sustainability impact eu · 2008, with the second round occurring in tripoli on 10‐11 february...

A project financed by: European Commission DG Trade

Trade Sustainability Impact Assessment (SIA) of the EU‐Libya Free Trade Agreement

Inception ReportFebruary 2009

Personal data in this document have been redacted according to the General Data Protection Regulation 2016/679 and the European Commission Internal

Data Protection Regulation 2018/172

A project financed by:

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European Commission DG Trade

Trade Sustainability Impact Assessment (SIA) of the EU‐Libya Free Trade Agreement

INCEPTION REPORT February 2009

Implemented by:

This report was commissioned and financed by the Commission of the European Communities. The views expressed herein are those of the Consultant, and do not represent any official view of the Commission.

EU‐Libya Trade SIA Inception Report

Table of Contents

Glossary ..................................................................................................................................... 5

Executive Summary ................................................................................................................... 6

1. Background ............................................................................................................................ 7

1.1 Economic Context ............................................................................................................ 9

1.1.1 Trade ......................................................................................................................... 9

1.1.2 Tariffs ...................................................................................................................... 10

1.1.3 Horizontal issues ..................................................................................................... 10

1.1.4 Agriculture, animal products, processed foods and fisheries ................................ 11

1.1.5 Industrial and manufactured products................................................................... 12

1.1.6 Energy ..................................................................................................................... 12

1.1.7 Retailing and the informal sector ........................................................................... 12

1.1.7 Services ................................................................................................................... 13

1.2 Social Context ................................................................................................................ 14

1.2.1 Labour ..................................................................................................................... 14

1.2.2 Migrants ................................................................................................................. 14

1.2.3 Equity ...................................................................................................................... 15

1.2.4 Health & Basic Amenities ....................................................................................... 15

1.2.5 Education ................................................................................................................ 15

1.3 Environment Context‐ ................................................................................................... 16

1.3.1 Atmosphere ............................................................................................................ 16

1.3.2 Water ...................................................................................................................... 16

2. Work Plan of EU‐Libya Trade SIA ......................................................................................... 18

3. Methodology of the EU‐Libya Trade SIA ............................................................................. 20

3.1 Analytical Tools .............................................................................................................. 20

3.2 Quantitative Modelling Components ............................................................................ 20

3.2.1 Partial Equilibrium Modelling & Basic GISM Framework ....................................... 21

3.2.2 Data and Scenarios ................................................................................................. 22

3.3 Qualitative Methodology .............................................................................................. 22

3.3.1 Sectoral Selection: Sectoral Priority Scale .............................................................. 23

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3.3.2 Environmental and Social Assessment ................................................................... 24

3.4 Consultation Tools ......................................................................................................... 26

3.4.1 Interviews ............................................................................................................... 26

3.4.2 Questionnaires ....................................................................................................... 27

3.4.3 Electronic SIA‐Trade Newsletter............................................................................. 28

3.4.4 Website ................................................................................................................... 28

3.4.5 Consultation Workshops ........................................................................................ 28

Annex 1 – Preliminary Stakeholder Network .......................................................................... 30


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Glossary

FTA Free Trade Agreement

GMMR Great Man Made River Project

GMRA Great Man‐made River Authority

GPC General People’s Congress

ILO International Labor Organisation

LD Libyan Dinar

NGO Non‐Governmental Organisation

NOC National Oil Company

NTBs Non‐tariff Barriers

PCCP Pre‐Stressed Concrete Cylinder Pipes

SCM Stakeholder Consultation Meeting

SOP Standard Operating Procedures

TRIPS Trade Related Intellectual Property Rights

(T)SIA (Trade) Sustainability Impact Assessment

UN United Nations

WITS World Integrated Trade Solution

WTO World Trade Organisation


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Executive Summary

The Inception Report of the Trade Sustainability Impact Assessment (SIA) of the EU‐Libya Free

Trade Agreement (FTA) provides an overview of the proposed conceptual framework of

sustainability assessment analysis and methodologies to be employed, including the

consultations activities, for the study. The Inception Report follows a review of literature,

covering prior studies of relevance to the economic, social and environmental context of the

regions, as well as previously implemented studies of similar design using quantitative and/or

qualitative analysis. The Inception Report is designed to prompt discussion and preliminary

analysis of global and sectoral issues related to EU‐Libya trade negotiations, and define

indicators of importance to the detailed global and sectoral analysis to be undertaken in the

study. The Inception Report is also designed to provide indicative timings for the research,

consultation and reporting deliverables of the project.

Feedback on the Inception Report is encouraged from interested stakeholders. Information

regarding the project and access to project documents is available at www.eulibya‐sia.org.

Feedback on the project in general, or the Inception Report in particular, can be sent

to enquiries@eulibya‐sia.org

More specifically, the Inception Report in Section One provides a background to EU‐Libyan trade

and the context that has created opportunities for deeper economic partnership. This section

provides an economic context of the trading relationship covering trade, tariffs, horizontal

issues, agriculture, processed foods and fisheries, energy and financial services; and the social

and environmental context of key impact areas. The work plan of the SIA and the reports that

will be produced and the structured consultations that will take place is detailed in Section Two.

Section Three outlines the methodology to be employed in the study, examining the

quantitative modelling components and the qualitative approaches, include the social and

environment impact assessment. Finally, Section Four highlights the consultation tools that will

be used in the study to solicit feedback from key stakeholders to inform the work of the project.

http://www.eulibya-sia.org/

mailto:[email protected]


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1. Background

Following a series of policy shifts over the last decade, including the end of UN sanctions in

2003, the application to join the WTO in 2004 and the recent $5 billion settlement with Italy

relating to outstanding issues arising from the colonial period, Libya finds itself on the cusp of

significant economic reform. President Muammar Gaddafi’s February 2009 election to chair of

the African Union may also add to this reform. Although the European Commission (EC) does

not maintain a delegation in Libya, using the delegation in Tunisia to cover both countries,

Libya’s leading existing trading partners are presently found in Europe and its prospects for

enhanced economic collaboration with the European Union are significant.

“Reform of the administration has already begun. Our code will be adapted to that of the EU,

our main trading partner. We have readjusted our tax system. We are studying a modification of

our customs regulations to make them comparable to those of WTO member countries. We are

also fighting against unnecessary bureaucracy.”

Mohamed Ali El Huwej

Libyan Finance Minister

7 February 2005

Like other many other countries in the region, Libya suffers from significant structural

imbalances. For example, its territory is roughly three times the size of France yet most of it is

uninhabitable. To create even the most basic infrastructure requires massive investment. Libya

is also one of the least diversified economies in the Maghreb: in 2005 oil comprised 94 percent

of total exports, 25 percent of GDP and 60 percent of wages. Despite this, the energy sector

returns little in the form of local employment. Given rising unemployment levels, a rising

population, and the fact that Libya imports 75 percent of its food intake, economic

diversification has become a policy priority.

Funding for such policy shifts themselves mostly derive from oil‐related revenues. According to

figures from the Central Bank, 2007 total public revenue stood at just over LD53 billion, of which

oil comprised almost LD49 billion. In addition to oil‐related taxes, individual income taxes range

from 5% to 35%, while the highest corporate tax level of 40% is for annual profit of over LD

500,000 (€ 287,000). Total public expenditure in 2007 was almost LD31 billion,1 of which as

much as 60% was consumed by Libya’s extensive public sector.

In this context of a well‐resourced yet severely structurally deficient economy, opportunities for

deeper economic partnership between Libya and the European Union (EU) are extensive. Trade

negotiations for a free trade agreement (FTA) with Libya were formally launched in November

2008, with the second round occurring in Tripoli on 10‐11 February 2009. There is hope among

the EC that the EU‐Libya FTA will pave the way for Libya’s accession to the WTO and as such, the

FTA will not be in the strict sense a “development‐oriented” FTA. In assessing the economic

1 Economic Bulletin for the First Quarter of 2008, Central Bank of Libya, 2008


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relationship between the EU and Libya, a few of the baseline factors that will likely most affect

the nature of this partnership– trade issues, issues by economic sector and social and

environmental considerations‐‐ are now outlined in this study and will form a baseline of

sectoral studies considered in the study.


1.1 Economic Context

1.1.1 Trade

The 2007 balance of payments figures indicate export revenue of LD55 billion, of which oil

makes up almost LD54 billion. Imports amount to almost LD22 billion, leaving a trade balance of

just over LD33 billion. The current account reflects a surplus of LD29 billion, or 26% of GDP,

down from 35% in 2006.2 Figure 1 illustrates rising trade flows across the last decade.

Figure 1: Libyan Trade Flows (million LD)

Source: Central Bank of Libya, Economic Bulletin: 1st Quarter 2008, 2008.

As reflected in Figure 1, the value of Libyan exports in 2005 rose by almost 50% from the

previous year, standing at LD 31.1 billion. At that time, oil accounted for 97.3% of all exports,3

while remaining exports are mainly made up of chemical materials. Generally, imports comprise

goods and services of almost every kind (other than alcoholic drinks and products containing

pork), with machinery, foodstuffs, transport equipment and consumer goods dominating.

Across the period as a whole, imports increased by 311% while exports expanded by 887%. The

trade balance in the meantime improved significantly, from LD 1.75 billion in 1999 to LD 28.4

billion in 2006.

In terms of trade partners, Italy, Germany, Great Britain, France and Spain are Libya’s leading

partners, with the former two comprising 37.8% and 14.8% of Libya’s merchandise exports in

2006. Despite historically close economic ties to Europe, as globalisation has enhanced

opportunities and competition around the world, Europe’s market share has tended slowly

downward, most rapidly since the end of UN sanctions in 2003. To this end, total European

exports in 2007 were worth $4.2 billion. Imports to the European Union in the same year were

worth $27.4 billion.4 Machinery, electrical products and metals dominate European exports to

Libya. Petroleum accounts for a staggering 96.6% of Libya’s exports to Europe; potential exports

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2 Socialist People’s Libyan Arab Jamahiriya: 2008 Article IV Consultation, IMF, September 2008

3 Annual Report, Central Bank of Libya, 2006 4

Eurostat Statistical yearbook for External and intra‐European trade (1958‐2007)


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from Libya to the EU are expected to be broadly similar to those from Tunisia, Morocco, and

Algeria.

1.1.2 Tariffs

In line with Libya’s WTO ambitions, in August 2005 the Libyan Customs Administration

eliminated duties from over 3,500 product categories, which at that time were levied at a flat

rate of 4%. About 80 products, including high‐end furnishings and furs retain duties of between

25 and 50%.5 By 2007, overall import duties had been reduced to 0% for all goods except

tobacco, which incurs an applied tariff of 10%. Generally, exemptions from import duties apply

to particular areas: those under the Petroleum Law, including all equipment for use in the oil

sector and products at least 40% Arab in origin.

Exports duties meantime are applied to agriculture in varying amounts, from LD 100 to LD 1,500

per kilo. Manufactured goods incur an export duty of 50%. On average none of Libya’s imports

incurred a tariff, while Libyan exports abroad are also subject to low tariffs, at a weighted

average of .2% in the EU, where 98.5% of Libyan goods are imported duty free.6 Goods

manufactured in Israel, 7 as well as alcohol, pornography and pork‐related products are

prohibited. Issues remain over a Libyan provision stipulating foreign companies are charged an

agency commission counted according to a predetermined and non‐negotiable tariff.

1.1.3 Horizontal issues

In the context of project‐related materials, exports need full clearance prior to berthing and the

estimated waiting time before final clearance is one week. For general cargo, excluding food,

there is no pre‐clearance available and the estimated waiting time in‐port is at most one week.

For food imports requiring health clearance there is an estimated waiting time of ten days

before final clearance is granted. The required documents for clearing customs are the original

bills of loading, copies of all invoices, health certificates, packing list and certificate of origin.8

Since Libya is not yet a member of the WTO it is not party to agreements, including the Sanitary

and Photosanitary Measures (SPS) and Technical Barriers to Trade (TBT) Agreements, which

detail restrictions on these and other types of import restrictions.

Additionally, there are a number of horizontal market access issues involving transit. Some of

these issues include the repeal of administrative restrictions and visa restrictions in the case of

exchanging the crew of marine vessels in Libyan ports; maritime cabotage services, market

access to underwater and dredging works in certain ports and in Libyan territorial sea waters;

and access to market supply of marine vessels in spare parts in Libyan ports without customs

and administrative charging.

5 Doing Business in Libya , US Department of Commerce, 2008

6 Libya Tariff Profile, World Trade Organisation, accessed 9 September 2008

7 Some EC members expressed interest in negotiating on restrictions of administrative restrictions concerning calling at an

Israeli port

8 Doing Business in Libya , US Department of Commerce, 2008


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Since Libya is not yet a member of the WTO, it is not a party to the Agreement on Trade‐Related

Aspects of Intellectual Property Rights (TRIPS). There are widespread violations of trademarks in

the country, but foreign firms have occasionally pursued claims against trademark infringements

successfully.9

Libya is not party to the General Procurement Agreement (GPA). There is continued interest in

opening the public procurement market for trade between Libya and the EU.

1.1.4 Agriculture, animal products, processed foods and fisheries

Only 1% of Libya’s land mass is considered arable due to poor water conditions,10 in turn

helping to explain why agriculture comprises just 12% of GDP (2001). Sustainable irrigation is a

major issue, regarding which the long‐running Great Man Made River project (GMMR) provides

attractive opportunities for investors. Credit facilities for seeds, fertilizers and machinery are

widely available, including to foreign investors.

Significant opportunity is also found in Libya’s under‐exploited commercial fishing stocks. As

such, Libya aims to increase fish exports to the EU.

An example of European investment in Libyan agriculture is the consortium from Rieti, Italy,

which in 2006 invested €500,000 to produce and process vegetables to export to Europe. When

production reaches full capacity in 2012 the project will create up to 3,000 jobs and have an

estimated annual turnover of €500 million. To this end, it is noted that while agriculture

contributes little to aggregate GDP, it is responsible for around one‐fifth of employment, and

thus the sector yields significant social influence.

There are a number of food products in which the EU and Libya have expressed interest in

trading and developing. There are opportunities for the EC to provide technical assistance to

Libyan producers towards increasing production standards to facilitate entry of Libyan goods like

olive oil, dates, and tuna into Europe. Cooperation between the EC and Libya trading a variety of

products, such as milk, preparations of milk, sugar, wheat and barley, fodder, potato crops,

prepare foodstuffs is also of interest. There is also expressed interest in further trade in animal

products, such as cheese and curd.

9 Ibid

10 Ibid


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1.1.5 Industrial and manufactured products

Members of the EC have expressed interested in developing ties with Libya to strengthen trade

in industrial products. Herein, a variety of sectors are of interest. 11

1.1.6 Energy

Libyan oil is valued because of its low cost of recovery, its high quality and its close proximity to

European markets. Libya also has the highest proven oil reserves in Africa at 41.5 billion barrels,

with further discoveries being probable. Oil is sold on a term basis, the majority of which is

exported to Europe. The oil industry itself is controlled by the state‐owned National Oil

Corporation (NOC), which in turn runs a number of subsidiary companies.

To raise daily production levels from 1.7 million at present to 3 million barrels by 2010‐13

(roughly the same as pre‐sanctions levels), NOC is seeking to discover about 20 billion barrels of

oil through continued exploration efforts. An estimated investment of about US$ 10 billion

would enlarge production to the intended level, for which Libya is seeking international

investment of more than US$ 7 billion in its ten‐year exploration plan which started in 2005.

Over 40 foreign companies already operate in the country’s energy sector.

Proven natural gas reserves meanwhile are at 46.4 trillion cubic feet, ranking 14th in the world.

The Western Libya Gas Project dominates gas production, and pumps gas from Libya’s southern

border to Sicily and mainland Italy. Natural gas is also used instead of oil for power generation

so that more oil can be exported. Already a number of countries have invested in the gas sector,

including the US, Germany, the Netherlands, UK, Russia, Algeria and Poland.

Significant issues remain involving transit restrictions within Libya’s energy market. These issues

include equal access to pipelines and other infrastructure, and information on domestic pricing

of oil products. More specifically, issues involve access of maritime transport between Libyan

ports and offshore oil & gas installations, including platforms and rigs; access to pushing and

towing services, including supply of drilling platforms and oilrigs in Libyan territorial waters; and

market access to certificated services and engineering supervision over a gas‐pipelines and oil

pipelines.

1.1.7 Retailing and the informal sector

The retail market in Libya is strongly dominated by local shops and an informal sector of souks.

Some small supermarkets and shopping centers are developing in the country; however, most

“modern” retailing is non‐existent. Retailing is largely under state control via a number of

11 These include base metal (flat‐rolled products), plastics and articles thereof (polymers and ethylene), wood and article of

wood (sheets for veneering), machinery (machine tools, lathes); optical, measuring and medical instruments and apparatuses;

products of base metal (tubes and pipes); motor vehicles, aircrafts, and vessels.


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subsidies from Libya’s National Supply Company and policies to restrict foreign enterprising.12

Wholesale and retail trade, and hotels and restaurants are an important source of employment

in major urban areas, accounting for 5.6% of GDP in 2006.13

1.1.7 Services

1.1.7.1 Financial Services

Libya remains largely a cash economy with an archaic banking system focused on trade

financing. Insurance income is limited, at only LD 190mn in 200614. Equities are all but

nonexistent, and fixed income instruments are limited to a small stock of outstanding

government securities. There are eleven commercial banks, four specialised credit institution,

48 regional banks (most of which have already been or are in the process of being merged), one

exchange bureau and five insurance companies. In aggregate, banking system assets are

equivalent to about 60% of GDP, suggesting considerable potential for growth. State banks

account for nearly 90% of total banking sector assets, private sector banking having only been

re‐established in 1993.

Tangible privatisation efforts began in 2007, with BNP Paribas acquiring a 19% stake in Sahara

Bank, with plans to purchase up to 51% by 2012. In early 2008 Wahda Bank was acquired by

Arab Bank with a similar timeline towards controlling ownership. 15 The remaining two

remaining public commercial banks are expected to be privatised in the near future through

IPLs on Libya’s stock exchange, established in 2006.16

1.1.7.3 Tourism

The tourism industry in Libya is only in the incipient stages, although there is potential for

growth. There are notable visa and travel restrictions, and limited places to accommodate

tourists. However, the tourism industry is growing with the construction of hotels, resorts, and

upgrades in transportation systems. In fact, the Libyan government has committed to increasing

the number of visitor arrivals significantly by 2010.17

12 Libya Country Profile 2006, Egyptian Export Promotion Center, accessed February 2008

13 Libya Country Report 2008, Oxford Business Group



16 Ibid 17

Travel and Tourism in Libya, EuroMonitor, April 2007


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1.2 Social Context

1.2.1 Labour

Libya’s small population of 5.6mn is growing fast, and will continue to do so since approximately

one third of the inhabitants are less than 15 years old and one half under 20. Presently the

labour force comprises around 1.3 million people, of whom 31% work in industry, 27% in

services, 24% in government and 18% in agriculture. Officially unemployment stands at 13%.

Unofficially the rate is estimated to be at least 30% ‐ a major motivation behind the push for

economy‐wide foreign investment.18

Libya has relatively well developed legislation concerning labour and employment issues:

dismissal regulations, laws and enforcement tend to be strict and to favour the employee.

Further, following similar public sector moves, in 2007 the General People’s Congress (GPC)

initiated an increase in the minimum salaries of private sector employees, and similarly

removed their wage ceiling. Trade unions and professional associations remain illegal, while

women remain underrepresented with only 32% of work‐able women joining the active labour

force against 82% of men.19

Given the high unemployment challenges, the government has assumed a direct role in the

hiring procedures of foreign companies. In 2006 a decree formalised that all foreign oil

companies must employ a Libyan national as the Deputy Country Manager as well as one to be

the Finance Manager. The National Oil Corporation often allocates unqualified Libyans to work

at foreign energy companies. These companies also regularly receive lists of unemployed

Libyans from the GPC’s Committee for Manpower and are asked to voluntarily find work for

them.

1.2.2 Migrants

Migrant flows to Libya are usually related to oil price rises as this is when domestic production

most expands. Many such workers, typically from African states including sub‐Saharan Africa,

ultimately act to take advantage of proximity to Europe for onward migration purposes, legal or

illegal. Recently, the dual pressures of rising unemployment and diplomatic pressure from the

EU has spurred the government to resort to deportation, as well as stricter penalties for use of

illegal labour. Further, in 2007 the Egyptian border was even closed to migrant workers.

As at mid‐2008, over 166,000 foreign nationals, or one‐fifth of the labour force were legally

residing in Libya, while illegal migrant workers were estimated to number 800,000 from Africa

alone in 2006. Libya continues to be a hub for the trafficking of persons in regional North Africa,

with the Libyan government failing to provide sufficient proof of increased investigation and

enforcement efforts after an international request in 2007.20

18 Ibid

19 World Development Indicators Database, World Bank, accessed September 2008

20 Libya, CIA World Fact Book, 4 September 2008


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1.2.3 Equity

Despite high unemployment, equity is regarded as relatively high in Libya, helped by high

government subsidies on a number of basic needs such as healthcare, education, housing,

utilities, staple foods and energy goods such as oil. Further, the cost of basic consumer goods

has declined by 19% since 1999. Poverty rates have also declined in recent years, to 7.4% (2005).

Given pervasive unemployment levels, the creation of mechanisms such as an early retirement

fund, a re‐tooling and re‐training programme, and the establishment of a stronger social safety

net are under discussion. Further, the government has undertaken to implement some

measures to provide shares in public and private companies to “those Libyans deprived of

wealth”, while a government‐funded savings account for Libyans born after August 2007 has

been implemented.

1.2.4 Health & Basic Amenities

In general the medical system is considered to be relatively well developed, especially by

regional standards. This is partly attributable to the mixed system of private and government

implementation of healthcare, covering a wide range of areas from basic healthcare, health

training, rehabilitative care, health education and disability and elderly care.21 As a result of

increased funding for healthcare the number of doctors in Libya has increased seven‐fold

relatively to population growth and the number of hospital beds by a factor of three since 1970,

while infant mortality has declined from 84 per 1,000 in 1984 to 18 per 1,000 in 2004.22

More generally, public health is bolstered by the high rate of sanitation of over 97% (2002). This

compares to 81% throughout the Middle East and North Africa and to 84% in upper‐middle

income countries globally. Only 72% of Libyans however enjoy access to safe water,23 though

100% of the population enjoys access to electricity, compared to 87% in the region and 83%

among similar income countries.

1.2.5 Education

Male literacy rates are traditionally higher than those of women, 92.4% compared to 72%

(2003). This ratio is a positive change from the 1980s when male literacy rates were similar

while the female rate was as low as 35%.24 Compulsory and free education for the 12 years of

primary and secondary education has helped to achieve these results. In addition, the cost of

private and tertiary education has declined by 19.2%, further increasing access to educational

21 Decision No 119, General People’s Committee on the Promulgation of the By‐Law Enforcement Law No. 20 of 1998 on the

Social Care Fund, General People’s Committee of Libya, 9 December 1999

22 The Socialist People's Libyan Arab Jamahiriya: Statistical Appendix, IMF, May 2007

World Development Indicators Database, World Bank, accessed September 2008

23 Country Snapshots – Libya, Private Participation in Infrastructure Database, World Bank Group, July 2008

World Development Indicators Database, World Bank, accessed September 2008

24 Country Study: Libya, Library of Congress, Federal Research Division, April 2005


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opportunities since 1999.25 While all women over the age of 15 have lower literacy rates than

men, in recent years women are more likely to continue their education to the tertiary level.26

1.3 Environment Context‐

Libya is a part of a number of environmental protection initiatives and treaties. It is a signatory

to the Barcelona Convention, which aims to protect the Marine Environment and the Coastal

Region of the Mediterranean. Libya ratified the original Convention for the Protection of the

Mediterranean against pollution but has not ratified the amended Convention or its protocols.

Libya could participate as an observer to Horizon 2020, Europe’s main method of tackling the

top sources of pollution in Libya and the larger Mediterranean by the year 2020. Given this basis

of cooperation, there is potential for the EU to further explore technical assistance and support

programs with Libya related to environmental issues.

1.3.1 Atmosphere

In 2004 Libya emitted 59.4 mega‐tonnes of CO2, with emissions of CO2 are growing at a rate of

4.2% per year between 1990 and 2004.27 Although Libyan CO2 emissions continue to grow they

remain low in terms of per capita emissions, at only 9.3 tonnes per capita in 2004, compared to

13.2 in high‐income OECD countries but notably higher than the Arab countries average of 4.5

tonnes per capita. Libya’s oil sector contributes to approximately 70.5% of the country’s CO2

emissions, and the natural gas sector contributes to about 29.5%.28

1.3.2 Water

The severe shortage of water in Libya is worsened by the fact that the coastal aquifers on which

the population has relied are inadequate and have become contaminated by seawater. Surveys

conducted in the late 1970s provided for the Great Man‐made River Authority (GMRA), an

independent authority established to implement and manage the colossal undertaking of

brining water from desert aquifers to coastal population centers. Since its conception, the

system has grown to include almost 4,000 km of mainly four‐metre diameter pre‐stressed

concrete cylinder pipes (PCCP). Eventually, over 6.0 million cubic metres of water will be

conveyed every day from well fields deep in the Sahara desert to population centres that are

concentrated on the coast.

25 The Socialist People's Libyan Arab Jamahiriya: Statistical Appendix, IMF, May 2007

26 Libyan Arab Jamahiriya, The Human Development Index, United Nations Development Programme, accessed September

2008

27 Libyan Arab Jamahiriya, The Human Development Index, United Nations Development Programme, accessed September

2008

28 Socialist People’s Libyan Arab Jamahiriya, Energy and Environment Data Reference Bank (EEDRB), IAEA, accessed February

2008


17

Over 70% of the water from this man‐made river system is intended for agricultural purposes. It

is expected that 130,000 hectares of agricultural land will result. A water storage and

distribution plan has also been adopted and aims to maintain a constant supply of water

throughout the year through the use of large storage reservoirs to meet fluctuating demands.

The project is being implemented in five stages, the fifth and present stage of which is under

technical exploration. The initial four phases have been undertaken by a range of international

companies, including enterprises from South Korea, the US as well as Libya. The fifth and final

stage, which involves transporting water from Jagboub to the coastal city of Tobruk in the North

East, presently involves companies from the UK, Czech Republic and Egypt.


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2. Work Plan of EU‐Libya Trade SIA

The EU‐Libya Trade SIA will be undertaken across three reporting stages from January to late

August 2009 as follows:

Inception Report (January 2009) – Set‐up, scoping and scenario definitions

Lasting approximately for one month, this report serves as the baseline for research

methodologies and information sourcing. Beginning with the Kick‐off meeting on 16 January

2009, a consortium of teams ‐ the Management and Research Coordination Team, the

Modelling Team, the Sustainable Policy Team and the Local Impact Assessment Team ‐ will

undertake research and analysis toward the outputs for the Draft Inception Report expected to

be made available on 23 January 2009. That report will in turn provide a summary of the

collective preliminary results of the qualitative and quantitative research, which will be

presented at the initial Civil Society Dialogue meeting in Brussels on 29 January 2009. After

incorporating feedback from the first Steering Committee and first Civil Society meetings, the

final Inception Report will be published.

Interim Report (February – April 2009) – Parallel field work and computational modelling

work

The Interim Report delivers the significant quantitative and qualitative impact assessment and

provides the preparation for the Civil Society consultation in the region, subject to conditions.

This report will see a parallel process with two teams undertaking their work actively in Libya in

terms of data collection and at research and coordination points internationally. At the same

time, quantitative modelling will be undertaken by the modelling team, based on scenarios

developed in consultation with the EC for the Inception Report. The findings of the local and

modelling teams will in turn be used to recommend sector selection for deeper analysis of the

social and environmental issues in the Final Report, and will be summarised in the quantitative

and qualitative impacts assessment presented in the Draft Interim Technical Report.

The draft interim report is expected to be available in May and will be followed by a local

workshop in Tripoli subject to conditions. A portion of the interim report, most likely a summary,

will be made available ahead of the stakeholder meeting in Tripoli.

Final Report (May – August 2009) – Consultations and detailed social and environmental

assessment

The Draft Final Report which will include a list of flanking measures and policy

recommendations is expected to be available in July 2009 and will be the basis for the Second

Civil Society Meeting to be held also in July 2009. Meantime, dynamic feedback will be taking

place between project teams to ensure new information is constantly included into final

scenarios and teams will be working towards refining and concluding their research and analysis.

At this stage ex post indicators for key impact studies will also be selected, and policy


19

conclusions and recommendations will be discussed. This will provide input into the preparation

of the Draft Final Report and an additional Civil Society Dialogue Meeting in Brussels


20

3. Methodology of the EU‐Libya Trade SIA

3.1 Analytical Tools

The models to be used in the study build on the latest developments in trade modelling.

Specifically, the modelling team will take an integrated approach in that qualitative economic,

social and environmental data and civil society survey results will be evaluated in parallel with

the modelling process. Such a methodology builds on those used in previous Trade SIAs, and

focuses on quantitative economic (and, where possible, social and environmental) factors and

outputs. At the same time, it will have to reflect unique issues related to the economy of Libya.

Where data are not available, qualitative sources relating to, for example, labour conditions,

impacts on quality of health, biodiversity, water quality impacts and other issues, such as

regulatory and non‐tariff barriers, will be used to derive indirect measures.

3.2 Quantitative Modelling Components

Quantitative analysis of a trade agreement with Libya poses unique challenges since Libya is not

in the standard databases for model‐based analysis involving computable general equilibrium

models. In turn, special data collection and organisation will be necessary.29 Furthermore, while

the intended partial equilibrium modelling of key sectors will provide output on the expected

changes in a number of economic indicators ‐ bilateral export, output, value added and

employment ‐ in general the results will not hold total comparability with earlier SIA studies

based on more reliable input data.

With this in mind, this initial modelling output will provide the baseline for onward employment

analysis, as well as for qualitative analysis (mostly using causal chain analysis techniques) of

important social variables, including gender, child labour and labour mobility. Modelling will be

done in the Interim Report of the project, as it serves as the basis of much of what is done in

Final Report. While it is recognised that data limits preclude full, multi‐sector CGE modelling,

there is scope for 123‐type CGE modelling to identify possible dynamic effects related to trade

liberalisation and increased FDI flows into Libya. (See: Devarajan, S., D. Go, J. Lewis, S.

Robinson, and P. Sinko. 1997. Simple General Equilibrium Modeling, in J. Francois and K. Reinert,

eds., Applied Methods for Trade Policy Analysis, Cambridge University Press.) This will ensure

the study identifies some macroeconomic effects beyond the sector impacts identified in partial

equilibrium.

29 Where possible, updates and improvements will be made on data from relevant World Bank studies.


21

3.2.1 Partial Equilibrium Modelling & Basic GISM Framework

The quantitative model used for individual sectors is a partial equilibrium model, being industry

focused but global in scope. While by definition partial equilibrium models do not take into

account the more diverse array of factors emphasised in general equilibrium trade theory, the

comparatively limited set of factors allows for more rapid and transparent analysis of a wide

range of commercial policy issues together with lower data and computational requirements. To

this end, a series of reduced form equations will constitute the body of an analysis, which in

turn utilises the Walrasian assumption for global markets. At a later point, backwards induction

from the global prices set will enable the derivation of more specific national results. The

following paragraphs provide some further elaboration of the model intended.

Several important assumptions underlie the model: national product differentiation (imports as

imperfect substitutes); the equality of the elasticity of substitution across products from

different sources; the elasticity of demand and also of substitution in aggregate is also assumed

to be constant; among other assumptions. Further, essential to the model are the underlying

own‐ and cross‐price demand elasticity.

In general, the analysis will be carried out for a handful of key sectors through counterfactual

modelling within the GSIM model framework. This approach involves the impact of current

trade costs and tariffs on trade flows by a counterfactual analysis. For example, we will model

the most recent trade flows for which data are available will be modelled, and estimates will be

made for the alternative set of trade and production patterns under a new trade agreement

preferences on tariffs and NTBs, including estimated reductions in trade costs as agreed in

scenario definitions.

To summarise, the model allows us to estimate the effects of trade liberalisation on bilateral

trade, production, national income, and price effects of market integration, including likely third

country effects. With appropriate data, the model can also be augmented to identify

employment effects, as well as to modify the basic equations to reflect identifiable information

on the price impacts of NTBs.30 Further, the model will consider the potential of trade diversion

and implications for other bilateral and regional trade agreements, particularly for other

potential EU‐Mediterranean agreements and inter‐Arab agreements.

While the outcomes of this analysis will be limited by the earlier mentioned data constraints, in

our view as long as the limitations of the partial equilibrium approach are kept in mind, useful

insights relating to an EU‐Libya FTA will be able to be drawn from the quantitative modelling

herein described. This includes third country effects, exporter gains, consumer surplus

(importer) gains and changes in tariff revenue. In addition, a more straightforward modelling

exercise will identify basic trade and production patterns, as well as the overall structure of

production and trade in energy sectors, and basic GDP trends. Relevant modelling files and

databases used during the study will be supplied to the EC.

30 Kuwait, Iran, Algeria and other economies with regional characteristics similar to Libya will likely

be used as benchmarks for measuring the benefits of liberalisation.


22

3.2.2 Data and Scenarios

Trade data will come from EUROSTAT and COMTRADE. Protection data in the WTO and WITS

tariff databases will be augmented by additional sources, including those developed

endogenous to this study. Intended sources include the WTO's integrated database, with

supplemental information from the World Bank's recent assessment of detailed pre‐ and

post‐Uruguay Round tariff schedules, as well as from the UNCTAD/World Bank WITS dataset,

and finally also the recent post‐Doha scenario estimates mapped to aggregate sectors.

In relation to foreign direct investment, the data gathered will include available information on

regulations, constraints and investment flows in recent years, broken down as far as possible by

sector. The analysis will evaluate the extent to which flows may change as a result of a new

agreement, and any consequent effects on the Libyan and EU economies. The impacts of

increased FDI on Libya and how this impact will differ according to different types of FTAs will be

considered. Analysis of FDI in Libya will, of course, be limited by available data. While any

analysis would be based on gravity modelling, we recognise that new, unknown sources of

detailed bilateral data becoming available as a result of the planned economic missions are very

limited, and so possibilities for gravity modelling are limited. We do expect information from

planned field work on institutional features limiting FDI, and these will of course be analysed in

the qualitative discussion, supplemented with available data. In addition, comparison to

comparable countries in the region, in terms of FDI profiles (depending again on data availability)

will be explored. Furthermore, legal and institutional analysis will also be used to guide later

stage analysis.

The scenarios to be examined in turn include deeper tariff liberalisation (based on the analysis

outlined above) as well as further NTB and other trade cost reductions (to the extent identified

in the other sections of this study). We envision a single set of simulations decomposed by

sector and general instruments (tariffs and NTBs) for each sector. The scenarios will be

developed in consultation with the EC. We will develop the scenarios in the first weeks of the

project, in consultation with the EC, in parallel with identification of sectors. We envision a

range of 3 scenarios, from least to most ambitious. Given the low level of tariffs, it will be

important to agree on NTB and trade facilitation cost savings in the first weeks of the project.

3.3 Qualitative Methodology

The EU‐Libya Trade SIA will use a series of microeconomic indicators to identify the

on‐the‐ground implications of the estimated economic scenarios. It does this firstly through

analysis of sustainability issues, which specifically make use of Revealed Comparative Advantage

and the Finger‐Kreinin Indices, as well as of the extent of intra‐industry trade (both vertical and

horizontal) and the presence of NTBs to trade. Trade and investment flows will be examined,

which will include a broad evaluation of the relative likelihood of trade creation and trade

diversion. Data from the World Bank NTB database and a range of secondary sources31 will be

31 Kee, Hiau Looi, Alessandro Nicita and Marcelo Olarreaga. "Estimating trade restrictiveness indices", World Bank Policy

Working Paper Number 3840, The World Bank, 2006


23

used, with the Local Impact Assessment Team playing a critical role in strengthening local data

sourcing and reliability. Not only will the impact on foreign business be measured, but also the

impact on domestic business, especially regarding the establishment of new firms and job

creation.

In the qualitative research phase, most data will be sourced directly by the Local Impact

Assessment Team. The team will comprise a number of local‐language speakers to ensure

access to local documentation, such as statistical annals and policy statements that will enable

maximum extraction of relevant information. In addition, Europe based researchers also will

have access to Arabic language databases.

There are a number of issues identified as being of particular importance within this range of

research. These include public procurement, competition, IPR, sustainable development –

including social dialogue on labour issues32‐‐ and dispute settlement. Agriculture and processed

agricultural products, fisheries, energy products/petrochemicals, retail and informal sector

enterprises, and services such as telecoms, financial services construction, tourism, and

distribution would be the sectors of focus for more detailed study. Insurance industry issues will

be reviewed for inclusion.

3.3.1 Sectoral Selection: Sectoral Priority Scale

Experience from prior studies, in particular the EU‐China Partnership and Cooperation

Agreement, provides the foundations for prioritisation of different sectors in the study. This is

summarized around the following techniques:

(1) Using the indicators outlined in the Handbook for Trade Sustainability Impact

Assessment (DG Trade, 2006), pages 52‐56, as well as noted additional indicators in the

descriptions in subsequent pages of the handbook, economic, social, environmental

and FTA relevance rankings are determined for each sector. These rankings are then

assigned scores between 12 for rank 1 and 1 for rank 12. Environmental, social and

environmental scores are averaged to compute Average Impact Scores.

(2) Average Impact Scores and FTA Relevance Scores are cross referenced to form the

Sectoral Priority Scale. This scale indicates which sectors have both a high potential

impact in addition to being highly relevant to the FTA negotiations. High priority sectors

are located in the red quadrant (top right) while lower priority sectors are in the blue

quadrant (bottom left).

32 The deficiencies in Libya’s labour market provide an opportunity for the EU to explore technical assistance and support

programs. This may take the form of training, labour standards, health and safety at work, and control of migration. Herein,

the possibility of greater social dialogue with Libya on labour issues that might signal progress on improving employee

representation will be considered.


24

(3) Average Impact Scores and FTA Relevance Scores are totalled to determine overall

priority sectors. Sectors with an overall score greater than 12 are selected for analysis.

As a result of this process for an earlier study, twelve initial sectors were selected and ranked for

preliminary analysis. It is noted that while a sector such as environmental goods and services

might rank lowly on economic criterion, by weight of political considerations it may move closer

toward being top priority. As such, ambitious targets will be set for goods, services, and other

scenarios in the sectoral selection and analysis. A similar process as to that used for the China

study will be used for the EU‐Libya SIA.

3.3.2 Environmental and Social Assessment

Results from the quantitative equilibrium modelling will identify the expected magnitude of the

increase or decrease in production in each economic sector. In turn, this will form the baseline

for the environmental and social assessment of liberalisation of trade in agricultural and

non‐agricultural products. Areas found to be significantly affected will be further examined

using qualitative techniques, alongside social and environmental effects associated with the

economic effects that have been assessed separately from the equilibrium model.

Further, the baseline environmental study for the EU‐Libya Trade SIA will outline Libya’s range

of geographical, climatic and other environmental characteristics, as well as variations in

biodiversity value in many areas, and varying degrees of pressure on natural habitats, land

degradation, water resources and pollution levels, with considerable differences between rural

and urban areas. It is especially noted that water shortages affect nearly every aspect of

economic, social and environmental impact assessment in Libya and will likely be a key area of

analysis. The potential impacts of climate change will also be included in the baseline

assessment of trends. The baseline study will also review the status of the regulatory systems

through which social and environmental pressures are managed.

Finally, since production changes resulting from liberalisation will in turn induce social and

environmental changes, the results obtained from the economic analysis will be used in

conjunction with information on the regulatory regime. The latter is important since the impact

of social and environmental regulation has a significant influence on how economic changes in

turn affect social and environmental issues. Preventive mitigation and enhancement measures

will be suggested, covering measures that are FTA and non‐FTA related will be considered,

including and for example, incentives for voluntary measures such as product certification and

labelling.

At the methodological level, the three aggregate environmental indicator themes of the SIA

methodology ‐ biodiversity, environmental quality and natural resource stocks ‐ will capture the

principal impacts of the manufacturing sector, specifically as these relate to the use of raw

materials, water usage, discharge of untreated effluents, air pollution and the production of


25

hazardous wastes. Impacts to be considered in the agricultural sector will include water source

depletion, deforestation, soil erosion, salinity, degradation of marginal land, and contamination

of land and water from agri‐chemicals and animal wastes. In both manufacturing and

agriculture the trade agreement may also influence opportunities and incentives for the use of

cleaner and more efficient production techniques.

Similarly, the three aggregate social indicator themes of the SIA methodology ‐ poverty, equity

(including gender issues), and health and education ‐ will capture the principal social impacts,

alongside reference to international objectives such as ILO indicators for decent work and the

Millennium Development Goals. Also, the influence of corporate social responsibility will be

reviewed.

Account will also be taken of interactions between the agricultural and non‐agricultural sectors

related to the social and environmental effects of rural‐urban migration and urbanisation. The

potential spill over effects of illegal migration and labour will also be assessed.


3.4 Consultation Tools Intensive stakeholder consultation is integral to the data‐collection and analysis for this SIA. The

consortium has developed procedures for consultation with relevant stakeholder groups through

the use of interviews, questionnaires, website and online communications, and the

implementation of workshops. The consultation framework is displayed in the following diagram

and a preliminary list of the stakeholder Network is attached as Annex 1 to the Inception

Report.

3.4.1 Interviews

Held via the telephone or face‐to‐face these constitute the most direct form of stakeholder

engagement. Given the key constraint of time, a list of key stakeholders in Europe and in Libya

has been identified. A provisional list of stakeholders to be consulted includes relevant

ministries, trade associations including the Libyan Businessmen Council for example, oil

agencies and associations, diplomatic delegations in Libya, including the EC delegation, UN

agency representatives, as well as leading Libyan and other universities, NGOs, trade unions and

think‐tanks.

26


27

3.4.2 Questionnaires

The contents of the survey are the product of extensive consultation by the consortium with

input from Local Impact Assessment experts. Areas to be covered in the questionnaire include

business stakeholders in key sectors would be consulted to highlight key issues on the ground

impacting foreign investment and trade and business facilitation. The questionnaire will ask

business to measure the opportunities lost from these key impacts indentified as a portion of

their overall business. The stakeholder network would be surveyed to highlight key sectors and

horizontal issues affecting the economy and solicit the indication of key issues which have acute

social and environmental implications. Key stakeholders with a range of viewpoints (e.g.

businesses, academics, civil society groups) may, for example, be asked to score the

effectiveness of existing systems and provide estimates of associated costs. For example,

relating to FDI and non‐tariff barriers, we will ask firms to rank the relative impact of general

level of barriers in Libya to their access to the market, relative to other countries in the

region. In particular, as we do have ranking for Egypt from the OECD for FDI, the questionnaire

would cover by way of example the following:

How would you rank restrictions you face in the Libyan market for your operations, relative to:

EGYPT:

1: much more open

2: moderately more open

3: the same

4: moderately more restricted

5: much more restricted

OTHER NORTH AFRICAN ECONOMICS (please name:_______):

1: much more open


3: the same



SOUTH AFRICA

1: much more open


3: the same



OTHER AFRICA (please name:_______):

1: much more open


3: the same


28



Specifically, questions targeting both quantitative and qualitative data will be included.

Quantitatively, continuous data (e.g. numerical values on a continuous scale, for instance,

monetary value) will be sought so as to best enable onward statistical analysis. As a second

preference, categorical data will be sought (e.g. grading on a 5‐point scale). It is proposed to use

quota sampling for the data, which after random sampling is the statistically most reliable form

of sampling available. The survey results will be distributed in hardcopy and electronically via

the consortium members existing internet platforms.

3.4.3 Electronic SIA‐Trade Newsletter

As part of the project’s consultation activities, an EU‐Libya Trade SIA newsletter will be

disseminated electronically to the consultation network at key points during the project,

coinciding with the release of each report and other project deliverables. Downloadable from the

project website, the newsletter will include a summary of the project progress and results, and

provide updates on notable economic, social or environmental news events in the region.

Information learned from concurrent SIA projects will also be included in the newsletter.

3.4.4 Website

The EU‐Libya Trade SIA project will develop a project website to support the project’s visibility as

well as generate stakeholder feedback. The website can be accessed at www.eulibya‐sia.org and

feedback can be sent to enquiries@eulibya‐sia.org. The website contains all relevant information

concerning the SIA’s progress, reports, minutes, background information, current related news

items, and contact information of the consortium partners. The main website content will be in

English. An Arabic translation of all its homepage sections will be included and will provide links

to those publically available documents which exist in Arabic. A core component of the website is

the communication platform, through which European and Libyan stakeholders will be able to

contribute towards the EU‐Libya Trade SIA process.

3.4.5 Consultation Workshops

Designed to establish a dialogue and to gather the views of interested parties (business, local

public administrations and civil society in particular), a full one‐day consultation workshop with

project stakeholders will be held in Libya, subject to confirmation. In addition, two Civil Society

Dialogue meetings will be held in Brussels for European based project stakeholders in January

and July 2009. Further information in relation to these meetings can be obtained from the

project website, www.eulibya‐sia.org.


mailto:[email protected]



29

TRANSPARENCY AND DOCUMENTATION

The terms of reference for this project states that Reports submitted by the consultants should also

be accompanied by the original statistical databases, modelling files and other data inputs that formed the basis

for the analysis carried out in the approved reports. For all spreadsheet models, the European Commission will

receive for partial equilibrium models the underlying database, modelling files, scenario files and results in an

electronic format. To this end, we propose to supply a detailed technical annex as a supplement to the main

body of the report. This supplement will include tables reported in the text, tables not reported in the text but

serving as a basis for analysis, detailed tables of computational modelling (CGE) results (i.e. computational

modelling output files in a reader‐friendly format) that served as a basis for analysis but may be otherwise only

summarized in the main report itself, detailed tables of econometric modelling results (i.e. econometric

modelling output files in a reader‐friendly format) that served as a basis for analysis and that may be otherwise

only summarized in the main report itself, full documentation of source data used in the report, and

documentation of important technical aspects (an overview of basic theoretical assumptions) of the

computational and econometric models used to support the analysis in the main report. The underlying tables

will also be supplied in Excel format, to supplement the annex and make follow up analysis by the EC and others

easier, where based on the results reported.


30

Annex 1 – Preliminary Stakeholder Network

Government bodies and other relevant actors in Libya

Field Related to “Expected Commitments

to be Negotiated” Core Auxiliary Periphery

Trade in Agricultural and Fisheries products;

SPS measures

Ministry of Agricultural, Animal Wealth, and Marine Resources Libya’s agricultural and

development banks

(Libyan Agriculture Bank,

National Agricultural

Bank of Libya, Tripoli

Agricultural Bank)

Libya’s food safety

competent authority

(Libyan Standards and

Specification Centre,

Centre of Food Safety and

Drugs Control)

Localorganisations(e.g. foodassociations)

Local Businesses(e.g. producers, retailers, processors, etc)

Libyan National Centre for Standardisation and Metrology

National Corporation for Marketing Agricultural Products

Agricultural Research Centre (Tripoli)

National Corporation for Food Industries

Energy Products/Petrochemicals

National Oil Corporation Libya’s developmentbanks (AfricanDevelopment Bank,

Local businessesMinistry of Industry and Mines

Council for Oil and Gas Affairs

General People's Committee for Electricity, Water and Gas

Technical Barriers to Trade; Tariff and

non‐Tariff Measures; Trade Defence

Libyan Foreign Ministry Libyan monetary

bodies Local

organisationsCentral Bank of Libya


31

Instruments; Customs and Rules of Origin;

Dispute settlement; Trade and Sustainable

Development

Ministry of Finance Local businesses

The General People's Committee for Economy and Trade

Central Statistical Office, Secretariat of Planning

Regulatory issues (Public Procurement,

Competition, IPR) General People’s Committee

Relevant regulatoryinstitutions from Libya

Local institutions

Local businessesIndustrial Research Centre

Trade in Services; Financial Services

Libyan Arab Foreign Bank

• Industry and

Service

Associations

• Local businesses

Central Bank of Libya

Commerce and Development Bank (Tripoli)

The General People's Committee of Finance

Export and Import Board

Ministry of Economy, Trade, and Investment

Investment Issues

Investment Promotion Agency • Libyan Chamber of

Commerce

• Foreign

chambers of

commerce

Libya Foreign Investment Board

Ministry of General Investment

European Government Missions in the Libya

The EC Delegation in Tunisia is the

permanent mission of the European

Commission in Libya.

EC Delegations

EU‐Libya Dialogues and

Cooperation

Programmes

Stakeholders of

EU‐Libya projects

EU Member States also engage in a number

of development cooperation projects. Member States’ Missions to Libya

Member States'

Cooperation

Programmes

Stakeholders of

Member States'

projects

Industry/trade associations


32

European MS Chambers of Commerce in

Libya Business on a wide range of issues.

European Chambers of Commerce in Libya (e.g. British Business

Group in Libya, German Arab Chamber of Commerce)

Various sectoral Working

Groups under the

chambers secretariat

and local chapters

Individual European

Businesses

Individual Libyan

Businesses

Umbrella organisation representing Libyan

business, which houses sectoral and

sub‐sectoral chambers of commerce.

General Union of the Chambers Of Commerce Industry and

Agriculture Sectoral and

sub‐sectoral Chambers

of Commerce

Individual European

Businesses

Individual Libyan

Businesses The Libyan Businessmen Council

Academic/research institutions

Leading universities throughout Libya National Universities with disciplines in relevant areas (Al Fateh

University, Garyounis University, Libyan Petroleum Institute)

International Organisations & NGOs

The World Bank provides technical

assistance and development‐related loans to

North African countries across a wide range

of sectors.

World Bank (WB) Local‐level projects

Local‐level project

stakeholders, local

communities

UNDP, along with the UN Environmental

Programme, are implementing a wide range

of projects covering health, poverty

alleviation, environment and energy.

United Nations Development Programme (UNDP) Local‐level projects


stakeholders, local

communities


33

The IEF facilitates the transfer of research

and technology in all areas of energy with a

special emphasis on developing countries. It

has previously conducted projects in Libya

on various forms of energy.

International Energy Foundation. (IEF) Local‐level projects


stakeholders, local

communities

FAO is a source of knowledge and

information, and helps developing countries

modernise and improve agriculture, forestry

and fisheries practices, ensuring

good nutrition and food security.

Food and Agriculture Organisation (FAO) Local‐level projects


stakeholders, local

communities

ECA's mandate is to promote the economic

and social development of its member

States, foster intra‐regional integration, and

promote international cooperation for

Africa's development. In North Africa, ECA

works in the areas of poverty reduction,

sustainable economic growth, regional

integration and trade, statistical

development, governance, and other

sectoral priorities.

United Nations Economic Commission for Africa (UNECA) Local‐level projects


stakeholders, local

communities

http://en.wikipedia.org/wiki/Agriculture

http://en.wikipedia.org/wiki/Forestry

http://en.wikipedia.org/wiki/Fisheries

http://en.wikipedia.org/wiki/Nutrition

http://en.wikipedia.org/wiki/Food_security

http://www.uneca.org/eca_programmes/srdc/na/default.htm

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