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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."

By John Lee.

Iraq's National Investment Commission (NIC) has included four Special Economic Zones 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:

1. Huteen zone/ Babylon Province for medium & heavy engineering manufacturing.
   Huteen is located in Babylon Province/ Eskandariya city near the State Co. for Mechanical Industries and the State Co. for Automobiles.
   40 km to the north of Hilla city center, 50 km to Baghdad city center.
   550 km to Basra city and its ports
   10 km east to the Euphrates
   12 km to the north of Al Musaiab thermo electricity station
   Total area is 15000000 m², around 6000 donum in addition to branch streets within the site.
   Sewage, water pipes, electricity and facilities are available with limited damages.
   45 big area warehouses protected with earth embankment for highly immunized products.
2. Mid Euphrates zone in Dewaniya, 1500 donum for agricultural industries (agro-industry) including dairy products, fruits, vegetables and meat processing and canning.
3. Fine Machining zone in Nineveh (Al Kindi Co., site or Jabir Bin Hayan Co. site). One of the sites to be selected to produce machinery and equipment for medium and small projects such as valves and pumps.
4. Baghdad zone (near BIAP) for advance technologies (Smart city).
   The smart city shall provide various activities for interested people in information technology, entertainment and social technologies. It also includes a training center, weekly gathering of professionals and specialists, meetings and scientific debates halls, computer courses for children, restaurant and coffee shop, markets for electronic devices, internet services center, a training center to develop human skills, a museum for communication devices and post stamps representing Iraq’s history, halls for investing companies, halls for simulating modern training technologies, a hotel for the visitors and many other services.

The full 46-page document can be downloaded here.

(Source: NIC)

Iraqi Government Ministries heading to Berlin for International Meeting in February

Iraq’s oil and gas industry has started 2018 with invigorating news including new blocks to be offered at a bidding round in May, several high profile deals finalised with international companies as well as the continued upstream reforms led by Minister of Oil Jabbar Al Luaibi, which aim to enhance investment conditions and establish the country as the next oil and gas cluster.

“We invite all international companies to participate. This new exploration bidding round aims to maximise reserves… We are keen to make significant changes to the new exploration model contracts, and to adopt a new commercial and financial model different from the service contract,” stated Jabbar Al Luaibi (Reuters)

CWC Iraq Petroleum, taking place in Berlin, Germany on 27-28 February 2018, brings you comprehensive updates on this new energy vision, directly from the Government of Iraq, the Federal Parliament of Iraq and the Ministry of Oil alongside the established international supermajors already operating in Iraq.

The event is held with the backing of Chevron, Shell, Lukoil, Total, Baker Hughes a GE Company, GardaWorld, Vinson & Elkins, OilSERV, RSK, ILF Consulting and RPSC.

This important meeting, now on its 12^th year, provides an official platform for industry leaders to meet directly with Government officials to discuss the future of the industry as well as network and build lasting partnerships enabling commercial projects to become a reality.

Iraqi Government delegations attending the meeting include:

• Iraq Government
• Iraq Presidency
• Iraq Parliament
• Iraq Ministry of Oil
• Iraq Ministry of Electricity
• Iraq Ministry of Industry and Minerals
• Iraq Ministry of Environment
• Basra Governorate
• Baghdad Provincial Council

View the full list of speakers and programme here or visit cwciraqpetroleum.com

(Source: CWC)

The UK's Minister of State for Trade and Export Promotion, Baroness Rona Fairhead (pictured), has announced $210.8 million in support from UK Export Finance (UKEF) for the second project agreed under the UK-Iraq infrastructure Memorandum of Understanding.

The contracts with the Ministry of Electricity in Iraq, valued at $220 million, will see GE Global Services UK upgrade and repair existing turbines across 10 sites to deliver an improved, more secure power source. The project will sustain 6.5 Gigawatts of generating capacity, powering millions of homes across Iraq.

This is the second project supported under the Memorandum of Understanding signed in April 2017 between the UK and Iraq Governments, in which UK Export Finance (UKEF) affirmed its commitment to support Iraq’s infrastructure development.

Baroness Fairhead, Minister of State for Trade and Export Promotion, said:

"I’m delighted that UK Export Finance will be supporting this project under the recently signed infrastructure Memorandum of Understanding between our two governments. This project demonstrates the UK’s commitment to supporting Iraq’s continued economic development, and through Government support we are laying the groundwork for future UK-Iraq trade."

GE Global Services UK will deploy Advanced Gas Path (AGP) solutions and controls software, a technology that will improve gas turbine performance and enable power plants in the Baghdad, Karbala, Kadisiyah, Babil, Najaf and Basrah regions to operate more dynamically.

UKEF, in partnership with the Swiss export credit agency SERV, will provide the Government of Iraq with $210.8 million in support for the project. UKEF will provide $105.4 million of this support as a direct loan, with the remaining $105.4 million given in the form of a guarantee on a loan from JP Morgan Chase, for which SERV will reinsure UKEF.

This is the second of three phases of a wider turbine maintenance programme as part of the Iraq Power Up Program, where GE Global Service UK has been contracted to deliver in the period from 2017 to 2019. It follows support for a GE and Enka UK contract to construct two new power stations, agreed last year.

(Source: UKEF)

The United States Agency for International Development (USAID) has contributed an additional US$ 80.85 million to The United Nations Development Programme (UNDP).

US$ 75 million will go to UNDP’s Funding Facility for Stabilization (FFS), with the remaining US$ 5.85 million committed to UNDP’s Funding Facility for Economic Reform (FFER). This brings the total United States contribution to UNDP to US$ 198.65 million since 2015.

UNDP’s FFS finances fast-track initiatives to stabilize areas liberated from the Islamic State of Iraq and the Levant (ISIL) to safeguard against the resurgence of violence and extremism, facilitate returns and lay the groundwork for reconstruction and recovery.

Through the FFER, UNDP helps the Government of Iraq to address key economic challenges and accelerate efforts to diversify the economy, increase national income and improve the management of national assets.

UNDP Resident Representative for Iraq, Ms. Lise Grande, said:

“The progress that is being made is tangible—you can see it everywhere in newly liberated areas. Electricity grids are starting to work, water systems are being repaired, schools are opening, health centres are functioning and people are getting back to work.

"More than half of the nearly six million people who fled their homes during the conflict have returned to their communities and started rebuilding their lives. There’s no question that a huge amount still needs to be done, most importantly in Mosul and the Nineveh Plains, and this is why this very generous contribution is so important for Iraq.”

The United States’ Ambassador to Iraq, Douglas Silliman stressed that the USA’s commitment to the Iraqi people did not end with the eradication of ISIS. “Communities in the liberated areas now face the daunting challenge of rebuilding their lives and restoring their cultural heritage. These funds will help restore basic services like water and electricity so that Iraqi families of all ethnic and religious backgrounds can return to their homes - safely, voluntarily, and with dignity," said Ambassador Silliman.

Established in June 2015, FFS is working in newly liberated areas in Anbar, Salah al-Din, Nineveh and Diyala Governorates in order to safeguard against the emergence of violent extremism, facilitate returns and lay the groundwork for reconstruction and recovery.

Two-thirds of the more than 1,600 projects currently underway are in Nineveh Governorate including 500 in Mosul and 280 throughout the Nineveh Plains.  Established in September 2016, FFER is mobilizing expertise to support the implementation of top priority reform initiatives under the leadership of the Office of the Prime Minister.

(Source: UNDP)

By John Lee.

Iraq's National Investment Commission (NIC) has included two airport 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:

• Rehabilitation and development of Mosul International Airport.
  • Estimated cost before 2014: 120 billion Iraqi Dinars.
  • Estimated percentage of Damage: over 40% (based on the estimation preformed by specialized committees carried out at the end of 2017).
• Rehabilitation and development of Nasiriya International Airport, developing the Marshlands, and the Prophet Abraham Shrine.
  • Capacity: around 500 thousand passenger/y
  • Target capacity: 1 million passengers/y
  • Initial estimated cost: $74m
  • Buildings include: passengers terminal, runway, yard, taxi, tower, firefighting center, electricity, air conditioning systems with all devices.

The full 46-page document can be downloaded here.

(Source: NIC)

(Picture Credit: Tasnim, under Creative Commons licence)