By John Lee.
Iraq's Council of Ministers has approved a recommendation from the Ministerial Council for the Economy to suspend new investment project contracts across all ministries, non-ministry-affiliated bodies, and governorates, as part of a public spending rationalisation drive.
The freeze also covers spare parts orders and components added to existing projects without a direct relationship to the original scope, where cost additions have exceeded 25 percent of the contract value.
For projects already awarded or contracted but not yet commenced, companies have been given two options: defer work until notified that appropriate funding is available, or commit to waiving financial claims upon commencement until funding is secured. A third route of direct consensual termination, carrying no entitlement to compensation, is also available. The measures apply to contracts held by all state institutions.
(Source: PMO)
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