analysis, finance and international investment, and has won many international awards. He had left-wing tendencies and had been a member of the national assembly of Libya, who had opposed Gaddafi, and had been exiled overseas for a long time. According to the previously leaked list of Libya's transitional government, taguni will be promoted to Deputy Prime Minister in charge of financial and economic affairs.

"In the transitional government, Ben Aceh, the current Deputy Minister of oil, who is from Tripoli, is likely to be Minister of oil. In the recent period, he has met with many relevant personnel in the oil field who have visited Libya, including the heads of Italian and Spanish oil companies. " Said Emin.

On October 3, the national Transitional Council reorganized its executive committee. Some of the key ministers remain unchanged, such as taguni as interim finance and oil minister. The chairman of the Transitional Council, Jalil, has said that Libya's oil affairs will be managed by the national oil company, which will be launched soon.

"Nuri bilvin, head of Libya's oil company, is expected to become the top official in the field of Libya's oil production, refining and export," Amin said. He is 65 years old and was ready to retire from a management position at the Arab Gulf oil company before the unrest in Libya. But he is now more active than ever, trying to revive Libya's oil industry. "

Ahmed mejiberi was recently appointed manager of the Arab Gulf oil company, where he served in the financial management department of the company during the former regime. The company has resumed production in two fields in eastern Libya.

In addition, another member of the oil and Finance Commission, ahmadineh, an important member of the oil and Finance Commission of Libya, said that, as an important member of the oil and Finance Commission of Libya, ahmadineh was also an important member of the oil and Finance Commission. He was the president of Libya's national oil company in the 1980s, and observers believe he will play a central role in Libya's energy policy-making.

In the field of infrastructure, Amin said: "Ibrahim sakutri, former Minister of housing and infrastructure, may serve as Minister of housing and public works in the transitional government. This person has a close relationship with Chinese enterprises. " Ahmed pointed out that in the era of Gaddafi government, the Libia development and administration central organization (to d a C) had a prominent position in the field of infrastructure, with huge power, managing about 70% of the housing and infrastructure construction projects in Libya. Ali yabeba, the former head of o d a C, has extensive contacts in Libya by virtue of his power. Jalil had previously appreciated his great support for the "revolution" in Libya, saying that without him, the "revolution" would not succeed.

Aimin said that yabeba is involved in a corruption scandal and will not have much position in the new government. However, the organization of o d a C will continue to exist in the future, and this place will still be very prominent.

Besides, it is worth noting that the main representatives of the Chinese and Chinese transitional authorities are the Chinese side. For many times, Gaddafi's supporters called on Gaddafi's supporters to deal with Gaddafi's supporters in a fair way, so he called on the supporters of Gaddafi's regime to carry out severe punishment on the former regime supporters. On the external front, Hawks demand a tough attitude towards the countries that support Gaddafi. "Therefore, if Hawks have more seats in the transitional government, there may be obstacles for Chinese enterprises in future reconstruction. China should strengthen ties with hawks and other members to eliminate misunderstanding and prejudice. " Emin suggested. {page_ break}

Chinese enterprises should abandon price war

The western countries have accelerated their involvement in Libya's post-war reconstruction of interest distribution; there was malicious price cutting among Chinese enterprises, so we should step out of this misunderstanding and play the Chinese card in the future.

It is understood that Turkish Prime Minister Recep Tayyip Erdogan brought over a team of more than 200 people during his visit to Libya on September 16, most of them the owners of infrastructure construction companies. Turkish companies will compete with Chinese companies in infrastructure construction, while oil and gas fields will be dominated by European and American companies. Recently, French and German business missions have visited Tripoli one after another and held closed door talks with the oil minister and other officials of the authorities. This is seen as the western countries to accelerate the involvement of Libya's post-war reconstruction benefit distribution.

Ali taguni, Minister of oil and finance of the Executive Committee of Libya's "national Transitional Council", said in Tripoli recently that, in addition to simple fuel import contracts, the ruling authorities have not signed cooperation agreements with any country. "We will give this task to the government elected by the people of Libya". These are the primary criteria for the future government to sign cooperation agreements Whether the agreement can bring benefits to the people of Libya will also focus on the transparency of the agreement. Taguni said that in the future, Libya will sign contracts with foreign companies according to law, and he warned countries with secrets not to participate in Libya's post-war reconstruction.

However, in the eyes of Libby Adam's industry, there has long been a prospect of future reconstruction. "In the field of oil, the United States has advanced experience and will undoubtedly occupy an important position," said Ben Amin. In addition, western construction companies have broad prospects in Libya, which will pose a challenge to Chinese enterprises. Western enterprises have high construction standards and mature experience, and use cheap labor from Malaysia, Indonesia and Vietnam, so they have strong competitiveness in the construction field of Libya. "

For Chinese enterprises that have already entered Libya and involved more than 20 billion US dollars of projects, the fields of housing, railway, oil service and communication in the country are in a new stage to be restarted. The process of Libya's reconstruction is also a period for relevant enterprises to sum up early experience and lessons and make full preparations for maintaining stability and development. Many enterprise personages expressed their intention to resume operation to the reporter of economic reference newspaper.

The person in charge of a large Chinese state-owned enterprise that has undertaken 5000 housing projects in Libya said that in recent years, domestic enterprises have undertaken many projects in Libya and other countries in response to the call of the country to go global. However, he said that domestic enterprises had insufficient risk assessment before "going out", especially in Libya, a country with stable political situation, once there are projects, all enterprises will compete Grab, and deliberately lower prices, the formation of vicious competition. He said that one of the major difficulties for Chinese companies to return to Libya is the shrinking contract price. Due to the low original contract price and the rising cost of raw materials and manpower, if the original contract price is continued, it will be very difficult for the enterprise to make profits.

The head of a domestic communication enterprise with good business development momentum in Libya said that after the war, there are huge business opportunities in the field of communication, especially in the field of high-end technology. It is estimated that the government of Libya will invest 500 million US dollars in the whole communication field every year. He said that in the past, Chinese enterprises had maliciously lowered prices in the field of communication in Libya, and hoped to get rid of this misunderstanding in the future.

The oil business has been divided up for a long time, and the infrastructure projects coexist with "danger" and "opportunity"

● Faraj suggested that Chinese enterprises should start to prepare for returning to Libya, maintain contacts through telephone and e-mail, and timely understand the situation in Libya; at the same time, after returning, they should pay attention to improving technical level and enhancing international competitiveness.

Faraj, former director of Libya's housing and infrastructure ministry, said: at present, the contracts executed in the field of infrastructure are mainly short-term contracts to ensure the restoration of basic social order and life, so as to get out of the crisis. In important areas such as oil, some European and American companies have returned. But there has been little progress in infrastructure.

Faraj said that after the war, Libya will create huge business opportunities in various fields, especially in the field of housing and infrastructure, and foreign enterprises will face major opportunities. He predicted that the new government of Libya will invest about $300 billion in various reconstruction projects in the next few years.

Faraj said that due to the long-term impact of the civil war, houses and infrastructure in many cities in Libya, including misrata, Tripoli and Sebha, have been severely damaged, as are cities such as Sirte and baniwalid. Qaddafi, for example, has suffered severe damage to the city's infrastructure as one of the city's most heavily damaged cities. Therefore, the future government will invest a huge amount of money to rebuild the cities seriously damaged by the war.

Faraj said that infrastructure construction such as housing and roads will become a priority for the new government of Libya. At present, China's projects under construction in Libya mainly focus on this field, so Chinese enterprises are facing opportunities in the reconstruction of Libya.

However, Chinese enterprises will also face risks in the reconstruction of Libya, including the review of original contracts and the formulation of new technical standards.

Faraj pointed out that in view of the special relationship between Libya's "national Transitional Council" and Western countries, Chinese enterprises will also face certain political risks in the reconstruction of Libya. He said, for example, in a project contract, if the conditions and strength of western enterprises and Chinese enterprises are equal, the new government of Libya is likely to give priority to western enterprises.

Faraj suggested that Chinese enterprises should now start to make procedural preparations for returning to Libya. He said that at present, Chinese enterprises should maintain oral or written contact with people from the former or current regime of Libya, either by telephone or by e-mail, so as to maintain contacts and understand the situation in Libya in a timely manner.

Faraj also pointed out that construction enterprises in Libya need to pay special attention to in the future. He said that although the "transitional Commission" announced that it would give national priority to support itself in the future reconstruction, the most important factor determining the development of enterprises in Libya will be the level of technology.

Faraj said that in the past, Libya's construction industry threshold was low, and in the future, the industry's standards will be greatly improved, gradually reaching international standards. Therefore, he suggested that Chinese enterprises in the reconstruction of Libya should first focus on improving technical level and enhancing international competitiveness, especially some small and medium-sized enterprises.

Faraj reminded Chinese enterprises not to blindly participate in the reconstruction of Libya, but should act according to their ability, carefully study the new contract and avoid risks. He said that some large Chinese construction enterprises have done outstanding work in Libya in the past, which has been recognized, but many small and medium-sized enterprises with weak strength have performed poorly. He suggested that China should focus on enhancing the scale and strength of enterprises rather than quantity in the reconstruction of Libya.

Speaking of the contract price, Faraj believes that the contract price of Chinese enterprises in Libya was low in the past. He said that at present, both the price of raw materials and the cost of labor in the international market have risen sharply. Therefore, Chinese enterprises should submit a written application to the new government of Libya to ask for an increase in the price of signed contracts. He believes that this reasonable request is likely to be accepted.

Faraj also pointed out that the public relations ability of Chinese enterprises in the past was too poor and should be paid attention to in the future. He suggested that Chinese enterprises hire excellent consultants, especially experienced Libyans, in order to improve their ability to deal with various departments in Libya and adapt to the requirements of the new situation.

Faraj said that most of the senior officials of the former government have fled, and small officials may play a big role in the new government in the future, and their attitude towards China in the past is basically not too big a problem.

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