Search This Blog

Friday, April 11, 2025

Decision No. 137-2024 on the realignment of routine visa services

Government of National Unity

Decision No. 137-2024

New Regulations for the Entry and Exit of Foreigners from Libya 

SUMMARY

Article (2)

The types of entry visas to Libya for foreign nationals are defined as follows:

  • Single entry visa.
  • Multiple entry visa.
  • Block visa.
  • Transit visa.
  • Exit visa).
  • Residence/work permit visa.  

Article (3)

ONE) Visa Fees:

  • Multiple exit re-entry visa – LYD 1,000.
  • Transit visa – LYD 100.
  • Extension of transit visa – LYD 100.
  • Tourist, visit, temporary mission visa – LYD 300. (void effective 30 June 2026).
  • Extension of visit/mission visa – LYD 100.
  • Visa on arrival – LYD 1,000.
  • Work visa – LYD 300.
  • Block visa – LYD 100./per person
  • Residence/Work Permit fee (first issuance and extension) - LYD 500./per year.
  • Non-Employment residence visa – LYD 300./per year
  • Final exit visa – LYD 50.

TWO) Residence Permit Issuance/Renewal, Penalties:

  • Expedited transaction fee – LYD 50.
  • Registration upon entry, within one week – LYD 100.
  • Work permit card*– LYD 50.
  • Re-issuance of lost work permit card – LYD 150.
  • Re-issuance of torn/worn-out work permit card – LYD 100.
  • Fine for Overstaying – LYD 500./per month

Date of Issuance : 14.03.2024

         (*) Work Permit Card program has not yet launched. Currently, work permit stickers are being affixed directly to passport pages.

Below is the link to the full text of the Decision (The Law Society of Libya website):

https://lawsociety.ly/legislation/%D9%82%D8%B1%D8%A7%D8%B1-%D8%B1%D9%82%D9%85-137-%D9%84%D8%B3%D9%86%D8%A9-2024-%D9%85-%D8%A8%D8%AA%D8%B9%D8%AF%D9%8A%D9%84-%D8%A8%D8%B9%D8%B6-%D8%A7%D9%84%D8%A3%D8%AD%D9%83%D8%A7%D9%85-%D9%81%D9%8A/

Friday, January 24, 2025

HoR Law No. 1-2025 on the repeal of statute of limitations for state-owned tax liabilities

House of Representatives (HoR)

Law No. (1) of 2025

Law issuance date: 23 January 2025

Article (1)

Article 25 of the Income Tax Law No. (7) of 2010 has been amended as follows:

The State’s right to claim the receivables to which it is entitled under the provisions of this Act does not lapse upon the expiration of the statute of limitations, and the provision of this article applies to all cases of the statute of limitations that have not yet expired.

Conclusion: The seven-year statute of limitations specified in Article 25 of the Income Tax Law No. 7/2010 has been repealed, and paragraph (1) above applies to all cases where the statute of limitations has not yet expired.

Below is the link to the full text of the Law (Law Society of Libya website):

https://lawsociety.ly/legislation/%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B1%D9%82%D9%85-1-%D9%84%D8%B3%D9%86%D8%A9-2025-%D9%85-%D8%A8%D8%B4%D8%A3%D9%86-%D8%AA%D8%B9%D8%AF%D9%8A%D9%84-%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B1%D9%82%D9%85-7/

Friday, January 17, 2025

Deep Dive: Libya’s New Administrative Contracts Regulations (Government of National Unity Decree 600-2024)

On October 29, 2024, the Libyan Council of Ministers issued Decree No. 600 of the Year 2024, enacting a brand-new set of Administrative Contracts Regulations (ACR). Effective immediately upon issuance, this comprehensive legal framework annuls and supersedes the long-standing General People’s Committee Decision No. 563 of 2007.

For businesses, contractors, and legal practitioners operating or planning projects in Libya, understanding these updated rules is critical. Below is a detailed executive summary and operational overview of the new regulations.


1. Core Definitions & Scope of Application

The regulations strictly govern all Administrative Contracts financed or funded by the Libyan Public Treasury or approved within the state development plan.

  • What is an "Administrative Contract"? Under Article 1, it is defined as any contract concluded by a public administrative body or unit to implement/supervise development projects, offer technical advice, or manage a public facility. Crucially, these contracts contain exceptional, non-civil clauses specifically designed to protect and prioritize the public interest.
  • Applicability: The rules apply to all new contracts and, retroactively, to existing administrative contracts, provided they do not directly contradict pre-agreed contractual terms.
  • Recognized Contract Types: Public works, consultancy appointments, supply and installation, operation and maintenance of public utilities, and facility management.

2. Institutional Jurisdictions & Oversight

The regulation establishes a clear hierarchy for who can authorize procurement and sign agreements:

  • The Council of Ministers: Retains exclusive power over strategic or special-nature projects, emergency contracts outside the general budget, contracts involving multiple sectors, and any contract signed with an unregistered foreign executing entity.
  • Ministries: Authorized to conduct technical/economic feasibility studies and approve award minutes within their designated sector budget limits.
  • Administrative Units (Municipalities/Public Companies): Responsible for localized studies, while their final awards must still be sanctioned by their supervising Ministry or the Council of Ministers.

3. Approved Methods of Government Contracting

While General Bidding (Public Tender) remains the default legal mandate to ensure maximum competition and fair pricing, the regulations permit alternative methods under strict exceptions:

Method

Description / Conditions

General Bid (Tender)

The primary method, split into internal (local) or international options.

Restricted (Limited) Tender

Limited to pre-qualified or registered contractors. Used for specialized supplies or consultancies. Requires at least 3 participants.

Tender Negotiation

Direct negotiation Rounds with specialized entities to secure optimal terms during urgent needs or failed bids.

Direct Agreement (Direct Order)

Permitted for national security, sole-source monopolies, or small-scale emergency maintenance. Strict monetary thresholds apply up to 1M LYD (Minister approval), 5M LYD (Prime Minister approval), and above 5M LYD (Council of Ministers approval).

Two-Stage Bid

Technical proposals are submitted first without pricing, followed by financial bids from technically qualified contenders.

Framework Agreement

Used for repeated or time-sensitive, unpredictable supply needs over a maximum 2-year duration.

Public Auction

The mandatory mechanism for leasing out or selling state-owned movables and real estate.


4. Key Financial Disclosures, Securities, and Guarantees

To mitigate state risk, the GNU has instituted rigid rules surrounding bid bonds, performance bonds, and tax liabilities:

  • Preliminary Deposit (Bid Bond): Must accompany all bids (0.5% to 1.5% of estimated project value for public works/goods; capped at 0.5% for real estate). It must be an unconditional, irrevocable bank guarantee from a commercial bank operating in Libya.
  • Performance Bond (Final Guarantee): Successful bidders must scale up their security deposit to 4% of the total contract value within 30 days of award notification. For standard government procurement under Chapter Seven, this bond is set at 15%.
  • Taxes and Fees: Contractors are legally liable for all Libyan stamp duties, income taxes, surtaxes, and consumption duties. The regulations strictly forbid transferring the contractor's tax burden to the contracting public entity.
  • Advance Payments: Public works contractors may request an advance payment capped at 15% of the original contract value, disbursed in three equal 5% increments based on milestones (site takeover, work plan approval, and completion of temporary site setups). Consultancy contracts are capped at a 10% advance. All require matching bank guarantees.

5. Execution Controls & Penalties for Default

The regulation places heavily structured operational obligations on the contractor:

  • Use of National Products: Contractors are legally mandated to utilize national local materials and products, provided they meet technical specifications and remain price-competitive.
  • Social Responsibility (Community Care): In a push for corporate social responsibility, national contractors must allocate up to 2% of expected net profits to health, social, or cultural care. For foreign contractors, this allocation is a minimum of 2%, and for joint ventures, it is a minimum of 1%.
  • Subcontracting Restrictions: Total assignment or wholesale subcontracting of a contract to a third party is completely prohibited and triggers immediate contract cancellation and bond confiscation. Partial subcontracting of specialized works is allowed only if disclosed in the original technical bid or approved via subsequent written consent.
  • Delay Penalties: Standard delay fines are set at 5% of the total contract value for public works, capped at 10% for supply defaults, and up to 20% for other specialized administrative agreements.
  • Blacklisting & Deprivation: Severe breaches, fraudulent behavior, bribery, or unexcused delays can land a company on an official state Black List, barring them from direct or indirect bidding across all state entities.

6. Transparency & The Electronic Platform

In a bid to modernize state procurement, promote equal opportunity, and eliminate influence peddling, the regulations introduce a centralized Unified Electronic Platform. All administrative bodies are obligated to announce public tenders, upload procurement documents, and manage bidding processes through this platform, unless technically unfeasible or restricted by national security protocols.


7. Dispute Resolution & Legal Jurisdiction

  • Local Courts: Libyan courts maintain ultimate jurisdiction over disputes arising from these regulations.
  • Arbitration: Administrative contracts must outline a multi-tier dispute mechanism: initial review by an appointed Opinion and Dispute Avoidance Council, followed by formal arbitration pursuant to the Libyan Commercial Arbitration Law. Resorting to international or foreign-partner arbitration requires explicit, prior approval from the Council of Ministers.


Download the English translation of Decree No. 600-2024 from the Google Drive link below:


Important Note: I have shared a preliminary English translation of GNU Decree 600-2024 via the Google Drive link in this post. Please note that this particular version is a rough draft and needs significant improvements for full accuracy. I will be working on uploading a corrected, highly accurate translation in a later phase. However, if your team needs an exact or verified translation of specific Articles right now, please send me an email, and I will prioritize your request and reply in the shortest time possible.

∞∞∞

When comparing the new Administrative Contracts Regulations (ACR) under Decree No. 600 of 2024 to the legacy framework Decision No. 563 of 2007, several major changes stand out. These changes focus on modernizing procurement, strengthening state oversight, increasing electronic transparency, and providing stricter financial protections.

The key structural and legal shifts between the 2007 and 2024 frameworks include the following:

1. Digital Modernization & Transparency Mandate

  • 2007 Framework: Relied entirely on traditional print media, notice boards, and physical delivery for public bid advertisements and submission documents.
  • 2024 Framework: Mandates the use of a centralized Unified Electronic Platform. All government administrative bodies must now publish tenders and accept encrypted bids digitally. This completely modernizes state procurement protocols and seeks to minimize influence peddling.

2. Tightened Financial Authority Limits for Direct Agreements

  • 2007 Framework: Public officials possessed broader direct spending powers. The head of a government sector could execute a "Direct Commission" (Direct Assignment) up to a value of 2 million LYD before needing higher executive authorization.
  • 2024 Framework: Rebranded as "Direct Agreements," the regulation systematically cuts a Ministry's direct financial authority in half to 1 Million LYD. Any direct contract between 1 million and 5 million LYD now requires prior written permission from the Prime Minister, and anything exceeding 5 million LYD requires Council of Ministers approval.

3. Concrete Defenses Against Delays in Payment

  • 2007 Framework: Delayed state payouts to active contractors lacked clear, immediate remedy mechanisms within the text, often resulting in prolonged legal deadlocks.
  • 2024 Framework: Article 104 explicitly dictates that late state payment is no longer cost-free. If a valid invoice is delayed by the contracting state entity for more than 10 weeks, the contractor is granted the legal right to intentionally slow down or suspend work. Furthermore, the state must pay the contractor actual necessary operational expenses incurred during that suspension (capped up to 4% of the delayed extract value), and the delay period must be automatically added to the contract timeline.

4. Accelerated, Rigid Challenge and Appeal Timelines

  • 2007 Framework: Bidders challenging an award faced slower, more ambiguous bureaucratic review processes.
  • 2024 Framework: Article 25 creates an incredibly tight 7-day window for unsuccessful bidders to formally challenge a procurement decision. The head of the administrative body then has exactly 7 working days to issue a final decision. This strict window prevents projects from stalling indefinitely but places a heavy administrative burden on state agencies to have completely meticulous evaluation records ready on the day of the award.

5. Alternative Dispute Resolution Mechanisms

  • 2007 Framework: Lacked sophisticated, pre-integrated alternative dispute layers, steering mostly toward lengthy, standard domestic litigation channels.
  • 2024 Framework: Prioritizes alternative resolutions before heading to court. It introduces the mandatory initial layer of a specialized Opinion and Dispute Avoidance Council embedded right into the contract. Furthermore, if international arbitration is sought with a foreign entity, it explicitly loops in a mandatory safeguard requirement: explicit approval from the Council of Ministers.

6. Exclusion of Specific Unfunded Project Types

  • 2007 Framework: Formally addressed and organized certain project structures not directly funded by the public treasury, such as BOT (Build-Operate-Transfer) models.
  • 2024 Framework: Focuses exclusively on contracts explicitly financed from the Public Treasury or General Budget. It drops coverage for completely unfunded alternative investment mechanisms, making it an agile framework strictly for direct public spend.

 ∞∞∞


Laws, Decisions and Regulations in force

Laws, decisions and regulations in force governing the activities of international construction companies in Libya

Click the Google Drive link below to download any/all of the following PDF documents: Libyan Civil Code. Law No. 12/2004 on stamp tax. Law ...