Decision 856/2022: Empowering Municipalities with Local Competencies and Governance

The Council of Ministers transferred authority over 13 local service sectors from central ministries to municipal governments, effective immediately. Municipalities now control housing, reconstruction, transport, commerce, planning, industry, tourism, primary healthcare, youth affairs, culture, and local media. Associated budgets, assets, projects, and employees must be transferred to municipal control.

This represents a significant decentralization shift that fragments regulatory and procurement authority. Foreign companies must now engage with individual municipalities rather than central ministries for permits, contracts, and approvals in affected sectors. Operational complexity increases substantially—each of Libya's municipalities may develop different standards, timelines, and requirements. Companies with multi-location operations face heightened coordination costs and regulatory heterogeneity.