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By John Lee.

Prime Minister Haider al-Abadi nominated a new cabinet on Thursday, pledging to make political reforms to reduce corruption in response to sit-in protests in Baghdad led by Muqtada al-Sadr.

Sixteen ministries will be changed, and the parliament will vote in ten days to either approve, reject or amend the proposed cabinet.

No changes will be made in the defense nor interior ministries, as Abadi believes reshuffling them during a time of war could be problematic.

The proposals are:

• Ali Alawi - Minister of Finance.
• Nzar Salim - Minister of Oil.
• Sharif Ali bn Ali - Minister of Foreign Affairs.
• Ali Jabouri - Minister of Education.
• Ali Mubarak - Minister of Health.
• Hassan Janabi - Minister of Oil and Water Resources.
• Aqil Yousif - Minister of Youth and Culture.
• Hoshiyar Amin - Minister of Municipality and Reconstruction.
• Yousif Assadi - Minister of Transportation.
• Mohammed Nasrollah - Minister of Justice.
• Ala Dashir - Minister of Electricity.
• Wafa Mahdawi - Minister of Immigration and Displacement.

(Sources: Middle East Eye, Rudaw)

The Ministry of Oil has confirmed that the gas recently exported from Iraq was what it described as "condensed liquids (C5) or 'natural gasoline,'" a by-product from the associated gas investment extracts used for the industrial purposes, and “not the dry gas which is used for the power generation”.

Hamid Y. Salih, the deputy minister for gas, stressed that it was important to distinguish between these gas condensed liquids and the other types of the gas fuel.

He said that power stations use the dry gas, and the Iraqi production of this type of fuel does not meet the needs of all the power stations at the current time, so the ministry of oil imports the rest from the nearby countries.

He added also that the ministry plans to increase production of dry gas to provide the necessary fuel for domestic use in the next few years.

Mr. Assim Jihad the spokesman of the ministry said that the ministry is keen to meet the need of the power stations of the different types of fuel such as the dry gas, the gas oil, the crude oil and the black oil, either from the national production or from the imported fuel by coordination with the associated committees with the ministry of electricity.

Mr. Jihad sad also that the ministry was keen to invest the associated gas with oil perfectly by transforming the flare gas into useful source of energy for the electric power stations and the petrochemicals factories, as well as producing liquefied gas or (cooking gas), and condensed gas or (natural gasoline) for industrial purposes.

(Source: Ministry of Oil)

World Bank Group President Jim Yong Kim (pictured) told a special session of the Iraqi parliament that the path to stability and shared growth in Iraq lay in empowering local governments, opening up and diversifying the economy, and improving the management of public finances by reforming the public sector and increasing accountability.

The speech came during a joint visit to Iraq by Kim and United Nations Secretary General Ban Ki-moon to show international support for Iraq as it confronts the triple challenge of defeating Da’esh, maintaining momentum on reforms, and coping with the financial impact of the fall in oil prices.

“Even in the face of substantial challenges, democracy is taking root in Iraq,” Kim told members of parliament.

“Iraq has chosen the path of political inclusion – a decision that created difficult challenges and holds great promise. It requires political compromises to build the broad coalitions needed to achieve national goals. As complex as it may seem, as difficult as it may be, political inclusion is part of the critical path to long-term stability.”

The World Bank Group president said that the new atmosphere of open competition among different perspectives and the difficulty of building the necessary coalitions to achieve national goals were a positive sign.

Kim drew on Iraq’s historical legacy for lessons on how the great civilizations had thrived by balancing central authority with local autonomy. “Let me suggest that the best way to protect and preserve the cohesion of the country is to do what your forebears did, “said Kim. “Empower all its regions, and to give more capacity to local governments, all the way to the municipal level.”

Siemens has signed a Memorandum of Understanding (MoU) with the Federal Government of the Republic of Iraq to strengthen the collaboration with the Ministry of Energy as well as Ministry of Oil & Gas for modernizing the energy infrastructure and the Oil & Gas sector.

In the presence of the Prime Minister of Iraq, Mr. Haider al Abadi, the Memorandum of Understanding was signed by Qassim al-Fahdawi, Minister of Electricity, and Siegfried Russwurm (pictured), a Member of the Managing Board of Siemens AG, in Baghdad.

Under the terms of the agreement, Siemens will develop an enhanced energy concept to advise the Iraqi Government on the development and optimization of the country's power generation and grid infrastructure including power generation mix.

"With this important agreement we intensify the long lasting partnership between Siemens and Iraq," said Siegfried Russwurm. "With our broad portfolio and comprehensive expertise in power generation, transmission as well as in Oil and Gas sector we will assist and support the Iraqi Government to develop a sustainable and modern electricity system to ensure the country's economic and social development."

The parties also intend to explore potential scope of further cooperation in the power generation sector as well as in the field of Oil and Gas.

Siemens and Iraq envisage exploring financing solutions for projects to be developed as well as maintenance and rehabilitation of existing power plants/infrastructure in close collaboration with the Federal Government of Germany.

(Source: Siemens)

By John Lee.

Petra reports that the Jordanian Minister of Energy and Mineral Resources, Ibrahim Saif, will meet his Egyptian and Iraqi counterparts in Cairo on Tuesday to discuss developments regarding the Basra-Aqaba pipeline project.

The project, agreed by the three countries in Amman in November 2015, will see oil and gas pipeline running from Iraq to the Red Sea port of Aqaba.

Jordan is to benefit from Iraqi crude oil and liquefied gas for electricity generation.

(Source: Petra)

(Aqaba port image via Shutterstock)

United Nations Human Settlements Programme (UN-Habitat) has received USD 15 million from the Government of Japan to implement two projects in Iraq: “Gender-sensitive Durable Shelter Support for Internally Displaced Persons in Iraq” and “Promoting Urban Recovery in Newly Liberated Areas in Iraq.”

The conflict with the Islamic State of Iraq and the Levant (ISIL) has had profound humanitarian consequences throughout Iraq. More than three million Iraqis have fled their homes and three million more are living under ISIL control. Some of the major cities in Iraq already have more number of internally displaced persons (IDPs) than their original population, putting communities hosting IDPs under severe pressure.

Inadequate and insecure shelter conditions endanger women and girls, making them increasingly vulnerable to sexual and gender-based violence. Even after liberation of cities once controlled by ISIL, only small portions of IDPs have returned, because cities are devastated with buildings and houses burned, shops looted, roads damaged from bombs and electricity grid destructed, after going through major military operations.

Despite the efforts of the Government of Iraq in providing support to IDPs and returnees, the severe budget crises because of the decline in the oil prices and the cost of the war against ISIL necessitate the mobilization of substantial humanitarian support.

Switzerland's ABB has won an order worth around $100 million from Mass Global Holding to deliver a gas-insulated switchgear (GIS) substation that will help integrate 3,000 megawatts (MW) of electricity generated by a combined cycle power plant, utilizing Iraq’s natural gas resources.

The government is rebuilding the country, investing in national housing programs and has ambitious plans for developing its power infrastructure to meet electricity needs. The order was booked in the fourth quarter of 2015.

Claudio Facchin, president of ABB’s Power Grids division, said:

“This advanced GIS substation will help bring much needed electricity by expanding capacity and strengthening Iraq’s power infrastructure ...

“This project adds to our extensive installed base in the region and supports our Next Level strategic thrust on growing markets.”

ABB will be responsible for the design, engineering, supply, installation and commissioning of the transmission and distribution substation excluding civil works.

This will be the largest 400/132 kilovolt (kV) substation in Iraq, equipped with state-of-the-art gas-insulated switchgear. ABB’s GIS technology will enhance operational reliability, efficiency and safety while minimizing substation footprint and maintenance requirements.

ABB will also deliver two 400/132 kV autotransformers to step down the voltage for distribution to, and advanced IEC 61850-compliant open automation, protection and telecommunication systems for local and remote control and monitoring of substation assets.

(Source: ABB)

By Amberin Zaman for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

When the Iraqi Kurds come to Washington, it is often to ask for guns to fight the Islamic State (IS). Now they are pleading for cash, warning that their campaign against the jihadis is threatened by an economic “tsunami” that has left their quasi-independent state teetering on the brink of collapse.

“Is this only our fight or yours, too?” asked Fuad Hussein, chief of staff of Iraqi Kurdistan Regional Government (KRG) President Massoud Barzani, after briefing top US officials in Washington last week.

The Iraqi Kurdish peshmerga warriors and the Syrian Kurdish People’s Protection Units are critical allies in the fight against IS, wresting back huge chunks of territories including the town of Sinjar in Iraq and the Tishreen dam in Syria. But Hussein cautioned that IS remains “a big threat” and could “regroup at any time.” Unless the Kurds’ allies step in with financial aid, the Kurds' capacity to fend off the jihadists will wane, he said. “You cannot win the fight when you can’t survive economically,” Hussein told Al-Monitor in an interview.

That message was driven home in back-to-back meetings at the State Department, the White House, the National Security Council and also on Capitol Hill, where the Kurds met with Sens. John McCain and Dianne Feinstein, among others. “We haven’t been going around asking people to pull out their checkbooks,” said Bayan Sami Rahman, the Kurdistan Regional Government’s (KRG) representative in Washington.

“But people don’t appreciate enough that this is an incessant fight,” she said in an interview with Al-Monitor. “Never mind the cost of running a war, our peshmerga don’t even have winter gear. The purpose of our mission here is to help our friends understand that this is not sustainable, that we need nothing less than a Marshall plan,” Rahman added.

Mayor of Tikrit: With the help of UNDP, people have reestablished essential services for our community

The Mayor of Tikrit, Omar Tariq Ismail, says he is proud of the progress his city has made in the past seven months following liberation from the control of the Islamic State of Iraq and the Levant (ISIL).

“With the help of the United Nations Development Programme (UNDP), the people of Tikrit have reestablished the essential services for our community. With water stations and electrical grids repaired and police stations, healthcare centres and schools rebuilt, people can now restart their lives.”

The Mayor was a major part of the operation to retake Tikrit, and he reentered the city just after ISIL was pushed out.

“Water, electricity and healthcare were the first services that had to be restored. Following that we needed to provide livelihoods for people,” Ismail stated. He credits UNDP’s Cash for Work programme as instrumental. “Through those programmes, we were able to clean up our community, provide income for the youth and keep them occupied with productive activities,” the Mayor commented.

Stabilization support through FFIS has been provided in Tikrit, where 90 percent of families have returned to their homes and are rebuilding their lives. Nearly 65,000 people are now receiving safe drinking water from three rehabilitated water pumping stations and treatment plants; 30,000 people are accessing rehabilitated primary health care centres and using ambulance services; and 43,200 people have better electricity supply and expanded coverage.

New initiatives are underway in liberated areas of Salah al-Din, Diyala, Ninewah and Anbar. All activities are implemented based on the Government’s assessed priorities.

Since its establishment in June 2015, UNDP’s FFIS has been channelling fast-track support to help rehabilitate civic infrastructure, kick-start local economies, boost government capacity and promote community reconciliation in newly liberated areas in Iraq.

(Source: UNDP in Iraq)

By John Lee.

An explosion on Friday has damaged a section of the pipeline that supplies gas for about half of the electricity generation in Iraqi Kurdistan.

The KRG's Interior Ministry said an investigation was underway to find the cause of the explosion near the district of Shwan.

The pipeline feeds gas from the Khor Mor field to two power plants in the Erbil and Sulaimaniyah provinces.

According to BasNews, there were no casualties reported.

(Sources: BasNews, Shafaaq)

(Sabotage image via Shutterstock)