The Construction Industry in Libya, with Particular Reference to Operations in Tripoli

Date

2005-5

Type

PhD Thesis

Thesis title

Author(s)

Mussa Adullah OMAR grifa

Abstract

Abstract This research is concerned with the Libyan construction industry (LCI), which has not been investigated before. Its key aims are to achieve a better understanding of the industry, to identify the key factors which have formed its current status, and to address the major obstacles constraining its operations. Theoretical and empirical studies were conducted between 2002 and 2005 in Libya. The theoretical research focused on the construction industry (CI) and its key issues, while the empirical research was organized around a survey and explored Libya as the context for the study. Owing to geographical and time limitations, the city of Tripoli was employed as the location where the research was conducted. Data was obtained through questionnaires targeting consultants, contractors, and clients, supported by a set of interviews with those concerned, visits to firms and projects under construction, and other supportive techniques. The information gathered was analyzed using SPSS package, Excel Software and SWOT analysis. The findings of the study indicate that the current shape of the LCI is a consequence of the interaction of geographical, historical, social, political, economic, institutional and technological factors. The industry operates in difficult geographical, social and economic circumstances. Its operations are concentrated in four main separate regions, influenced by social tribalism and nepotism, fluctuations in oil revenues and foreign workers. Political ideology has played a significant role in determining the current status, by imposing partnership principles. Also, the LCI is currently characterized by traditional procurement systems, paper-based and verbal communications systems, and cement- and intensive-labour operations. The study identifies three broad obstacles which restrict the operations of the LCI. These relate to the operating environment, firms, and clients and projects. Unstable regulatory, institutional and economic environments have not given the industry the opportunity to grow and play a significant leading role in economic and development processes. However, the strengths of the industry lie in its educated and experienced staff, the CI is seen as a profitable business, and because demand for construction will flourish in the coming decades. Thus, opportunity to develop the LCI does exist. Despite the strong commitment of the state to regulate the CI in accordance with formal construction standards, informality is one of the key features of its operations. The informal sector has a key role in production processes and the supply of construction materials and labour. In addition, Libya is a country which suffers from acute shortages in water supplies, and yet the current operations of the LCI are cement based and designed around mixing methods on construction sites in which water is an important issue in terms of quantity, quality and management. This thesis suggests that the position of water in the operations of the CI in arid and semi-arid countries should be investigated in specific further research. The levels of oil revenues, investment in construction, the ability to create an enabling environment, the roles of the private sector and foreign firms, and the relationship between the formal and informal sectors, are likely to determine the industry’s future shape, operations and ability to cope with changes and challenges. However, without improving management capability of the LCI, the industry will not be able to cope with future challenges, and no significant advance can be made in its operations. Furthermore, the implications of the study’s findings and recommendations for future research are suggested, including the water issue and the informal construction industry in Libya. Acknowledgements First and foremost, I give thanks to God for all the care and help offered throughout the different phases of this research. Many people, government departments and institutions are important contributors to this work. It is difficult to name all those who have provided help, support, encouragement, information and advice. The author warmly thanks all those individuals, institutions, firms, and many others who have made available to this research their documents, notes, time, knowledge and expertise. Without their assistance, this research would not have been possible. The author would like to express special thanks to his supervisors, Dr Graham Tipple and John Kamara, for their inspirational guidance, consistent patience, encouragement, friendship and constructive criticism. Throughout the course of this research many ideas and concepts emerged during our meetings and discussions. The researcher gratefully acknowledges that their vital academic tutorials, encouragement and comments were crucial factors in the compilation of this work. The author is in debt to them for their moral support and encouragement throughout all phases of the research process. Also, grateful thanks go to Dr Lorna Darcan, Dr Stuart Cameron, Dr Nathaniel Colemon and Dr David Wood for their feedback in the early stages of the research. Special thanks go to MRs Suzanne Speak for her help to developing the questionnaires used in the study and Dr Simon Kometa at the University of Newcastle upon Tyne who made available to the researcher his knowledge and experience of SPSS, and provided valuable help and advice concerning the statistical tests used in this study. The author would also like to express special thanks to many institutions, corporations, consultancy and construction firms, clients of projects and individuals in Libya for their co-operation throughout this research. Thanks go to those key managers, decision makers and other staff in the LCI and its associated sub-sector, the General Council for Planning (GCP), General People’s Committee (GPC), General People’s Committee for Planning (GPCP), the General People's Committee for Popular Broad Control (GPCPBC), National Corporation for Information and Documentation (NCID), the General Association of Engineers (GAE), the People’s Committee for Economy and Trade (GCET), and the Research Centre for Building Materials and Construction (RCBC), as well as many others. The author also expresses special tanks to Mr Majde Madi and Yousef Saeed of the Research Centre for Building Materials and Construction for their assistance with the empirical study and their help in administering the questionnaires. Finally, the author owes special a debt to his country Libya for financing his postgraduate education and the costs of the empirical study. Special thanks go to my parents, wife and sons and daughters who missed my care during the duration of the research. Without their patience, support, assistance and encouragement this thesis would never have been completed. Special thanks also go to Mr Len Shaw, whose his valuable comments and suggestions have allowed many language difficulties owing to cultural circumstances to be overcome.