Despite wanting to revive it, the transport minister warned the Russians and Chinese in February not to increase their original contract prices by claiming for compensation for the two-year delay, during which costs of construction materials significantly increased.
He said that Libya would pay the companies 50 percent of what they were owed if they restarted work again under the original terms, with the rest of the fees being paid in two further 25-percent tranches.
The same offer has been made to Chinese, Turkish and other companies involved in building housing and other projects, providing they drop compensation claims. However, most have refused.
According to the minister, there is a Plan B if the Russians and Chinese refuse the railway offer. There is an alternative project with the Italians still on the table, he said, using Italian funds agreed as part of the 2006 US$5 billion compensation deal for the Italian colonialisation of Libya, agreed between Qaddafi and former Italian Prime Minister Silvio Berlusconi.
(Source: Libya Herald)