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The eighth cabinet of the Kurdistan Regional Government was sworn into office on 18 June 2014 at the Kurdistan Parliament. 

The cabinet consists of the following ministries and departments:

Prime Minister: Nechirvan Idris Barzani

Deputy Prime Minister: Qubad Jalal Talabani

Ministry of Agriculture and Water Resources: Abdulstar Majeed

Ministry of Culture and Youth: Khalid Doski

Ministry of Education: Pishtiwan Sadiq

Ministry of Electricity: Salahaddin Babakir

Ministry of Endowment & Religious Affairs: Kamal Muslim

Ministry of Finance & the Economy: Rebaz Mohammad

Ministry of Health: Rekawt Hama Rasheed

Ministry of Higher Education & Scientific Research: Yousif Mohammad

The eighth cabinet of the Kurdistan Regional Government was announced at a special session of the Kurdistan Parliament held on 18 June 2014. Prime Minister Nechirvan Barzani, Deputy Prime Minister Qubad Talabani, and all cabinet ministers were sworn into office.

In a speech outlining the programme of the eighth cabinet, Prime Minister Barzani stated that the new cabinet has been announced during a critical point in time. He emphasised that in 2003, the people of Kurdistan needed to act with one voice and work together in order to protect and preserve the achievements and interests of the Kurdistan Region.

He noted the need to have the same strategic posture at this difficult period for Iraq in order to not squander any achievements that have been made and to ensure the safety and security of those living in the Kurdistan Region and in parts of Kurdistan outside of KRG administration. For this reason the decision constitutes a historic responsibility for the people of Kurdistan.

The Prime Minister also said that the eighth cabinet is a broad-based government, reflecting the aspirations of the political forces in the Kurdistan Region. Achieving this task required patience during the process of forming such a cabinet in order to construct a real partnership that would respond to the current needs of the people and the political constituencies of the Kurdistan Region.

Prime Minister Barzani thanked the people of the Kurdistan Region for their patience during the government formation process, especially after Iraq’s federal government cut the salaries of KRG employees. He stressed that this unjust and unconstitutional decision has made the lives of the people in the Region more difficult and has also had a negative impact on Kurdistan’s economy and investment. He expressed his sorrow and sadness for the trouble that this situation has caused for the people of Kurdistan. However, he stated that in the coming years the resistance and fortitude of the people of the Kurdistan Region would usher in a new stage in which injustice would be confronted. This would help to settle these issues, and the Kurdistan Region would not face political or financial crises such as this again.

By Tariq Abdell. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

“…The ultimate test of statesmanship is what to do in the face of war…”   -- Thatcher’s statecraft

The upsurge in Sectarian violence across Iraq underscores the blatant failure of Iraq’s consensual democracy and the vulnerabilities of its security forces as result of a host of daunting and intricate constraints: A sectarian commander-in-chief, lingering ethno-sectarian loyalties, politicized security apparatus; and the regions geopolitical tensions, namely Syria’s civil war and Saudi-Iran’s rivalries.

Irrefutably, the cumulative effects of Maliki’s sectarian-based policies – marginalization and disenfranchising of Sunnis in particular- are to blame for exacerbating Iraq’s sectarian violence and, subsequently, entrenching Iraq’s centuries-old ethno-sectarian schisms as evidenced by ISIS’s recent offensive, supported by Sunni tribes, in north-central and northern Iraq.

For Washington to help Baghdad fend off a protracted sectarian war and a total chaos, it must first devise a set of benchmarks as a precondition of U.S. military and financial support. The endgame of such benchmarks it to force Maliki to renounce his sectarian-based policies, espouse a genuine and inclusive democracy, and form a government of national unity that heads to the people’s aspirations regardless of their political and religious beliefs; to include an action plan that reflects the country’s pressing priorities:

• Genuine national reconciliation to overcome interfaith communal distrust and sectarian violence.
• Overhauling of Iraq’s security apparatus namely the forces reporting directly to Maliki -SWAT and CTS in particular- to curb sectarian loyalties, rein in corruption, and build a cohesive and effective Military.
• Repealing of the Anti-terrorism law - Article 4 in particular- and the use of secret informants and coerce confessions.
• Reversal of targeted and unjust De-Ba’atification law.
• Merit-based appointments to promote efficiency and accountability.
• Providing access to basic services (e.g., potable water, electricity, running sewer, etc) and equitable distribution of oil revenues.
• Investing in human capital through education and training to fend off societal and political unrest.
• Advancing the principles of human rights and rule of law.
• Diversifying and reviving of Iraq’ strategic industries to curb its dependence on a single commodity – fossil fuel.

The United Arab Emirates Deputy Minister of Economy and Trade, Abdullah Saleh, visited the Kurdistan Region this week to attend the 2014 TradeUAE Iraq conference in Erbil.

The conference included 115 Emirati companies specializing in a wide range of sectors, including energy, the food industry, petrochemicals, construction, as well as companies offering banking and communications services.

Deputy Trade Minister Saleh said that the UAE remains committed to its investment projects in the Kurdistan Region, clarifying that they have not been halted. He attributed delays to minor obstacles, which include bureaucratic issues common in most countries in the region.

He said, “The UAE is committed to contribute to the economic growth of Kurdistan, where we have been among the pioneers.”

The Deputy Minister added that business and investment opportunities continue to expand and that this has led to increased opportunities for potential investors in various sectors. He emphasized that the UAE remains committed to investing in Kurdistan as well as expanding its operations and activities, stating that the UAE is not under pressure from the federal government in Baghdad regarding its investment projects in the Kurdistan Region.

Deputy Minister Saleh also said that UAE companies are looking to establish heavy industrial projects to serve the Kurdistan Region as well as Iraq as a whole. He reaffirmed that last year’s conference, the first TradeUAE conference held in Iraq, was also a success and that Erbil will be the gateway for UAE investment. He pointed out that the volume of bilateral trade between Iraq and the UAE exceeds $13 billion, $4 billion of which is invested in Kurdistan, with the majority, $3 billion, dedicated to Erbil.

UAE Consul General Rashid al-Mansouri said that there are more than 120 Emirati companies operating in the Kurdistan Region. He said, “The UAE is committed to strengthening relations with the Kurdistan Region politically and economically, and we will work together towards a strong, strategic relationship.”

By Bob Tollast.

This article constitutes an introduction on the recent history of Iraq’s electricity sector followed by a Q and A with Mr. Istepanian.

As Iraq endures the most serious terrorist offensive since 2004, what is certain is that this year a separate fight will continue to improve services, also crucial to the legitimacy of the government.

Iraq’s electricity sector today has overcome many challenges since it’s heyday before the onset of hostilities at the start of the 1991 Gulf War.

But the mountain is only half climbed, because although the spring 2014 saw almost 24 hour electricity in parts of the country for the first time since Operation Desert Storm, the situation is tenuous. With the arrival of summer and its associated need for full blast air conditioning, demand will surge again and we could soon be seeing the power outages Iraqis have become too familiar with.

A casualty of war

Twenty three years ago, as coalition aircraft massed in the Gulf to attack Saddam’s power base in Iraq, the country was producing more than enough electricity, over 9000 MW. This development arose from Saddam’s spending sprees of the 1970s and 80s where the nationalised oil industry produced a windfall of petrodollars, which the Ba’ath Party was keen to spend on infrastructure. The good times soon ground to a halt however, with the immense expenditure incurred by Iraq’s war effort against Iran. Nonetheless, the lights stayed on until the electricity infrastructure was targeted as a part of the coalition air campaign to cripple Saddam’s million strong armed forces.

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

The official spokesman for the Iraqi Oil Ministry, Assem Jihad, announced that the licensing contracts with international oil companies bound them to formulate systems to invest in associated petroleum gas, stressing that Iraq has what it takes to be on the list of countries exporting natural gas by 2019.

The Ministry of Oil and the Ministry of Electricity have been trading accusations during the past two weeks, following the decrease in electricity supplies. The Ministry of Electricity confirmed that this is due to the failure of the Ministry of Oil to meet the requirements of natural gas in thermal power plants.

Under a contract that was signed on July 22, 2013, and was the first of its kind, the Iraqi Ministry of Electricity bound the Iranian Ministry of Oil to supply it with natural gas. The agreement will provide Iraq with 5 million cubic meters of gas per day for the next three years at world market price. The contract, which is subject to renewal, is seen by Iraq as the perfect solution to the problem of round-the-clock electricity supplies for Iraqis.

“There is a problem in the quantities of natural gas associated with oil extraction,” said Jihad. In an interview with Al-Hayat he said, “Iraq has failed to invest in this wealth [i.e. associated petroleum gas] throughout the past few years. The gas is being totally burned with a waste of 700 million cubic feet [per day], which is seen as high record.”

A new review has shown that the health of Iraqis will continue to deteriorate unless there is an improvement in living conditions.

Despite enormous investment in Iraq’s health system in the 10 years since the US-led invasion, the health condition of Iraqis has worsened.

A review led by Professor Salman Rawaf (pictured) from Imperial College London concludes that continual investment in health services is crucial to elevate the health status of the Iraqi population, but that progress will be limited without improvements in housing, water and sanitation, electricity, transport, agriculture, education and employment.

Published in Journal of the Royal Society of Medicine the study involved several field visits to Iraq between 2011 and 2013. Professor Rawaf, from the School of Public Health at Imperial College London, said:

“There have been many attempts to come up with solutions that can help channel the resources needed to make Iraq’s health system more effective. But our review showed that strategists and planners have a blind spot when it comes to the work that needs to be done to improve all aspects of living which play a vital role in positively affecting the health status of the people.”

The authors found that housing conditions in Iraq are in a dire state for the majority of the population, with half a million people living in squatter settlements. While the government is building 25,000 housing units a year, the current need is for three million. The infrastructure for water and sanitation is too old and is a source of illness for many people. Even in oil-rich Basra the water supply is not suitable for human consumption.

The national electricity supply is limited to 40 per cent, forcing the public to purchase electricity privately or rely on noisy domestic power generators that increase CO2 emissions and noise pollution. Roads are in poor condition and road traffic injuries unacceptably high.

By John Lee.

Korean company LS Industrial Systems (LSIS) said on Wednesday that it has signed a $52 million deal with the Iraqi government to supply its patented advanced metering infrastructure (AMI) solutions.

The company will supply 110,000 smart meters that track energy consumption at power transmission centers in Iraq. The transmission centers will then share all relevant information with the power distribution control center to simplify smart grid management. LSIS will also build 19 AMI centers across the country.

According to a report from the Korea Times, the deal brings the company’s total business dealings in Iraq to $500 million since 2011, most of it in power plant contruction.

"The latest achievement means that LSIS can supply integrated electricity solutions in all related areas other than power development in Iraq," said spokesman Kim Bong-kyu.

(Sources: Korea Times, Korea Joongang Daily)

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Ninawa’s Planned Oil Refinery Moves Sunni-Led Region even Further from Baghdad

The northern Sunni-led region of Ninawa has been planning its own oil refinery for some time now. And last month the foundations were laid. Some say the refinery means that Ninawa is flouting the wishes of the government in Baghdad, planning independence and most controversially, joining forces with Iraqi Kurdistan.

On April 16, 2014, authorities in the northern Iraqi province of Ninawa laid the foundation stones for the first oil refinery in the area. The move comes after a succession of crises between the Shiite Muslim-led federal government in Baghdad and Sunni Muslim-led provincial authorities in Ninawa.

Of course, as conflicts between Ninawa's neighbouring region of Iraqi Kurdistan and Baghdad have proven, undertaking big oil projects without Baghdad's express permission can be risky. The Iraqi Kurdish have been moving toward oil production independence for some time now and the most recent projects have seen what some have described as a damaging ”financial blockade” of the semi-autonomous region by Baghdad.

“It is not true that the contract Ninawa has signed with the KAR Group to build a refinery in the Hamadaniyah area, in the east of Mosul, is illegal,” Ninawa's governor, Atheel al-Nujaifi (pictured), told NIQASH. “The council was included at every step. The company, KAR, won the contract after it was put out to tender – the company beat out some other companies, including a Turkish one,” he noted.

Additionally Ninawa would be cooperating with Iraqi Kurdistan to get the oil refined. “This cooperation reflects the hope for a common future based on Arab-Kurdish cooperation,” al-Nujaifi continued. “We aim to build a stable region, where resources are developed, rather than used to kill our sons.”

By John Lee.

Al Shorfa has reported an announcement by the provincial governor of Baghdad Riyadh al-Adhadh that infrastructure projects worth 200 billion dinars ($172 million) will be launched shortly in the towns surrounding Baghdad.

While the provincial governor announced the news, it is notable that Baghdad's controversial mayor Naim Abub al-Kaabi  has come under fire in recent months for failure to complete infrastructure projects amid rumours of corruption, according to the subscription news letter Inside Iraqi Politics. 

The new projects will cover water purification, roads, electricity and sanitation, and will be carried out in Abu Ghraib, al-Mahmoudiyyah, al-Taji, al-Yusufiyyah, al-Tarmiya, Jisr Diyala and al-Sada.

(Source: Al Shorfa)