Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Development of an alternative highway route through inland regions of Libya, providing a strategic transportation corridor that connects eastern and western parts of the country while serving previously underserved regions and enhancing national connectivity and resilience.
Objectives
Develop a modern highway connecting eastern and western Libya through inland regions; provide transportation access to previously underserved areas; create an alternative to the coastal highway to enhance network resilience; support post-conflict reconstruction and national reintegration; enable more balanced territorial development; facilitate access to inland resources and development opportunities; improve safety and security of national transportation; create substantial employment during construction and maintenance phases; and establish a sustainable maintenance framework for long-term infrastructure preservation.
Strategic Importance
The Libyan Alternative Freeway represents a strategic infrastructure initiative to enhance national connectivity, support reconstruction efforts, and promote balanced territorial development. By creating an inland transportation corridor parallel to the existing coastal highway, the project enhances network resilience and provides redundancy for this critical north-south connection. The highway will open access to previously isolated inland regions with significant natural resources and development potential, supporting more balanced economic growth across the country. From a social and political perspective, the project contributes to national reintegration and cohesion by connecting diverse regions and communities. The project will generate substantial employment during the construction phase, an important consideration given high unemployment rates, especially among youth.
Technical Specifications
Technology & Design
The highway will employ modern design standards suitable for the challenging desert environment, with consideration for sand mitigation, extreme temperature variations, and sustainable water management. Advanced features will include intelligent transportation systems for safety and traffic management in remote areas.
Capacity & Size
Total length approximately 1,200 km connecting major inland cities and development nodes across the country; 4-lane dual carriageway in high-traffic sections reducing to 2-lane highway in lower-traffic segments; 10 major service areas with comprehensive facilities; Intelligent transportation systems for safety in remote sections
Technical Details
Highway design standards: 4-lane dual carriageway (130 km/h design speed) for high-traffic segments; 2-lane highway (100 km/h design speed) for lower-traffic sections; Enhanced drainage systems for flash flood resilience; Sand mitigation measures including protective plantations and elevated sections where necessary; Modern safety features including clear zones, crash barriers, and advanced signage; Intelligent transportation systems for remote monitoring and emergency response; Service areas with comprehensive facilities spaced approximately 100-120 km apart; Renewable energy utilization for remote facilities
Development, Implementation & Financial Details
Development Timeline
Project structuring and detailed design (2022-2025); Financing arrangements (2023-2025); Phased implementation by segment (2025-2032)
Latest Implementation Updates
UPDATED2025-08-11 — Authorities outline a new Libya–Egypt–Chad regional road link in planning, complementing national freeway build-out and cross-border connectivity targets. Link: https://www.globalhighways.com/news/new-libya-egypt-chad-road-link
2025-02-18 — Egypt prioritizes the land-route project with Chad as a strategic trade corridor linking the Red Sea to Central/West Africa; policy push positions the route for accelerated preparation in 2025. [https://www.dailynewsegypt.com/2025/02/18/egypt-prioritizes-land-route-project-with-chad-to-strengthen-trade-economic-integration/]
2025-05-28 — Arab Contractors note high-level backing: Egypt attaches “utmost importance” to the Egypt–Chad land road (via Libya) as a vital artery for trade and regional integration; Egyptian firms signal readiness to execute works. [https://www.arabcont.com/english/Release-2025-2226]
2025-07-25 — Chad’s Minister of Infrastructure inspects on-site topographic survey works for the Egypt–Libya–Chad road; field teams in Chad confirm progress on surveying and alignment tasks. [https://www.arabcont.com/english/Release-2025-2261]
2025-07-30 — LIDAR-aided drone surveys conducted over a 10 km stretch in ~30 minutes in Ennedi-Est (Chad), supporting detailed study/design for the transnational alignment; Arab Contractors leading the study & design phase. [https://almenassa.ly/en/2025/07/30/arab-contractors-begin-topographic-survey-for-transnational-highway-linking-egypt-libya-and-chad/]
2025-08-03 — Egypt allocates EGP 6bn (~US$124m) to launch the first phase (East Oweinat–Kufra axis); construction slated to begin in 3Q 2025 as part of a 1,700–1,720 km regional highway linking Egypt, Libya and Chad. [https://www.intellinews.com/egypt-allocates-123-6mn-for-first-phase-of-strategic-libya-land-connection-394385/]
2025-08-11 — Project planning publicly affirmed: survey work underway using LIDAR; indicative breakdown shows ~400 km in Egypt, ~390 km in Libya, and ~930 km in Chad, with MoUs among the three states. [https://www.globalhighways.com/news/new-libya-egypt-chad-road-link]
Financing Structure
The project will utilize sovereign financing primarily through national resources, with potential supplementary financing from: international financial institutions supporting reconstruction efforts; bilateral development partners; public-private partnership components for specific segments and service facilities; and technical assistance grants for capacity building and institutional strengthening in the transport sector.
Capital Structure
Base infrastructure (85-90%): Sovereign financing through national resources; Service facilities and maintenance (10-15%): Potential private sector participation through concession arrangements
Project Timeline
Start Date
January 2022
Expected Completion
December 2032
Development Timeline
Project structuring and detailed design (2022-2025); Financing arrangements (2023-2025); Phased implementation by segment (2025-2032)
Project Status History
Status 2020
Structuring
Status 2022
Structuring
Status 2024
Structuring
Additional Project Details
Preparation Funding Gap
USD 35.00M
Construction Timeline
Phase 1 (Western section): 2025-2028; Phase 2 (Central section): 2027-2030; Phase 3 (Eastern section): 2029-2032
Legal & Financial Advisors
Dar Al-Handasah (Shair and Partners) providing technical advisory services; legal and financial advisory services by KPMG
Market Analysis
Market Analysis
Current inland transportation in Libya is severely constrained by limited infrastructure, with the coastal highway handling approximately 80% of the country's freight and passenger movements. This concentration creates vulnerability and limits development of inland regions. The alternative highway is projected to capture 30-40% of national freight movements and create significant induced demand through new development opportunities in inland regions.
Market Demand
The highway will be designed to handle up to 20,000 vehicles daily on primary segments, with capacity scaled to projected demand along different sections. The entire corridor will serve a population of approximately 2 million people, with significant potential for increased economic activity and population growth around key nodes.
Key Stakeholders
Project Sponsor
Libyan Road and Bridge Authority, Ministry of Transport
Key Parties
Libyan Road and Bridge Authority, Ministry of Transport, Ministry of Planning, local authorities in regions along the corridor
Investors
Libya Sovereign Wealth Fund, African Development Bank, Islamic Development Bank, Arab Fund for Economic and Social Development
Contractors & Operators
To be determined through international competitive bidding following project structuring
Risk Assessment
General Risk Assessment
Key risks include: security challenges in certain regions; institutional capacity limitations; procurement and contract management complexities; sand encroachment and extreme weather events; water availability for construction in arid regions; and potential changes in development priorities. Risk mitigation strategies include phased implementation approach, comprehensive capacity building, robust security management, and climate-resilient design.
Regulatory Risks
The project will operate within the national regulatory framework for transportation infrastructure, with potential updates to maintenance management systems, axle load controls, and service area regulations. Key regulatory considerations include land acquisition processes in tribal areas, environmental compliance in sensitive desert ecosystems, and management of construction materials sourcing.
Impact Assessment
Environmental Impact
The project requires comprehensive Environmental and Social Impact Assessment with particular attention to desert ecosystems. Key environmental considerations include water resource management in water-scarce regions, management of borrow pits and construction materials, protection of sensitive desert habitats, potential impacts on migration routes of desert fauna, and climate resilience measures for infrastructure vulnerable to extreme temperatures and flash flooding events.
Social Impact
The highway is expected to generate approximately 35,000 direct jobs during construction and 5,000 permanent jobs in operations and maintenance. Socioeconomic benefits include improved access to services for isolated communities, enhanced mobility between regions, new economic opportunities through improved market access, reduced regional disparities, and strengthened national cohesion through better connectivity. Special consideration will be given to local employment and skills development for communities along the corridor.
Investment Opportunities
Private Sector Opportunities
Private sector opportunities include: construction contracting and joint ventures; highway service areas development and operations; maintenance contracts through performance-based maintenance systems; logistics and commercial facilities at key nodes; equipment supply and maintenance; and consulting services for project management and supervision.
Next Steps & Agreements
Next Steps
Finalize detailed design; secure financing commitments; establish implementation units; develop institutional framework for maintenance; initiate procurement processes for priority sections; advance environmental and social impact assessments
Offtake Agreements
Maintenance contracts will utilize performance-based specifications to ensure long-term sustainability, with clear key performance indicators and monitoring systems. Service area concessions will establish service standards, maintenance responsibilities, and revenue sharing arrangements.
Contact Information
Eng. Ahmed El-Gadi, Director General, Libyan Road and Bridge Authority, Email: info@lrba.gov.ly; Dr. Mohammed Al-Azabi, Ministry of Transport, Email: info@mot.gov.ly
