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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.

Clash in the Desert: Karbala’s Tomato Farmers Versus Iraq’s Biggest Airport.

The authorities in the religious boom town of Karbala plan to build the country’s biggest airport on the city’s outskirts. But to do so, they will have to confiscate land from hundreds of farmers, who live a basic lifestyle but provide the city with its food. After protests and threats of eviction, the question remains: which is more important - vegetables or planes?

They are poetically known as the “farms of the desert” and there are hundreds of them on the outskirts of Karbala, in southern Iraq. They stretch from the outskirts of Karbala to the outskirts of the nearby city of Najaf and most of the farmers living and working on them have fairly basic lifestyles.

An estimated 300 families, many of them refugees from Iraq’s decimated southern marshes, work on this 60 kilometre by 12 kilometre stretch and they are proud of what they eke out of the desert. They are also proud of their own self reliance in an area where there are barely any paved roads, schools or even electricity in the houses.

“We produce this food all by ourselves,” says one of the farmers, Ammar, who is 40. “We do not receive government support or subsidies in any form, neither seeds, nor fuel nor infrastructure. We live a fairly primitive life out here but we are not complaining. We are happy with our lives. We don’t want salaries or government jobs or public services. We just want to government not to be hostile towards us.”

Unfortunately Ammar is unlikely to have that wish granted. In 2009 the local government and the federal Ministry of Transport laid a foundation stone nearby that was to be the start of a new airport for Karbala. The Imam Hussein airport – named after the Muslim icon that draws many visitors and pilgrims to his Karbala shrine – will cost an estimated US$2.5 billion to build and should serve around 20 million passengers a year. Plans have been drawn up and the Iraqi government has invited contractors to tender for the construction work.

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

The year 2013 registered high levels of commercial exchange between Iraq and Iran, which reached — according to both Iraqi and Iranian officials — more than $12 billion. This comes at a time when the Iraqi government aspires to increase trade between the two, with a goal of $15 billion.

In a telephone conversation with Al-Monitor, adviser to the Prime Minister for Economic Affairs Abdul Hussein al-Anbaki explains that the most common goods imported from Iran to Iraq are canned food — including canned cheese and dairy products — as well as soft drinks, meats, vegetable oil, household items and electrical appliances.

The Iraqi government hopes that this trade increase will strengthen Iraq’s role in ensuring stability in the region in light of the economic and political influence of Iran. Iraqi Prime Minister Nouri al-Maliki’s media advisor, Ali Musawi, told Al-Monitor that Iraq was striving to strengthen ties with all neighboring countries, without exception.

He noted that Iran has had an important weight in economic transactions with Iraq, notably since 2003, and pointed to the ease of commercial exchange between the two countries in terms of transportation and quality of goods, among other factors. Thus, according to Musawi, it is only normal for the two countries' commercial exchanges to increase.

For his part, the head of the Commerce Department in the Iranian Embassy in Baghdad, Mahmoud Bahzar, told Al-Monitor that Iran hopes to have $20 billion worth of commercial exchanges with Iraq by the end of 2017, saying, “According to our market observations, commercial exchange reached $10-13 billion by the end of November 2013.”

A high-level Jordanian delegation headed by the Prime Minister of Jordan, Mr. Abdullah Alnusur, arrived on December 25th accompanied by eight ministers and a number of senior advisers. The delegation was received at the airport in Baghdad, by Foreign Minister Hoshyar Zebari and Minister of Youth and Sports.

A formal reception took place at the Government Palace, where the visiting delegation was received by Prime Minister Nuri al -Maliki and a number of ministers, as the national anthem played and the guard of honor reviewed.

Official talks held with the participation of the ministers concerned , especially Foreign, Internal , Industry , Trade , Planning, Agriculture, Energy, Works and Housing and Transportation.

They reviewed pipeline project to export Iraqi oil through Jordanian territory to the Gulf of Aqaba and Jordan's needs of crude oil and electricity interconnection and railway and cooperation in the areas of air transport, facilitating the procedures and the entry of Iraqi citizens as well as Jordanian goods and agricultural products. They also discussed the prospects for security cooperation and the fight against terrorism.

A news conference held at the end of the talks the by the prime ministers of the two countries. The Iraqi Prime Minister to held luncheon invitation in honor of the visiting Jordanian delegation .

(Source: MoFA)

The Chief Representative of Japan International Cooperation Agency (JICA), Shohei Hara, met with the Head of the Department of Foreign Relations, Minister Falah Mustafa, on Tuesday to discuss JICA’s new projects in the region as well as other areas of mutual interest.

The meeting was also attended by the Assistant Head of the DFR, Siham Jabali and JICA Senior Program Manager, Jalal Abdullah Sendory.

JICA is a Japanese independent government agency conducting humanitarian projects in the developing world. The agency started its operation in the Kurdistan Region by opening their office in 2009. They now, have an office in Baghdad as well.

Minister Mustafa welcomed Mr. Hara to Kurdistan and thanked him for the development projects that JICA has initiated in the Kurdistan Region. Minister Mustafa said, “JICA has been a great representative of Japan and your contribution is of great sentiment to the KRG.”

Mr. Hara briefed Minister Mustafa on the agency’s recent activities in Kurdistan. Currently JICA is financing three large projects in the field of infrastructure, two in the electricity sector and one in the water sector. Further projects are planned.

The Minister informed Mr. Hara of the Kurdistan Regions open-door policy. The KRG welcomes economic, political as well as cultural ties with all countries and would like to see a relationship with Japan flourish. “Your presence in the Kurdistan Region is important as we can mutually benefit from one another.”

Due to its security and fast growing economy, Kurdistan presents Japanese companies with endless opportunities. In return, the Region would benefit from Japans experience and their know-how.

(Source: KRG)

By Ahmed Mousa Jiyad.

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

Recent information on Satarem sheds serious doubt about its prospects and ability for executing the Missan Refinery project.

Iraq’s Ministry of Oil signed, in the presence of the Prime Minister Mr. Nuri Al-Maliki, a memorandum of understanding (MoU) with Swiss firm Satarem (represented by what was reported as Chief Executive Jerome Friler) on 10 October for the development of a 150 kbd refinery in Missan province at an estimated cost of $6 billion.

Almost a year ago I received communication from a consultant with a California based financial firm enquiring about Missan refinery and stating “For the last year or so, I have been working with an Iraqi group, developing the [Missan] refinery complex”. A few weeks later I received communication from an Iraqi law firm in Baghdad indicating they were “Advising on [Missan] refinery construction”. The two communications might be connected!

When reviewing information on the signed MoU, I assumed the above mentioned financial and legal firms were involved in the project. But soon afterwards the California based consultant informed me they were not, adding further, “We are of the opinion that the sovereign and financial payment extension risk in Iraq is too high to justify any investment from [….], at this time.”

Most of the comments reported within business, professional and media circles since the signing of the MoU are that Satarem is not known to be a refinery-specialized firm, or to have a track record in modern refinery construction. I did not find information on this company in the “Public Companies” or “Investment Fund Group” of the SEDAR company database.

By John Lee.

Iran is to increase its electricity exports to Iraq by an additional 500MW.

According to a report from PressTV, the Iranian Energy Minister Hamid Chitchian (pictured) said:

“The first outcome of these accords is the increase of electricity exports by 500 megawatts (MW) in addition to previous agreements reached with the country .... The agreements we have reached with Iraq are about the two issues of more electricity exports and the expansion of activities of Iranian companies in the country.”

(Source: PressTV)

By John Lee.

A Malaysian firm has won a 71-billion Iraqi dinar ($61-million) contract to develop the southern area of Kut in Wasit [Wassit] province, according to a report from Al-Shorfa.

Wasit governor Mahmoud Talal said:

"The contract includes developing and rehabilitating the southern neighbourhoods of town by developing and paving streets and implementing water, sanitation and electricity networks."

The contract also includes developing various public service buildings, rehabilitating gardens and hotels in the area, and building market

The project is expected to be completed within three years.

(Source: Al-Shorfa)

(Flag image via Shutterstock)

By John Lee.

New Zealand-based meat processor Alliance Group said it was developing meat export opportunities in Iraq.

The cooperative has just completed its first full year of exporting directly to hotels, restaurants, and catering companies in Iraq, and its exports of Pure South brand lamb have increased by about 35 percent in the past year.

It said it believes that Iraqi consumers would increasingly turn to frozen lamb as electricity supply becomes more reliable.

Its partner in Iraq, Qibbla Halal, has two factories in Baghdad and Erbil, processing meat sourced from Alliance supplier farms in New Zealand.

(Source: NZ Herald)

(Sheep image via Shutterstock)

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

In Iraq, the early election media campaign has taken various forms. Notably, the government has started giving away residential land in return for votes.

In an interview with Al-Monitor, writer and political analyst Safa Khalaf described the “National Initiative for Housing,” which Prime Minister Nouri al-Maliki launched, as being consistent with the mind-set of political “gratuities.”

It seems that the election campaign for the next Iraqi Council of Representatives, which will be held no later than April 30, 2014, has started early. This time, some political blocs are using a wide array of enticements to earn citizens’ votes.

Maliki was the first to start this campaign by declaring the distribution of 420 plots of land in Al-Rashid as part of an initiative called the “National Initiative for Housing.” But Maliki’s opponents considered the move to be a signal that his bloc’s electoral campaign has started.

They recalled what he said at a famous news conference in 2009, when he opposed the distribution of land to citizens: “To be able to apply [a land distribution policy], we would have to take land from neighboring countries, because Iraq’s land is not big enough.”

Khalaf said, “When the government gets defeated by its citizens, it begins exploiting [the people’s] rights and returning [those rights] as gifts. The state has used that method in past decades and now, the new rule is doing the same thing by buying electoral votes.”

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

Turkey’s energy diplomacy has borne results. The oil crisis was resolved when Baghdad was offered a measurement station and revenue payment guarantees. In this regard, a trilateral Baghdad-Ankara-Erbil mechanism will be set up.

Turkish Energy Minister Taner Yildiz (pictured) told Baghdad officials to be at ease because the process was transparent. The Baghdad government then validated the agreements between Turkey and northern Iraq and sat at the table.

Worries eliminated

In the talks, Turkey took a clear stand about the measurement station, which will address Baghdad’s main concerns. Prime Minister Recep Tayyip Erdogan gave instructions to eliminate Baghdad’s biggest concern before starting oil exports from northern Iraq and asked for the completion of the measurement station at the border for oil and natural gas exports.

Ankara emphasized that oil revenues would be shared according to the provisions of the Iraqi constitution. Baghdad was told that they would know the exact amount of oil exported. Ankara reiterated its decision to deposit oil revenues in a Turkish state bank and then share them under the supervision of an Iraqi government auditor.