Korea Express to take over Libyan Great Man-Made River (GMR) project
Korea Express to take over Libyan Great Man-Made River (GMR) project SEOUL Nov.29,04 (WAM)--Korea Express, one of South Korea's leading logistics firms, will sign an agreement with the Libyan government next month to take over the remaining construction for the world's biggest waterway project, South Korea's leading English daily Korea Times reported.
Korea Express has tentatively agreed with the Libyan government to complete the Great Man-Made River (GMR) project after the Libyan government promised to waive much of the firm's obligation for debts and payment guarantees resulting from a breach of contract by its parent company, Dong Ah Construction Industrial, the paper said.
The GMR project, taking 50 years and costing some $27 billion, is aimed at transporting underground water in southern Libya to the northern coast??s industrial and residential belt for the country's 6 million inhabitants and for irrigation. Dong Ah Construction Industrial, the parent of Korea Express, completed the initial stages of the construction but has since gone into liquidation.
Korea Express was asked to undertake the project after the court declared Dong Ah, responsible for the project since 1983, insolvent in 2000.
The sources said Korea Express will lead a join venture named ''ANC?? to be set up in Libya to complete the world's greatest engineering venture.
Unidentified Chinese firms have also been chosen to join the project, according to the newspaper report.d.
The contract became possible after Libya's Great Man-Made River Authority, which is overseeing the construction, decided to write off part of the debts held by Korea Express for the delayed construction of the waterways by Dong Ah. Korea Express has been under court receivership since Dong Ah was subject to the government's workout programs following the 1997-98 Asian financial crisis.
The new contract is regarded as a ''win-win' result for both Libya and Korea Express. The Libyan government is able to complete the remaining projects with the initial contractors. In return, Korea Express will be able to generate income to write off debts it has had to shoulder due to the bankruptcy of its parent company Dong Ah. Korea Express?? takeover of the project will improve Korea??s image, as the delay has angered the Libyan government, the paper added..
The Libyan government in 2001 filed lawsuits against Dong Ah, seeking compensation of $3.6 billion for damages caused by the Korean contractor during its work on the project. Months later, however, the Korean court decided to liquidate the construction firm as its continued operation only led to further losses.
WAM-VV 13 55 CCCCQQE
Korea Express has tentatively agreed with the Libyan government to complete the Great Man-Made River (GMR) project after the Libyan government promised to waive much of the firm's obligation for debts and payment guarantees resulting from a breach of contract by its parent company, Dong Ah Construction Industrial, the paper said.
The GMR project, taking 50 years and costing some $27 billion, is aimed at transporting underground water in southern Libya to the northern coast??s industrial and residential belt for the country's 6 million inhabitants and for irrigation. Dong Ah Construction Industrial, the parent of Korea Express, completed the initial stages of the construction but has since gone into liquidation.
Korea Express was asked to undertake the project after the court declared Dong Ah, responsible for the project since 1983, insolvent in 2000.
The sources said Korea Express will lead a join venture named ''ANC?? to be set up in Libya to complete the world's greatest engineering venture.
Unidentified Chinese firms have also been chosen to join the project, according to the newspaper report.d.
The contract became possible after Libya's Great Man-Made River Authority, which is overseeing the construction, decided to write off part of the debts held by Korea Express for the delayed construction of the waterways by Dong Ah. Korea Express has been under court receivership since Dong Ah was subject to the government's workout programs following the 1997-98 Asian financial crisis.
The new contract is regarded as a ''win-win' result for both Libya and Korea Express. The Libyan government is able to complete the remaining projects with the initial contractors. In return, Korea Express will be able to generate income to write off debts it has had to shoulder due to the bankruptcy of its parent company Dong Ah. Korea Express?? takeover of the project will improve Korea??s image, as the delay has angered the Libyan government, the paper added..
The Libyan government in 2001 filed lawsuits against Dong Ah, seeking compensation of $3.6 billion for damages caused by the Korean contractor during its work on the project. Months later, however, the Korean court decided to liquidate the construction firm as its continued operation only led to further losses.
WAM-VV 13 55 CCCCQQE