Turkish firms sign new development contracts with LDRF

The Libya Development and Reconstruction Fund has finalised several significant infrastructure contracts with Turkish firms, according to an official announcement made Monday.

Fund director Belgassim Khalifa Haftar signed the agreements with Turkish companies Libco for Construction and Industry and Cavahir for Contracting, Construction, Industry and Trade.

Whilst financial details were not disclosed, the projects will target multiple eastern Libyan cities including Benghazi, Al-Bayda, Shahat, and Tobruk. The initiative encompasses infrastructure development, road construction and maintenance, and the establishment of specialised medical facilities aimed at strengthening healthcare services across the region.

This development comes amid heightened tensions over Libya’s public finances. Just last week, the Central Bank of Libya reported that national dual public spending had reached 224 billion Libyan dinars in 2024, with 123 billion allocated by the Government of National Unity, 42 billion through oil-for-fuel exchanges, and approximately 59 billion by the parallel government.

The Government of National Unity has criticised the parallel government’s expenditures, claiming their off-budget spending of 59 billion dinars vastly exceeds the official development budget of 12 billion dinars.

The situation prompted a strong rebuke from Prime Minister Abdul Hamid Dbeibah, who directly accused House of Representatives’ Speaker Aqila Saleh, Central Bank Deputy Governor Marie Al-Barassi, Belgassim Haftar, and Osama Hammad (whom he referred to as a “prop actor” leading the parallel government) of waging war against his administration and threatening the stability of the Libyan state.​​​​​​​​​​​​​​​​