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With just another month to go in Nouri al-Maliki's 100-day ultimatum to his ministers to improve services, the Prime Minister is now increasing the pressure once more.

In addition to sacking ministers who have not performed within the required time, Maliki is also suggesting dissolving the government or even the entire parliament, either at the 100-day mark or at some later stage.

When we think back to the painfully long process of forming the current government, threats of this nature should not be made lightly or idly.

But this rolling ultimatum, if it is serious, may help to focus the minds of Iraq's ministers and parliamentarians in their mammoth task of rebuilding the country.

Parliament's next big decision in this respect is to approve the cabinet's plans to spend $35bn on infrastructure. With the country crying out for basic essential services such as electricity, and with Maliki's threat hanging over them, allocating funds to improve infrastructure should be high on their list of priorities.

Whatever sector of the economy your business operates in, Upper Quartile and AAIB are here to help you. For more information please contact Gavin Jones or Adrian Shaw.

Iraq has approved an ambitious $37-billion [45 trillion Iraqi dinar] programme to upgrade Iraq's collapsing infrastructure, which has fallen victim to three decades of war and sanctions, government spokesman Ali al-Dabbagh (pictured) said on Tuesday.

AFP reports that the cabinet's plans, which must now be approved by parliament, are the latest in efforts by the government to placate protesters who have railed against poor public services and a lack of improvement in their daily lives, eight years on from the US-led invasion that ousted Saddam Hussein.

The allocated funds, decided at a Monday evening cabinet meeting, will be spread over several years.

The draft law to authorise the investment has been languishing for more than a year, with Maliki having initially proposed it before March 2010 election.

Opposition parties at the time objected to it, viewing it as a pre-election spending spree to lure voters.

Areas to receive investment include:

• transport infrastructure, with $10 billion in spending planned, and an additional $1.5 billion for highways;
• $5 billion for education,
• $5 billion for water and sewerage;
• $5 billion for agriculture.
• $3 billion for health infrastructure; and,
• $2 billion for higher education.

"I hope parliament will approve these infrastructure projects... to develop services, because without the agreement of parliament, we cannot fulfill our ambitions to build houses, services, electricity and health," Maliki said at a news conference in Baghdad.

(Source: AFP)

By Chris Bowers, British Consul General in Erbil. This article was originally published by Rudaw, and is re-published with permission by Iraq Business News.

Imagine a visitor who arrives at Erbil International Airport. He passes a car showroom and heads to a hotel. He flicks a switch and is pleased to see the room illuminated by electricity.

The visitor strolls around town and visits one of Erbil’s new shopping malls. He is keen to do business. He seeks out banks to secure corporate investment and at the same time check his bank balance at home. The visitor finds a partner but naturally wants to check the company’s credibility and its accounts. Next he wants to find some employees familiar with English, the international language, and familiar with international commerce.

Why am I telling you this story? Because at each stage the visitor would be in contact with British business. Erbil’s fantastic new airport was British-designed by architects Scott Wilson, who are also engaged in drawing up a master-plan for Suleymaniya airport. The most striking of Erbil’s car showrooms is the one for Land Rover, Range Rover and now the latest Jaguar models: all classics of British design and engineering and brands that speak to a combination of the best of British tradition and innovation.

Three British companies, Heritage, Gulf Keystone and Sterling have made significant investments into Kurdistan’s oil and gas sector that will eventually be powering cars driven by people on the streets of Erbil. Two of them have made among the largest discoveries of oil and gas anywhere in the world over the last few years, and they and other hydrocarbons companies depend on the services provided by UK drilling and supplies companies. Across Iraq as a whole, Shell and BP are the largest investors.

Power is another UK strength. Parsons Brinkerhoff is working on a master-plan for electricity supply and generation in the KRG. UK firms are providing premises management and management more generally in Erbil’s hotels.

Other UK companies have had a significant behind the scenes role in the development of Kurdistan’s commercial sector. Companies such as Jones Lang Lasalle and BTW Shiells provide the property management advice that are making Erbil’s shopping malls the envy of the rest of Iraq.

The advisor to the Iraqi Central Bank (ICB) has said that inflation jumped from 5.5% in February to 5.7% due rising electricity prices in Iraq.

Muzher Mouhammed told AKnews that the high rate of inflation in Iraq is due to the March hike in electricity prices.

"The rising inflation simply affects the economy but does not compromise the value of the Iraqi Dinar," he assured, "...the ICB has taken steps to curb increases in inflation".

The main task of the ICB is to maintain price stability, to implement monetary policy, to manage foreign currency reserves, to issue currency and to regulate the banking sector.

(Source: AKnews)

Reuters reports that Iraq's electricity ministry has signed a $1 billion [1.2 trillion Iraqi dinars] deal with China's Shanghai Electric on Monday to nearly double the size of a power plant south of Baghdad.

The plant in the town of Zubaidiya was initially intended to have four 330 MW generators, giving a total capacity of 1,320 MW, but the new deal would see two additional 610 MW units installed to expand capacity to 2,540 megawatts.

Shanghai started work last May on Phase 1 of the plant, which was valued at $924 million.

"Thermal power plants are the backbone of the electricity system," the Electricity Minister Raad Shallal said at the signing ceremony. "The long term plan of the ministry is the thermal plants."

(Source: Reuters)

Al-Anbar received 150 billion Iraqi Dinars [$125 million] in revenues from its border crossings in the year 2010, according to the chairman of provincial council’s investment commission.

“The sum of 150 billion dinars was received in returns from the three border outlets of Turaybeel [Tirbil, Tarbiel] (pictured), al-Tanaf and Arrar for 2010 and was transferred to the province’s budget,” Muzher Hassan told Aswat al-Iraq news agency.

“The provincial council has laid plans for projects in the health and service areas, namely sewage and electricity, as part of the sums to be obtained by Anbar from border outlets revenues,” he added.

(Source: Aswat al-Iraq)

Six companies, including the world’s biggest power-grid supplier, ABB Ltd, have been selected to bid to develop a power plant in western Iraq,  according to a report from Bloomberg.

Lanco Infratech Ltd. (LANCI) of India, Techint Group of Italy, Hyundai Engineering & Construction Co. from Korea, as well as Turkish and Iraqi companies were preselected to bid for the project, the agency reports Deputy Electricity Minister Salam Qazaz as saying at a press conference in Baghdad on Sunday.

The lowest bid came from Lanco Infratech, which offered to build the natural-gas-fired 250 megawatts power station in Al Qaim in the Al Anbar province near the Syrian border for $81.3 million over 16 months, Qazaz said. The winner will be announced within 10 days.

(Source: Bloomberg)

The Kurdistan Region is once again preparing to host more than ten trade shows this year. Now firmly established as the centre for Iraq’s largest trade exhibitions, the fairs provide a meeting point for international companies, local firms and government officials from all parts of Iraq.

The trade fairs are held in dedicated exhibition spaces. Erbil International Fair Ground, which is located in central Erbil in Sami Abdul Rahman Park, has 24,000 square metres of exhibition space and has established itself as the leading exhibition space in Iraq.

These are the main trade fairs that are planned for the Kurdistan Region this year, listed in date order.

3rd Erbil Trade Solo Exhibition for Construction and Municipalities 2011 & Erbil Stone
3 - 6 March 2011
Website: www.pyramidsfair.com

5th Erbil International Book Fair
2 - 11 April 2011

1st Airports Expansion, Cargo & Logistics Conference and Exhibition, Erbil
26 – 28 April 2011
Website: http://www.arabianreach.com/iraq/
The first of its kind to be held Erbil, this exhibition is expected to attract more than 5,000 trade visitors, buyers and government officials from the respective ministries.

The show will feature the array of exhibitors from various segments of the industries who will be keen to tap into the highly lucrative airports and logistics sector. The conference and exhibition are supported by government ministries and various trade associations across the globe.

4th Iranian Industries Fair, Erbil
11 – 15 May 2011
Website: www.urmiafair.com

5th Italian Expo for Industries and Technologies, Erbil
11 - 14 June 2011
Website: www.italianexpo.it

2nd DBX Duhok International Expo
11 - 14 September 2011
Website: http://dbxkurdistan.com/duhok/2011/
With its geographic location close to the border with Turkey, Duhok governorate is a thriving commercial and tourist hub and a trading post for all of Iraq. Dohuk is expected to have its own airport within the next few years.

Project Iraq, PMV Iraq, and Elenex Iraq, Erbil
19 – 22 September 2011
Website: www.project-iraq.com , www.elenex-iraq.com and www.ifpiraq.com
These three exhibitions, Project Iraq, PMV Iraq and Elenex Iraq will be held concurrently.

Project Iraq, in its 4th year, is the international trade exhibition for construction, building materials, equipment & environmental technology. Last year more than 20,000 key industry players attended: architects, engineers, contractors, construction specialists, diplomats, high-ranking officials, regional and national investment authorities, local and regional VIPs, besides the media. Of the 302 exhibitors, more than 200 were international companies from 24 countries.

At PMV Iraq, heavy plant, construction machinery and vehicles will be exhibited. All exhibitors at the show last year were positive about their trade fair presentation and were highly satisfied with the presence of major key players. Visitors were nearly all experts and representatives from the sector.

Elenex Iraq will channel the huge demand for electricity, power generation, electrical equipments, lighting and all other products and services related to the field of electricity that originates from the construction sector.

Makinat Iraq 2011, Erbil
3 - 6 October 2011
Website: www.makinat-iraq.com and www.ifpiraq.com
With Iraq's industrial sector taking speedy steps towards recovery, Erbil, the northern gateway to Iraq, will showcase the latest developments in machinery, machine tools, equipment, accessories and spare parts by Iraqi, regional and international manufacturers and suppliers.

Iraq Medicare Fair, Erbil
4 - 6 October 2011
Website: www.iraqmedicare.com and www.ifpiraq.com
The first 2010 Iraq Medicare show brought together more than 150 international exhibitors and attracted more than 2,400 professional health sector visitors, health officials and buyers and key media representatives from Kurdistan and the other Iraqi regions.

Iraq Medicare sets high standards in the industry by offering a professional setting that allows companies from Iraq and around the world to showcase their latest healthcare products, equipment and services, and to reach doctors, hospitals, buyers and health sector professionals from the Kurdistan Region and the rest of Iraq.

Suleimaniah International Expo
10 – 13 October 2011
Website: www.pyramidsfair.com

7th Erbil International Trade Fair, Erbil
24 - 27 October 2011
Website: www.eif-expo.com and www.ifpiraq.com
Erbil International Fair is the largest general trade fair in Iraq covering various economic sectors. Supported by a large number of trade promotion agencies, chambers of commerce, trade associations, ministries and embassies, the fair will attract more than 850 exhibitors from over 25 countries from around the Middle East, Asia, the Americas and Europe.

7th DBX Suleimaniah International Expo
1 - 4 November 2011
Website: http://dbxkurdistan.com/sulaymaniyah/2011/
Suleimaniah is Kurdistan’s most populous city and governorate. Organised by the Iraqi-American Chamber of Commerce and Industry, the DBX Suleimaniah International Expo is in its seventh year and growing fast. Over 550 international and local companies participated last year, attracting more than 95,000 visitors.

4th Iraq Agro-Food Fair, Erbil
21 - 24 November 2011
Website: www.iraqagrofood.com
Serving the developing Iraqi market, Iraq Agro-Food 2011, the specialized agriculture technology, food, food processing and packaging exhibition, was created in 2008. Since its inception, this event attracts the most important decision makers, from industry experts to Kurdistan Regional Government and Iraqi federal government officials.

Iraq Agro-Food 2011 offers a unique opportunity for national and international agriculture and food experts to meet manufacturers, suppliers, traders and businessmen, and be up to date with the latest equipment as well as research and findings from the industry. Represented product groups at the event include agricultural products and machinery, food and beverages, fertilizers and pesticides, food additives, processing technology and packaging materials.

Last year’s exhibition brought together 350 exhibitors from 17 countries, and attracted 18,000 local, regional and international quality visitors from over 25 countries as well as 40 media representatives.

Suleimaniah Build Expo
29 November – 2 December 2011
Website: www.pyramidsfair.com

Household and Hotel Equipment Fair, Erbil
5 – 8 December 2011
Website: www.pyramidsfair.com

5 in 1 Expo, Erbil
5 – 8 December 2011
Website: www.pyramidsfair.com

Iraq may purchase electricity from Armenia, said Vice-Prime Minister of IraqSaleh al-Mutlaq at the meeting with Armenian Ambassador Murad Muradian.

The sides discussed possible areas of economic cooperation, including ways of supplying electricity from Armenia to Iraq, expressing the hope that this problem will be resolved.

Ambassador Muradian informed the vice-prime minister of Iraq that the Armenian side will present a discussion of two agreements to the Iraqi side -- on economic cooperation and investment protection -- in the near future.

The two also discussed the possible participation of Armenia in the process of rehabilitating Iraq, particularly in the area of the apartment building.

At the end of the meeting the Armenian ambassador gave al-Mutlaq an invitation on behalf of the Deputy Prime Minister of Armenia to visit the Armenian capital, Yerevan.

Accepting the invitation, al-Mutlaq noted that he will visit Armenia in the near future, accompanied by high officials and Iraqi businessmen.

(Source: ARKA)

Iraq's Ministry of Electricity announced on Tuesday the experimental launch of a number of electrical units in the al-Sadr gas station. According to the report from AKnews, the plant is operated by the Iranian company Snair (which Iraq Business News believes to be Sunir).

The ministry’s media spokesman, Musab al-Mudarres, told AKnews that the station will provide the Iraqi network with a total of 640 MW with two of the station’s six units operational.

The Electricity Ministry presented in December projects for the construction of four gas-powered electricity generating plants for investment within the first licensing round, in order to double its production over the coming years.

"The Ministry of Electricity is working in coordination with the Iranian company to resolve the technical obstacles that hinder the completion of the al-Sadr gas station,” Mudarres said.

The Iraqi government has announced plans to increase the country’s generative capacity to 27,000 megawatts over the next four years, requiring an investment of between $3bn and $4bn per year.

(Source: AKnews)