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

The city of Ramadi was liberated on Dec. 28, and Iraqi security troops accompanied by the Tribal Mobilization Forces, which are affiliated with the Popular Mobilization Units, advanced toward the remaining cities of Anbar province that were overrun by the Islamic State (IS) in May 2015.

Despite this, fears remain that political and tribal conflicts would erupt as a result of the sharp divisions that exist between the various components of the province, leading to some political factions warning about the futility of liberating cities without instituting a plan for the post-military operations phase.

Other pressing problems exist, the solutions to which require reaching political understandings and agreements between tribes and forces with influence on the ground. These issues include the fate of volunteer tribesmen, the reconstruction of the province and the return of refugees.

As proof of these problems, political disagreements have already taken shape. Local Anbar government member Mezher al-Mulla told Al-Monitor, “Some political blocs are trying to fish in troubled waters by demanding the dissolution of the Anbar provincial council [and the holding of elections for a new provincial council] with the aim of attaining posts that they failed to reach through [past] elections.”

Minister of Foreign Affairs Dr Ibrahim Al-jaafari received the head of the Japanese International Cooperation Agency (JICA) Mr Shinichi Kitaoka, at the Ministry Headquarter, in Baghdad.

The two sides discussed horizons of mutual relations and means to promote them in order to meet the aspirations of the two friendly countries.

The minister said that Iraq is looking forward to establish strong strategic relations between institutes of the two countries so as to promote cooperation and benefit the Japanese experiences. The minister called on Japan to support Iraq in fields of environment, oil, energy, education, and health.

His Excellency asserted:" Japan's experience in the reconstruction and development fields, the trust of Iraqi citizens in the Japanese products and the depth of relations between our two countries make us insists on providing further efforts, further work, opening further horizons of mutual cooperation, and reconstructing the liberated areas". The minister referred that Iraq has multiple resources that must be invested for the interest of the Iraqi people.

Dr Al-Jaafari praised the supportive stances of Japan, expressing his gratitude for the Japanese loans and development assistance to promote the infrastructure, electricity, transportation, energy and Umm Qasr Port.

In turn, Mr Kitaoka emphasised that Japan supports Iraq's unity, stability and the reconstruction of Iraq, commending the military triumphs achieved by the Iraqi Armed Forces against the terrorist gangs of Da'esh and the success of the Iraqi diplomacy.

Mr Kitaoka expressed the readiness of his organisation in reconstructing the infrastructure of the liberated areas, he also commended the achieved success in the files of relations and cooperation between the two countries. He pointed out that Japan will host the Group of Seven summit this year, and shall put forward the files of supporting Iraq, countering terrorism, and the displaced persons and shall work together with UN organisations to address all issues which may assist Iraq.

(Source: Ministry of Foreign Affairs)

By John Lee.

Iraq has reportedly agreed a $328.8 million deal with General Electric.

Electricity Ministry spokesman Musab al-Mudaris told Reuters that GE will provide equipment and maintenance for 10 power plants across the country, boosting capacity by 1,000 megawatts (MW).

He added that Baghdad will pay GE in instalments over three years, starting in 2017, because the Ministry's 2016 budget was cut by more than half to 1.185 trillion Iraqi dinars ($1 billion).

GE must finish procurement and servicing for the power plants by the beginning of July; peak electricity demand during the summer is about 21,000 MW, far exceeding the 13,000 MW that the grid is currently providing.

(Source: Reuters)

(Picture: GE 9E gas turbine)

By John Lee.

Prime Minister Dr. Haider Al-Abadi has inaugurated the new 500-MW Najibiyah gas power station in Basra province.

The Prime Minister congratulated the citizens and the people of Basra on this important achievement which will increase the supply of electricity.

Dr. Haider Al-Abadi said electric power is the lifeblood of the country and an important element to drive the economy forward and must be preserved and not wasted and to provide the necessary fuel and petroleum derivatives.

(Source: Office of the Prime Minister)

As a necessary step after the liberation of Shingal district mid November 2015, the Ministry of Interior of the Kurdistan Regional Government (KRG), Joint Crisis Coordination Centre (JCC) has conducted a rapid damage assessment on the early recovery needs for the town of Shingal.

On the 13th of November 2015, the Peshmerga forces, supported by the International Coalition, launched the Free Shingal Operation and liberated the district. Shingal and 28 villages were retaken after 15 months of ISIS occupation.

ISIS systematically targeted the Yezidi population for their distinct religious identity. Among the most heinous atrocities committed by the group were mass execution of civilians, abduction and enslavement of women and girls, as well as the killing of Yezidi men. Consequently, the Yezidi population has suffered the gravest atrocities committed by the group, have lost all their sources of subsistence and been displaced across the Kurdistan Region.

The town is severely damaged and the infrastructure is either completely destroyed or heavily impaired. It is important to note that the population, particularly the Yezidis, need extensive assistance for safe and dignified return to their homes.

However, the findings presented in the attached assessment present an overview of the level of damages caused by the invasion of ISIS and an estimated cost for immediate recovery for transportation networks, water sanitation, health, education, electricity, housing, and public buildings.

The KRG calls upon and seeks assistance from the members of International Community, organisations, NGOs and individuals to contribute in reviving and restoring services in Shingal.

Please contact the Kurdistan Regional Government Representation office in the United Kingdom to find out more about the immediate needs to help the Yezidis and other minorities live again.

Read the full report here

(Source: KRG)

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

The year 2015 saw the liberation of several areas of Salahuddin (Tikrit) and Anbar (Ramadi - pictured) provinces from the grasp of the Islamic State with operations toward that end ongoing.

Yet, to date no serious reconstruction projects have been undertaken in those liberated areas, as the Iraqi government is faced with a difficult challenge — eradicating terrorism not only requires military effort, but also mobilization aimed at rehabilitating the residents before the area's infrastructure can be rebuilt.

Mosul fell on June 10, 2014, after a surprise attack by IS and the withdrawal of the Iraqi army and other security forces from the city. IS subsequently continued to rapidly advance toward Baghdad, and in a matter of days gained control of areas adjoining the capital, approximately 40-60 kilometers (25-37 miles) away, in Salahuddin province in the north and Anbar province in the west.

IS’ thrust came to a halt only after large numbers of volunteers, such as the Popular Mobilization Units, joined the ranks of the security forces to combat IS, following a fatwa issued by Grand Ayatollah Ali al-Sistani on June 13, 2014. In September 2014, IS began a gradual retreat from occupied areas as a result of the aerial campaign that was initiated the month before by the US-led military coalition.

In 2015, IS experienced a major setback in Iraq, where it lost control of key cities and large swaths of land, among them Tikrit, liberated in March, Sinjar, freed in November, and Ramadi, where Iraqi forces are currently routing IS out of its last strongholds, on Dec. 28.

Areas in Iraq occupied by IS suffered extensive damage to infrastructure, the local economy and private property, with the Parliamentary Services Committee estimating a total of $25 billion in damages up to April 2015.

By Simon Kent.

The Kurdish Regional Government has announced a plan to implement a series of economic reforms in the face of a growing recession.

Currently, the region has debt of up to $18 billion, a crisis made far worse by expenditures in the war against ISIS, the collapse in oil prices and a bloated public sector payroll which consumes 70% of the region's budget. Public servant salaries are costing the region almost $800 million a month.

The new reforms will involve the slashing of public sector pay, the restructuring of pensions and the elimination of some perks for politicians and senior public servants. Electricity and fuel subsidies will be assessed as well.

Notably, these are the same challenges Baghdad has been trying to overcome, including the presence of "ghost employees" at state owned companies. Two Kurdish lawmakers complained that these new cuts were only superficial, and much deeper reforms were needed to help the economy.

(Source: Reuters)

A US$1.2 billion loan will support Iraq in strengthening fiscal stabilization and improving efficiency in the energy sector to help counter the effects of the drop in oil prices and rising security costs.

The World Bank Group’s Board of Directors acknowledged the Government of Iraq’s engagement in a rigorous reform program and approved the Emergency Fiscal Stabilization, Energy Sustainability and State-Owned Enterprise Transparency Development Policy Financing.

The operation is aligned with the Government’s recovery blueprint for 2015-2018, that committs to reforms to achieve inclusive growth, efficient service delivery and improved social protection.

“The World Bank’s support for the current reform momentum in Iraq is very important at this critical time as the country grapples with long standing challenges in the financial sector, public financial management and energy efficiency and security,” said Ferid Belhaj (pictured), World Bank Director for the Mashreq Region.

The proposed operation will focus on reforms in three areas. Reforming the public wage system by reducing the highest salaries and increasing the lowest ones will improve expenditure allocation. There will also be reforms in public investment and debt management, and the pension scheme.

By Simon Kent.

APR Energy plc has announced that it has signed for an extension of its power generation contract in Iraq. The company run a gas fired power station that provides electricity for Iraq's southern port city of Basra.

According to APR, the power plant has been in operation since 2012 and comprises six GE TM2500 mobile gas turbines. APR Energy acquired the plant in 2013 as part of its acquisition of GE's power rental business.

The plant will be run by APR through 2016, one of a number of gas fired plants in the south.

(Source: APR Energy.)

Gulf Keystone Petroleum (GKP) has announced that Cuthbert ("Cuth") McDowell and Keith Lough have been appointed to the Board as Non-Executive Directors with immediate effect. Jón Ferrier, CEO, has also been appointed to the Board with immediate effect.

Cuth McDowell

Having read Technological Economics at Stirling University, Cuth (59) began his career in 1979 at BP where he spent eight years in a variety of economic and commercial roles. In 1987 he moved to Clyde Petroleum as Senior Economist, before being promoted to Group Commercial Manager ahead of the eventual sale of the business to Gulf Canada.

In 1997 Cuth joined Paladin Resources and in his commercial and finance director roles, played a key part in building Paladin into an E&P company which was ultimately acquired by Talisman Energy in 2006. He currently sits on the Board of IGas, the UK onshore oil & gas company. Until earlier in 2015 Cuth was a Non-Executive Director of Pitkin Petroleum, where he had also served as Finance Director.

Keith Lough

Keith Lough (54) read Economics at Edinburgh University before qualifying as a chartered certified accountant with British Gas in 1985. He subsequently obtained an MSc in Finance from London Business School. In 1988 Keith joined LASMO PLC where over the course of the next eleven years he held a range of senior financial and operational roles, including MD of the North Sea, and then Europe and North Africa before LASMO was sold to ENI.

Keith was CFO of PetroKazakhstan for two years before being headhunted for the CFO role of British Energy, the nuclear power company. At British Energy he oversaw the complex restructuring of the business and the interaction with the UK Government and its creditors.  In 2004 Keith founded coal bed methane focused Composite Energy Ltd, which was acquired by Dart in 2011.

The team from Composite spent a year at Hutton Energy, during which time Keith was CEO. Keith is currently a Non-Executive Director of Rockhopper Exploration PLC, Cairn Energy PLC, Papua Mining PLC and the UK Gas and Electricity Markets Authority (Ofgem).   

Commenting on today's announcement, Andrew Simon, Non-Executive Chairman of Gulf Keystone said:

"With shareholders having approved the changes to the Company's Bye-Laws, we are pleased to confirm that our CEO Jón Ferrier has now been appointed to the Board.

"We have made clear our intent to rebuild the Board with high calibre individuals, and to ensure that the Board is truly fit for purpose. We are therefore extremely pleased to have secured the services of Keith Lough and Cuth McDowell. Both Keith and Cuth have a deep knowledge of the strategic, operational and financial dimensions of the oil & gas sector. They bring decades of experience in the building of businesses, but also in the realisation of the value in them for shareholders. Their track records also span both executive and non-executive roles within London listed companies.

"On behalf of everyone at Gulf Keystone I warmly welcome all three Directors at this important juncture in the Company's development. With shared values and goals we see a strong cultural fit with Gulf Keystone and are confident they will make a significant contribution."

(Source: GKP)