Iraq to Receive $1.2bn World Bank Loan

Reducing gas flaring, expanding gas-to-power generation and reducing electricity subsidies will help support more  sustainable energy supply. A third area of reform focuses on addressing the lack of transparency among financial and non-financial state-owned enterprises.

The support to Iraq is very much in line with the World Bank’s strategy for the Middle East and North Africa, which was launched in October. This strategy builds on four pillars: Renewing the social contract in fragile states in the region; Regional cooperation; Resilience to refugee shocks; and Reconstruction and Recovery where needed. And to achieve these goals, calculated risk taking in countries such as Iraq is required.

“The Development Policy Framework is a critical part of the Bank’s efforts to help address fragility and increase stability in Iraq and the broader Middle East and North Africa region,” said Eric Le Borgne, the World Bank’s Lead Economist for Iraq. 

With the US$1.2 billion DPF, the World Bank’s present engagement in Iraq rises to nearly US$2 billion, including US$355 million for the Transport Corridors Projects to improve transport connectivity and road safety, and US$350 million for the Emergency Operation for Development, which supports the reconstruction and rehabilitation of municipalities that have suffered recent damages from the ongoing conflict.

(Source: World Bank)