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By John Lee.

Iraq has signed a $500-million agreement with Swiss-Swedish ABB to implement energy transmission projects.

Prime Minister Haider al-Abadi's office said on Sunday that the agreement was signed between the company and the government of Iraq for the Ministry of Electricity.

(Source: Office of the Prime Minister)

Advertising Feature

IBBC Spring Conference 2017

Iraq: Rising Confidence

Monday 3 April at Mansion House, London

Baroness Nicholson of Winterbourne, IBBC President, the Executive Committee and Council Members, are pleased to invite you to the IBBC Spring Conference to be held on Monday 3 April 2017 at the prestigious Mansion House in London. The conference is the place to hear about the latest developments in Iraq from top level UK and Iraqi officials, businessmen and academics.

The IBBC Spring Conference has developed into a crucial event for the development and investment of Iraq globally, and this year’s agenda is once again shaping up tremendously, with the Lord Mayor of the City of London, Dr Andrew Parmley, having agreed to open the conference. The keynote speaker at the conference is Tobias Ellwood, UK Minister for Middle East and Africa, FCO.

Other confirmed speakers include:

• Frank Baker OBE, Her Majesty’s Ambassador to Iraq
• Marcus Antonini, Vice President and Country Chairman, Shell Iraq
• Alistair Kett, Partner, PwC
• Christian Josz, Deputy Division Chief, Middle East and Central Asia Department, International Monetary Fund (IMF)
• Dr Raja Al Marzoqi, President, Gulf Monetary Council
• Louis Taylor, Chief Executive, UK Export Finance
• Fethi Kirdar, Chief Business Development Officer, Moby Group
• Omar Hassan, Founder & CEO, Inevert

Our theme this year is ‘Iraq: Rising Confidence’. With an increasingly secure climate, international monetary loans, and an appetite for business and civic investment, IBBC has convened the top experts involved with business in Iraq to discuss the best economic and investment strategies to benefit from Iraq’s Rising Confidence in 2017.

Topics on the agenda include:

• Power/electricity supply
• Finance
• Oil and Gas
• Technology, Growth and Innovation
• Iraq after ISIS: Challenges and Opportunities

Each session will emphasise the business opportunities for UK-based companies.

Baroness Nicholson of Winterbourne will host a reception for delegates and special guests following the conference at the nearby venue of Searcy’s at 18:30.

The IBBC team looks forward to seeing you at the Spring Conference.

Click here to register.

Japan has approved a loan of about $100 million to support humanitarian, counter-terrorism and infrastructure projects in Iraq, a Japanese embassy statement said on Tuesday.

In January, Japan approved loans worth $240 million to Iraq to rebuild damaged electricity infrastructure in areas recaptured from Islamic State.

Iraq's government income, which comes almost exclusively from oil exports, fell sharply when crude prices tumbled three years ago and IS captured large areas of northern and western Iraq.

(Source: GardaWorld)

By John Lee.

US diplomats, citing a senior Iraqi government official, have said that the US travel ban could jeopardise General Electric (GE)'s business in Iraq.

According to a memo obtained by Politico:

"[The Baghdad government] was preparing to sign two more deals with U.S. company General Electric that could be negatively affected, and that the prime minister wanted to expand Iraq’s cooperation with GE into the health, transportation, and aviation sectors, as well as sign a maintenance contract with GE worth billions of dollars.

“The travel ban called into question whether GE and the U.S. could be reliable partners ... such cooperation would be hurt by the new visa policy.”

The company already has power contracts worth more than a billion dollars in Iraq, and hundreds of employees in the country.

It recently announced that it has secured more than $1.4 billion in orders from Iraq’s Ministry of Electricity to set up power plants as well as provide technology upgrades and maintenance services.

Full story here.

(Source: Politico)

The end of 2016 saw several new members join the Iraq Britain Business Council (IBBC), each of which are underpinned by strong reputations for innovation, reliability and a commitment to investing in Iraq.

GE, Khudairi Group, Pell Frischmann, Petronas and Siemens join 51 other world- and region-leading companies that form IBBC’s Council of Members.

“IBBC warmly welcomes the addition of these five world-class companies to our membership,” IBBC Managing Director Christophe Michels says. “We greatly look forward to working closely with them and supporting them with the important work they are doing in Iraq.”

New members

GE has operated in Iraq for over 40 years. The world-leading company has three offices around the country – in Baghdad, Erbil and Basrah – which are manned by 120 staff. GE supports the country’s infrastructure needs in power generation, oil and gas and water processing, as well as in healthcare and aviation.

The Khudairi Group is a leading provider of services to the oil and gas, engineering and construction industries in Iraq. It is owned and run by the Khudairi family, one of the country’s most prominent commercial families. The company is active throughout Iraq across six primary business units: Engineering, Procurement and Construction; Oilfield Supply and Services; Heavy Machinery Dealership; Heavy Machinery Rentals; Distribution and FMCG Distribution.

Siemens provides solutions to help tackle the world’s major challenges, focusing on electrification, automation and digitalisation. In March 2016, the company signed a Memorandum of Understanding with the Government of Iraq, in collaboration with the Ministries of Electricity and Oil & Gas, to support the development and optimisation of the country’s power generation and grid infrastructure including power generation mix.

Pell Frischmann is one of the UK’s leading firms of consulting engineers, with major operations throughout Europe, the Middle East and Asia. The company has been working in Iraq since 2004. Its projects include the Mid-Western Water Supply Project, one of the biggest rebuilding projects in Iraq. In 2006, the firm received the Queen’s Award for Enterprise for its work in the reconstruction Iraq.

Established in 1974, Petroliam Nasional Berhad (PETRONAS) is Malaysia’s fully integrated oil and gas multinational ranked among the largest corporations on FORTUNE Global 500. It operates in Iraq under the name PETRONAS Carigali Iraq Holding B.V. Activities the company has been involved in developing the Garraf, Halfaya, Majnoon and Badra oil fields.

For more information on IBBC membership, please email the IBBC team at [email protected]

(Source: IBBC)

Humanitarians fear for the 750,000 civilians in western Mosul

100 days after military operations to retake Mosul started, humanitarian partners are expressing deep concern about the plight of the estimated 750,000 civilians who are currently living in the western sections of the city where fighting is expected to start in coming weeks.

"We are relieved that so many people in the eastern sections of Mosul have been able to stay in their homes. We hope that everything is done to protect the hundreds of thousands of people who are across the river in the west. We know that they are at extreme risk and we fear for their lives," said Lise Grande, Humanitarian Coordinator for Iraq.

In the contingency plan prepared prior to the onset of the Mosul campaign, humanitarian partners warned that as many as one million civilians may be impacted by the fighting in a worst case scenario. To date, 180,000 people have fled the eastern sections of the city; more than 550,000 civilians have stayed in their homes.

Humanitarian partners have been working as quickly as possible to provide direct lifesaving assistance. Nearly 600,000 people have received food, 745,000 people have benefitted from water and sanitation support and 370,000 people have sought medical care.

Eighty-five per cent of the people displaced from Mosul are staying in 13 displacement camps and emergency sites constructed by the Government and partners. Ten of these camps are already full of which four are being extended. Seven more are under construction.

"The reports from inside western Mosul are distressing. Humanitarian partners are unable to access these areas but all the evidence points to a sharply deteriorating situation. The prices of basic food and supplies are soaring. Water and electricity are intermittent in neighbourhoods and many families without income are eating only once a day. Others are being forced to burn furniture to stay warm," said Ms. Grande.

"We don't know what will happen in western Mosul but we cannot rule out the possibility of siege-like conditions or a mass exodus. To date, nearly half of all the casualties from Mosul are civilians. It's terrifying to think of the risks families are facing," said Ms. Grande. "They can be killed by booby-traps and in cross-fire and could be used as human shields."

The Iraqi Security Forces have adopted a humanitarian concept of operations putting civilian protection at the centre of their battle plan. Humanitarian partners welcome this approach and renew their collective call on all parties to the conflict to uphold their obligations under international humanitarian law to protect civilians and ensure they have access to life-saving assistance.

"The world’s attention is fixed on the military campaign in Iraq. But once this is over, there will still be a humanitarian crisis. As many as three million Iraqis, maybe even four million depending on what happens in Mosul, Hawiga and Tel Afar may be displaced from their homes as a result of the conflict. These families will need to make crucial choices about how to rebuild and re-establish their lives. And we will need to be here to help them. We hope and trust that the international community will not walk away after Mosul. It would be a mistake — a very big one — if this were to happen."

Signees:

Lise Grande, Humanitarian Coordinator for Iraq
Aaron Brent, Country Representative Northern Iraq, CARE
Altaf Musani, Representative and Head of Mission, WHO Iraq
Bana Kaloti, Regional Director-Middle East, UNOPS
Bruno Geddo, Representative in Iraq, UNHCR
Dina Zorba, Country Representative, UN Women
Erfan Ali, Head of Iraq Programme, UN-Habitat
Fadel El-Zubi, Representative in Iraq, FAO
Francesco Motta, Director of the HRO/UNAMI, Representative of the UN OHCHR in Iraq
Ivo Freijsen, Head of Office Iraq, UNOCHA
Louise Haxthausen, Director, UNESCO Iraq
Mounir Tabet, Country Director, UNDP Iraq
Peter Hawkins, Representative in Iraq, UNICEF
Ramanathan Balakrishnan, Representative, UNFPA
Sally Haydock, Representative in Iraq, WFP
Thomas Lothar Weiss, Iraq Chief of Mission, IOM
Lawk Ahmad, Country Director, Qandil
Matthew Nowery, Country Director, Samaritan’s Purse
Mike Bonke, Country Director, Welthungerhilfe
Stef Deutekom, Deputy Country Director, DRC

(Source: UNDP in Iraq)

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.

Power Station Attack First Sign that Iraqi Kurdish Protestors are Ready to use Violence?

Just after protests about power cuts, somebody fired rockets at a Chamchamal power station. Is this the first sign of violence, after months of protests against the local government?

Although Iraqi Kurdistan’s power needs are met by the natural gas reserves in the area of Chamchamal, the people actually living in the area don’t see a lot of the benefits of their natural resources. Which is why a group of locals decided to protest this situation on January 2.

Then that evening unidentified individuals launched rocket propelled grenades at the gas-fuelled power plant that provides Iraqi Kurdistan with around half of all of its energy needs. The plant was not damaged.

Strangely, after the attack on the power plant, the energy being supplied to locals in Chamchamal increased. Households there had been getting about two hours of power after midnight. Now they were getting an uninterrupted supply between 10pm and 8am. Many locals said that there was a connection between their new electricity schedule and the rocket attacks.

On local social media, people started making jokes about the incident. “Fire a rocket and get 24 hours of free power,” read one witty comment. “This offer is valid until the government wakes up again.”

Some locals suggested that a local hero of sorts, Abdullah Kwekha Mubarak, was behind the rocket attack. Mubarak lived in Norway for almost a decade and returned to Iraqi Kurdistan in 2008; he more or less founded the Chamchamal branch of the Change movement, an opposition party that has campaigned on an anti-corruption platform in the past. In the recent past he has taken what may best be described as staunch positions.

Early in 2016 Mubarak threatened to cut a gas pipeline in Chamchamal if the area didn’t get a better power supply. On January 29, the gas pipeline going from the Khor Mor gas field to Erbil was bombed leading to a disruption in work at other power plants that rely on natural gas.

GE has announced that it has secured more than $1.4 billion in orders from Iraq’s Ministry of Electricity to set up power plants as well as provide technology upgrades and maintenance services.

The company signed agreements that will add over two gigawatts (GW) of power and secure the delivery of ~1.75 GW of existing power to the national grid:

• GE will set up the Samawa and Dhi Qar Power Plants, adding 1,500 megawatts (MW) to the grid. In the first phase of the project, GE will install four 9E gas turbines in simple cycle at each site by 2018. The second phase will entail the combined cycle conversion of the 9E units. GE is also supplying advanced heat recovery steam generators (HRSG) and steam turbine technology as well as serving as the engineering, procurement and construction (EPC) contractor for the projects.

• Under Phase II of the Power Up Plan – a plan with the Iraqi Ministry of Electricity (MoE) for critical electricity generation and maintenance projects throughout the country - GE will add over 580 megawatts (MW) to the national grid through upgrade and rehabilitation works at four power plants.

• Additionally, under Power Up Plan Phase II, GE will sustain ~1.75 GW of existing power generation through the maintenance of 9E gas turbines across six different power plants in Iraq. The activities will help enhance the reliability and efficiency of Iraq’s installed base.

GE has also been working with regional and international institutions to facilitate financing to help the Government of Iraq execute these and other projects. Since 2016, GE has helped the country secure $2 billion in financing for projects in the energy sector leveraging its global sourcing capabilities coupled with its strong relationships with lenders.

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.

Over the past few months the council in the central Iraqi province of Anbar have managed to create a number of new districts and sub-districts.

The last meeting making such decisions was held in December and most of the members of the provincial council voted in favour of establishing four new districts inside the province.

These are Karmah, east of the city of Fallujah, Baghdadi, almost 200 kilometres west of Baghdad, Amiriyat al-Samoud, southwest of Fallujah and Nahib, 280 kilometres southwest of the city of Ramadi. An additional five villages were changed into sub-districts within these new districts.

“Tribal and political influence were among the most important reasons behind the creation of these new districts,” says Daham al-Zubai, a tribal leader in Fallujah. “These were just ordinary villages before, with a population of no more than 3,000 people.”

“Most of the new districts are actually the bases for influential individuals who are trying to control nearby villages and to benefit from them, in terms of political gains,” he added.

It is perfectly legal for a provincial council to rezone areas within the province they run. But as yet, opinions on the new districts in Anbar remain divided. Some believe it to be a positive step in that the re-zoning has the potential to provide more government jobs and could improve the delivery of state services, like electricity and sanitation, to the new districts.

But others think the timing is wrong, given the ongoing security crisis in Iraq, as well as budgetary problems, which mean that even if jobs were created, it would be difficult to pay for them.

“We’ve done a number of studies on what can happen when larger areas are divided into smaller ones – Anbar was one of our case studies,” says Hassan Kashash, a lecturer in geography and administration at the University of Anbar. “The results were positive and suggested that smaller districts will provide better opportunities for management and for the optimized use of human and natural resources.”

In the 1970s, similar plans were enacted with new cities built and the corresponding expansion in residential compounds and employment was seen as positive. “But there is no point in planning new administrative bodies if there is no development plan enacted at the same time,” Kashash concluded.

By John Lee.

Reuters reports that Japan has agreed to lend Iraq up to 27.2 billion yen ($240 million) to rebuild damaged electricity infrastructure, especially in areas recaptured from the Islamic State group (IS, ISIS, ISIL, Daesh).

It also intends to approve another loan worth 21.5 billion yen to repair a thermal power station in Basra province, and will make additional contributions of approximately $100 million through international organizations for humanitarian assistance.

The loan was signed during a visit to Iraq by Japanese State Minister for Foreign Affairs Kentaro Sonoura (pictured).

(Source: Reuters)