Libya Revolution: Bosnian Companies Count the Cost

A number of Bosnian companies operate in Libya and many had signed multi-million Euro contracts for work ahead of the uprising which began in February.

Now, one day after Libyan rebels seized control of Col Gaddafi's compound in Tripoli, questions remain over whether contracts will be honoured under a possible new regime.

Ibrahim Bosto, the deputy chief executive officer of Energoinvest Sarajevo, which has several projects in Libya, told Balkan Insight that millions of Euros were at stake as he awaited the outcome of this week's dramatic events.

"When the unrest erupted in Libya, we had contracted job worth €310 million, of which we executed €135 million last year, and about €175 million  were left for execution in this and next year," Bosto said yesterday.

The contracts included General Electric Company of Libya and Electrical Project Company (ELPCO), which is joint company in which the Libyan government owns 51 per cent and Energoinvest owns 49 per cent.

Bosto added that he hoped the contracts would remain valid going forwards.

"It is these contracts that give us the legality and right to continue such activities".

Similar uncertainty exists at the Sarajevo-based Hidrogradnja company, which had signed deals on projects worth 200 million KM (around €100 million) before violence flared.

Semin Masic, the director of Hidrogradnja, said that his company had taken its employees out of the country when unrest began.

"The question is what will the situation be in Libya? Will it be safe and will [there] be money for projects?".

One of the few Bosnian companies that continued to work during the conflict in Libya was water and juice producer Jafara. However, this factory stopped production yesterday.
Located approximately 30km from Tripoli, workers were unable to get to work because of the conflict.

While the outlook looks uncertain, Banja Luka–based economic analyst Svetlana Cenic, remains optimistic about the outlook for Bosnian countries in Libya. " The competition will be strong. But I'm sure that companies from Bosnia have already gained a reputation that guarantee jobs," he said.