MADRID (AFP) -- Spanish construction group BTP Sacyr Vallehermoso said Sunday it had created a joint company with the Libyan government to bid for infrastructure contracts in the north African country.

Libyan leader Moamer Kadhafi arrived Saturday in southern Spain for a private tour ahead of a two-day official visit where he will meet Spanish premier Jose Luis Rodriguez Zapatero today and King Juan Carlos Tuesday.
“Sacyr Vallehermoso and the State Libyan Company for development and investment have established a partnership for the development of infrastructure works in Libya,” said a company statement.
“The Libyan government is preparing to launch an infrastructure investment project to the tune of more than 50 billion euros.”
“With the creation of this vehicle, Sacyr Vallehermoso enters into the small group of European enterprises who will benefit from a privileged relationship to lead these works.”
The new company, Ledico Libya, was incorporated in Tripoli last Tuesday, with Sacyr holding 60% of equity against the Libyan state's 40% stake.
The announcement comes after a controversial week in France where memoranda to negotiate agreements worth between three and 10 billion euros (up to 14.4 billion dollars), in aviation and potentially in nuclear spheres, according to different French government estimates, were signed.
Kadhafi will also breakfast with senior Spanish business leaders, including Antoni Brufau, head of oil giant Repsol, which already has extensive interests across Libya.