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From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Shock ruling indicates tension over authority among Iraq's top courts

A judicial crisis has blown open as Iraq's Federal Court of Cassation (FCC) has for the first time overturned a ruling by the Federal Supreme Court (FSC).

The contention revolves around a retired judge's compensation package, which has now been deemed unconstitutional.

Of further note, the FCC's chief judge has asserted that it holds ultimate authority over all rulings in Iraq.

This potentially opens the door for a reassessment of other hot-button verdicts by the Federal Supreme Court which have been accused of being politicized.

The full article can be viewed here (registration required).

By John Lee.

The Iraqi Cabinet has endorsed a recommendation for financing the Fluid Catalytic Cracking (FCC) project, which it says is contracted by the South Refineries Company (SRC) with a Japanese company.

Iraq Business News understands this to be the Basra Refinery Development Project, which is to be built by Japan's JGC Corporation.

The cabinet approved the lowering of port storage fees by 75 percent for materials used in this project.

It also instructed the General Company for Iraqi Ports (GCPI) to create dedicated areas for government imports.

(Source: Media Office of the Prime Minister)

Addressing Food Loss and Waste for a Sustainable Iraq

On the International Day of Awareness of Food Loss and Waste (IDAFLW), the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) come together with a renewed commitment to tackle a pressing global challenge: food loss and waste. In a world marked by climate change, conflicts, and economic uncertainties, this collective mission has never been more critical.

The 2023 report of the State of Food Security and Nutrition in the World has unveiled a stark reality: between 691 and 783 million people faced hunger in 2022, an increase of 122 million people since 2019, before the pandemic. WFP's hunger monitoring systems indicate that 33 million in the Middle East and North Africa (MENA) region do not have sufficient food consumption.

Globally, about 13% of all the food produced is lost in the supply chain, and another 17% is discarded by households, restaurants, and stores. These losses represent not only a missed opportunity to alleviate hunger but also a significant strain on our environment and resources.

Responsible for a third of total greenhouse gas emissions and contributing to biodiversity loss, global agri-food systems are under threat. As the world's population continues to grow, we face the daunting reality that by 2050 we will need nearly three Earth-sized planets to sustain current lifestyles. It is imperative that we transform our food systems to be more efficient, inclusive, sustainable, and resilient.

In our joint commitment to address food loss and waste for a sustainable Iraq, we support the efforts of the Government of Iraq and the Kurdistan Regional Government to develop and implement national targets and strategies aligned with SDG 12.3. This includes fostering supply chain collaboration to reduce food waste at every stage, from production to processing and storage.  Equally important is encouraging new habits and attitudes to change and decrease the amount of food people throw away.

We encourage the private sector to actively engage in supporting sustainable food supply chains and promoting responsible consumption. Businesses should invest in the modernization of food supply chains and the adoption of sustainable practices. Recognizing the vital role of mobile-based business-to-business supply platforms in enhancing efficiency, we emphasize their importance.

We highlight the benefits of reducing food waste and provide practical tips for consumers. We call on individuals to make conscious choices that reduce food waste within their homes. Additionally, we encourage consumers to actively participate in public-private partnerships aimed at reducing food loss and waste.

As we mark IDAFLW in 2023, FAO and WFP reaffirm our commitment to addressing food loss and waste in Iraq. Given the alarming statistics of undernourishment and environmental costs, urgent action is needed. Together, we envision a future where no one in Iraq goes to bed hungry, where food is valued and not wasted, and where our agrifood systems are efficient, sustainable, and resilient.

(Source: UN)

By John Lee.

The Iraqi Ministry of Oil has announced the increase in production capacity at the Karbala refinery to 140,000 barrels per day (bpd), following the activation of several production units.

Mr. Hamed Younis, the Deputy Minister for Refining Affairs, said that the Ministry is committed to implementing the directives of the Deputy Prime Minister for Energy Affairs and Oil Minister, Mr. Hayan Abdul Ghani, and the government program to operate the refinery at its full design capacity of 140,000 bpd.

Today, the refinery operates at its full operational capacity of 100 percent following the activation of the Fluid Catalytic Cracking (FCC) unit in coordination with contracting companies.

Mr. Younis also highlighted the efficient operation of the FCC assistant unit, aimed at producing high-octane gasoline. He explained that the FCC unit is the first of its kind in Iraq to produce 96 RON octane gasoline, emphasizing the refinery's contribution to covering a significant portion of domestic consumption.

(Source: Ministry of Oil)

By John Lee.

The Japan International Cooperation Agency (JICA) has ssigned a loan agreement with Iraq to provide a Japanese ODA loan of up to 203,060 million yen [$1.4 billion] for the Basrah Refinery Upgrading Project (V).

This project will improve Iraq's capacity for producing oil products and the quality of such products by installing a new fluid catalytic cracking (FCC) complex in the Basrah Refinery, one of the biggest oil refineries in the country, located in Basra Governorate.

Full statement from JICA:

On August 16, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Iraq in Baghdad to provide a Japanese ODA loan of up to 203,060 million yen for the Basrah Refinery Upgrading Project (V).

This project will improve Iraq's capacity for producing oil products and the quality of such products by installing a new fluid catalytic cracking (FCC) complex in the Basrah Refinery, one of the biggest oil refineries in the country, located in Basra Governorate.

Although Iraq has high oil-producing potential, with its crude oil reserves ranked fifth in the world, its domestic demand for oil products, such as gasoline and diesel, depends heavily on imports from other oil-producing countries. This is because many of the oil-refining facilities in Iraq are currently out of service or deteriorating and thus operate below capacity due to long-lasting conflicts.

By installing the FCC complex in Iraq, this project will enable the country to produce oil products that meet international environmental standards, strengthening the oil sector-which dominates Iraq's economy-and thereby contributing to the country's economic and social reconstruction. Moreover, this project will also contribute to the achievement of SDGs (Sustainable Development Goals) Goals 7 (Affordable and clean energy) and 9 (Industry, innovation and infrastructure).

JICA has provided four ODA loans for the Basrah Refinery Upgrading Project, of which the first tranche was signed in October 2012 with the amount of 42,435 million yen, the second in June 2019 with 110,000 million yen, the third in October 2021 with 32,700 million yen, and the fourth in December 2022 with 120,000 million yen. This project is the fifth tranche of its kind.
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japan's advanced technical know-how and engineering skills will be utilized at the FCC complex being constructed under the project.

*STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.

Details for the loan are provided below.

Ministry of Oil
Address: Ministry of Oil Building, Baghdad, The Republic of Iraq

For further information about the procurement schedule, please contact the party
listed below.
Contact Point for Iraq Team, Division II, Middle East & Europe Department, JICA Headquarters
Address: 5-25, Niban-cho, Chiyoda-ku, Tokyo, JAPAN
Phone: +81-3-5226-6660

• Ex-Ante Evaluation

(Source: JICA)

By John Lee.

UK-based IrisGuard and Iraq's NassWallet have announced a new partnership with the integration and deployment of IrisGuard EyePay iris enabled smartphone, and EyeCloud platform with NassWallet's mobile wallet service.

According to a statement from IrisGuard, the integration will enable a regular verified disbursement of humanitarian cash assistance, provided by the United Nations High Commissioner for Refugees (UNHCR) to over 280,000 refugees who have fled to Iraq due to neighbouring conflicts.

NassWallet has been growing rapidly in recent years. In 2022, it processed over $1 billion in transactions across all its services in Iraq. This growth is being driven by the increasing popularity of mobile payments in Iraq and they are expanding their operations and new locations across major cities in Iraq.

IrisGuard's EyePay® platform utilises the human iris for 100% certain proof-of-life, ensuring cash assistance is delivered to those entitled to it without payment cards or bank accounts.

NassWallet have now deployed IrisGuard's EyePay® payment system at 37 sites in Iraq and plan to increase this to 55 locations. Refugees are now able to easily and securely withdraw aid cash, using only their eyes as their unique identifier to the wallet.

Requiring only a 2G signal and featuring full GSMA & FCC approvals, the IrisGuard iris enabled Android EyePay® Phone is compatible with over 1400+ GSM mobile network operators (subject to local regulatory requirement). Biometric authentication for ensuring 100% proof of presence removes the need for any other form of ID such as PIN, card or ID documents. This anchor authentication is fast becoming a popular way for wallet security, accepted by users in both the developed and the developing worlds.

(Source: IrisGuard)

By John Lee.

The Ministry of Oil has opened the largest and most advanced oil training center in Basra, in collaboration with the Japanese company JGC.

Hamed Younis, the Deputy Minister of Oil for Refining Affairs, emphasized the ministry's strong focus on training, qualifying, and developing the skills of workers in the oil sector. He highlighted the importance of this center, which features modern training facilities supervised by global experts, in achieving the goals of human resources development and preparing workers in specialized oil-related fields. The center is seen as a significant milestone in this industry.

Hussam Wali, the General Manager of South Refineries Company (SRC), stated that this center is the result of the ministry's collaboration with JGC, the company responsible for implementing the FCC (Fluid Catalytic Cracking) project. The contract includes the establishment of the largest professional training center in the region, located in Basra.

The center can accommodate over 140 trainees who will undergo training based on the latest advanced global programs, aimed at developing and enhancing their skills and capabilities.

(Source: Ministry of Oil)

By John Lee.

Iraq and Japan have signed a memorandum granting a Japanese loan for the Basra Refinery Development Project (Phase IV).

The agreement was signed on Wednesday by Iraq's Minister of Finance, Taif Sami Mohammed, the Chargé d'Affaires of the Japanese Embassy in Baghdad, Masamoto Kenichi, and the Executive Director of JICA Iraq Office, Mr. Yoneda Jin.

The loan totals 120 billion Japanese yen, approximately equivalent to 900 million US dollars.

The project involves a new Fluid Catalytic Cracking (FCC) complex at to be built by Japan's JGC Corporation.

(Sources: Ministry of Oil, Ministry of Finance)

By John Lee.

Japan's JGC Corporation has said it expects its Iraqi oil refinery project to significantly increase its sales for the fiscal year starting 1st April 2022.

Prime Minister Mustafa Al-Kadhimi laid the foundation stone for the new $4-billion Fluid Catalytic Cracking (FCC) complex at Basra Refinery in April 2021. The project will increase the refinery's capacity by 55,000 barrels per day (bpd).

The company said that detailed design has begun, orders for major equipment are almost complete, and construction site development work is progressing smoothly.

Regarding recent sharp increases in equipment prices, it said that purchase of bulk materials will begin after detailed engineering work is started; while it will continue to
monitor the situation closely, it assumes no significant impact.

(Source: JGC)

By John Lee.

The newly-elected Iraqi parliament has re-elected Mohamed al-Halbousi (pictured) as Speaker for a second term.

Mr Halbousi received 200 votes, with his opponent, Mahmood al-Mashhadani, getting just 14.

According to Al Jazeera, Parliament now has 30 days to elect the country's new President, who will then ask the largest bloc in parliament to form a government.

More here (video), and here.

(Sources: Iraqi Parliament, AP, Al Jazeera)