Currently, there are an estimated 470,000 hectares of irrigated land in Libya. Farming activities on this irrigated land are in three broad areas. The majority of farmers are smallholders, but these tend to be in the older and more established farming areas (representing 30-40 per cent of the total irrigated area);
large-scale farming is found mainly in southern areas, based around modern irrigation schemes; other large-scale farming is found in desert areas, usually as a state enterprise.

Libya is keen to expand its domestic agricultural production. For instance, while Libyan farmers did produce an impressive grain crop in 1996 (some 360,000 tonnes), this represented only one-fifth of the domestic requirement. Indeed, around half of Libya's agricultural production in that year came from live-stock products. Foodstuffs are Libya's second largest import, with the bulk originating in Italy.

With this in mind, the government is looking hard at water resource management, in order to maximize agricultural (and industrial) production in the long term. Desalination plants have been built near centres of population and industrial activity, but it is presently estimated that only 70 m cubic metres/year is actually desalinated. New sewage treatment plants are also in the pipeline, and currently all treated water is used for irrigation. As well as implementing these water management techniques, the government is also looking for innovative solutions that will enable Libya to maximize its agricultural and industrial potential.

The Great Man-made River (GMR)

Launched in 1984, the GMR is essentially a water transportation project that aims to carry water from Saharan wells through around 4000 km of pipes (themselves 13 ft in diameter) to coastal areas, providing water mainly for irrigation and industry. The Project has five phases, of which phases 1 and 2 are underway, with a third in progress, which will involve the construction of 1,000 km of pipeline. This will effectively link Phases 1 and 2, which were geared towards the extraction of water and its movement, aided by gravity, towards the coastal regions (although Phase 1 has supplied Benghazi with drinking water since 1994). Pumping stations will, in the main, take the form of boosters, aimed at keeping the flow of water at a steady rate. The overall cost of the GMR project is estimated at $30 bn, although a tight spending budget for 1999 and reduced spending on investment projects may temporarily delay the next phase of construction.

Telecommunications

Great interest is being shown in the development of mobile phone networks in Libya. An exchange catering for mobile users opened in Benghazi in 1996, and a second phase, extending the network to 26,000 subscribers in Sirte was launched in 1997. General Post and Telecommunications Corporation, the state telecoms provider, has also taken a 5 per cent stake in the UAE's Thuraya Satellite Telecommunications Company. A $70 m contract has recently been signed to develop a Libyan Fibre Optic Network, which will involve eleven links along some 1,600 km of the Libyan coast. Although progress on developing the telecoms industry in Libya is currently not as rapid as in other Middle Eastern countries, it is clear that the government is committed to progress in this field, and is pacing developments according to Libya's needs.