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By John Lee.

A British court has supported a decision by the trustees of a pension scheme to petition to have the scheme's sponsoring employers, Biwater, wound up.

The decision could lead to the potential liquidation of Biwater, which has projects in Basra, and in Iraqi Kurdistan.

As at 19th May 2023, Biwater owed the pension scheme over £39 million ($50 million), and the deteriorating financial position of the pension scheme was the product of Biwater's financial problems.

Biwater is part of a consortium of companies intending to develop a major seawater desalination project in Basra, but according to the court judgement, this contract was not yet signed. Last week, the Iraqi Cabinet transferred responsibility for this project to Basra Governorate.

The company is also involved in a water and wastewater treatment project in the Kurdistan Region of Iraq; the court documents mention, "a contract in Kurdistan, supposed to start obtaining receipts in September 2021 but not yet started."

Click here to read the full court judgement.

(Source: Bailii)

By John Lee.

In an effort to address the water scarcity crisis and expedite the implementation of a seawater desalination plant project in Basra province, the Iraqi Cabinet has made the following decisions:

1. Amendment to Previous Decision: The Cabinet has revised the resolution made in 2021 under Cabinet Decision No. 315.
2. Project Transfer: The Ministry of Construction, Housing, Municipalities, and Public Works will oversee the relocation of the aforementioned project to Basra Governorate. Additionally, the economic and technical study prepared by the Austrian consulting firm ILF will be referred to the province.
3. Provincial Responsibilities: Basra Governorate will undertake the following:
   • Coordinate with the Ministry of Construction, Housing, Municipalities, and Public Works to assemble a team of experts for the purpose of reviewing the study and costs with the consulting company.
   • Have the authority to negotiate with the consortium of companies for project execution and establish an executive body to oversee its implementation.
   • Develop a sustainable mechanism for project management, operation, and maintenance post-handover. Quarterly progress reports on project implementation stages will be submitted to the Prime Minister.

According to previous information from the Iraqi Government, the consortium consisted of Samsung, Makinasinayi (sic), Biwater, Wood Group and Al-Rida Group, with financing managed by the Trade Bank of Iraq (TBI), and a loan from UK Export Finance (UKEF).

The project will also include the construction of a new power station, in addition to providing water to increase production at Basra's oil fields.

(Source: Media Office of the Prime Minister)

By John Lee.

The Iraqi cabinet has agreed to the authorization of a contract with a consortium of companies for a major seawater desalination project in Basra.

A statement from the cabinet named the companies as Samsung, Makinasinayi (sic), Biwater, Wood Group and Al-Rida Group.

The work will be based on a study submitted by the Austrian consultant ILF Consulting Engineers, which will supervise the project.

The Trade Bank of Iraq (TBI) will manage the financing of the project, which involves a loan from UK Export Finance (UKEF).

(Source: Govt of Iraq)

UK International Trade Secretary Dr Liam Fox MP has visited Baghdad for a three-day visit (Sunday, 14 April to Tuesday, 16 April 2019) where he met with the Iraqi Prime Minister and announced that UK Export Finance (UKEF) will make an additional £1 billion of support available for British firms operating in Iraq, providing jobs and promoting stability in the region.

In the first visit to Iraq by a cabinet minister for more than a year, Dr Fox will be meeting with senior Iraqis including the Prime Minister and President to discuss the bilateral trading relationship.

Alongside the Iraqi Prime Minister Adil Abdul Mehdi, the Trade Secretary announced that UK Export Finance is making an additional £1 billion available to support UK exports to Iraq, bringing its total support for the country to £2 billion.

The measure is designed to promote Iraq’s economic development and nation-building, ensuring that UKEF can continue to help the Government of Iraq deliver critical infrastructure.

To date, UKEF has deployed its existing capacity for Iraq, providing around £1 billion in support for projects including:

• A US$35 million (£26 million) loan for the scoping phase of a water and wastewater treatment project in the Kurdistan Region of Iraq provided by UK company Biwater
• US$1.02 billion (£770 million) to support Enka UK and GE to build 2 new gas-fired power stations in the Basra region and UK-based GE Grid Solutions to build and refurbish 14 electricity sub-stations across Iraq
• support for a €30.2 million (£26 million) Siemens UK contract to refurbish the 320-megawatt Al Mussaib power station in southern Iraq
• a loan to support a US$220 million (£169 million) contract being undertaken by a UK subsidiary of GE to refurbish gas-fired power stations

This support is available to UK companies selling to Iraq or investing in the country and will help the Government of Iraq access finance for projects that source goods and services from the UK.

The International Trade Secretary Dr Liam Fox MP said:

"The atmosphere in Baghdad is one of optimism – it is a country which is having an increasingly stable period at a time of significant unrest in the wider region. The British government, working closely with the UK private sector and our Iraqi partners, have a key role to play in the country’s long-term prosperity. The £1 billion we have announced today will significantly strengthen our ability to do just that.

"Iraq’s future is bright, and my international economic department will continue to work tirelessly to ensure it maintains this stability, allowing the hard work of its talented citizens to flourish for the benefit of all.

"Trade is about more than economic self-interest, it is the means through which we deliver the mutual prosperity that underpins our collective security. That is the true prize of trade policy and promotion done right."

During the visit, the Trade Secretary will speak to young Iraqi entrepreneurs who are working to create a more vibrant private sector to support the long-term stabilisation and prosperity of Iraq. He will also meet British firms operating in-country whose investments are vital in the country’s rebuilding efforts.

Siemens UK is improving the electricity supply in Iraq using UKEF finance. Steve Scrimshaw, Country Lead, Gas and Power UK and Ireland, Siemens UK, said:

"We are delighted this additional funding has been made available for ongoing regeneration in Iraq and look forward to working with UKEF and the Iraqi government on future opportunities.

"Siemens has already benefited from UKEF support for work on the refurbishment of the Al Mussaib power plant. This will be vital for the people of Iraq who will benefit from both the power and the jobs it will create. With work being delivered from our Newcastle business, it is also helping to secure jobs in the UK."

(Source: UK FCO)

A strategic partnership has been established between Biwater and Wood to work together in Iraq to address acute water shortages, beginning with the supply of water to the Basrah region.

This important agreement between two leading UK infrastructure firms, demonstrates the scale of international interest and support in Iraq’s extensive infrastructure reconstruction efforts, and follows the signing of a MoU between the Government of Iraq and UK Export Finance (UKEF) in March 2017, to underwrite GBP £10 billion of infrastructure projects in Iraq over the next 10 years.

Commenting on the partnership, Biwater’s Chairman, Sir Adrian White (pictured), said:

“I am delighted with this new partnership, which is another significant step forward in delivering our respective ambitions within the water industry.

"Biwater’s focus will be to work with Wood – applying the vast knowledge and expertise of both companies – to deliver on the immediate requirements for Iraq’s water infrastructure, especially that required by the Basrah Governorate.”

Bob MacDonald, CEO of Wood’s Specialist Technical Solutions business, said:

“We are proud to be offering our diverse capabilities and broad, innovative solutions to support a partnership that offers our continuing support to the redevelopment of Iraq as well as making a difference to millions of people.

“Our focus will be on providing safe and reliable water distribution systems to the Iraqi population. We look forward to working in partnership with Biwater, which is another significant step towards broadening our portfolio.”

(Source: Biwater)

British water engineering company Biwater has been awarded a $1.2 billion contract by the Kurdistan Regional Government to meet vital water supply and sanitation needs.

Biwater have been contracted to deliver water and wastewater treatment solutions for the cities of Erbil and Sulaimani in the Kurdistan Region of Iraq. Works will alleviate the current strain on existing infrastructure and reduce the region’s reliance on dwindling groundwater reserves to deliver long-lasting environmental benefits.

Sir Adrian White, CBE, Chairman of Biwater, said:

"Since Biwater was founded in 1968, we have delivered many large international water projects across the globe, including strategic turnkey solutions throughout the Middle East. The signing of this contract in Kurdistan is a major landmark in providing technological and financial solutions that address complex water-related challenges in the region." 

As a part of this project, Erbil will be provided with a 600,000 m3/day state-of-the-art water treatment plant, while Sulaimani will benefit from water treatment plant upgrades and the construction of cutting-edge wastewater treatment works and sludge treatment facilities.

Present at a signing event in London today, Alastair White, Deputy Chairman, Biwater, extended his thanks to those involved saying:

“Biwater is very grateful for the support of UK Export Finance (UKEF), the Department for International Trade (DIT) and Her Majesty’s Government teams in Erbil and Baghdad, who have been instrumental in bringing the project to fruition.”

Posted in Construction & Engineering In Iraq, Iraq Public Works News Comments Off on Biwater wins $1.2bn Kurdistan Water Contract