Custom Search

By Gary Sandiford, Olive Group ’s Dubai based assessments manager.  Olive Group is a leading provider of security and technology solutions and has operated continuously in Iraq since 2003.

Overview

Olive Groups Iraq statistics are drawn from multiple sources, including media reporting and direct liaison with in country assets. Included within the statistics are a minority sub-set of serious incidents which may not be purely attributable to insurgent/terrorist groups, such as murder, kidnappings and organised crime activities.

The total reported incidents in Iraq for the period 23-29 July was 161.  This is significantly higher than the previous seven day figure of 105, bringing the current weekly average for 2012 up to 106 incidents.  This high figure is due in large part to the multiple attack of 23 July (initially reported in last weeks Weekly Security Update), which primarily targeted Baghdad and the north and north central regions.  Following the 23 July attacks activity returned to what can be considered ‘normal levels’ in the provinces of  Ninawa, Kirkuk, Salah al-Din and Baghdad.  Diyala province continued to feature prominently in reporting, with further high profile attacks throughout the week.  Anbar was also subject to unusually high levels of violence this week; as insurgents focused their efforts towards the end of the week.  In contrast to the northern half of the country, areas south of Baghdad, with the exception of Diwaniyah city, reported very few violent incidents, with the south and south central regions only totaling seven between them.  For the first week in 2012 to date, no significant incidents were reported in Basra province, the main issue being a series of peaceful demonstrations to protest the persistent electricity problems in the province.

By John Lee.

The Ministry of Electricity announced that it has obtained long term funding from the Japanese International Cooperation Agency (JICA) for the Nassiriya power station.

According to the Kuwaiti News Agency (KUNA), JICA has approved a $2-billion loan for the project, which would be enough to cover the full cost.

AIN, on the other hand, reports that the ministry will receive funding from JICA towards the $2-billion project, but does not specify the amount.

The gas-fired power station is planned to have an output of 1,800 MW.

Update: JICA Refutes Reports of $2bn Iraqi Loan

(Sources: KUNA, AIN)

By John Lee.

The second deputy speaker of the Iraqi parliament said Iraq needs to build and provide public services rather than buy heavy weapons, according to a report from AKnews.

Commenting on the visit of Iraq's Defense Minister Sadoun al-Dlemi [Sadoun al-Dulaimi, Sadun al-Dulaymi] to Russia to buy heavy weapons, Arf Taifur expressed his surprise at the timing of the visit because Iraq is witnessing sensitive and political problems.

He said the government must concentrate on providing more services and lift the burden on Iraqis by solving the electricity crisis, reducing unemployment, and looking after those affected by wars and terrorist attacks.

(Source: AKnews)

(Picture: M1A1 Abrams tank being delivered at Umm Qasr, August 2010)

By Waheed Ghanim.

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.

A fight between the major trade unions in Basra and that state’s authorities highlights the lack of real labour laws in Iraq. Saddam Hussein-era laws mean that here, the employer gets to elect the union representatives and ignore workers’ wishes.

The premises of the local federation of trade union organizations in Basra are located in a side street in the centre of the southern Iraqi city. A few meters away there’s a local fire station. And, as some local wits have been heard to say recently, it’s a good thing the fire engines are there. Because soon they may be needed to put out the raging fire caused by hostilities between the trade unionists and the state authorities.

According to their website the General Federation of Iraqi Workers (GFIW) “is the main national trade union centre in Iraq. It brings together workers, regardless of gender, age religion and ethnicity, in pursuit of commons aims of a free and democratic Iraq”.

The current scrap was sparked off in May this year when the executive of the General Federation of Iraqi Workers in Basra was dissolved. A new executive needed to be elected and Iraq’s Ministry of Labour set up a preparatory committee to organize the elections.

As four trade union organizations in Basra, including the GFIW, put it in a press release, this committee is made up of a group of individuals with “no trade union affiliations” who are “hatching a conspiracy” with the aim of holding “sham elections”.

By John Lee.

The KRG's Minister of Electricity, Yaseen Shekh Abubakir [Yassen Shekh Abubakir Mawati, Yasin Sheikh Abu Bakir Muhammad Mawati] (pictured), recently welcomed a delegation headed by Polish Ambassador to Iraq, Stanislaw Smolen, who said that Polish companies are ready to invest in the Kurdistan Region.

At the meeting both sides discussed increasing investment between the two countries especially in the electricity sector.

The minister asked Polish companies to invest in the region and also expressed his ministry's support to facilitate work for these companies.

(Source: AKnews)

By Shalaw Mohammed.

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.

Oil smuggling is virtually a tradition in the oil-producing areas of Iraq. And local authorities are trying to prevent it. But, as this tale of oil smuggling in Kirkuk shows, policing the smuggling gangs remains extremely difficult – not to mention confusing.

The epic tale of an oil smuggling gang in Kirkuk is nearly two years old now. The gang was making an estimated US$60,000 a day from their activities. And they were caught in the act over 24 months ago – yet they are, allegedly, all still free. As one member of the security forces says: “no one can arrest them”.

The story is not an uncommon one in Iraq, where oil smuggling has a long history and where authorities appear loathe to take responsibility for policing this particular crime. Most tales of oil smugglers see various authorities – from the judiciary to the police to the state to the local oil companies themselves – saying it’s the other group’s responsibility to secure the oil.

Oil smuggling became a growth industry when former Iraqi leader Saddam Hussein organized gangs to start smuggling oil to get around international sanctions against Iraq. Tankers would siphon oil from various sources and either sell them on the home market or on the black market in nearby nations; demand was there for oil to run home generators, for example, needed because of electricity cuts. And despite the best efforts to halt the practice, it has continued in various forms to this day.

An anonymous source tells NIQASH that this particular instance of oil smuggling began when Iraq’s own North Oil Company decided to build a pipeline from the Jabal Bur oil processing station to a nearby area, Kiwan, where the pipe could then connect to a larger network.

By John Lee.

The Thi Qar Investment Commission has approved an Investment License for a $60 million (USD) affordable housing project being developed by Iraq Dream Homes, LLC, a U.S. affordable housing development firm.

The housing project “An Nasiriyah Dream Homes-Phase I” consists of 400 units of single-family affordable homes in a master-planned, sustainable community development. In addition to the energy saving technology and design incorporated into the development, An Nasiriyah Dream Homes-Phase I will include a hybrid solar/photovoltaic renewable energy plant for clean and stable electricity supply for the development’s residents.

According to Iraq Dream Homes, LLC Managing Director William Johnson:

“Thi Qar Investment Commission’s approval of the Investment License for our affordable and sustainable housing project marks a very significant milestone in the project’s development and provides a clear indication that Iraq is serious about addressing their housing shortfall.”

Engineer Ali M. Sangoor, Iraq Dream Homes, LLC Country Manager  says:

“Working with Dr. Luay AL-Khairulla, Chairman of the Commission and the Thi Qar Investment Commission staff in the development of An Nasiriyah Dream Homes-Phase I has been a pleasure and we look forward to delivering our high quality, affordable homes to the residents of An Nasiriyah.”

Iraq Dream Homes, LLC was awarded the Investment License for the An Nasiriyah Dream Homes-Phase I project under Iraq’s Investment Law #13. A combination of construction lending from a U.S lending agency and an Iraqi commercial bank, along with private equity will provide financing the project.

Construction on An Nasiriyah Dream Homes-Phase I, located in the Municipality of An Nasiriyah, Thi Qar Province in southern Iraq is expected to start in November 2012, with initial turnover occupancy of homes scheduled to begin in June 2013.

By John Lee.

Alstom Grid has announced that it has won contracts worth €34 million ($42 million) from KAR Construction & Engineering Company to engineer and supply substations for the electrical grid.

The company will supply four 132/33/11 kV Air-insulated Switchgear (AIS) substations and one 132/33/11 kV Gas-insulated Switchgear (GIS) substation for the Kurdistan Regional Government Ministry of Electricity. The package award also includes extensions and modifications of three existing area substations. All substations are located within the Dohuk Governorate, part of the Kurdistan Regional Authority of the Republic of Iraq.

Kar Construction & Engineering Company is part of Kar Group, a local and privately owned Iraqi company having diverse interests in turnkey projects, private power plants, oil refineries, oil pipelines and vehicle insurance.

The Ministry of Electricity floated several tenders under "Stage 6" for substations in Erbil, Sulaymania and Dohuk Governorates. These substations are part of the region's ongoing efforts to keep pace with rapid economic development, by increasing both the availability and the reliability of the electrical network. It will enable the expansion of the transmission and distribution networks in the main city of Dohuk and surrounding suburbs.

This contract reaffirms Alstom Grid's commitment to taking an active role in the reconstruction and development of this growing region. This is the first substation project for Alstom in this region since the successful implementation of similar 132/33/11 KV substations in Erbil and Dohuk awarded to Alstom in 2002 under United Nations Development Plan for the rebuilding of northern Iraq.

Grégoire Poux-Guillaume, Alstom Grid President, declared:

"This project represents an important milestone for Alstom Grid as we re-enter Kurdistan's market with a complete range of products covering both air-insulated and gas-insulated switchgear solutions, critical to the infrastructure of the region's electricity network. This project underlines our continuing efforts in Iraq, including Mosul 400/132/33kV GIS substation and Khairat & Nainawa GTPP 400/132kV exit substations won last year."

The commissioning of these Dohuk substations is planned for September 2013. Alstom Grid's scope of work includes engineering, equipment supply (including substation automation systems) and commissioning supervision for 132/33/11 kV Air-insulated Switchgear (AIS) substations at North Dohuk (9 bays), Zakho 2 (9 bays), Bardarash (10 bays) and Kalakchi (10 bays), 132/33/11 kV Gas-insulated Switchgear (GIS) substation at West Dohuk (10 bays), as well as extensions and modifications at Sarsang, Akre Centre and Zakho 1 substations.

By John Lee.

Shell plans to start pumping gas from its gas joint venture in southern Iraq in the next three weeks according to Reuters.

Initial production will be 60 million cubic feet per day, but Shell's Iraq boss Hans Nijkamp told Deputy Prime Minister Hussain al-Shahristani that output would be increased by a further 40 million cubic feet a day several weeks after pumping starts.

Officials have said that the project will handle 2 billion cubic feet per day by 2017.

In November, Shell and Mitsubishi signed a $17 billion deal to capture flared gas at the country's southern oilfields, which currently burn off more than 700 million cubic feet of gas per day.

Hans Nijkamp, Shell vice-president and head of the company's Iraq projects, told Iraq Deputy Prime Minister for Energy Hussain al-Shahristani that output would be increased by a further 40 million cubic feet a day several weeks after pumping starts, a statement from Shahristani's office said.

The gas will be used for electricity generation and in the petrochemical industry.

(Source: Reuters)

Temperatures are soaring to 45 degrees Celcius (113 degrees F) in Baghdad, and 50 degrees (122 degrees F) in Basra; nothing unusual about that at this time of year.

What is unusual is the increased availability of electricity to cope with the demands of air-conditioners to deal with the problem.

The Ministry of Electricity says output exceeded 8,000 MW in June, and will hit 9,000 MW by the end of this month.

It's still a long way from the 14,000 MW that some estimates say are currently needed in Iraq, but it's a big step forward from the 6,000 MW that was available just last summer, and that is to be applauded.

Plans are moving ahead in meeting that requirement, with Deputy Prime Minister Hussein al-Shahristani predicting output of 20,000 MW by the end of next year, which would put Iraq in a position to export electricity.

Just this week we reported on another power plant project which will help to achieve that goal, and it will be welcomed with open arms by all.

Watch this space for more news of infrastructural development in Iraq.