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JICA renews commitment to boost infrastructure projects for transformative development in Iraq

The United Nations Development Programme (UNDP) in Iraq and Japan International Cooperation Agency (JICA) Iraq Office renewed its long-standing, partnership agreement related to the establishment of socio-economic infrastructure projects in Iraq, with the support of the Government of Iraq (GoI).

This agreement is focused on ensuring accelerated implementation of these critical projects, that meet the needs of the people of Iraq for basic public services, all of which contribute to development and a robust national economy.

Led by the Government of Iraq in partnership with UNDP and Japan

Implemented by the GoI, with loan assistance from JICA, this partnership enters its second decade, aiming to improve economic recovery and living conditions of Iraqis nationwide thanks to the generous support provided by the Japan Official Development Assistance (ODA) loan program.

"JICA and UNDP will continue its support to the GoI, addressing these challenges through this partnership, with an objective to improve livelihoods, as well as enhancing Iraq's socio-economic status for generations to come," says JICA Iraq Chief Representative YONEDA Gen.

The GoI has underscored the need for increased investment in infrastructure ensuring its inclusion in the recently approved federal budget of 3 years. The prioritization of this within the national budget supports ongoing project implementation, laying the groundwork for new projects across the country, focused on public service sectors such electricity, health, irrigation and water and revenue-generating sectors, such as the excavation industry and seaport development.

"Through this Triangular Cooperation, UNDP will continue to support the Government of Japan as they continue this fruitful engagement with the Government of Iraq. Together, we are ensuing the forward movement of the country, towards a brighter future - full of advancement, development, but more importantly, hope," says UNDP Iraq Resident Representative Auke Lootsma.

This signed agreement reaffirms the commitment between JICA and UNDP to improve the state of national infrastructure, for a robust economy, better public services in local communities and increased engagement of the private sector, encouraging economic diversification and job creation, all of which advance Iraq's progress towards achieving the Sustainable Development Goals (SDGs) by 2030.

(Source: UN)

By John Lee.

The Ministry of Electricity (MoE) of the Republic of Iraq has awarded Siemens Energy a contract to deliver five High Voltage Substations on a turnkey basis to address the increasing demand for power transmission in Iraq, providing power to around 2.5 million homes.

The government of Iraq is focusing on strengthening the nation's power infrastructure to address transmission bottlenecks and expand power supply to all of the country's governorates. This contract is part of the second phase of the Iraq Energy Agenda - Wave II agreement, which was signed in Berlin in January 2023 between Siemens Energy and the Ministry of Electricity of the Republic of Iraq.

The 400 kV substations will be installed in various cities across Iraq, including Baghdad, Diyala, Najaf, Karbala and Basra, each with a capacity of 1500MW. Work is expected to begin in early 2024.

Financing of the project will be provided in majority by the export credit agency Allianz Trade Trust, formerly known as Euler Hermes, in collaboration with the Ministry of Finance of the Republic of Iraq.

H.E. Mr. Zeyad Ali Fadhil, Minister of Electricity Electricity of the Republic of Iraq, said:

"Energy is the foundation for growth and prosperity. We are very proud to continue our strong partnership with Siemens Energy on the Iraq. Energy Agenda-Wave II. We are confident that this project will strengthen the country's power grid and distribution network, while supporting our local industries."

Elyes San-Haji, Head of Grid Technology Hub Middle East, Siemens Energy, said:

"Delivering stable and secure energy is vital for the country to prosper. These substations will transmit electricity, strengthen the grid, and energize households, industry, and essential services across the country."

Siemens Energy will deliver the full solution for the substations, including engineering, procurement, and construction. The work involves producing and delivering state-of-the-art high voltage products such as gas-insulated switchgears for the main voltage levels 400kV and 132kV as well as transmission power transformers, each to carry 250MW power.

(Source: Siemens Energy)

By John Lee.

Prime Minister Mohammed Shia al-Sudani has chaired a special meeting on carbon emissions, attended by ministers of oil, electricity, and environment, along with energy advisors and sector specialists.

He directed the formation of a public company for carbon economies under the Ministry of Environment and instructed the regulation of energy contracts in line with the government's climate-focused approach.

The aim is to address climate change impacts caused by harmful carbon emissions.

The Ministry of Environment is tasked with enforcing specific instructions on carbon emissions for government ministries and private sector companies, emphasizing the importance of compliance.

(Source: Ministry of Oil)

The Iraq Britain Business Council (IBBC) has announced more leading speakers for its Dubai conference on 7th and 8th December, including H.E. Mr Zyad Ali Fadhil, Minister of Electricity, Dr Samir Al Waely, CBI, Dr Abdulkareem, AL Faisal, Chairman of PM's advisory council, Ms Begard Talabani the Minister for water resources and agriculture, Dr Salar Ameen, Chairman of the National Investment Commission and Mr Rasheed Al Janabi President of Iraq- GE Vernova.

The overall topic is 'Iraq- a sustainable future' to coincide with the Cop 28 event in Dubai, and also to examine how Iraq can sustain and diversify its economy, energy, business and education beyond a high oil price.

A significant line up of speakers in various sectors, will not only cast light on how Iraq can develop into the future, but also the open nature of the event enables delegates to meet and interact with the speakers and IBBC members.

Registration and full agenda can be found here.

Register for the conference here.

By John Lee.

(Source: Media Office of the Prime Minister)

From Tasnim, under a Creative Commons licence. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iran's oil minister and the electricity minister of Iraq emphasized the need for enhancing bilateral ties in the field of energy.

Iraq's visiting Minister of Energy Ziad Ali Fazel held talks with Iran's Minister of Oil Javad Owji in Tehran, stressing the need to strengthen mutual cooperation in the field of energy, especially the export of gas from Iran to Iraq.

The two sides discussed a host of issues including the development of bilateral ties in the fields of gas and oil byproducts, joint investment and export of technical and engineering services from Iran to Iraq and also implementation of common projects.

Iraq's Deputy Minister of Electricity Adil Karim accompanied the minister of electricity in his visit to Tehran to participate in the inaugural ceremony of the 23rd edition of the Iran International Electricity Exhibition (IEE).

The exhibition was inaugurated on November 14 and will run through November 17.

Owji met with Iraqi Prime Minister Mohammed Sia' Al-Sudani in Baghdad in April to discuss the development of bilateral cooperation in the field of energy.

During that visit to Baghdad, Iranian and Iraqi oil ministers inked a memorandum of understanding (Mou) for the development of oil, gas and petrochemical projects.

By John Lee.

The United States has reportedly issued a new waiver allowing Iraq to pay Iran for electricity.

According to Reuters, the waiver lasts for 120 days.

While not directly confirming the waiver, US State Department spokesperson Matthew Miller told a press briefing on Tuesday:

"So I don't have a comment to give on the expiration of the waiver at this time. But I would remind you of a few things with respect to these waivers in general, and that is that, number one, there are 20 waivers that have been issued for the payment from Iraq for Iranian electricity imports. They go back to 2018; they started during the Trump administration.

"All - in each of these waivers, it has been the case that none of this money goes to Iran. It is held in accounts that are restricted where they can only be used to pay for food, medicine, humanitarian purposes, and other non-sanctionable activities. And it has been consistent with several policies that we have - one, to try to reduce Iran's leverage over Iraq, and two, to try to wean Iraq from Iranian energy independence. We've had a number of policies we've worked with to try to ensure their energy independence, but in the meantime, they continue to buy Iranian electricity. And so we have in the past, as has the Trump administration, issued waivers to allow these funds to move to restricted accounts, or as I said, that can be used for humanitarian and other non-sanctionable purposes."

(Sources: US State Dept, Reuters)

By John Lee.

(Source: Ministry of Finance)

By John Lee.

Turkmenistan will supply Iraq with 9 billion cubic meters of natural gas per year for five years, according to a deal agreed in Ashgabat on Wednesday.

The gas will be transported via Iran in what state-run Turkmengaz describes as a swap scheme.

Iraq's Ministry of Electricity confirms the meeting, but makes no mention of volumes or duration.

Full statement from Turkmengaz:

"On Wednesday in Ashgabat, representatives of the State Concern Türkmengaz met with the delegation of the Republic of Iraq led by the Minister of Electricity Ziad Ali Fadel.

"During the meeting, the parties discussed issues related to the organization of supplies of Turkmen natural gas to Iraq under the SWAP scheme through the territory of the neighboring Islamic Republic of Iran.

"The legal, commercial, financial, and organizational conditions for future joint activities in the gas industry were also discussed in detail. As a result of the negotiations, a Protocol was signed on the main commercial terms of the agreement on the sale, purchase and sale of Turkmen natural gas to the Republic of Iraq. According to the protocol, for a period of 5 years, 9 billion cubic meters of Turkmen natural gas will be transported annually through Iran to Iraq under the SWAP scheme.

"Earlier, in October of this year, a Memorandum of Understanding was signed between the State Concern "Turkmengas" and the Ministry of Electricity of the Republic of Iraq. Thus, Turkmenistan, which has huge reserves of natural gas, is consistently pursuing a policy of diversifying the supply of "blue" fuel to world markets. Turkmenistan's international proposals in the energy sector are being practically implemented in a number of large energy projects, including gas pipelines Turkmenistan-China, Turkmenistan-Iran, Turkmenistan-Afghanistan-Pakistan-India, high-voltage power transmission lines from Turkmenistan to Iran and Afghanistan.

"Currently, among its promising partners, Ashgabat is considering a number of states from the Far, Middle and Middle East, South and Southeast Asia, which are showing great interest in effective interaction with Turkmenistan in the energy sector. Among them is the Republic of Iraq. It is important that over many years of cooperation with foreign states and companies, Turkmenistan has established itself as a responsible and reliable partner, carrying out joint activities based on the principles of mutual trust, respect, good neighborliness and openness."

(Source: Türkmengaz)

By John Lee.

Iraq's Oil Pipeline Company has successfully completed a project to extend a dry gas pipeline (16 inches in diameter) that supplies the Kirkuk Gas Power Station from the Khor Mor fields. The pipeline, with a length of 1,050 meters, was constructed in two phases and is expected to transport an additional 100 million cubic feet of gas per day, boosting electricity production.

Ali Abdul Kareem Al-Mousawi, the General Director of the Oil Pipeline Company, emphasized the company's commitment to implementing the directives of the Deputy Prime Minister for Energy Affairs and the Minister of Oil to support projects related to the supply and transportation of oil products, benefiting electricity generation facilities in all provinces.

The new pipeline branches off from the main pipeline (Jamboor Station - North Gas Company) to provide gas to the Kirkuk Gas Power Station (Tazah Station). The project involved connecting the pipeline, installing three 16-inch valves, constructing a bridge on the main road (Kirkuk - Baghdad) spanning 60 meters, and other sub-bridges. Additionally, engineering inspections and thickness measurements of the new pipeline's path were carried out. Al-Mousawi commended the efforts of the national workforce in accomplishing vital projects.

The pipeline's implementation was coordinated with the Directorate of Electricity in Kirkuk, the North Gas Company, North Oil Company, the Directorate of Traffic, Roads, Bridges, and Communications to ensure the successful execution of the project.

(Source: Ministry of Oil)