Custom Search

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

By Kamal al-Ayash.

The authorities are spending a lot of money on reconstruction in the Anbar province. But locals are complaining, saying basic needs are not being fulfilled and the rest is just window dressing.

When you arrive in the major Anbar cities of Fallujah or Ramadi, you would be forgiven for thinking that reconstruction is well under way. But if you head out of the city centres and check the residential neighbourhoods you will see disconnected power lines and broken water pipes, as well as those who live here working outdoors, trying to fix such things.

Many Anbar locals, who were displaced by the extremist group known as the Islamic State, have now returned to their homes.

“In January 2018, for the first time in more than three years, there were more returnees than internally displaced people,” the United Nations’ International Organization for Migration reported recently. Thanks to improving conditions, Anbar province has seen the largest number of returnees in Iraq, the organization noted.

Many of those who returned say they came back because the Iraqi government told them there would be a swift return to normality and reconstruction. However many of the locals who have come back have found that although there is reconstruction, the authorities undertaking it seem to have some misplaced priorities and that they must provide for themselves, rather than wait for the government to fix things.

Ahmad Abdul-Hamid, 43, has just finished fixing up his barber shop in Fallujah. He was ready to open again but found he could not get to his premises because the municipal authorities were removing and replacing the sidewalks. This kind of work is impressive and shows that the authorities care about the citizens, Abdul-Hamid says, but their timing was off. They should ask the people here what they need and want, and prioritize that, he argues.

“The sidewalks that are being removed and replaced have no real impact on our lives. It wouldn’t have mattered if they had not been reconstructed for years,” Abdul-Hamid said, adding that he would have preferred to see the water and sewage networks fixed first, because these are things that actually endanger people’s lives.

“The money seems to be being spent in an unplanned, uncoordinated way,” Abdul-Hamid complains. “It should be used to compensate those who are still living in tents, in the middle of the rubble that was once their home.”

Locals say it is true that dozens of reconstruction projects have been completed. But they believe that at least some of these have been finished at the expense of their own basic needs.

Another Fallujah local, Jihad al-Dulaimi, 44, tells NIQASH that when he asked the city council for new wiring for power cables so he could fix his own electricity supply, he was told that there was no budget for this. Al-Dulaimi was angry and replied that they had somehow got enough funds to renovate their own council offices.

“Working in this way, the government is disregarding the real needs of the people here,” he says. “We don’t want to see huge sums spent on projects that are clearly not urgent and which could be postponed.”

Al-Dulaimi also questioned why efforts were being made to build a new park when bridges were still damaged and new sidewalks painted, when the streets were impassable.

Many Fallujah residents share that opinion. They believe that officials are embarking on easy-to-complete projects that make them look good, just in time for federal elections in May.

It’s not that we are not appreciative, says Mahdi al-Halbusi, a 51-year-old living in Ramadi, but “it feels like the authorities are decorating the outside of a house, in which nobody can live because the insides are so damaged”.

He and his family returned to Ramadi over a year ago and he feels as though a lot of the completed projects have just been attempts at image making. “Nothing has really changed, the situation is still tragic, since we returned,” he says.

Al-Halbusi says he likes walking around some areas, where there are new, coloured pavements and where the government offices and other nearby buildings look so nice. But that feeling gives way to dismay as soon as he enters any of the residential areas.

“I used to think my mother was the only person who would prepare the house for visitors by putting away our everyday things and bringing out the best,” he jokes. “After the visitors left, we would go back to normal, with everything back in its usual place. That is exactly what it feels like in this city now.”

Launching the capacity building program on "Government-Wide Institutional Performance Management"

The first in a series of capacity building workshops has been concluded in Erbil, Iraq.

With the ultimate aim of helping Iraq reinforce its accountability and efficiency mechanisms, the workshop’s objective was to improve the Iraq public sector readiness to apply a new model of performance management entitled “Iraqi Government-Wide Institutional Performance Management Model”.

The model was developed by the Council of Ministers Secretariat (CoMSEC), with UNDP technical support, in consultation concerned public sector instititions in Iraq,  and is based on the “European Foundation for Quality Management (EFQM)” standards”.

It was endorsed by the government in March, 2017 for piloting in three ministries for validation: Youth & Sports, Electricity and Commerce.  Lessons learnedduring the piloting phase completed in Nov, 2017 were taken into account to further develop the model, which will be scaled up in May, 2018 across public sector institutions.

This series of capacity building workshops target the “Performance Management Teams” at the participating public sector Institutions, who will be entrusted with applying the “Iraqi Government-Wide Institutional Performance Management Model” at the ministries they represent.

The first workshop targeted 31 participants from the Ministries of Agriculture, Water Resources, and Industry and Minerals, and CoMSEC.  Participants discusssed the fundamentals of institutional performancemManagement and went through the “Excellence Journey”.  The workshop implementation strategy was based on the fundamentals of adult learning, where peer and experiential learning combined with high degree of participates’ involvement took place.  The workshop activities were divided between methodological presentations and practical exercises.  The contents built on the insight and experience available in the European Foundation for Quality Management (EFQM)”.

Addressing the workshop participants, the Head of Control and Audit Directorate at CoMSEC, Mr. Riyad Fadil, emphasised the fact that the government is closely monitoring the development and deployment of the model and looking forward to seeing the results of replication across all public sector institutions at the federal Level.  He also added that, “Our team is ready and willing to provide all the support possible to advance this initiative further”.

The Iraq Public Sector Modernization Program Manager, Mr. Hisham EL Azzouni, highlighted that “This is a nationally-owned and led initiate that is currently supported by UNDP".  He also added that “The model isn’t an end in itself, but a mean for improving the performance of public sector in Iraq”.  He also assured the participants that IPSM-UNDP will spare no effort to make the model a reality and will provide GoI with the support they need in this regard.

The implementation of this program comes within the framework of IPSM-UNDP support to GoI to have more efficient, accountable and participatory governance at national and sub-national  levels.  The program aims also at improving the administrative systems at federal and sub-natopnal level, coupled with strengthening the sub-national governance and decentralised service delivery systems through enhanced participatory processes.

(Source: UNDP)

A Kurdistan 24 press quoted Talar Faiq, the Director-General of Erbil International Airport (EIA) as saying that the KRG could suspend domestic flights between the Kurdistan Region’s airports and the rest of Iraq due to financial issues and Baghdad’s international flight ban.

“Since the Iraqi government’s ban went into effect late September 2017, Iraqi Airways has not paid for its landings at the EIA [for flights originating from Baghdad and other Iraqi airports],” Faiq said.  “Baghdad owes the EIA an amount of 37 million USD for landing at the airport,” the Director-General added.

The EIA had previously warned that Baghdad’s ongoing embargo on the airports in the Region might lead to the suspension of domestic flights, as the expenditure at the local airports would be higher than the revenues generated.

It would be difficult to handle its $2.3 million monthly expenses which include employee salaries, allowances, fuel, utilities, electricity, cleaning, and maintenance due to decreased income following the international flight ban,” the EIA said in a statement.  “The flight ban also forces the EIA to suspend contracts with French and German companies worth USD 35 million [to renovate and expand the airport],” the statement added.

(Source: GardaWorld)

By John Lee.

A new report for the Atlantic Council argues that gas, being less politically fraught than oil, has the potential to serve as a key area of cooperation between Baghdad and Erbil and could help improve the reliability of electricity supply.

In Shaping Iraq's Oil and Gas Future, Ellen Scholl recommends that:

1. Baghdad and Erbil must get the incentive structure right. Part of the incentive structure should include supportive gas pricing.
2. Institutions should mirror ambition.
3. Baghdad and Erbil should take a comprehensive approach to developing and integrating infrastructure throughout the supply chain, including mid- and downstream infrastructure.

The full report can be downloaded here.

(Source: Atlantic Council)

By Alessandro Bacci.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

On February 27-28, 2018, the C.W.C. Group, an energy and infrastructure conference, exhibition and training company, will organize in Berlin, Germany, the twelfth edition of Iraq Petroleum, which is one of the major events concerning Iraq’s oil and gas sector.

One of the main topics of Iraq Petroleum 2018 will be the development of Iraq’s natural gas reserves with the specific goal of strengthening energy-intensive industries to diversify the Iraqi economy.

In Iraq, natural gas might really be the key driver to develop additional industrial sectors. In fact, natural gas may be used for power generation (electricity), petrochemicals, fertilizers, and other heavy industries in which gas is the primary feedstock.

In this regard, some analysts might object that the development of these new industrial sectors would not really change the picture for Iraq because its economic development would still be too linked to the oil and gas sector—in practice Iraq’s economy would continue to be overaffected by the price of oil and gas.

This observation is by no means wrong, but it’s also true that, apart from increasing oil exports (and in this regard, it will be important to see how Iraq will deal in the future with OPEC’s quota restrictions) to improve its economic standing Iraq does not have many alternatives to developing its natural gas resources and then using them to add other industrial sectors to the economy.

Please click here to download the full report.

Alessandro Bacci is an independent energy consultant in relation to business strategy and corporate diplomacy (policy, government, and public affairs). Much of his activity is linked to the MENA region, an area where he lived for four years. Alessandro is now based in London, United Kingdom (www.alessandrobacci.com). A multilingual professional, Alessandro holds a Bachelor of Laws and Master of Laws from the University of Florence (Italy), a Master in Public Affairs from Sciences Po (France), and a Master in Public Policy from the Lee Kuan Yew School of Public Policy (Singapore).    

The World Bank Group and the Government of Iraq signed two projects today totaling US$510 million to help the Iraqi people by improving living conditions, enhancing water supplies, and creating jobs.

The two projects along with the ongoing US$750 million Emergency Operation for Development program and other planned commitments, will increase the World Bank’s total commitment to Iraq to US$4.7 billion, compared to US$600 million four years ago.

Iraqi Prime Minister Haider Al-Abadi and World Bank Group President Jim Yong Kim (pictured) attended the signing ceremony for the two projects, which took place on the sidelines of the Iraq Reconstruction Conference hosted by the State of Kuwait.

The increased Bank commitment will help support immediate restoration of education and health services, rebuilding important roads and bridges, and rehabilitation of electricity and water systems. The ongoing emergency reconstruction projects have already created thousands of jobs for Iraqis and the new projects are expected to create millions more.

“We will mobilize the full range of the World Bank Group’s expertise to invest in a new, stronger Iraq,” President Kim said in a speech at the opening of the Iraq Reconstruction Conference. “We will continue to work with our international partners to ensure the smooth and sustainable transition from stabilization through recovery to reconstruction."

The World Bank is committed to scaling up its support for Iraq reconstruction and development subject to availability of resources. In addition to the financial support, the World Bank Group has been actively engaging with the Iraqi Government through providing technical assistance for Iraq’s recovery and to lay the foundation for private sector investments in Iraq.

“We will work hand in hand with the private sector to support Iraq,” said Kim. “We must all invest in Iraq’s smart and ambitious youth. We must invest in Iraq’s resilient women. These are the investments that will remain long after the reconstruction process has ended.”

In the leadup to the conference, the Iraqi government unveiled its National Reconstruction and Development Framework. The framework aims to both redress the impact of the current crisis and prevent future crises by addressing the structural causes of conflict.

By promoting the critical reforms needed to establish a new social contract, the framework provides a roadmap for rebuilding trust between citizens and the government.

To read the full transcript of President Kim’s speech, click here.

(Source: World Bank Group)

Ambassador Silliman and Lise Grande of UNDP Visit the Ninewa Plains

Ambassador of the United States to Iraq Douglas Silliman joined the Deputy Special Representative of the Secretary General and UNDP Resident Representative Lise Grande for a visit to several sites in the Ninewa Plains to highlight the U.S.-UN partnership in supporting the Iraqi government’s efforts to help its most vulnerable people return home following the liberation of their territory from ISIS.

During his visit to the historically Christian towns of Al Hamdaniya and Karamless, home to Syriac Catholic and Chaldean Catholic communities respectively, Ambassador Silliman reaffirmed the U.S. government’s commitment to supporting the UNDP Funding Facility for Stabilization (FFS).

Since 2015, the United States has provided $190.3 million to the FFS, which includes a recent $75 million contribution, portions of which the United States has specifically set aside for projects in the Ninewa Plains.  The United States also pledged an additional $75 million contribution for 2018.

The U.S. government also plans to fund up to $39 million to non-governmental and private organizations to help stabilize ethnic and religious minority communities in the Ninewa Plains and western Ninewa, which will bring our total funding for stabilization activities up to $300 million.

Separately, the United States has contributed more than $1.7 billion in humanitarian assistance since 2014 for conflict-affected Iraqis who were displaced by the ISIS threat.

“We are committed to supporting UNDP stabilization projects like these until all displaced Iraqis can return to their liberated, stabilized areas,” said Ambassador Silliman at the reopening of the Al Hamdaniya Hospital, which was looted and vandalized during the ISIS occupation before its initial rehabilitation by UNDP.  The U.S. government recently approved $2.6 million to fund UNDP’s further rehabilitation of the hospital and the purchase of necessary medical equipment.  The Ambassador added, “As I look at this facility, I see it as a symbol of hope that more peaceful and prosperous days lie ahead for the people of this community.”

UNDP Resident Representative for Iraq Lise Grande said, “We are very grateful for the contribution of the U.S. government.  UNDP is currently implementing more than 1,000 projects across Ninewa Governorate.  Progress is tangible; electricity grids are starting to work, water systems are being repaired, schools are opening, health centers are functioning and people are getting back to work.  With continued support, we can accelerate this critical work and help bring hundreds of thousands of displaced Iraqis back home.”

The visit also included meetings with Syriac Catholic and Chaldean Catholic religious leaders and a tour of the Karamless primary health care center, another UNDP stabilization project that the United States will be partially funding.

The United States is committed to ensuring that its humanitarian assistance and stabilization funding is reaching Iraq’s most vulnerable communities, including the ethnic and religious minorities who suffered under ISIS occupation.  With support from the U.S. government and other international donors, the United Nations’ stabilization projects are helping displaced Iraqis from all backgrounds rebuild their homes and communities in the liberated areas.

(Source: U.S. Embassy in Iraq)

By John Lee.

Iraq's National Investment Commission (NIC) has included six industrial projects in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

A. Rehabilitation and development of white cement plants in Falluja.

• Area: 642000m²
• Production capacity: 290000 ton/year for the two lines. Production capacity can be increased to 350000 t/y
• Cost for Rehabilitating and operating is $12.800.000
• Experienced staff is available to operate the plant
• The plant (which is the only one in Iraq that produces white cement) is not working at the present time. Cement plants in Kubaisa, Qaim, in Anbarand Badoosh, Sinjar, HamamAl Alilin Mosul are going through damage assessment by special committees (for the damages that occurred during 2014-2017).

B. Rehabilitation and development of glass plants in Ramadi

• Multipurpose raw glass (13 type of glass), such as glass for buildings, automobile and mirrors
• Iraq’s need for float glass is doubling annually. The current estimate of 1500 t/d covers the local market. The unique location of the plant is suitable for exporting this product to the neighboring countries as raw or final product.
• Target production capacity: 500000 t/y to be divided into two phases according to market capacity and required types.
• Annual production cost in full capacity to produce 700 t/d is around 94 b ID.
• Return 16%
• It is possible to establish a float glass plant in Karbala and Muthana provinces.

C. Rehabilitation and development of engineering plants in the Ministry of Industry and Minerals such as Al Nassir and Al SimoodCo., IbnMajid, The Heavy engineering equipment Co. (Ministry of Oil) and The Mechanical industries in Eskandariyato cover the needs of the oil & gas, electricity and heavy industries sectors for tanks, heat exchangers, valves, pipes, pumps, poles and cranes and other products the rehabilitation and development of these factories require new production lines as well as supporting infrastructure.

D. Caustic Soda project/ Chlorine/ Samawa/ which includes the production of caustic soda, chlorine, Hypochlorite and Hydrochloric Acid.

• Area: 50 dunam
• Production capacity: 40-50 ton/per day
• Cost : 40 Million Dollars.

E. Sodium Carbonate project/Samawa/ produces Sodium Carbonate and Bicarbonate.

• Area: 100 dunam
• Production capacity: 50000 t/y
• Cost : 50-60 Million Dollars.

F. Sodium Sulfate projects/Samawa

• Area: 25 dunam
• Production capacity: 10 ton/per day
• Cost : 20 Million Dollars.

The full 46-page document can be downloaded here.

(Source: NIC)

By John Lee.

Iraq's National Investment Commission (NIC) has included three major new housing programs in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

A. First phase / building 25,000 housing units in each province for low / medium income citizens in addition to low cost housing for limited income people including the infrastructure (water, electricity, sewage ,gas and telecommunication).
An economic design was selected for the Investment Housing Project in Maysan Province 2017 to build 4000 housing units in Umara City.

B. The New Karbala City Project
Area/(15) Million m2, it includes (136) various investment opportunities. Establishing an integrated city in terms of services (vertical and horizontal housing units, hotels, shopping center, educational sector recreational sport banks Islamic science office conference hall).
Karbala Downtown Development (area:750 dunam) near the holy shrines, could be developed into housing complex, multi-storey garage, commercial center and tourists areas.

C. Dhifaf Karbala Project:
Estimated cost: $6bn
40 thousand housing units as phase one aiming at 85 thousand in addition to commercial centers, recreational centers and social services.

The full 46-page document can be downloaded here.

(Source: NIC)

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

Iraq is boosting its efforts to extradite fugitives wanted in corruption cases.

On Jan. 25, Iraqi authorities in cooperation with Interpol took custody of former Trade Minister Abdel Falah al-Sudani, who had been extradited from Lebanon. Sudani, a fugitive since 2009, had been tried and sentenced in absentia to seven years in prison for corruption.

Ziad al-Qattan, the former general secretary in the Ministry of Defense, was extradited from Jordan and handed over to Iraqi authorities Jan. 11.​ Qattan is accused of embezzling about $1 billion from the ministry.

“Such steps toward trying accused [politicians] in a country that is at the top of the list of the most corrupt countries, such as Iraq, are of paramount importance to regain the people’s confidence in the Iraqi judiciary and its ability to tackle corruption,” legal expert Ali Jaber told Al-Monitor.

“The extradition of wanted people is twofold. The procedure goes through the bilateral agreement between Iraq and other countries and through the international police [Interpol],” he said.

The UN Charter allows countries fighting terrorist groups to ask for assistance from the Security Council, which is the case with Iraq. These countries can also claim funds that had been smuggled abroad.

“Many countries have been helping Iraq to recover funds and take fugitives into custody," Jaber said. "I believe that Iraq will witness many breakthroughs in the future at this level, especially since the Iraqi government said tackling corruption will be its top priority after the end of the war on the Islamic State.”

In early January, a representative of the Japan International Cooperation Agency met in Iraq with Integrity Commission Chairman Hassan al-Yasiri to discuss, among other topics, coordinating anti-corruption efforts.

The Integrity Commission said Iraq, with Interpol's help, recovered about 2 billion Iraqi dinars ($1.68 million) in December from nine convicted fugitives by tracking their money and conducting investigations to follow financial transactions globally.

Many officials accused of corruption remain free, however. Some have dual nationality, which makes it easier for them to leave. For example, Basra Gov. Majid al-Nasrawi used his Australian passport to flee Iraq in August. He faces charges of stealing public money.

There are also warrants out for the arrests of fugitive officials wanted on corruption charges, including former Minister of Electricity Ayham al-Samarrai, former Transport Minister Louay al-Ors and former Defense Minister Hazim Shaalan, who was accused in 2005 of being involved in the theft of at least $1.3 billion from the ministry.

Judge Abdul-Sattar al-Birqdar, a spokesman for Iraq’s Supreme Judicial Council in Baghdad, explained extradition procedures to Al-Monitor. “The Supreme Judicial Council issues warrants for the recovery of smuggled funds. The Extradition Division in the public prosecutor's office follows up on the matter. The prosecutor then issues the necessary decisions," which could entail property confiscation.

Legal expert Tariq Harb told Al-Monitor, “The current process in Iraq is that the authorities hand over the official documents of charges of the accused to Interpol. In the event Interpol catches the accused, the Iraqi security authorities will take them into custody to stand a fair trial."

Iraq's increased efforts to recover assets from abroad will help speed up the often lengthy process of extradition. However, "this doesn't mean this road won't be fraught with many obstacles, as many of the accused are linked to powerful politicians who could pull some strings to derail or end the procedures." Some countries might also use prisoners as bargaining chips, he said.

Ahmad al-Jubouri, a member of the parliamentary Legal Committee, told Al-Monitor, “The process to recover funds and arrest [those accused] is of major importance, as the Iraqi people have been demanding reforms and the fight against corruption. Under this pressure, the Iraqi government has started to take serious steps" and has even hired foreign companies to help track funds and facilitate extradition. "The upcoming period will witness major changes in corruption investigations,” he said.

He added, “The arrest of Sudani and Qattan will open the door to further arrests of the people who misused and smuggled public funds to neighboring countries. Some of the accused are traders and businessmen who made illicit deals in the name of influential politicians or political parties. Iraq is known for the rampant corruption among politicians. The arrests will include all those who took part in or facilitated embezzlement of public funds. This will be a crucial step in recovering these funds."