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By Elizabeth Hagedorn for Al Monitor. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

US renews sanctions waiver for Iraq to purchase Iranian electricity

The waiver issued on July 11 permits Iraq to pay neighboring Iran for electricity imports without running afoul of US sanctions.

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By John Lee.

Iraq's Minister of Electricity, Engineer Ziyad Ali Fadel, has announced that Iraq's electrical system has reached an unprecedented production rate of 27,000 MW.

A statement from the Ministry says that this is an increase of 3,000 MW on the same period last year.

The minister attributed this success to the continuous support from Prime Minister Mohammed Shia' Al Sudani and the efforts of the ministry's dedicated employees, despite a shortfall of 7 million cubic meters per day in the agreed gas supplies.

(Source: Ministry of Electricity)

From the Iraq Britain Business Council (IBBC):

The IBBC 15^th Anniversary Mansion House conference presented a range of engaging ministerial and business attendees. As Iraq's economy is expanding and diversifying, the delegates reflected this in the range of topics and debates. Baroness Nicholson and Christophe Michels welcomed everyone at this milestone time and thanked all founders and members who supported IBBC over the years and both were pleased to announce IBBC is now its strongest, most influential and confident with much optimism for the future.

Iraq's top companies and minsters were freely available to discuss business with delegates, until the end of the day, including CEO's of BP, TotalEnergies, Basrah Gas Company, Mitsubishi, EY, SC, Wood, Sardar Group, the Central Bank of Iraq, Trade Bank of Iraq, CJ ICM, UB Holdings, Martrade, Vitol and Government advisors and Ministers, including: H.E. Dr Abdulkareem Al-Faisal (Chair of PM's advisory commission), Dr Luay Al Khateeb (Former Minister of Electricity), Professor Hamid Khalaf (PM's Advisor on Education), Dr Fareed Yasseen (Climate Envoy), Mr Ezzeldin Sajid Yousif (CBI), and officials from the KRG Ministry of Agriculture. The British Home office and foreign office DBT officials also on hand as observers and engagers.

Central to discussions was H.E Hayan Abdul Ghani Al-Sawad, Deputy Prime Minister and Minister of oil, who outlined Iraq's intent to end gas flaring by 2028, build three new refineries, become self-sufficient and diversify oil products, petroleum, and chemical manufacture for export and produce 5m barrels per day (and have already reduced imports from $5b to $1bn). He called for more private sector investment in oil production and gas capturing for energy production and fertilizers, while encouraging the expansion of solar power, carbon reduction and use of sea water in processes. You can see his speech here.

Chair of KRG Investment board Dr Mohammed Shukri speaking on behalf of Prime Minister Barzani said KRG is open to investment in various sectors including agriculture, renewables, construction materials, fertilisers, plastics, infotech and education.

Rupert Soames chair of the Confederation of British Industries (CBI) articulated that trade is a stimulus for growth and while supply chains and economies are becoming hard to navigate, there is hope that a new reset will happen with the new UK Gov. Equally, Iraq can prove it can be well regulated and a reliable investment partner. He said working together with IBBC, CBI and governments presents an opportunity for all.

Dr Amet Selman of AAA holdings, principal sponsor, recognised the high level of collaboration between the UK and Iraq in contributing to food and climate security and supporting Iraq in its fertiliser requirements. Jon Wilks, Senior IBBC Advisor, who witnessed the birth of IBBC in 2009, was pleased to see it flourish, and knows that members care about Iraq and engage in real projects. As a former ambassador, he knows how important to have partners like IBBC and that the UK will be the strongest partner for Iraq.

Lord Howell made a significant macro speech on the eve of the UK, French and USA elections. He condemned the trivia of political debate, and warned 'the world is on fire', the forces of darkness and dangerous undercurrents are trying to destabilise democracy, there is war, climate change and digital disruption at the doors of states, struggling to uphold public services, stark choices face countries. We must look to strategies of resilience, honesty, civilised debate, to develop trust and respect in our political system and even survival strategies and rule of law if we are to prevail. 85% of the world depends on fossil fuels and its not practical to just stop, so a pragmatic timeline for transition and investment is necessary. Civilised debate and democracy must prevail. You can see his speech here.

This year a significant number of packed roundtables saw large numbers of attendees, including Finance (Hogan Lovells), KRG, Education (Prof Hamid), Exchange rate report (Prof Gunter), and full platform panels including the new Climate Change and AgirTech, chaired by Mr. Richard Cotton, with Dr. Shamal Mohammed, Dr Fareed Yasseen and Sara Akbar of Oilserv. Energy Transition chaired by Dr Luay Al Khateeb, Centre on Global Energy Policy, Oilserv, TotalEnergies, Basra Gateway, Wood and Hydro C completed a most engaging and dynamic discussion. To add to the round table discussions, a high-profile finance panel chaired by Mr. Ardil Salem of Hogan Lovells and speakers Mr. Jamil Choucair of Standard Chartered, Bilal al Sugheyer, IFC,  Mr. Taiseer Jawad of TBI, and Prof. Frank Gunter. The panel discussions focused on the development of the banking system in Iraq and the fluctuating dollar exchange rate in addition to the new regulatory framework and the new technological advancement that the Iraqi banks are perusing to meet international standards.

Transport session chaired by Prof. Frank Gunter, featured also with Mr Tugrul Titanoglu, CJ-ICM; and Mr Steve Alexandar, Sardar Group focused on regulatory change to open transport markets and a rare but required focus on the aged vehicle population in Iraq and its consequential pollution - with ideas for change.

The Rasmi Al Jabri Award for business excellence was awarded to Ms Hadeel Hassan of HHP Law in the presence of Rasmi Al Jabri's grandsons. This prestigious annual business award recognises business excellence in Iraq and is now in its 4^th year. The Previous winners are Al Burhan Group, Sardar Group and AAA.

Newcastle University exhibited the fascinating new online Gertrude Bell archive and the Heritage Session, chaired by Prof. Mohammed Al Uzri, saw top archaeologists John McGinnis and Prof Mark Horton of RAU, talk of the latest Nimrod palace discoveries and questioned why Iraq is not as well-known as Egypt in the media - an opportunity waiting to happen.

The previous day, IBBCs Tech Forum hosted top Microsoft Cyber expert Karl Niblock, who spoke about AI and its threats and opportunities, and Entrepreneurs Nadine Benchaff (AgriTech) and Omar Al Hasan (Iraq tech ventures and the station) spoke about barriers and opportunities to tech growth in Iraq. View discussion here.

The forum was followed by an evening reception at the Mansion House to celebrate the 15^th anniversary of IBBC. IBBC Vice President Lord Green addressed a large audience alongside Baroness Nicholson and the evening's Sponsor Sardar Group.

IBBC is grateful to all of its members for their support throughout the years and would like to tank AAA, CJ ICM, Hydro-C, TBI and Sardar Group for sponsoring this exceptionally rich and intense 15^th anniversary event. We are were also grateful for the support and encouragement given by the Iraqi Embassy in London, the British Embassy in Baghdad and UK Visa and Immigration.

The Embassy of Japan in Iraq, Ninewa Governorate, and UN-Habitat have laid the foundation stone for a new social housing project for returnees in Mosul.

Following the high-level Round Table Meeting with key stakeholders, including Ambassador Futoshi Matsumoto and Governor Abdulqadir al-Dakhil, the foundation stone for the Japan Village Project was laid in Mosul.

The project will provide housing for around 50 households with approximately 350 beneficiaries, focusing on the most vulnerable returnees, particularly female-led households and people with disabilities. Additionally, the project will build capacity on the construction skills and work experience of 100 unemployed youths, including more than 40 females, and enhance the capacity of up to 1,000 individuals to address climate-related challenges.

Mr. Futoshi Matsumoto, Ambassador of Japan to Iraq said:

"Japan has been standing by all the people of Mosul (Moslaween).  We have been strongly supporting IDPs in their most difficult time in Nineveh Governorate. Providing low-cost housings through UN-Habitat to more than 3,300 IDP families since 2014 is a clear demonstration of the goodwill by the people of Japan toward them.

"Today, all Japanese partners including TOYOTA Iraq, Sumitomo Corporation, Al Sardar Group (TOTO and KOMATSU), MEENAR (Nippon Paint), and Peace Winds Japan gathered together in Mosul to express their further support to the people in need, wishing for the early recovery of Mosul and Ninewa."

The Ninewa Governorate will support this initiative by facilitating access to essential infrastructure services such as electricity, water, sewage, irrigation, green areas, roads, and parking lots, thereby improving living conditions for the entire Rajm Hadeed neighborhood. Governor Abdulqadir al-Dakhil, during the ceremony, expressed his optimism about the project's outcomes, drawing from the excellent example of the Bab Sinjar Housing Complex, a previous collaboration funded by the Government of Japan and executed by UN-Habitat.

"There is still a dire need of houses for the returnees in Mosul, and we are committed to supporting and investing in this project to improve living conditions in the Rajm Hadeed neighborhood, confident that Mosul residents and returnees will benefit greatly from it."

Muslim Qazimi, Head of the UN-Habitat Iraq Programme, used the opportunity to share the broader vision behind the project related to adequate housing. He said:

"UN-Habitat's role transcends the provision of housing; we are dedicated to fostering sustainable urban development and ensuring the well-being of human settlements. By expanding this project to accommodate 3,000 returnees in the coming years, we are working towards our broader goal of ensuring access to adequate, safe, and affordable housing for all by 2030, as outlined in the Sustainable Development Goals."

The Japan Village Project is a significant step towards providing safe and sustainable housing and better living conditions for returnees, contributing to the ongoing development and durable solutions in the region and beyond.

(Source: UN)

By John Lee.

Iraq's Council of Ministers (Cabinet) has approved an increase in financial allocations for the Ministry of Electricity, amounting to 300 billion dinars [$229 mllion] from the operational budget to cover the following projects:

• 125 Billion Dinars: For urgent plan projects to alleviate distribution sector bottlenecks, including critical projects, feeders, and substation rehabilitation, as directed by the Prime Minister.
• 100 Billion Dinars: For purchasing transformers (self-transformers, power, distribution) for the transmission and distribution sectors from the Ministry of Industry and Minerals.
• 75 Billion Dinars: For purchasing specialized vehicles for the distribution sector, according to regulations.

(Source: PMO)

By John Lee.

Prime Minister Mohammed Shia' Al-Sudani announced the launch of several projects aimed at developing the city of Adhamiya in Baghdad, during his visit on Saturday.

These projects span various sectors, including traffic management, urban services, electricity, education, healthcare, and heritage conservation.

Key initiatives include:

1. Traffic Alleviation: Construction of a new bridge connecting Kadhimiya and Adhamiya, and linking Mohammed Al-Qasim Bridge with Al-Mashatel Street, Antara Square, and Al-Dalal Square.
2. Urban Services: Cleaning and refurbishing streets and alleys, developing residential areas 308 and 310, enhancing eight main streets, and creating new city gates. Additionally, the Tigris River banks will be developed over a 1,650-meter stretch.
3. Electricity: Installation of a new 33/11 kV substation and distribution stations to alleviate power supply issues.
4. Education: Allocation of land for 21 new schools and the rehabilitation of 47 existing schools.
5. Healthcare: Rehabilitation of 10 health centers and the renovation of the old Al-Numan Hospital.
6. Heritage Sites: Restoration of the Imam Abu Hanifa mosque and shrine, along with the expansion of associated facilities and a new multi-story parking lot.
7. Community Projects: Renovation of the youth forum, resolution of issues at the Scout Stadium, refurbishment of the Al-Talea Theatre, improvement of the elderly care home, and initiation of a river taxi service.

Al-Sudani emphasized that these projects are part of broader efforts to enhance services in Baghdad and other provinces, addressing historical, religious, and commercial aspects of Adhamiya. He noted the impact of population growth on service pressure, particularly in education and healthcare, and highlighted the importance of easing traffic congestion and diversifying transport routes.

A committee led by the Director of the Prime Minister's Office and representatives from relevant departments will oversee the implementation of these projects.

(Source: PMO)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani chaired a meeting on Sunday with the higher committee overseeing the New Sadr City Project.

The meeting focused on the steps needed to complete this significant residential project and the overall financing mechanism to ensure all requirements are met. Al-Sudani instructed the Ministry of Electricity to quickly submit a comprehensive study, detailing the precise plan for the power station site that will supply the project.

Discussions also covered the project's final economic model, including execution phases, service complexes, and urban centers, aiming to finalize a design that suits the social and developmental needs of the beneficiaries.

The meeting approved re-inviting qualified companies to participate, with five out of 34 applicants initially found eligible. Two companies submitted proposals, but their costs were 17 percent above the project's estimated budget. This led to reissuing invitations for new bids and proceeding with invitations to companies for the infrastructure of the first phase, which includes 10,000 housing units.

(Source: PMO)

From the Iraq Britain Business Council (IBBC):

IBBC's 15th Anniversary Conference. Much to celebrate in Iraq as energy takes centre stage.

IBBC is celebrating 15 years in Iraq at a time when Iraq is moving into a new prosperous and stable era. IBBC Spring Conference at the Mansion House on 2^nd July will reflect our members diversity and the modernisation that Iraq is currently experiencing. With an expanding stable economy and a service sector growing at 6% pa, Iraq is diversifying beyond its core energy sector and opportunities to invest have rarely been so healthy.

Of note is the presence of key delegates: H.E. Hayan Abdul Ghani Al-Sawad, Deputy Prime Minister & Minister of Oil, Ministry of Oil, H.E. Mr. Ali Mohsin Ismail Al Alaq, Governor of the Central Bank of Iraq, H.E. Mr Asaad Al Eidani, Governor of Basrah, Dr Fareed Yasseen, Iraqi Climate Envoy, Eng Adil Karim, Deputy Minister of Electricity, KRG ministers and keynote address from The Rt Hon Lord Howell of Guildford.

The Iraqi economy is quietly diversifying, with the evolution of services, travel, tech, and retail sectors, but the dominant energy sector is also evolving, with new players technologies and climate reduction activities. Oil and Gas are still at the centre of this conference and Iraq's economy, with the IBBC Energy Panel, which see the big players in energy policy and practice including Dr Luay Al Khateeb, Centre on Global Energy Policy - Columbia University, Ms Dunia Chalabi, TotalEnergies, Mr Zaid Elyaseri from BP, Mr Andrew Wiper from Basra Gas Company, Mr Hasan Hashmat from Hydro-C and Mr Ellis Renforth from Wood Plc

IBBC as champions of best practice and the private sector publish special reports and white papers for reform, and this conference 'Insights and Opportunities' will launch our latest reports from Professor Frank Gunter, IBBC Advisory Council, on Foreign exchange, banking reforms and de-dollarisation: 'Two Cheers for Iraq: The Dinar - Dollar Exchange Rate Challenges' and a new report on emergent agricultural initiatives through IBBC's Agritech committee with the Agriculture Minister.

Ministers will also address the procurement opportunities across $400bn Government investment in key sectors, agriculture, transport, infrastructure, and you will hear about regional development at special roundtables with KRG Ministers and the Governor of Basra.

Special education and skills sessions will follow two GOI MOU's with IBBC and last year's focus on integrating and adapting education skills and curriculum to the business requirements of a modern economy.

Transport too is booming, through the ports, where electronic trade has seen a 128% increase, and the dry canal project linking Basra to Turkey and the Mediterranean, silk road and European markets. The project will have profound impact on cities along the route and for both import and export trade. IBBC members CJ-ICM and Sardar Group will inform us of activities and the evolution of electronic and port management systems already in place (see our '23 report on ports).

Opening the conference the President of the Confederation of British Industry (CBI) Rupert Soames OBE gives a keynote speech from the British industrial perspective, and as a previous member of IBBC is well placed to comment of UK's business relationship and opportunities with Iraq.

Delegates will always find significant networking opportunities and the reception on 1^st at the Mansion House celebrates IBBC's 15 years with a special exhibition on Gertrude Bell and our members activities, it's also the best informal networking opportunity among delegates, speakers and founder members and the chance to forge new friendships.

Iraq now enjoys a stable and focused government intent of reconnecting with the region, fiscal surpluses that are converting into new infrastructure projects, and a growing more prosperous population, keen for modernisation and the benefits of a consumer economy.

IBBCs membership matches this diversity, and the lineup of speakers and topics reflects today's Iraq. View the agenda here, and to register to attend the conference. We are certain there will be big demand for tickets register now to avoid missing out.

Join with us and share the insights and opportunities that a modern and stable Iraq now offers.

Sponsors: TBI,CJ-ICM, AAA Holding, Hydro-C, Sardar Group

Travel Partner: London Sky

By John Lee.

At its most recent meeting this week, the Iraqi Cabinet has approved the purchase prices for electricity bought from Silver Crescent:

• Energy purchase tariff on gas: $24.94 per megawatt hour (MWh);
• Energy purchase tariff on heavy fuel: $32.37 per megawatt hour (MWh);
• Combined cycle energy purchase tariff: $36.81 per megawatt hour (MWh),

provided that the contract period is 20 years.

The Ministry of Finance issued a payment guarantee for energy purchase dues from the Ministry of Electricity for the duration of the energy purchase contract of 20 years, from the competent committee.

According to its website, Silver Crescent is an Iraqi company headquartered in Baghdad (Ministry of Trade License #M SH A- 2 14182). It adds:

"Silver Crescent received an investment license number 460 from Al-Muthana Investment Commission to develop Al-Samawah Economic, Industrial, Commercial Services Axis on January 04, 2023.

"The project is currently developed on 5,000,000 M2 land 20KM South of Samawa City Center. The land is strategically located near the Strategic Gas Pipeline and National Electric Grid. The First Phase include the developments of 250MW Power Plant to provide electricity to 250,000 homes in Samawa and it should cover 50% of the current power shortage in the city."

(Sources: Ministry of Oil, Silver Crescent)