A report by Italian newspaper Il Follio has revealed that the family of Libyan commander Khalifa Haftar decided to cancel a contract with Italian company Webuild to implement the first phase of the Peace Road project. The contract, worth around €1 billion, was awarded in 2013 to a consortium of companies led by Salini Impregilo to build a 440km highway from Marj to the Egyptian border at Masoud. The project had been stalled for years with no actual construction work carried out.
The cancellation of the contract was reportedly due to disagreements over the causes of the project's delays. The Haftar family claimed that Webuild failed to meet its obligations, while the Italian company argued that security conditions in Libya did not allow for the start of construction work. The Libyan side also sought to activate performance guarantees and claim financial compensation for damages caused by the delay.
The dispute between the two parties was taken to the Turin Court in Italy, where Webuild filed an urgent judicial request. The company recently won an appeal, but the final ruling in the case is still pending. The cancellation of the Webuild contract comes as plans to implement other parts of the Peace Road project, which aims to connect the Tunisian border to the Egyptian border, continue.
In November 2025, Italian company Todini Costruzioni Generali was awarded a contract worth around €700 million to implement the sub-section 4.3 of the project. The company had previously obtained a contract for section 4.2. According to Il Follio, Libyan Prime Minister Abdul Hamid Dbeiba pledged to provide necessary cooperation to ensure the security of construction sites during the signing ceremony.
The report noted that the withdrawal of Webuild from the project raises questions about the future of Italian investments in Libya. The Peace Road project is seen as one of the most prominent symbols of Italian-Libyan cooperation. Despite this, the project's fate remains uncertain, with several obstacles related to financing and procedures still to be overcome.
The Libyan government has expressed its commitment to implementing the project, which is expected to boost economic cooperation between Libya and Italy. However, the cancellation of the Webuild contract has sparked concerns about the project's viability and the potential impact on Libya's infrastructure development.
The Peace Road project has been years in the making, with various delays and setbacks along the way. The project's implementation is seen as crucial for Libya's economic development and regional connectivity. Key stakeholders, including the Libyan government and Italian companies, will be closely watching the project's progress in the coming months.
Key points
- The Haftar family cancels a €1 billion contract with Webuild due to project delays.
- The Libyan government awards a new contract to Todini Costruzioni Generali to implement part of the Peace Road project.
- The project's fate remains uncertain due to ongoing obstacles related to financing and procedures.