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By John Lee.

Iraq has been ranked 168th out of 190 countries in the World Bank‘s recent Doing Business 2018 report, down from 165th place the previous year.

Despite the fall in the rankings, the report notes that over the previous year Iraq simplified the process of starting a business by combining multiple registration procedures and reducing the time to register a company, and it launched a new credit registry, improving access to credit information.

Top of the list were New Zealand, Singapore and Denmark, with last place going to Somalia, just behind Eritrea and Venezuela. Iran ranked 124th, with Libya 185th.

Doing Business measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures labor market regulation, which is not included in this year’s ranking.

(Source: World Bank)

By the end of the third quarter of 2017, UNDP’s Funding Facility for Stabilization (FFS) was undertaking 1,208 projects in 23 cities across five governorates in Iraq.

Over one quarter of the projects were being implemented in the city of Mosul, which was fully liberated in July 2017. The liberation of all of Mosul marked an important milestone in the battle against the Islamic State of Iraq and the Levant (ISIL), representing the biggest city to have been retaken by the Iraqi Security Forces as well as the most complex stabilization challenge to date.

Mosul’s road to recovery has only begun, especially in West Mosul where the destruction is unprecedented. Access to all portions of the city on the western side remains a challenge in some parts, especially the Old City which was almost completely destroyed.

The Funding Facility is working with the Government of Iraq to prioritize the response, focusing on restarting public services and setting the conditions for people to come home with dignity.

In a dozen cities where FFS is cleared to work, many basic services are now functioning. From Ramadi and Fallujah to Tikrit and Qayara, returnees have much improved access to water, health, and electricity services. Schools are being reopened and university campuses are bustling with students.

Whilst a colossal amount of work remains to be done, there is palpable progress being made. Nearly 900 projects completed or ongoing in FFS areas outside of Mosul are helping create the sense that there is momentum and the Government of Iraq is helping returnees.

Governorates that have been liberated for over a year are beginning to transition from immediate stabilization to expanded stabilization priorities. In Anbar, Salah al-Din, and Diyala, expanded stabilization projects that were being designed and procured are increasingly being implemented.

Twenty-four donors have contributed US$ 426,611,814 as of 30 September 2017, and approximately $300,000,000 in hard pledges are expected to be mobilized in the fourth quarter of 2017. This report provides an overview of all FFS activities underway during the third quarter, which encompasses 1 July – 30 September 2017.

Highlights

• In Mosul, 350 projects are being implemented or developed, 250 schools were assessed, and water has been restored to 300,000 residents in East Mosul
• In the Ninewah Plains, 45 schools were completed or being rehabilitated. Work on the Hamdaniyah Hospital, the first Expanded Stabilization project in the Ninewah Plains, is underway
• Two major bridges in Anbar were reopened, and another five are being implemented
• Housing rehabilitation in Fallujah and Ramadi targeted over 6,000 homes
• Five segments of the Tikrit Teaching Hospital are complete; the rehabilitation of the main building will begin soon

The full report can be downloaded here (7.6MB)

(Source: UNDP)

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.

Every day new anti-corruption cases are announced in Iraq's new "war on corruption". Yet they achieve virtually nothing. This may well be a war that nobody in Iraq can win.

Last week the Iraqi prime minister, Haidar al-Abadi, said that now that the war against the extremist group known as the Islamic State had been won, that a new war should be fought – and this one would be against corruption.

Last year the advocacy organisation Transparency International says that Iraq was the 166th most corrupt country in the world out of 176. And corruption of all kinds has been a problem in the country for decades. It’s almost a way of life here. So this will be far from an easy fight. In fact, it may prove to be more difficult than the fight against the Islamic State group.

Iraqi politics functions according to a kind of unofficial sectarian quota system that was established after the 2003 US-led invasion of Iraq that toppled Saddam Hussein’s regime.  In order to avoid sectarian infighting among politicians, US administrators thought it best to split the most important positions in Iraq’s new Parliament between the three major ethnic and sectarian groups in the country; that is, the Sunni Muslims, Shiite Muslims and Iraqi Kurdish.

Over time though, many analysts believe this practice has come to hamper Iraqi democracy, with leaders being picked for their sect or ethnicity, rather than on merit.

And the system is far more problematic than that. In reality, it is based on two further principles: How much power each appointment gives to the person who gets the job, and therefore how much money the appointment can generate.

Every party in the Iraqi government today also has what is known as an “economics office”, a bureau tasked with raising funds for the political party using the government jobs held by the members themselves. According to insiders, who cannot be named for security reasons, these offices coordinate making deals and signing contracts behind the scenes so that investments and kickbacks are shared with the political party itself.

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Basra Oil, Gas & Infrastructure is held under the high patronage of the Basra Governorate, the Basra Council and Iraq’s Basra Oil Company from October 30 to 31 in Beirut, Lebanon. Government officials, project stakeholders and buyers and suppliers attend to explore the expanding energy projects in the South of Iraq.

Jereh Group made its debut in the panel discussion about investment. It displayed integrated solutions covering investment, financing, manufacturing, EPC to turnkey delivery under the Belt and Road Initiative. The solutions facilitate the development of local infrastructures and boost the economic growth.

Authoritative reports show that Iraq is OPEC's second-largest crude oil producer and holds the fifth-largest proved crude oil reserves in the world. And Iraq is developing its oil fields and expanding infrastructure capacity in the south to accommodate more production growth. Large-scale increases in oil production would also require large increases in electric power generation. Significant upgrades to the electricity sector would be needed. To achieve this, reliable partnership and excellent investment and financing solutions are needed.

Johnson Jiang, President of Jereh Mid-East Region, made a keynote speech in front of more than 200 participants representing Basra’s thriving industries. He shared Jereh's best practice in oil & gas, power and environment industry and what it can bring to the local industries, saying that:

"The China-proposed Belt and Road Initiative offers a unique opportunity for development and social progress among B&R countries. Jereh can provide flexible investment and financing mode to help Iraqi customers build a reliable and secure project. We also collaborate with global partners to provide customers with integrated solutions covering investment and financing, turnkey engineering, technical services and equipment manufacturing."

Jereh is a preferred partner for the energy industry. Based on technology-driven innovation, a deep understanding of customer requirements, and unique expertise, it is committed to offering customers the optimal solutions and project execution. Jereh has been working with industry-leading International Oil Companies (IOCs) and National Oil Companies (NOCs) on turnkey engineering, well service equipment manufacturing, oilfield services and environmental management.

The company has a large number of implementation cases in Iraq and Middle East area in fields such as natural gas boosting and storage, nitrogen pumping, cementing and coiled tubing for oil production, and oily waste treatment. It also has extensive experience in delivering projects worldwide, supported by its local teams and abundant partners in more than 60 countries and regions.

“With the support of Belt and Road Initiative, Jereh will leverage its experience to conduct more cooperation in a compliant way in Iraq and provide private-sector investment to assist in developing Basra to provide the infrastructure that’s vital to boost the economic growth,” said Johnson.

(Source: Jereh Group)

The Iraqi Ministry of Electricity (MoE) has signed an agreement worth over $400 million with GE Power (NYSE: GE) to develop 14 electric substations on a turnkey basis and supply critical equipment such as transformers, circuit breakers and other outdoor equipment to rehabilitate existing substations and bring much-needed power to areas facing significant electricity shortages across the country.

The project represents a strategic milestone for GE to develop electric substations in Iraq, and will also see the Company support the MoE to secure funding through various financial institutions, including export credit agencies and commercial banks.

Mussab al-Mudaris, spokesperson of the Iraqi Ministry of Electricity said:

“The agreement represents a major milestone in our efforts to strengthen Iraq’s power transmission sector, through a comprehensive grid project across the nation. Our focus remains on providing our people with the most reliable and advanced technology to meet their daily needs, and to accomplish this we need strong partners in this journey of development and reconstruction. GE has the technology, global capabilities and local presence to ensure the successful and sustainable execution of the project.”

GE will develop the substations to connect power plants spread across the governorates of Ninawa, Salah Al Din, Al Anbar, Karbala, Baghdad, Qadisiyyah and Basra to the national grid. Several of the locations, in conflict-affected areas, are continuing to recover and are in immediate need of reliable power infrastructure.

GE Power has previously provided power generation equipment for some of the power plants that the substations will be connected to, including the three gigawatt Basmaya Power Plant. The current agreement includes 4 substations critical to distributing power from the facility, which is also being equipped with eight of GE’s 9FA gas turbines, four GE C7 steam turbines and GE’s leading digital industrial applications.

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Engineers in northern Iraq are carrying out repairs on a vital dam damaged by the earthquake that also devastated areas in neighbouring Iran.

The dam, which provides water and electricity to about two million people, risks breaking and unleashing disastrous flooding.

More than 500 people were killed and about 70,000 were displaced after the deadliest earthquake of the year struck a border region between Iran and Iraq.

Al Jazeera's Sinem Koseoglu reports from Darbandikhan:

Iraq Britain Business Council holds successful Autumn Conference in Dubai

Following on from the first Iraq Britain Business Council conference in Dubai in 2016, the IBBC was delighted to host its Autumn Conference in the UAE once again. The event was strongly supported by the UAE authorities.

Alongside Baroness Nicholson, the UK Prime Minister’s Trade Envoy to Iraq and President of the IBBC, the conference was opened by H.E. Mr. Abdulla Ahmed Al Saleh, Under Secretary for Foreign Trade and Industry, UAE Ministry of Economy.

H.E. Mr. Abdulla reminded delegates that non-Oil & Gas related trade between the UAE and Iraq had already passed 11 Billion USD in 2016, with Dubai in particular being a hub for local and international companies in the region.

H.E. Mr. Abdulla firmly believes that the UAE's role in the rebuilding of Iraq will continue to expand and expressed his wish to cooperate with organisations such as the IBBC to accomplish this crucial task.

Vikas Handa, IBBC UAE Representative and the Managing Partner of the Emirati Company DrillTech, warmly thanked the minister and stated that the IBBC stands ready to work even more closely with the UAE in Iraq.

The Government of Iraq sent a high calibre ministerial delegation led by H.E. Mr Qasim Al-Fahdawi, The Minister of Electricity, to the conference. The delegation included H.E. Mrs Ann Naufi Aussi Balbool, Minister of Construction Housing and Public Municipalities; H.E. Kadhim Fijan Al Hamami, Minister of Transport; H.E. Dr Sami Al Araji, Chairman of the National Investment Commission (NIC); and H.E. Mr Fayadh Hassan Nima, Deputy Minister of Oil for refining affairs.

The conference was structured around several sessions in which the Iraqi officials and international companies operating successfully in Iraq, most of which are members of the IBBC, exchanged their views and experiences.

These sessions focused on strengths, weaknesses and opportunities of the economy in Iraq, Reconstruction & Infrastructure, Transport, Power and Oil & Gas. In parallel, a series of high level round-table discussions between investors and Iraqi Government representatives took place.

The conference included for the first time a presentation on the rapidly developing Tech sector in Iraq , given by the CEO of Zain.

IBBC thanks the International Finance Corporation (World Bank) and the IMF for its participation. Thanks also go to the IBBC members who sponsored the conference: Gold Sponsor International Islamic Bank; Silver Sponsors Serco and Gulftainer; Lunch Sponsor Rolls-Royce; pre-reception Sponsor Wood; and Coffee Break Sponsors Eversheds Sutherland and KCA Deutag.

IBBC Managing Director, Christophe Michels, stated that the increasing involvement of the UAE and wider GCC with Iraq was a game changer for the country. The IBBC very much welcomes this development and is delighted to be part of it and support it. The organisation will increase its presence in the UAE and the Autumn Conference in Dubai will become a regular feature in its calendar of events.

(Source: IBBC)

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

Key Iraqi border town retaken amid regional power plays

Iraqi Prime Minister Haider al-Abadi raised the Iraqi flag Nov. 5 after climbing a sandy berm from which Islamic State (IS) flags could be seen about 200 meters (656 feet) away on the Syrian side of the border.

Al-Monitor’s reporter was the only Western journalist reporting from the border area at Qaim with the Iraqi forces in the first few days after the town's liberation, according to several officers on the front. No Western media were present during the actual operation, they said, during which access to even the surrounding area was severely restricted.

The city of Qaim, along Iraq’s westernmost edge, was proclaimed liberated Nov. 3, even though some of the nearby areas were not cleared until the following day.

The Iraqi army, counterterrorism forces and local tribal fighters trained by the international anti-IS coalition and non-local Popular Mobilization Units took part in the fighting.

Al-Monitor saw no civilians in the central areas or near the Syrian border while driving through the dusty, heavily damaged wasteland of Qaim’s streets Nov. 5. In the days following the liberation, Al-Monitor visited the only three families said to have remained in one area of the city.

A Nov. 6 sandstorm covered Qaim with a copper-colored layer of dust, severely limiting the visibility in the town and along the entire road toward it from the Jazeera operations headquarters in Haditha, roughly 150 kilometers (93 miles) away along a road torn up by improvised explosive devices (IEDs) that dips through wadis and passes by destroyed bridges.

A long string of knocked-down electricity transmission towers, still seemingly fully intact otherwise, can be seen from the road. There is no cellphone reception of any kind in the area. Frequent firing could be heard from the Iraqi side of the border at Qaim toward al-Bukamal in Syria on Nov. 6.

The Government of New Zealand has contributed an additional US$1 million to UNDP’s Funding Facility for Stabilization (FFS), which finances fast-track initiatives in areas liberated from the Islamic State of Iraq and the Levant (ISIL). This brings the New Zealand’s total contribution to FFS to $2 million to date.

Based on priorities identified by the Government of Iraq and local authorities, FFS helps quickly repair public infrastructure, provides grants to small businesses, boosts the capacity of local government, promotes civil engagement, and provides short-term employment through public works schemes.

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

“The scale of destruction in western Mosul is the worst in the country. The electricity, water and sewage systems all need to be rehabilitated. Many schools and hospitals are either damaged or completely destroyed. Tens of thosuands of people need jobs. With so much to do, we are very grateful to New Zealand for stepping forward with this contribution at this key point in time.”

The Chargé d’Affaires for the New Zealand Embassy in Iraq, Ms. Anna Reid, said:

“New Zealand congratulates the Iraqi people, the Iraqi Security Forces and the International Coalition on their ongoing success in defeating ISIL. Restoring core services and infrastructure is crucial to ensuring that people displaced by the conflict are able to return to their homes and communities.

"This further contribution to the Funding Facility for Stabilization, alongside our support to building capacity in the Iraqi Security Forces, demonstrates New Zealand’s commitment to support stability in Iraq.”

Established in June 2015, FFS is working in newly liberated areas in Anbar, Salah al-Din, Ninewah, Diyala and Kirkuk Governorates. More than 1,200 projects are completed or being implemented across 23 locations. Since the start of the crisis, over 2.2 million people have returned to their homes.

(Source: UNDP)

The World Bank has approved a US$400 million financial assistance package today to support the recovery, reconstruction and rehabilitation of priority infrastructure to restore delivery of public services in areas of Iraq newly liberated from the Islamic State of Iraq and Syria (ISIS).

The package represents an additional financing to the Iraq Emergency Operation for Development Project (US$350 million), approved back in July 2015 and already underway in seven cities in Diyala and Salah Ad-Din governorates.

The additional financing will allow the geographic scale-up of existing project activities to additional cities liberated from ISIS in the Salah Ad-Din and Diyala governorates, as well as in the governorates of Anbar (including Ramadi), Kirkuk, Ninawah (including Mosul) and the Kurdistan Regional Government’s (KRG’s) governorate of Dohuk.

Similarly, implementation responsibilities will also expand to subnational governments in addition to the central government institutions.

Saroj Kumar Jha, World Bank Mashreq Regional Director, said:

"The international community has expressed its commitment to support the urgent need for the Government-led reconstruction of Mosul and other recently liberated cities. The World Bank is committed to working with Iraqi authorities to ensure that this much-needed reconstruction takes place in a sustainable, inclusive and equitable manner to foster long term development and create opportunities for everyone."

The current project activities span over five primary sectors: water and sanitation, electricity, health, transport and municipal services. The additional financing will continue to support these sectors, as well as address pressing education, agriculture/irrigation and urban service delivery needs of communities in liberated areas.

It will also support the restoration and preservation of key cultural heritage assets especially in the Old City of Mosul. But beyond the physical repair, emphasis will be given to improving the quality of education for boys and girls, and increasing the employment of women, youth as well as the poor in both urban and rural areas.

The additional financing will also support the Government of Iraq in attracting private sector participation in reconstruction efforts. To this effect, studies will be carried out to assess the feasibility of public private partnerships in the reconstruction, operation and maintenance of Mosul airport, which was severely damaged during the liberation of Mosul.