Custom Search

By Amberin Zaman for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

As the battle grinds on against the Islamic State — also known as IS, ISIL and Daesh — there is growing concern about the mounting influence of Iran and Shiite militias known as the Popular Mobilization Units (PMU) inside Iraq.

The Iraqi Kurds, who continue to clash with the Shiite-led government in Baghdad over the sharing of oil revenues, are feeling squeezed. Nechirvan Barzani, the savvy young prime minister of the Kurdistan Regional Government (KRG), has played a central role in maintaining the precarious balance between his people, the central government and the big regional powers, Turkey and Iran.

The United States has re-emerged as the Kurds’ principal ally in the battle against the jihadists. As the battle to liberate Mosul from IS looms, what are the challenges that lie ahead? Nechirvan Barzani explains in an interview with Al-Monitor in Erbil, the capital of the KRG.

Al-Monitor: How is the battle against Daesh [IS] going?

Barzani: It was a big shock in the beginning. But since then it seems we have been able to push them back from the Kurdistan territories, from the areas surrounding Kirkuk, Zumar, Rabia, Mosul Dam, Makhmour and Gwer. These regions have been liberated. The initiative is back in our hands now. We feel that they don’t have the same strength to mount fresh attacks. In general the situation is much better. But the danger has obviously not subsided altogether and so long as Mosul remains in the hands of ISIL the threat will remain.

Al-Monitor: I will get to Mosul, but first I would like to discuss the role of Iran and the Shiite militias or the Popular Mobilization Units, the PMUs. Throughout my stay here, Kurds and Western officials alike have aired more worries about Iran and the PMU than about the Islamic State, or Daesh.

Barzani:  There is a reality that needs to be addressed. When ISIL first embarked on this war in Iraq, Iran was one of the first countries that came forward to defend Iraq, including Kurdistan. It was felt there was a common enemy, Daesh. And the other bitter reality was that the Iraqi army did not possess the means to stop the onslaught of ISIL. As a result of a fatwa from Ayatollah [Ali] Sistani, Hashid Shaabi, or the Popular Mobilization Units, were formed. It would be unfair to deny the positive contribution of these forces to help push back ISIL. In many places they have played a positive role.

By Luay Al-Khatteeb and Harry Istepanian, of the Brookings Institution.

The need to confront and drive back the forces of the Islamic State (IS, ISIS. ISIL) has pushed long-term reform efforts in Iraq far down the list of priorities.

Yet pressing economic reforms – such as restructuring and rebuilding the country’s energy sector – increasingly seem a strategic necessity, as oil prices have fallen far below government projections.

How can politicians be persuaded to invest in Iraq’s long-term future at a time of imminent security threats? How can the efforts to reform the Iraqi electricity network be harnessed to reestablish government authority in newly retaken areas?

Luay Al-Khatteeb and Harry Istepanian address these questions through analysis of past attempts at electricity sector reform. They argue that even before IS advances plunged Iraq into a deep political and security crisis, divisions within the Iraqi parliament and various government agencies had stymied efforts at reform.

Still, they note that improving the provision of electricity is a clear opportunity to improve basic services to its citizens, boosting government legitimacy and acceptance in areas under its control, especially as it seeks to retake territory from IS.

Khatteeb and Istepanian hold that a comprehensive strategy is needed, one that incorporates an expanded role for the private sector, rationalized electricity tariffs, and a host of technical fixes to improve efficiency.

Ultimately, they contend, much will depend on whether the government of Prime Minister Haidar al-Abadi views the IS threat as an excuse for inaction or an impetus for change.

Please click here to download the full report in English, or here to download in Arabic.

(Source: Brookings Institution)

Report first published in nina-iraq.com, the magazine for Iraqi women everywhere.

By Dr. Basil Al-Fakhri, formerly of the Electricity Power Commission-IRAQ [1988-1989], consultant in Western power Utility, KBR consultant and SMEC consultant-Australia[2004-2012].

It is my belief that the Ministry of Electricity [ME] needs to engage with international consulting firms (this is what happens with oil contracts).

These consultation periods should last no less than 10 years and should explore planning, studies, production, transmission, and distribution.

It is suggested that countries such as Britain, Sweden, Germany, France and Japan. should take the lead in this as they have accumulated expertise for systems which can be implemented in Iraq.

In addition, these consulting utilities firm possess advanced training in power generation and supply, and hence this will put Iraq on the right track also. Indeed, if we plan wisely we can leapfrog other nations in the region – overtaking Libya and Jordan, Turkey, Iran and Saudi Arabia as market leaders.

Implementation of the right kind of technology at every stage will of course play a crucial part.

Please click here to view the full article.

By John Lee.

Basra governorate has reportedly approved 60 new power projects valued at a total of $218 million (255 billion Iraqi dinars) within its 2015 budget.

The projects were given the green light at an emergency meeting of the governing council  on Monday, and were fewer than desired because of budget constraints.

Emirates 24|7 quotes a Basra official as saying that the governorate, Iraq’s wealthiest province, approved a budget of about 4.3 trillion dinars (3.6 billion dollars) for 2015, but was allocated only 1.3 trillion dinars (1.11 billion dollars) by Baghdad due to lower oil prices and soaring military spending.

(Source: Emirates 24|7)

(Electricity image via Shutterstock)

By John Lee.

Roza Othman, a member of the Natural Resources Committee in the Kurdistan Parliament, has said that the KRG will sign a contract with Iran to import gas and electricity.

The imported electricity and gas will be for civilians, and the gas will be delivered by pipeline.

The Head of the Parliamentary Committee for Natural Resources, Sherko Jawdat, confirmed to BasNews that the Kurdistan PM is expected to visit Iran soon to sign the contract.

He said that the finer details of the contract are not yet known; Roza Othman insisted that importing gas from Iran will solve Kurdistan’s issues with electricity and gas.

(Source: BasNews)

(Electricity image via Shutterstock)

As a result of the recent widening of the conflict in Iraq, many more people – numbering in the hundreds of thousands – have been affected.

The provinces of Al-Anbar, Ninawa, Salah al-Din, Diyala, and Kirkuk have been under heavy attack, driving more people to abandon their homes to seek shelter in safer areas. This is in addition to the over two million people who had already been displaced since last year. People in these provinces have virtually no access to basic services, and essential supplies reach them only irregularly.

"The displaced people have barely survived the harsh winter," says Patrick Youssef, the head of the ICRC's delegation in Iraq. "Going home is not an option for most of them. Those who do, return to badly damaged houses and radically disrupted supplies of water and electricity. Hospitals are either damaged or working at well below their usual capacity. Unexploded munitions are a huge threat: they are strewn all over the areas where fighting is particularly heavy."

Looming humanitarian needs

The broadening of the conflict to populated areas along the Tigris and Euphrates rivers will create more humanitarian needs. If major cities like Mosul come under fire again, thousands more people will have to flee. Because security conditions are so uncertain, many areas remain out of reach for humanitarian organizations, and large numbers of people will be without help when they need it most.

The ICRC reminds all parties to the conflict to take all precautions necessary to minimize loss of civilian life and damage to property, treat detainees with dignity, facilitate access to health care for everyone, and ensure that the work of medical staff and hospitals proceeds unhindered. Humanitarian workers must be allowed to safely reach people who need help, and all possible measures should be taken to protect people from attacks and displacement.

ICRC activities

Difficulties of access notwithstanding, the ICRC has been striving to assist displaced people throughout Iraq, and the communities hosting them: since the beginning of the year, over 300,000 people have received essential aid. Several relief operations have been carried out across front lines to take food, water, and other basic items to people, and essential medical supplies to the wounded and the sick.

By John Lee.

Prime Minister Dr. Haider Al-Abadi recently received in his office the director of the World Bank in the Middle East and North Africa, Mr. Farid Belhaj, and the Special Representative of the World Bank Mission in Iraq, Mr. Robert Bu Jodah.

The meeting discussed the challenges of Iraq's economy caused by the global drop of oil prices in addition to reorganizing the economy in Iraq, the government support to private sector, and turning the challenges of Iraq into opportunities for real reforms besides following up the results of the meeting between PM Dr. Al-Abadi and Director of the World Bank on the margin of Davos Forum last month.

Dr. Al-Abadi mentioned that the government is continuing in implementing its economic reforms and supporting private sector; "this is what we started to seek for through ratifying the budget of this year which adopted abstinence" and "the government started in this project and it has plans in this field but it needs the help and experience of the World Bank".

H.E. emphasized the determination of the government to activate a retirement system which guarantees the rights of all Iraqis including those who work in the private sector.

On its part the delegation of the world bank expressed its intention to provide all kinds of support to Iraq and its readiness to establish programs and projects to activate public Banks, cooperate with the Iraqi Central Bank, rehabilitate the state owned companies in addition to supporting infrastructure projects like electricity and water.

(Source: Office of the Prime Minister)

By John Lee.

The Deputy Managing Director of of Iranian vehicle maker Iran Khodro (IKCO) has said the company has chosen Iraq as a target market for its car exports, and opened a new showroom in Baghdad last week as a first step.

Meqdad Mahmudi told Iran's IRNA news agency that both the Iraqi Oil Minister and the Iraqi Electricity Minister had proposed giving a large site to the company to build a car manufacturing plant.

(Source: IRNA)

By John Lee.

Shares in APR Energy were up 3 percent on Wednesday morning after the company announced that it has signed a contract renewal for its power generation contract in Iraq, taking the term through the end of 2015.

The power plant has been in operation since 2012 and comprises six GE TM2500 mobile gas turbines capable of generating more than 120MW of electricity. APR Energy acquired the plant in 2013 as part of its acquisition of GE's power rental business.

Located in Basra, the gas-fired power plant provides reliable base load power and grid stability to the population of the Basra province, as well as supporting oil and gas, petrochemical and agricultural industries.

Commenting on the contract renewal, APR Energy's Managing Director for Europe, Middle East and Africa, Ranjit Singh said:

"Our fast-track solution is providing Basra residents and industries with reliable power, helping to fill critical needs and supporting economic and social stability. Mobile turbine technology helps stabilise the grid, uses approximately a third of the space required by a mobile reciprocating engine site and requires only a small team to operate and maintain.

"This renewal reflects our customer's ongoing demand for electricity, as well as our proven ability to deliver large-scale power quickly, reliably and consistently."

Laurence Anderson (pictured), APR Energy Chief Executive Officer added:

"I'm very pleased to have renewed this significant contract in Iraq, which follows on the heels of our 135MW contract extension and expansion in Indonesia.

"Our focus following the acquisition of the GE power rental business has been to renew the former GE contracts under more favourable terms or else relocate the assets to higher-value opportunities, and this renewal is very much aligned with that strategy."

(Sources: APR Energy, Yahoo!)

Dr. Haider al-Abadi, the Prime Minister, received Mr. Isaac Jhangere [Es'haq Jahangiri], Vice President of the Islamic Republic of Iran, who arrived in Baghdad this morning at the head of a senior-level delegation.

After an official reception ceremony, a bilateral meeting was held to tackle the development of relations between the two countries and issues of common interest. After which a joint meeting was held presided from the Iraqi side by, Dr. Haider Abadi, head of the Council of Ministers, and from the Iranian side by, Mr. Isaac Jhangere, with the presence of the whole members of the two delegations.

Dr. Haider al-Abadi, at the beginning of the meeting, welcomed the Iranian Vice President and the accompanied delegation, expressing satisfaction with the increase of trade exchange between the two countries, calling for the completion of all suspended situations, confirming the continuation of dialogue, communication and follow-up to the previous agreements between the two countries.

H.E. stressed the importance of cooperation between the two neighbors and hoped to expand the horizons of cooperation in the fields of trade, oil and gas, electricity, agriculture, housing and transportation as well as the financial and banking cooperation.

For his part, the Vice President said:

"Our policy strategy is to support unity of the Iraqi people, restoration of security, stability and the progress of Iraq, pointing to the victories the Iraqi people and armed forces achieved in the face of terrorist Daash gangs, hoping to continue these successes in the face of terrorism.

Mr. Jhangere stressed that:

"The economic relations between the two countries grew well, as we move forward in cooperation in the fields of railway linkage and oil pipelines extension with all that serves the interests of both neighboring peoples".

The Iranian Vice President's renewed the desire of Iranian companies to contribute to the energy, construction and housing, agriculture, health, medicine and medical equipment fields.

The meeting was attended from the Iraqi side by the ministers of Finance, Municipalities, Transport, Trade, Health, Industry and Minerals, Agriculture, Construction and Housing, Environment, Culture, Tourism and Antiquities and Minister of State for Provincial Affairs, besides members from the Council of Representative and the Governor of the Central Bank, while attended from the Iranian side by, the ministers of Industry and Mines, Trade, Roads and Urban Construction, Agriculture, Health and Economy as well as Deputy Minister of Energy, the Governor of the Central Bank of Iran and Deputy Foreign Minister for Arab and African Affairs.

(Source: Office of the Prime Minister)