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

In a meeting held Feb. 21, Najaf’s provincial council followed in the footsteps of Dhi Qar, Muthanna, Wasit and Diwaniyah and voted against the privatization of the electricity sector in the province.

Meanwhile, the Iraqi government insists on privatizing the distribution of electricity in all Iraqi regions, despite popular protests against this decision, which many believe harms the poor, who make up 30% of the country's population.

On July 20, 2012, parliament voted on the privatization of electricity after the government failed to improve the situation despite spending $22 billion over the course of nine years attempting to fix the crisis. Iraq needs 30,000 megawatts, but citizens are only provided with 8,000 megawatts.

On Jan. 25, 2016, the Ministry of Electricity applied the privatization project in Zayouna in eastern Baghdad, in partnership with the local company al-Noor al-Thaqib. This year, it concluded agreements with local as well as foreign companies to implement the project nationwide.

Musab al-Moudarres, the spokesman for the Ministry of Electricity, told Al-Monitor, “As a result of residential slums scattered around the country, in which people steal electricity from each other, 65% of the produced energy was wasted. The majority of citizens refuse to pay electricity bills, which are now worth $2.7 million, enough to cover the salaries of the ministries’ employees for two years.”

He stressed, “The ministry has come to the conclusion that the electricity crisis will not be resolved if the situation remains the same, so it suggested the idea of privatizing the distribution of electricity, which aims to rationalize consumption and collect fees while ensuring around-the-clock electricity.” He added, “The project was a success in some areas in Baghdad and it contributed to rationalizing consumption by 30% and putting an end to waste by 100%.”

In Mosul a battle is raging to take back the city from ISIL. As the fighting ends, essential work is ramping up to make sure that people who have been displaced by occupation and war can return to their homes as fast as possible - and stay there.

Already in the past year, the United Nations Development Programme (UNDP), in close cooperation with the Iraqi government, the provincial authorities and the international coalition, has helped to re-boot social and economic recovery in 18 locations that have been liberated from ISIL, including Fallujah and Tikrit.

Our US$790 million Funding Facility for Immediate Stabilization (FFIS) project is designed to support the early recovery effort in liberated towns through a three-month, high-impact programme to motivate millions of displaced Iraqis to return to their communities from camps and informal settlements across the country.

UNDP is making sure that people get services like water, clinics, schools, police stations, markets and government buildings. Families are receiving help to rebuild damaged homes, public infrastructure is being rehabilitated, and small businesses are being supported with cash grants to get started again.

These actions are essential to ensure those who were forced to flee are able to return and stay in the area, making them productive citizens once again. It is the first step towards post-conflict recovery and peace building.

While the battle for Mosul is continuing, UNDP is already working in the liberated Eastern section of the city, which is now free from ISIL. Many people have already returned home but water and electricity stations must be rebuilt and people need to be able to work and earn money. UNDP is providing this through cash for work projects, and alongside this is rehabilitation of schools and clinics, many of which were destroyed during the fighting.

The Annual Report 2016 presents progress with implementation of the Funding Facility for Stabilization (FFS) between 01 January and 31 December 2016.

During 2016, the United Nations Development Programme (UNDP) implemented a high impact, pragmatic approach to stabilization that improves citizen-government ties and revitalizes public trust in the Iraqi Government.

FFS quadrupled in size, growing from a small undertaking in a few cities to a large programme operating across 19 locations, including in the hard-hit cities of Ramadi and Fallujah in Anbar Governorate.

In September 2016, before the military campaign to retake Mosul started, UNDP began preparing for its liberation, liaising with authorities to identify early priorities and rushing to pre-position US$43 million in essential equipment to immediately jumpstart basic services, notably health, electricity, and water.

The Funding Facility continues to evolve, and now incorporates an Expanded Stabilization channel aimed at linking stabilized cities and districts to each other and generating large numbers of jobs.

Overall, UNDP’s FFS has contributed to laying the foundations for the return of over 1.39 million Iraqi men, women, and children since the start of the conflict.

Cities such as Ramadi, Fallujah, and Tikrit are once again flourishing as hubs of economic development. Nevertheless, over three million people remain internally displaced. Continued stabilization assistance will remain essential in creating the conditions for their return home.

Highlights:

• Since the start of the conflict in 2014, over 1.39 million displaced Iraqis have returned to their homes to restart their lives
• The Funding Facility has quadrupled in size and grown to incorporate an Expanded Stabilization channel
• More than 350 projects, valuing over US$300 million, are restarting critical infrastructure, public services, and stimulating the local economy
• Immediate Stabilization will require $100 million to cover a minimum of 10 additional towns in 2017. An additional $300 million will be needed for Expanded Stabilization

The full report is available here (16 MB)

(Source: UNDP in Iraq)

By John Lee.

The United Kingdom has agreed to provide up to £10 billion ($12 billion) of support to Iraq over the next 10 years through loans to infrastructure development projects under UK Export Finance (UKEF).

British Ambassador Frank Baker and Iraq's Acting Minister for Finance Abdlrazaq Alissa [Abdul Razzak al-Essa] signed the Memorandum of Understanding (MoU) on Sunday, reaffirming the UK’s commitment to its friendship with Iraq, and its support for continued economic cooperation and development.

Reuters quotes the Iraqi Minister as telling a press conference that the loans are exclusively allocated to British companies, with interest rates being set when the contracts are agreed.

In a statement, the British Embassy in Baghdad said:

"This particular MoU will support investment in critical infrastructure in Iraq. This infrastructure, like water and electricity, will improve the lives of millions of Iraqis. It will also help reinvigorate the private sector in Iraq, and may lead to new jobs for Iraqis.

"UK Export Finance (UKEF) is able to consider applications to support eligible infrastructure development projects in Iraq where the project sources goods and services from the UK. The support can take the form of loan guarantees or direct loans.

"UKEF and the Government of Iraq are already exploring a number of projects for support under the MoU which will benefit from high-quality goods and services from the UK, and improve quality of life across Iraq."

(Source: UK FCO, Reuters)

The annual Iraq Petroleum Conference, now in its eleventh edition, is set to once again gather the leaders of Iraq’s Oil & Gas industry to discuss the major opportunities and strategies for the newly emerging energy landscape.

Organised by energy events experts CWC Group and proudly working alongside the main government institutions in Iraq: the Iraq Federal Government, Iraq Federal Parliament, Ministry of Oil and Ministry of Electricity, the Conference has established itself as the yearly platform where internationals meet with the country’s energy experts.

Spread over two days, the Programme features important panel discussions and interactive debates led by Iraq’s Minister of Oil, H.E. Jabbar Al Liabi, and will have the participation from established companies in the industry such as Shell, Rante, Chevron, Total, Lukoil, Oil Serve, Pilot Energy, GardaWorld, Baker Hughes and Vinson & Elkins LLP.

Distinguished speakers include:

• E. Jabbar Al Liabi, Minister of Oil, Federal Government of Iraq
• E. Dr Salih Husain Ali, Ambassador, Embassy of the Republic of Iraq, Federal Government of Iraq
• London, UK
• Dr Falah Jassim Alamri, Director General of SOMO, Ministry of Oil, Federal Government of Iraq
• Sir Jeremy Greenstock, Chairman, Lambert Energy Advisory
• Zaid Elyaseri, Iraq Country Manager, BP Iraq
• Ian MacDonald, Former Vice President, Europe, Eurasia and Middle East Exploration & Production, Chevron
• Marcus Antonini, Iraq Vice President & Country Chairman, Shell
• Ambassador James Franklin Jeffrey, Former Senior American Diplomat, Middle East, Turkey, Germany & the Balkans
• Shawki Al-Khalisi, Head of Studies, Arab Petroleum Training Institute, OAPEC, Ministry of Oil, Federal Government of Iraq
• Loris Tealdi, Managing Director, ENI Iraq b.v.

(View the full speaker list here)

Following the official opening keynotes, the speakers will address important topics for the industry, dedicating a session to each of the following:

• Iraq a Major Oil & Gas Player: Strategies for the New Energy Landscape
• Iraq’s Oil & Gas Operators: The Value of Partnerships in Developing Energy for Iraq’s Future Generations
• Iraq’s Oil & Gas Development Projects: Cooperation, Innovation & Investment
• Crude Oil Pricing & Trading: Understanding Global Trends in Crude Oil Trading in Light of Iraq’s Increased Exports
• Iraq’s Gas Projects: Commercial & Financial Considerations
• Innovative Financing Solutions for Iraq’s Energy Sector
• Iraq’s Power Sector: Outlining Projects & Raising Capital for New Projects
• Building Iraq: Securing the Energy Critical Infrastructure

(View the full programme here)

More information at: http://www.cwciraqpetroleum.com/

(Source: CWC)

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)