Libya has filed a suit against Dong Ah Construction Industrial, seeking compensation of $3.6 billion for damages that it alleges the Korean contractor has caused during its work on the Great Man-made River project there.

Libya's Great Man-Made River Authority (GMRA) filed the suit with the southern district court of Tripoli soon after Dong Ah Construction was placed under court receivership late last year. The suit follows a similar move by Libya in Seoul to seek compensation worth over $1 billion in case Dong Ah is declared insolvent.

The alleged damages include $1.09 billion to repair leaks, $846 million to cover the remaining construction work and $99 million to compensate for the damage Libya says was done to its reputation. If the allegations are upheld in the Libyan court, a similar suit, such as the one now pending, will need to proceed in a Korean court before Libya is be able to collect the compensation.

Dong-Ah is currently working on the first and second phases of the project.