The Libyan family of Haftar has canceled a contract with Italian company Webuild for the construction of a 440km coastal road project, known as the Peace Road or Highway, due to security concerns and delays. The project, which was initiated in 2009 by Muammar Gaddafi and Silvio Berlusconi, aims to connect eastern and western Libya. The contract, valued at approximately €1 billion, was awarded to a consortium led by Salini Impregilo in 2013.
The Peace Road project is a strategic infrastructure development that seeks to link the eastern and western parts of Libya. The project was part of a friendship and partnership treaty between Libya and Italy, signed in 2008 by Gaddafi and Berlusconi. Italy committed to financing the project as part of its colonial reparations, with a total value of around $5 billion. The road will stretch along the entire Libyan coast from the Egyptian border to the Tunisian border.
Webuild claimed that the lack of security in the region made it impossible to start work on the project, while the Haftar family argued that the Italian company failed to meet its obligations. The dispute escalated, with the Haftar family seeking to activate a performance guarantee and demanding compensation from Webuild for damages caused by the accumulated delays. The case was taken to the Turin court, which recently ruled in favor of Webuild.
The cancellation of the contract has raised concerns about the future of Italian investments in Libya. Despite efforts to promote investments, Italian businessmen have complained about the lack of a central coordinating body to facilitate their operations in the country. The situation has been further complicated by the ongoing conflict in Libya, which has hindered the implementation of several major projects.
In November 2025, a new contract was awarded to Todini Costruzioni Generali for a different section of the Peace Road project. The contract, valued at €700 million, is expected to start by the end of 2026. However, the project is still facing challenges, including the need for an additional €40 million in funding to begin construction.
The Peace Road project has been plagued by delays and security concerns since its inception. The project's implementation has been hindered by the ongoing conflict in Libya, which has made it difficult to ensure the safety of workers and equipment. The project's future remains uncertain, with several challenges still to be addressed.
The cancellation of the Webuild contract has significant implications for Libya's infrastructure development and its relations with Italy. The project was seen as a symbol of the special relationship between Italy and Libya, and its failure has raised concerns about the future of Italian investments in the country.
Key points
- The Libyan family of Haftar has canceled a contract with Italian company Webuild for the construction of a 440km coastal road project due to security concerns and delays.
- The Peace Road project aims to connect eastern and western Libya and is part of a friendship and partnership treaty between Libya and Italy.
- The project's future remains uncertain, with several challenges still to be addressed, including security concerns and funding issues.
