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By John Lee.

Iraqi Prime Minister Mohammed Shia Al-Sudani met with US President Joe Biden at the White House on Monday.

In a joint statement after the meeting, the two highlighed a number of business-related points:

1. Iraq's Financial and Banking Reform: President Biden and Prime Minister Sudani discussed Iraq's efforts to reform its financial and banking sector to connect Iraq to the international economy and increase trade.
2. Combatting Corruption and Money Laundering: They emphasized the importance of shielding the Iraqi people from the harmful impacts of corruption and money-laundering.
3. Expansion of Correspondent Relationships: Banks in Iraq have expanded their correspondent relationships with international financial institutions to enable trade financing, with most trade finance now occurring through these channels.
4. Improving Investment Climate: Both leaders affirmed the significance of measures to improve the investment climate in Iraq to attract foreign capital and promote economic growth.
5. Cooperation against Financial Crimes: The United States and Iraq committed to strengthening their cooperation to achieve greater transparency and collaboration against money-laundering, financing terrorism, fraud, corruption, and sanctionable activity.
6. Support for Central Bank of Iraq: Both sides committed to supporting the Central Bank of Iraq to fully wind down the wire auction mechanism by the end of 2024 and transition to direct correspondent relationships between Iraqi and international banks.
7. Connecting Iraqi People and Businesses with the International Economy: This transition is expected to connect Iraqi people and businesses with the international economy, facilitating smoother financial transactions.

Joint Statement from the Leaders of the United States and the Republic of Iraq:

Today, the President of the United States, Joseph R. Biden Jr., welcomed the Prime Minister of the Republic of Iraq, Mohammed Shia'a Al-Sudani, to the White House.  The two leaders reaffirmed their commitment to the enduring strategic partnership between Iraq and the United States and discussed their visions for comprehensive bilateral cooperation under the 2008 U.S.-Iraq Strategic Framework Agreement.  The President and Prime Minister agreed on the importance of working together to advance regional stability and reinforce and respect Iraqi sovereignty, stability, and security.

President Biden and Prime Minister Sudani affirmed that a diversified and growing Iraqi economy, integrated with the region and the global economic system, is the foundation for lasting stability in the region and prosperity for the Iraqi people.  The two leaders exchanged views on how political, economic, and security cooperation between the United States and Iraq could advance shared goals, including the development of a strong and stable Iraqi nation that promotes peace and progress throughout the broader Middle East.

Energy and Environment

President Biden applauded Iraq's progress towards energy self-sufficiency, and the two leaders discussed Prime Minister Sudani's interest in future opportunities for cooperation to ensure Iraq becomes self-sufficient by 2030, with help from U.S. companies.  President Biden affirmed continued U.S. support for Iraq's efforts to modernize its energy sector, reduce methane emissions, improve public health, more reliably provide electricity for the Iraqi people, and complete the electrical grid connections with neighboring countries, including the ongoing efforts to connect Iraq's grid with Jordan and GCC countries.  The two leaders discussed future plans to develop Iraq's resources in a manner that ensures all Iraqis benefit from their country's natural wealth, consistent with Iraq's constitution.

Prime Minister Sudani and President Biden affirmed the importance of ensuring Iraqi oil can reach international markets and expressed their desire to reopen the Iraq-Turkiye Pipeline.

Regional Integration and Political Cooperation

President Biden reaffirmed U.S. support for Iraq in strengthening relations with the international community and states of the region to ensure security, stability, and enhanced prosperity for its peoples.  President Biden pledged continued U.S. support for greater economic integration of Iraq with the Middle East region.

President Biden and Prime Minister Sudani discussed their shared view that the Iraqi Kurdistan Region (IKR) is integral to Iraq's overall prosperity and stability.  In that vein, the President commended the Prime Minister's and Kurdistan Regional Government's (KRG) efforts to reach durable agreements that resolve longstanding challenges, including the recent arrangement to pay two months of KRG civil servant salaries, and encouraged continued progress.  The President also affirmed U.S. support for strengthening democracy in Iraq, including free, fair, and transparent regional elections in the IKR.

Economy and Finance

President Biden and Prime Minister Sudani discussed Iraq's progressive efforts to reform the financial and banking sector to connect Iraq to the international economy and increase trade while shielding the Iraqi people from the harmful impacts of corruption and money-laundering.  Through 2023 and 2024, banks in Iraq have expanded their correspondent relationships with international financial institutions to enable trade financing, with the majority of trade finance now occurring through these channels.  The two leaders affirmed the importance of these and other measures to improve the investment climate in Iraq to attract foreign capital and promote economic growth.  The United States and Iraq commit to strengthen their cooperation to achieve greater transparency and collaboration against money-laundering, financing terrorism, fraud, corruption, and sanctionable activity that could undermine the integrity of both countries' financial systems.  The two sides also committed to support the Central Bank of Iraq to fully wind down the wire auction mechanism by the end of 2024 and transition to direct correspondent relationships between Iraqi and international banks, a transformation that will connect Iraqi people and businesses with the international economy.

The Lasting Defeat of ISIS

President Biden and Prime Minister Sudani discussed their commitment to a stable and secure Iraq.  They agreed that Iraq's security forces must be able to ensure that ISIS can never again reconstitute inside Iraq to threaten the Iraqi people, the region, or the international community, including the United States.  President Biden reiterated his belief that a strong Iraq, capable of self-defense, is critical to regional stability and committed to bolstering the capabilities of security forces across all of Iraq to secure the country's territory and people.

Nearly ten years after establishing the Global Coalition to Defeat ISIS, the two leaders discussed the Coalition's successes in both Iraq and Syria, where all Iraqi security forces including in Kurdistan were critical to the territorial defeat of ISIS.  Both leaders paid tribute to the sacrifices made by Iraqi, United States, and other friendly countries' military personnel serving side-by-side as partners during the historic campaign against ISIS, as well as the civilians killed by ISIS, including the massacres at Camp Speicher, Mount Sinjar, and Hit.  Prime Minister Sudani emphasized the national effort that was required to defeat ISIS and discussed his affirmative agenda to continue rebuilding Iraq and restore its position as an engine of stability and growth for the broader Middle East.  President Biden noted that the enduring defeat of ISIS would help ensure Iraq's, the region's, and the world's security in the future, as well as its ability to fulfill the Iraqi people's aspirations to develop economically, attract foreign investment, and provide regional leadership.

Enduring Bilateral Security Cooperation

President Biden and Prime Minister Sudani also discussed the natural evolution of the global D-ISIS Coalition in light of the significant progress that has been made in ten years.  The two leaders expressed their commitment to the ongoing Higher Military Commission (HMC) process and its results, and the three working groups that will assess: the continued threat from ISIS, operational and environmental requirements, and bolstering Iraq's security force capabilities.  The two leaders affirmed they would review these factors to determine when and how the mission of the Global Coalition in Iraq would end, and transition in an orderly manner to enduring bilateral security partnerships, in accordance with Iraq's Constitution and the U.S.-Iraq Strategic Framework Agreement.

The leaders further affirmed their intent to convene later this year the U.S.-Iraq Joint Security Cooperation Dialogue (JSCD) for talks on the future of the bilateral security partnership.

Strategic and Enduring Partnership

President Biden and Prime Minister Sudani renewed their commitment to bilateral partnership for the benefit of their two nations and decided to expand cooperation in all areas discussed in the Higher Coordinating Committee (HCC) meetings co-chaired by the U.S. Secretary of State and Iraqi Minister of Planning.  The two leaders affirmed their intent to continue their consultations on a shared vision for comprehensive, productive partnership to advance common goals.

By John Lee.

Iraq's Ministry of Electricity and the French company TotalEnergies have signed two contracts to produce 1,000 megawatts of solar power.

The development will be built in four, 250-MW phases at the Ratawi [Artawi] field in Basra.

According to state-run Iraqi News Agency (INA), it will be completed within two years.

(Sources: INA; Govt of Iraq)

By John Lee.

The Iraqi Cabinet approved the recommendations of the Sovereign Guarantees Committee regarding the Al-Khairat Power Station.

The new facility is being built by Harlow International, which describes it as, "the largest thermal power plant project in Iraq ... which will provide more than 10% of Iraq's power demand when fully operational."

According to a statement from the Prime Minister's office, the Cabinet approved the following:

1. Granting a debt guarantee for the first phase only (1400 MW) to Harlow International. The guarantee will be effective for 15 years, including 4 years for the construction period, amounting to 3 billion dollars. Conditions include:
   • The Ministry of Electricity will sign a contract annex with Harlow, transferring ownership of the Al-Khairat Power Station to the Ministry after the expiration of a 25-year power purchase agreement (BOOT).
   • Providing payment guarantee for the power purchase after the 15-year debt guarantee period expires, based on the quantity of energy to be purchased for the remaining period of the purchase agreement.
   • Adjustment of the guarantee for the completion of the first and second phases (2800 MW) if the completion rate of the first phase reaches 70%, including the transfer of ownership of both phases to the Ministry of Electricity after the expiration of the purchase agreement for both phases.
2. Harlow will pay 10 million dollars for the issuance of the guarantee, with the financial closure of the project set for December 31, 2024.
3. The guarantee will only be effective upon the fulfillment of the conditions specified by the Ministry of Electricity and will be presented to the Cabinet for approval.
4. Adherence to the provisions outlined in Cabinet Decrees (476 and 477) of 2021, and the recommendation of the Ministerial Energy Council 162 of 2021.

(Source: PMO)

By John Lee.

Ziad Ali Fadel, Iraq's Minister of Electricity, arrived at the Iraqi-Jordanian border on Saturday morning to inaugurate the first phase of the Iraqi-Jordanian electrical interconnection project.

This interconnection will provide between 40 to 50 megawatts of power to benefit the Rawa district, which has been deprived of electricity for over 10 years due to infrastructure destruction caused by terrorist groups.

Minister Fadel emphasized the importance of interconnection projects, highlighting their high reliability and technical benefits to the power grid, contributing to stability and increasing supply hours.

Further phases of the project, reaching up to 500 megawatts, are planned. He also stated that progress is being made towards completing the Iraqi-Gulf electrical interconnection project, with connections to Saudi Arabia moving in the right direction.

(Source: Ministry of Electricity)

By John Lee.

Iraq has signed a memorandum of understanding (MoU) with Siemens Energy and Schlumberger (SLB) to invest in and cease flaring associated gas from oil fields.

This effort aims to convert the gas into productive energy to supply power stations and the national grid.

During the signing ceremony, Mr. Hayan Abdul Ghani, the Deputy Prime Minister for Energy Affairs and Minister of Oil, said this collaboration intends to implement the accelerated plan to invest in and process associated gas from oil fields, utilizing the advanced technology possessed by these companies. He also mentioned another MoU signed by Siemens with the Ministry of Electricity to support the energy sector.

Mr. Maximilian Rasch, the Charge d'Affaires at the German Embassy, praised the mutual cooperation between the two countries, expressing his country's support for Iraq to improve its energy situation and reduce emissions, expressing hope for more contracts in other areas.

Mr. Mohannad Al-Safar, the General Manager of Siemens Energy Iraq, stated that this memorandum marks the beginning of joint cooperation with the ministry to cease flaring and process gas for electricity generation, contributing to energy security, reducing imports, and preserving the environment.

Mr. Ezat Saber, the Deputy Minister for Gas Affairs, indicated that the memorandum aligns with the government program and the Ministry of Oil's efforts to accelerate gas investment and increase national production, as part of a pivotal plan towards enhancing energy security and reducing operational expenses.

Mr. Wissam Al-Adham, the General Manager of Schlumberger Iraq, highlighted that Siemens and Schlumberger will work on providing suitable solutions and studies to enhance sustainable energy using the latest technologies.

Mr. Assem Jihad, the Ministry of Oil's spokesperson, emphasized that these projects represent a significant step in Iraq's journey towards sustainable energy.

(Source: Ministry of Oil)

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

Iraq seeks to buy Khor Mor gas for electricity

The Iraqi electricity ministry is seeking to purchase gas from Sulaimani's Khor Mor gas field to cover its needs and avoid power shortages in the coming summer season, the ministry's spokesperson told Rudaw.

Click here to read the full article.

By John Lee.

Ziad Ali Fadel, Iraq's Minister of Electricity, announced the signing of an agreement with Siemens of Germany to convert associated gas into electricity within six months.

The minister signed the agreement in Berlin, Germany, aiming to convert associated gas into electrical energy to sustainably and securely meet citizens' needs.

The minister emphasized that this agreement is part of the Iraqi government's efforts, led by Prime Minister Mohammed Shia' Al-Sudani, to end gas flaring and effectively invest it in electricity generation. This initiative aligns with the government's commitment to the Paris Climate Conference agreements to preserve the environment and provide renewable energy sources.

The agreement is notable for its rapid implementation, involving the investment of around 120 million standard cubic feet of gas within a short period of six months, along with an additional 120 million within one year. The produced gas will be utilized in the establishment of a 2000-megawatt power station to enhance the electricity network's capabilities and ensure supply stability.

The CEO of Siemens Energy praised the Iraqi government's efforts to overcome challenges faced by the energy sector over the years, affirming that Iraq has succeeded in recent years in establishing numerous infrastructure projects that will contribute to building genuine capacities in the country's energy sector.

(Source: Ministry of Electricity)

By John Lee.

Iraq's Minister of Electricity, Ziad Ali Fadel, recently hosted the Finnish Ambassador to Iraq, Ms. Anu Saarela, along with a delegation from Wärtsilä, a company specializing in the installation and maintenance of engines.

During the meeting, the minister emphasized the government and ministry's commitment to fostering common prospects, job opportunities, and partnerships, capitalizing on the significant openness and security stability in Iraq, aiming to create an attractive environment for global investments.

According to a statement, the minister focused on two main points during the meeting:

1. The importance of reviving stalled projects and addressing their obstacles. This included discussions on rehabilitating the Samarra diesel power generation station with 11 generating units, each with a capacity of 340 megawatts.
2. Preparation of a comprehensive vision by the company's experts regarding the maintenance needs of power generation units, the possibility of their expansion, and increasing their design capacities. He instructed the technical and production department of the Northern Electricity Production to provide the necessary requirements for the company's experts to perform their tasks, subject to meeting deadlines and presenting them to the ministry for approval after discussion, with continuous follow-up through regular meetings.

The visiting ambassador expressed her gratitude for the minister's keen interest, acknowledging the success of Iraq in establishing and implementing significant and qualitative projects contributing to the development of the energy sector in Iraq. She particularly highlighted Iraq's shift towards renewable energy sources and diversification of its energy sources.

(Source: Ministry of Electricity)

By John Lee.

The Iraqi Cabinet has approved recommendations from a consultative meeting aimed at addressing traffic congestion and regulating working hours for state departments.

The key measures are:

1. Adjusted Office Hours:
   1. Official working hours for government departments in Baghdad will be trialed for three months after Eid al-Fitr, with reevaluation afterward.
   2. Different start and end times will be implemented for various ministries and affiliated entities:
      • Morning: 7:00 AM - 2:00 PM for ministries and bureaus in the Green Zone and select others. These include the Ministries of Foreign Affairs, Planning, Agriculture, Water Resources, Environment, Migration and Displacement, Communications, Youth and Sports, Culture, and Industry and Minerals; the Central Bank of Iraq (CBI), Federal Financial Supervision Bureau, Baghdad Municipality, and the Civil Aviation Authority;
      • Mid-morning: 8:00 AM - 3:00 PM for other ministries, including the Ministries of the Interior, Defense, Health, Finance, Electricity, Justice, Labor and Social Affairs), and Education,  and all associated schools and institutes;
      • Late morning: 9:00 AM - 4:00 PM for remaining ministries and institutions, including the Ministries of Higher Education and Scientific Research, Transport, Trade, Construction, Housing, Municipalities, Public Works, and Oil, and the Shiite and Sunni Endowment Offices, the Martyrs and Political Prisoners Institutions, the Aliyaj Authority for Hajj and Umrah, and the State Council.
      • Universities and colleges will start at 10:00 AM, with weekly holiday adjustments.
2. Public Transport Mandate:
   • Ministries and non-ministerial entities must ensure at least 30% of their staff utilize public transportation, offering incentives for participation.
3. Pedestrian Bridges and Street Vendor Control:
   • Construction of pedestrian bridges near educational and healthcare institutions, with fencing to deter jaywalking.
   • Crackdown on sidewalk vendors, especially in congested areas like Shorja and New Baghdad.
4. Vehicle Registration Fees and Customs Duties:
   • Reviewing vehicle registration fees and customs duties, potentially increasing them in line with previous government decisions.
   • Kurdistan Region must adhere to any fee increases.
5. Road Openings:
   • Certain roads in Baghdad, including the Karguliya Road towards Al-Amin area, will be reopened.
   • Reinstallation of departure gate near Al-Shaab Stadium.
6. Fuel Price Adjustment:
   • Prices for premium and regular gasoline will rise to 1250 and 850 Iraqi dinars per liter, respectively, starting May 1, 2024.

These measures aim to alleviate traffic congestion, promote public transport usage, enhance pedestrian safety, and manage urban infrastructure effectively. Further evaluations will determine their long-term implementation.

(Source: PMO)

By John Lee.

Ziad Ali Fadel, Iraq's Minister of Electricity, has signed a five-year gas supply agreement with the Iranian National Gas Company (INGC).

The contract involves daily gas delivery rates of up to 50 million cubic meters, adjustable based on system requirements.

This initiative aims to sustain the momentum of power generation stations, ensuring they meet peak loads and the growing demand for electricity.

Iraq's Ministry of Electricity said the agreement will serve as a temporary solution until Iraq's national gas fields are fully rehabilitated to meet the country's electricity needs.

(Source: Ministry of Electricity)