Custom Search

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. 

Every year, the number of pilgrims visiting religious sites in Iraq increases. After Iranians were not allowed to travel to Mecca to perform the hajj this year due to Iranian-Saudi disputes, Iranian Shiites headed in great numbers to Imam Husayn Shrine (pictured) in Karbala to celebrate the Day of Arafah on Sept. 10.

There were around 1 million visitors in September. As the holy month of Muharram, during which time Shiites visit Karbala, is approaches, the number of visitors will increase further.

The increase in visitors has sparked questions whether Iraq can find a way to improve the country's economy, despite the fact that it hasn’t imposed taxes or fines on religious tourists for 12 years. But indicators in August foreshadowed a gradual growth in tourism that focuses on religious and archaeological landmarks.

According to Maitham Laibi, an economist and academic at the University of Baghdad, the country's economic growth has not been steady in a way that could ensure effective measures to benefit from the increasing number of visitors.

Laibi told Al-Monitor, “Iraq has not been able to use religious sites to its advantage and integrate them in profitable touristic activities due to the managerial mentality that is characterized by lavish spending on these rituals from the state’s budget, instead of investing in encouraging more locals and international pilgrims to visit.”

He said, "During the era of oil prosperity and the large financial revenues, governmental cars were used during the visits and lump sums of money were spent on religious convoys, while no entrance fees to Iraq were collected.”

The Iraqi authorities and the staff of the International Monetary Fund (IMF) held discussions in Amman from August 28–September 10, 2016 on the first review of Iraq’s 36-month $5.3-billion Stand-By Arrangement (SBA) approved by the IMF Executive Board on July 7, 2016.

Mr. Christian Josz, Mission Chief for Iraq, issued the following statement:

“The Iraqi authorities and IMF staff started discussions on the first review of the SBA. These discussions will continue during the upcoming IMF and World Bank Annual Meetings from October 7–9, 2016 in Washington, DC.

“During the mission, the team met with the Minister of Finance Hoshyar Zebari, Acting Governor of the Central Bank of Iraq (CBI), Dr. Ali Allaq, the Financial Adviser to the Prime Minister Dr. Mudher Saleh, and officials from the ministries of finance, oil, planning, electricity, the CBI, and representatives from the Kurdistan Regional Government, Board of Supreme Audit, and pension commission.

"The team would like to thank the Iraqi authorities for their cooperation and the open and productive discussions.”

Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.

(Source: IMF)

GE has signed a multiyear agreement in Iraq with Mass Energy Group Holding.

The $520-million contract includes operation and maintenance services as well as GE’s advanced digital industrial solutions for the 3-gigawatt gas-fired Basmaya [Bismaya] Power Plant, 40 kilometers east of Baghdad.

This contract represents a continuing effort between Mass Energy Group Holding, the Iraqi Ministry of Electricity (MOE) and GE to bring much-needed power to the people of Iraq.

Ahmad Ismail, Chairman of Mass Energy Group Holding, said:

“The Basmaya Power Plant is a milestone project that marks the first-of-its-kind independent power producer agreement between Mass Energy Group Holding and Iraq’s Ministry of Electricity.

“In addition to meeting the surging demand for power from the Iraqi people, the plant will support the country’s focus on building its infrastructure and strengthening local industries.

"The power plant will feed the national grid, benefiting all sections of the community. GE has been our long-term partner, and by operating the plant, GE is bringing its advanced technology solutions to help us to deliver the highest levels of efficiency, reliability and productivity.”

The multiyear service agreement builds on GE’s long-term relationship with Mass Energy Group Holding, which includes prior contracts to provide Basmaya with eight units of its advanced 9FA gas turbines and four units of its C7 steam turbines.

The project is being developed in two phases, with each phase delivering 1,500 megawatts (MW) of power, which together is enough power to meet the needs of over 600,000 households.

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.

Regaining Qayyarah a Major Step Towards Defeating Extremists

Since it was liberated by Iraqi forces last month, Qayyarah has come to be seen as the key to freeing surrounding areas from the grip of the extremist Islamic State group, known as IS.

For more than two years, the town in northern Iraqi province of Ninawa was home to the IS treasury. But today the organization’s black banners and bearded fighters are nowhere to be seen.

"The liberation of Qayyarah brought us closer to our bigger goal of liberating not just Mosul, but also the Ninawa province from the grip of IS group,” Iraqi Prime Minister Haider al-Abadi said on 25 August.

Mosul is the extremists’ last stronghold in the region, some 60 kilometres to the north.

"For us, Qayyarah is the key for entering Mosul, as it was the strongest defensive line for IS fighters in the southern part of the province,” Major General Saleh al-Jibouri, mayor of Qayyarah, told NIQASH. The city’s air field would be crucial to future operations, he said.

Perhaps even more importantly, the IS group has also lost a major source of income.

"Economically, Qayyarah was an inexhaustible treasure,” al-Jibouri said. “Around 100 tankers of crude oil are transported from its fields everyday, bringing an income of about US$1 million per month,"al-Jibouri said.

Local officials, politicians and security leaders in the Ninawa province have said they consider the liberation of Qayyarah exemplary because it preserved the lives of civilians. Losses are estimated at just five deaths and 10 wounded. What’s more, the operation was carried out without the participation of the Shiite popular factions accused of committing abuses against the local population. Both Sunnis and Kurds strongly oppose their participation in the upcoming Mosul operations.

WFP Distributes Food To Families In Northern Iraqi Town Besieged For Over Two Years

The United Nations World Food Programme (WFP) has distributed desperately needed food for more than 30,000 people in and around the northern Iraqi town of Qayyarah, 60 kilometres south of Mosul. The town was under siege and inaccessible for over two years.

Through its local partners Muslim Aid and Women Empowerment Organization, WFP distributed emergency food rations containing ready-to-eat foods such as dates, beans and canned foods to meet families’ immediate needs as well as monthly food rations containing rice, lentils, wheat flour, bulgur wheat, beans and vegetable oil in the past week.

These rations will provide enough food for more than 30,000 people for a full month. WFP also distributed food to almost 2,000 displaced people living in camps and with host families in areas surrounding Qayyarah.

“The people of Qayyarah had been living under siege for two years and are suffering extreme hunger with scarce access to food supplies. Reaching them with life-saving food assistance is a very positive step forward,” said Sally Haydock, WFP Iraq Country Director.

“Thanks to a generous contribution from the Government of Germany, WFP is able to provide more food assistance to families who are being displaced from the greater Mosul area.”

Last week, WFP and its humanitarian partners assessed the humanitarian situation in Qayyarah and found that all of the people remaining in the town are in urgent need of food and other forms of humanitarian assistance.

All of its shops were either destroyed or closed and food stocks were running dangerously low, with people surviving only on wheat from the recent harvest.

The town is in a dire state. Black smoke rises from oil fields surrounding the town set ablaze during fighting in recent weeks. Safe drinking water, electricity and medical services remain nearly impossible to access.

Over the last two years people from the Qayyarah area fled to camps in Erbil, Kirkuk and Salah al-Din, where they receive regular food assistance through WFP’s partners. More than 3 million Iraqis have been displaced by conflict in Iraq since mid-June 2014. In response, WFP has provided food assistance to more than 1 million vulnerable displaced Iraqis across all 18 governorates.

WFP is entirely voluntarily funded and relies on support from governments, companies and individuals to provide food assistance to internally displaced Iraqis. WFP is scaling up its food assistance in Iraq to support newly displaced families from the Mosul area, thanks to a contribution from Germany of US$27.9 million.

To continue to assist displaced families in Iraq until the end of the year, WFP urgently requires US$106 million.

(Source: WFP)

The Kingdom of Norway has contributed an additional US$3 million to UNDP’s Funding Facility for Immediate Stabilization (FFIS), which finances fast-track initiatives in areas liberated from the Islamic State of Iraq and the Levant (ISIL). With this contribution, Norway has channelled $10.7 million to UNDP's FFIS during 2016.

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

UNDP Resident Representative and UN Resident and Humanitarian Coordinator for Iraq, Ms. Lise Grande, said:

“With more and more areas being liberated from ISIL, it becomes more and more important to help stabilize these districts so that families can return to their homes and rebuild their lives and communities. Norway's continuing generosity comes at just the right time.

"Towns in Anbar Governorate are coming under government control; with this contribution we can help to repair electricity grids, put young people to work, help businesses open and rehabilitate public services and infrastructure.”

The Norwegian Ambassador to Iraq, Ms. Sissel Breie, said:

“The Iraqi civilian population is in dire need of assistance. We hope that efforts under the FFIS using Norwegian funds will help to ease the suffering. It is crucial that we do our outmost to secure that internally displaced Iraqis can return to their homes and start rebuilding their community in these liberated areas.”

Established in June 2015, FFIS is currently working in newly liberated areas in Anbar, Salah al-Din, Ninewah and Diyala Governorates. In total, FFIS has been authorized to work in seventeen areas. Most recently, the Facility has started work in Ramadi, where widespread destruction and contamination by booby-traps have slowed stabilization efforts.

(Source: UNDP)

By John Lee.

The Turkish company Karadeniz Holding has reportedly stopped supplying electricity from its three generating ships loctated in the ports of Khor al-Zubair, Umm Qasr and Abu Flous.

Local media report that the move is due to the non-payment of debts to the company by the Iraqi Ministry of Electricity.

The company had already cut supply in June pending the receipt of payments.

UNHCR in Iraq welcomes new funding announced by the Government of Italy of €441,500 to help support the restoration of essential infrastructure in Diyala Governorate.

The project aims to provide infrastructural support to restore public services, helping to facilitate the reintegration of returning displaced Iraqis in Saadiya and Jalawla districts - areas which were briefly captured by extremist groups in late 2014. The conflict displaced around 20,000 families who fled to Khanaqin and surrounding governorates.

Some displaced families began returning to their homes last year after Saadiya and Jalawla came back under government control. However, the majority have not yet gone back because of the severe damage to key infrastructure and private property. The extent of the damage is estimated at 50% in Saadiya and 75% in Jalawla. The destruction, together with the the absence of many services, is one of the biggest obstacles preventing the return of displaced families.

In recent months, the local authorities have managed to partially restore some government schools, hospitals, electricity and water systems. Nonetheless, progress has been slow and UNHCR had recently appealed to the international community for additional support.

The rehabilitation project, to be to be funded by the Government of Italy and implemented by UNHCR and local partners, focuses on the restoration of electricity, through the installation of 20 transformers and associated running costs in each sub-district.

The project also covers sanitation improvements, including providing two garbage trucks to remove solid waste in each location. A one-month public clean up campaign will also be carried out, bringing together different volunteer groups in the communities.

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.

In Mosul, Locals Wage Psychological Warfare Against ISIS

As rumours about a campaign to push the extremist Islamic State group out of Mosul continue, the city’s residents mount a number of small, mainly psychological campaigns against the Islamic State.

As the extremist group known as the Islamic State looks increasingly unsteady inside Iraq, there are a growing number of acts of resistance against the group inside the northern city of Mosul, which has been the group’s stronghold in Iraq for over the past two years.

Evidence for this includes the number of times one sees the letter “M” written on the walls of schools, mosques and other buildings in the city. This letter was not a casual choice: It is the first letter of the Arabic word, muqawama, which means “resistance”. It is an important symbol for those living in the city who oppose the extremist group and all it stands for.

Acts of actual physical resistance are still rare, mainly because the city is full of Islamic State members and fighters, many of whom are armed and who will not hesitate to punish those who oppose them.

Of course, the extremists do not stand idly by when this graffiti appears. They clean it from the walls and try to find those responsible.

Local media has also responded to the graffiti, publishing stories about it, mostly gleaned from Iraqi social media users, who post pictures of the graffiti and boast about how the people of Mosul are trying to resist the Islamic State, or IS, group.

NIQASH was able to collect dozens of these kinds of stories and pictures too, including an “M” on the wall of the landmark Great Mosque of Al Nouri, which is where Abu Bakr al-Baghdadi, the leader of the Islamic State group, gave his famous speech in Mosul in July 2014.

By John Lee.

Twenty-four countries will take part in a pledging conference in Washington tomorrow, where the United States expects to raise about $2 billion from donor nations to help Iraq with humanitarian assistance, mine removal, jobs, electricity and sanitation.

According to Bloomberg, the event will be attended by Iraqi Foreign Minister Ibrahim al-Jaafari (pictured).

The United Nations says an $861 million humanitarian appeal for Iraq has only been 38 percent fulfilled.

Last week, Defense Secretary Ash Carter said the U.S. would deploy an additional 560 troops to Iraq  -- it currently has about 3,500 troops in the country.

(Sources: Reuters, Bloomberg)