Iraq signs billion-dollar power deals with GE, Siemens

By Simon Webb

Iraq has signed preliminary deals worth billions of dollars with General Electric Co and Siemens for equipment to almost double electricity generation capacity, an energy official said on Saturday.

The deals with GE, Siemens and a third company would be worth a total of $7 billion to $8 billion, Iraq's Electricity Minister Karim Waheed told Reuters.

Years of war, sanctions and neglect have battered Iraq's power grid and the country suffers chronic power shortages. The capital Baghdad receives only a few hours of electricity a day. The deals would mark a big step in the country's reconstruction, Waheed said.

"These deals will help us to end the electricity supply problem by 2012," Waheed said on a private visit to the United Arab Emirates.

Iraq signed a memorandum of understanding (MOU) earlier this month for U.S. giant General Electric to supply turbines to generate 6,800 megawatts of power, Waheed said.

He declined to say how much Iraq would pay GE for the equipment, but said each megawatt would cost between $700,000 and $800,000. That would give a value of between $4.8 billion and $5.4 billion.

The country has signed a second MOU with Germany's Siemens to supply equipment to generate another 2,000 MW, he added. That deal would be worth between $1.4 billion and $1.6 billion.

Baghdad was negotiating with a third company for another 1,000 MW, he said, declining to give further details.

The three deals would enable Iraq to add around 10,000 MW to installed capacity by around 11,000 MW. Damage to the power stations, lack of maintenance and drought mean Iraq's actual power production is well under capacity at around 5,500 MW.

Demand stands at around 11,000 MW, Waheed said.

Iraq plans to approach engineering, procurement and construction (EPC) firms to build the plants once the deals are signed, he added.

While big international companies were still reluctant to send people to work in Iraq, improvements in security had improved Baghdad's chances of attracting companies to undertake the work, he said.

Iraqi oil officials will meet Russia's Technoprom Export on October 12 to review a $124 million deal to repair 400 MW of power generation capacity in the southern city of Basra.

The World Bank will fund the deal, he added.

The deal was one of several frozen after the U.S.-led invasion of Iraq in March 2003. Iraq is also negotiating with Russia's Power Machines to revive another old deal to build two plants with 160 MW of capacity each in Iraq's north, he added.

Iraq signed a deal with GE for three power plants worth $480 million in June.

(Editing by Janet Lawrence)

(Reuters)

Shell seizes Iraq gas investment opportunity

Royal Dutch Shell's joint venture with Iraq to capture flared gas in the south of the country could involve an investment of up to $4bn. The agreement, expected to be formalised in October, will be the first major contract reached by a major western oil firm with Iraq since the US led invasion of 2003.

It is unclear whether the Shell deal is a production-sharing agreement, under which both parties would share profits, or more of a technical services agreement similar to that signed by China in August.

In any event Shell is expected to buy some of the gas due to be processed as Liquid Natural Gas.

China National Petroleum Corporation became the first foreign partner to reach a service agreement with the Oil Ministry involving a $3bn development of the country's Al-Ahdab oilfield but with no revenue sharing involved.

A formal agreement is due to be signed in October between state-owned Southern Oil Company in Basra, which will hold a 51% stake in the latest venture with Shell taking the remaining 49%.

The move is significant both in ecological and economic terms. Gas burnt off during production for safety reasons in Iraq's southern oil fields would be sufficient to meet virtually all of Iraq's current power plant requirements.

Investing in Iraq's energy potential

Others are also investing in the country's energy potential. Iraq holds 3.36 billion cubic metres of proven gas reserves, the world's tenth largest reserves and which are still largely unexploited.

The UAE's Dana Gas is due to start gas production in September from the Khoomor field in northern Iraq, where the company is building a liquefied petroleum gas plant in joint venture with Sharjah-based Crescent Petroleum.

The gas produced is due to flow through a 180-kilometre pipeline to two new power plants in Irbil and Sulaimaniyah together due to produce 1,250 MW of electricity for Kurdistan. Dana has also said that it will spend up to $50m next year on seismic surveys and appraisal wells in northern Iraq's Chamchamal field.

Supplying European markets

In a separate negotiation, Shell is also discussing conducting output tests for the Akkas gas field in central Iraq with the potential to supply European markets via Syria and Turkey.

The company has been conducting negotiations with Iraqi officials for several months in Damascus about gas developments as well as a service contract to develop Iraq's Kirkuk and Missan oil fields.

When the Southern Oil Company contract is signed it will take at least a year to establish the joint venture. However, some field work is expected to start as soon as the agreement is signed.

The Shell venture is considered a turning point by Iraqi officials. Security used to be a deterrent but now companies feel that it has improved and this will encourage others to come in according to Iraq's Oil Ministry.

The venture also follows a major shake-up of Southern Oil's management structure with Baghdad taking over decision making. The ramifications of this and whether the environment will be safe enough for large-scale engineering work to begin remains to be seen.

(AME Info FZ LLC)

Economic Experts expecting to increase the oil investment in Iraq

A number of German investment companies applied for the establishment of a giant oil refinery in the province of Dhi Qar, and a capacity of up to 150 thousand barrels per day at a time the spokesman Ali al-Dabbagh announced on the government approval on the agreement of principles with Shell to invest the associated gas with oil extraction in the province of Basra, in partnership With the South Oil Company ..
In the meantime, the Oil Minister Hussain al-Shahristani said that Iraq has a fiscal surplus up to 60 billion dollars, indicating his willingness to support any of the investment projects from the oil ministry revenues..

This move comes at a time when Iraq is seeking to develop oil industry in general, demonstrated by the tireless efforts taken by the government to invite the oil giant investment companies to work in Iraq, and that was reflected recently with a giant Chinese company to develop Al Ahdab oil field, as well other investments that might raise Iraqi oil exports during the coming period ..

The Chairman of the Investment Authority in Dhi Qar, Mr. Kazem Ismail Aboudi clarified that a number of German firms submitted their offers to set up oil refinery in the province with a capacity of 150 thousand barrels a day, adding that those companies will invest the oil refinery in the light of an agreement to purchase crude oil from the Iraqi government with a reduction of one dollar for barrel less than the global market price ,indicating that the company's right to sell its product inside and outside Iraq, and Ismail also said that the body aiming to develop the oil industry and signed an agreements with UAE company and Iranian expertise to establish an oil refinery with production capacity of 350 thousand barrels per day .. He pointed out that the process of obtaining permits to start implementation of the project in the coming months.

According to press reports that the Oil Russian Lukoil and American Conoco Phillips, have announced entering their own coalition to win the contract of extracting oil from the West Qurna oilfield II, and Lukoil won a contract in the West Qurna oilfield, which contains 6 billion barrels of oil before 2003.

For his part, the government spokesman Ali al-Dabbagh said the cabinet approved on the prime agreement to extract gas by Royal Dutch Shell company, jointly with the South Oil Company.

He said that Shell submitted a proposal to the Iraqi government to develop natural gas resources in Iraq and plans to supply the domestic market and export .. He said that Iraq, which possesses the third largest oil reserves in the world certainly will give priority to the development of gas reserves in the South that has become a major supplier to Europe.

Iraq has been heavily dependent on oil imports, which constitute approximately 89% of total revenues.. and importing now between 2.5-3 million barrels per day, and has the third largest oil reserves in the world, and the second largest reserves of natural gas in the world ..

Economists expected to increase the volume of oil investment in Iraq in the coming period, especially with the rising demand for crude oil in international markets, stressing the need of the government to seek with the oil ministry to increase the volume of oil production, which provides good financial returns to Iraq.

(Iraq Directory)

IMF agreed to lend Iraq more than 746 million dollars

The International Monetary Fund agreed to lend Iraq an amount of 746 million and 300 thousand dollars. The IMF said in a statement: "The economic prospects for Iraq are improving," adding that "the improved security conditions contribute to increase oil production and exports while diminishing the inflation rates."

The Fund agreed on "a first review of the Fund's program performance to lend Iraq an amount over $ 746 million and 300 thousand dollars, by the commitment of the Iraqi authorities to economic targets in spite of its failure to achieve targets related to salaries and pensions law."

The statement added that further economic progress depends on further improvement of security conditions in Iraq and the safe management of oil revenues and taking the reform measures.

Takatoshi Kato, the Deputy Managing Director of the International Monetary Fund said in the statement: that after several difficult years, the economic prospects of Iraq began to improve, as authorities continue to implement its economic program in 2008.

He added that the increase of salaries for civil employees will be implemented gradually over 2008 and 2009 to avoid causing a very rapid growth of the economy.

(Iraq Directory)

Rain water treatment project in Basra

A local company on Wednesday initiated a project to treat rain water and to maintain sewage stations in Basra province at a cost of almost one billion Iraqi dinars, an official source said.

“The project includes rehabilitation work on rain water networks to prevent flooding during winter…,” an official source from Basra’s sewage department, Engineer Hazem Mohammed, told Aswat al-Iraq

“The project will be financed by Basra’s reconstruction and services support committee and supervised by the local sewage department,” Mohammed noted, adding that the scheduled completion period is four months.

The committee, presided over by the minister of state for parliamentary affairs, Safaa al-Din al-Safi, was set up in synchronization with the commencement of Operation Saulat al-Fursan (Knights’ Assault) in late March.

Basra, 590 km (340 miles) south of the Iraqi capital Baghdad, has an estimated metropolitan population of 2,300,000 in 2008.

Basra, a Shiite province with 20 percent of the population are Sunnis, is the cradle of the first civilization of Sumer. It has the seven main Iraqi ports. The first built in Islam 14 A.H. (After Hegira), the city played an important role in early Islamic history.

The area surrounding Basra has substantial petroleum resources and many oil wells. The city’s oil refinery has a production capacity of about 140,000 barrels per day (bpd).

The only Iraqi outlet to the sea, Basra is in a fertile agricultural region, with major products including rice, maize corn, barley, pearl millet, wheat and dates as well as livestock.

A network of canals flowed through the city, giving it the nickname “The Venice of the Middle East” at least at high tide.

The only Iraqi outlet to the sea, Basra has the commercial ports of Iraq.

(Voices of Iraq)

$62 million projects approved – planning ministry

The Planning Ministry’s strategic authority for reconstructing Iraq approved projects at a total cost of $62 million, a statement from the national media center said on Tuesday.

“The authority chaired by Planning Minister Ali Baban agreed, during its 45th meeting, projects for the agriculture, water sources, education, health, municipalities ministries in Iraq’s Kurdistan region,” the ministry said in a statement received by Aswat al-Iraq.

“The ministry finances some projects through loans presented by other countries and international organizations,” the statement added.

(Voices of Iraq)

Many countries compete on investment in Iraq

Investment Authority disclosed competition of many developed countries to execute huge projects in the country, it include US, UK, France, UAE, Saudi Arabia and other countries, the Authority Chief, Ahmed Ridha, said.

Iraq received investment's bids of about $ 74 billion during past six months, as the country's budget devoted big allocations to develop Basra's airport, Baghdad international airport and holy city of Najaf, while there's project to build tourism city in Kut, Ridha said.

(Al-Sabaah)

Arab Economic Report : Iraq Memiliki Cadangan Minyak dan Gas Sama Dengan Jumlah Total Negara - negara Kaya Minyak Dunia

Arab Economic Report: Iraq possessed oil and gas reserves equivalent to the total oil rich countries in the world

The Arab Economic Report for 2008 issued in Beirut recently, described that Iraq possessed stockpiles of oil and gas equivalent to the total oil-rich countries in the world, praising the economic policy implemented by the government, despite the complex security situation in the country.

The report reviewed by the Arab General Federation of Commerce, Industry and Agriculture Chambers, the stock mineral wealth of Iraq, stating that Iraq "possessed reserve of oil and gas equivalent to total oil countries indispensable," praising the government's economic policy that "works in spite of the complex security conditions, to develop the local economy and improve the standard of living of the population ",
According to the report, which is consisted of 450 pages, that the "Iraq contains 530 geological complex of the large oil reserves," and provides that "there were 115 places dug so far, and their gas reserves are estimated at 311 billion barrels of oil, in addition to 415 places undiscovered, that reserves are estimated to be more than 215 billion barrels. "

The report addresses the gas wealth of Iraq, noting that the Iraqi oil ministry, "announced during the first half of 2007, the discovery of gas field stretching from Nineveh province in northern Iraq to Al Qa'em in the West region of the country, and south to the border with Saudi Arabia."

The report considers this field, "the largest in the country," adding that "EU countries had shown great interest in this field because of its closeness to the continent of Europe, especially in the framework of the joint gas pipeline project linking Jordan Egypt, Syria, Turkey, leading to the States of the European continent."

The report on the other side, handled with government actions in dealing with the economic sector, noting that it "works in spite of the complex security conditions, to develop the local economy and improve the standard of living for the population, through the creation of administrative and legislative frameworks and infrastructure required to activate the work of the private sector and attract foreign investment , Particularly in the current affluence resulting from higher oil prices in international markets."

The report indicates that "most of the reforms undertaken by the Government to control inflation and the restructuring of banks and developing the local private sector."

(Iraq Directory)

The improvement of security conditions in Iraq encourages foreign investment

The Iraqi economic community believed that the investment in Iraq will increase in the coming period, in the light of international companies started to study the possibility of investment in various sectors.

It is striking in this context a plan revealed by the Iraqi Oil Ministry for the construction of an airstrip for the helicopters at its headquarters to facilitate the arrival of delegations and international companies, which will start work soon in the development and rehabilitation of the oil sector.

And what enhances the expectations of these communities , the improvement in the security situation which gave the Iraqi government a greater opportunity to persuade companies to contribute in construction and reconstruction campaign, which Iraqi officials believe it needs to be developed from scratch.

A source in the Iraqi «National Board for Investment» stated that it agreed with local and international companies on implementing many projects in Iraq and granted the necessary permits, and the discussions are continuous with the German company's branch of «Mercedes-Benz» for cars and trucks in Egypt to build a branch in the province of Diwaniyah to produce Small buses. Also negotiations continue with the British - Dutch «Shell» oil company and «British Petrleom» to build oil refinery and ethylene production of urea and other petrochemicals.

The source noted that the company is currently negotiating with «Wood - McKenzie» Global Advisory to open branches in Baghdad, Basra and the Kurdistan region, and that the British company «Avinias Capital» expressed their willingness during the meeting, which gathered them with the President of construction body « Wasit international airport » (200 km south Baghdad). And the British «Crest Petroleum» Company has expressed its interest in constructing a gas city in Basra, according to the latest global designs, and is expected to invest burning gas to generate 1,280 megawatts of electricity.
The «National Board for Investment» had received six offers from international companies to generate electricity in different parts of Iraq and the Iraqi government has to buy the production and sells it at a subsidized price for citizens.

The head of the National Authority for Investment , Mr. Ahmed Redha said that the volume of investments made by the Board which is newly founded (in December of 2007) amounted to 74 billion dollars, distributed among the various infrastructure in Iraq such as factories and refineries and the development of airports and marine facilities, through local and foreign investors equally.

He noted that among the advantages of the investment law for foreign investors, tax exemptions, which extends nearly 15 years if the foreign investor has an Iraqi partner, which would trigger domestic capital and labors will gain broad experience.

(Iraq Directory)

Iraq's budget growing rapidly

Iraq's 2009 budget will be approximately US$75 billion.
By Aiyob Mawloodi

The draft of the 2009 budget is complete and is expected to approved by the Ministerial Council, and then be submitted to the Iraqi Council of Representatives for final approval. There are claims that the parliament will most probably approve it in this month.

The Iraqi Deputy Minister of Finance, Fazil Nabi, says that though the exact amount of the 2009 budget is not fixed and is subject to change; still it is clear that it will be higher than both the main and the supplementary 2008 budgets. He says that the budget is more 90 trillion Iraqi Dinars (approximately US$75 billion)

Members of the Finance Committee expect that the Ministerial Council will submit the draft budget to Parliament by the end of this month, which is an effort to avoid delays in the final approval of the budget. Previous years' delays in the budget approval had been blamed for seriously hurting the economy as a whole, and especially public sector investment projects and the welfare of Iraqis.

"Due to the fact that preparing, approving, and implementing 2008's budget was done very late, we faced some problems with the ministries, and they became the basis for any complaints against the Finance Ministry," said Nabi in an interview with a local Kurdish news agency. "Therefore, we tried to accelerate the process this year, and we sent the project to the Ministerial Council earlier so that they could approve it and send it to Parliament for their approval as well."

While the 2008 budget, including the supplementary budget totaled at US$70 billion, and 2007 budget was even less, the 2009 budget is expected to be much higher than those of the previous years.

Economic experts believe that the main reason behind this tangible increase is mounting oil prices in the global markets at a time when oil is the major source of Iraq's revenues. Some official statistics suggest that more than 70% of the Iraqi government's revenues come from exporting oil.

The Finance Ministry official announced that the draft has been complete since last week, but the Minister has not yet signed it. Hence, the figures are not yet final figures and subject to change both by the Minister and by the Ministerial and Representatives' councils. However, the changes, if any, won't be that significant and are to be approximately the same as they are in the first draft.

There are hopes that the budget will get the final approval by the Presidential Council before the beginning of next year.

Another issue related to the budget is Kurdistan Region's share of it. This has been the major issue in the previous years' budget preparation and approval processes. According to an agreement among different political groups in the country and based on the Permanent Constitution, Kurdistan Region has a 17% share of Iraq's total budget. This has been resisted severely by many political groups, especially in Parliament. Some groups were trying hard to reduce this share and became serious roadblocks in the way of approving the region's share. And this very issue was the main reason behind the delays in approving the 2007 and 2008 draft budgets.

However, there are hopes that this won't be a serious problem for the 2009 budget. Nabi says that 17% is already allocated for Kurdistan in the draft budget. He believes there will not be any problems regarding this issue neither in his ministry, nor in the Ministerial Council. If there is to be a problem about the issue, it will be in the parliament, but is should neither be that serious.

Kurdistan Regional Government's (KRG) budget was mainly spent on wages and little remained for investment purposes, a fact that negatively affected the economy of the region. This problem led to a mandate by the regional Ministerial Council to reduce the number of public employees to save some money for reconstruction and development purposes. Assuming that Kurdistan is to get the 17% fully, then the region's budget will be uniquely high. Bearing in mind that wages and consequently the operational budget is expected to be less than that of previous years, it is normal to expect a much higher investment budget in the next year.

However, the question remains whether this budget is utilized efficiently and invested in necessary and important projects, or wasted with minor projects and through corruption.

(Kurdish Globe)

Karbala to set priority for investment projects

Karbala governor Aqeel Mahmoud al-Khazaali discussed in a joint meeting with the local investment authority the projects scheduled for implementation in the province, according to an official statement.

"The meeting was meant to draw investment maps in the province," read a statement released by the Iraqi cabinet's national media center and received by Aswat al-Iraq - Voices of Iraq - (VOI).

The statement stressed the need for communication between provincial departments and the investment authority.

Karbala, with an estimated population of 572,300 people in 2003, is the capital of the province and is considered to be one of Shiite Muslims' holiest cities.

The city, 110 km south of Baghdad, is one of Iraq's wealthiest, profiting both from religious visitors and agricultural produce, especially dates.

It is made up of two districts, "Old Karbala," the religious center, and "New Karbala," the residential district containing Islamic schools and government buildings.

At the centre of the old city is Masjid al-Hussein, the tomb of Hussein Ibn Ali, grandson of the Prophet Muhammad by his daughter Fatima al-Zahraa and Ali Ibn Abi Taleb.

Imam Hussein's tomb is a place of pilgrimage for many Shiite Muslims, especially on the anniversary of the battle, the Day of Ashuraa. Many elderly pilgrims travel there to await death, as they believe the tomb to be one of the gates to paradise. On April 14, 2007, a car bomb exploded about 600 ft (200 m) from the shrine, killing 47 and wounding over 150.

(Voices of Iraq)

Foundation stone laid for downtown Falluja hospital

Iraqi Vice President Tareq al-Hashemi on Thursday laid the foundation stone for the new Falluja hospital in the downtown of the city in the presence of several government officials.

Hashemi, who is also the head of the Iraqi Islamic Party (IIP); MPs Omar Abdelsattar al-Karbouli and Salman al-Jameeli from the Sunni Iraqi Accordance Front (IAF); the governor of Anbar, Ma'moun Sami al-Alwani; and the head of the provincial council, Abdelsalam al-Aani attended the ceremony, according to a correspondent for Aswat al-Iraq - Voices of Iraq - (VOI), who was there.

The IIP is one of the three main components of the Sunni IAF, which also includes the Iraqi People's Congress led by Adnan al-Dulaimi and the Iraqi National Dialogue Council, led by MP Khalaf al-Ulayyan.

Ramadi, the capital of Anbar province, lies 110 km west of Baghdad.

Anbar is the largest province in Iraq geographically. Encompassing much of the country's western territory, it shares borders with Syria, Jordan and Saudi Arabia. Anbar is overwhelmingly Sunni Muslim Arab.

The name of the province translates "granaries," as this region was the primary entrepôt on the western borders of Lakhmid Kingdom.

The province was known as Dulaim until 1962 when it was changed to Ramadi. In 1976 it was renamed al-Anbar.

(Voices of Iraq)

Preliminary investment agreement with German company

Diwaniya governor on Thursday revealed a preliminary agreement with a German company to invest in several giant projects in Diwaniya province.

"A preliminary investment agreement has been made with the company to establish a tourist hotel, an entertainment area and a modern market, where foreign and Arab companies can display their products," the governor, Hamid al-Khodari, said during a press conference held in Diwaniya and attended by the company's director general.

Meanwhile, the company's director general said that it has assessed the economic situation in the province and has reached several preliminary investment agreements with the local government.

"The local government is ready to offer all facilities to our company," he noted, adding that the main obstacle facing foreign companies in the country is Iraqi banks, which he said still adopt routine and lengthy procedures despite being mostly run by the Central Bank of Iraq (CBI).

Diwaniya lies 180 km south of the Iraqi capital Baghdad.

In 2002, the population of Diwaniya was estimated at 420,000. The area around the province, which is well irrigated from the nearby Euphrates River, is often considered to be one of the most fertile parts of Iraq, and is heavily cultivated.

The town is located on the main rail transport corridor between Baghdad and Basra. For birdwatchers, Diwaniya is a city with a rich bird list, as it has a wide range of biodiversity.

(Voices of Iraq)

Iraq settles $1.2 bln in Saddam-era commercial debt

Iraq has settled $1.2 billion in outstanding Saddam-era commercial claims against the Iraqi government and public sector after concluding a debt buyback programme, it said on Wednesday.

Iraq opened this latest commercial debt buyback programme in January 2008 and said it would qualify claimants for a cash buyback of 10.25 percent of the outstanding amount, including principal and accrued interest.

The terms of the programme were "substantially similar to those of Iraq's previous cash settlement offers," Iraq's Ministry of Finance said in a statement, adding they were comparable to the terms of Iraq's 2004 Paris Club deal.

The latest programme brings total commercial debt claims settled by Iraq to $20.9 billion, the finance ministry said.

It said 85 claimants participated in this offer, bringing the total number of claimants to 576 since Iraq's first buyback programme launched in 2005 for commercial claims from the era of Saddam Hussein, overthrown by the U.S.-led invasion in 2003.

Iraq restructured commercial claims to launch $2.7 billion worth of sovereign bonds in January 2006.

The bonds mature in 2028 but start to pay back the principal from 2020. The bonds began trading at 69 cents on the dollar and fell as far as 55 cents last year, but have since recovered to 73 cents <462652aa6=rrps>, boosted by increased confidence over Iraqi security and the economy.

Iraq has also settled debt with 58 countries, the finance ministry said in Wednesday's statement.

The United Arab Emirates waived $7 billion of Iraqi debt in July, and Kuwaiti media have said Kuwait may forgive Iraq's $15-16 billion debt.

Investors have been looking for settlement by Middle Eastern countries of Iraqi debt to provide a further boost to the Iraqi economy.

The Paris Club of 19 rich creditor nations agreed in 2004 to write off 80 percent of its $40 billion debt to Iraq, and Russia wrote off most of Iraq's $12.9 billion debt earlier this year.

Analysts expect the remaining 20 percent of the Paris Club debt to be written off at the end of this year, with non-Paris Club countries following suit.

"There are two major stories for investing in Iraq -- one is oil and the other is the Paris Club restructuring," said Turker Hamzaoglu, economist for Middle East and North Africa at Merrill Lynch, which recommends an overweight position in Iraqi debt.

Hamzaoglu calculates Iraq's debt to GDP ratio falling to 36 percent next year from 160 percent, due to debt restructuring and increased domestic growth.

(Reuters)

Grafik Peningkatan Dinar Iraq (IQD) terhadap US Dollar (USD)

Nov 2007 - Sep 2008

Investment authority approves new Najaf city project

The Iraqi national investment authority on Wednesday approved the establishment of the new Najaf city project with a total cost of $38 billion, the spokeswoman for the authority said.

"Ahmed Reda, the chairman of the authority, approved the project to set up the new Najaf city with a total amount $38 billion," Jina al-Amou told Aswat al-Iraq - Voices of Iraq (VOI).

"The project was submitted to the cabinet for approval," she added.

The head of the authority had told the VOI last Saturday that the project envisages establishing 200,000 housing units and tourist and public utilities, including a huge library like the Congress one.

Two companies; Iraqi and UAE, will carry out the project.

(Voices of Iraq)

Water network to be established in downtown Basra

A project on Tuesday was initiated to establish a drinking water network in Basra's downtown areas of al-Janeena and al-Mufaqiya at a cost of nearly $100,000, an official source said.

"The houses in al-Janeena area will be linked to the main pipes," Engineer Ahmed al-Mayahi from Basra's construction unit told Aswat al-Iraq- Voices of Iraq- (VOI).

Mayahi explained that the areas of al-Janeena and Mufaqiya have old water networks, which negatively affected drinking water supplies in them.

According to the engineer, the completion period of the project, which will be carried out by a local company, is three months.

Basrah, 590 km (340 miles) south of the Iraqi capital Baghdad, has an estimated metropolitan population of 2,300,000 in 2008.

Basra is the cradle of the first civilization of Sumer. It has the seven main Iraqi ports. The first built in Islam 14 A.H. (After Hegira), the city played an important role in early Islamic history.

The area surrounding Basra has substantial petroleum resources and many oil wells. The city's oil refinery has a production capacity of about 140,000 barrels per day (bpd).

Basra is in a fertile agricultural region, with major products including rice, maize corn, barley, pearl millet, wheat and dates as well as livestock.

A network of canals flowed through the city, giving it the nickname "The Venice of the Middle East" at least at high tide.

(Voices of Iraq)

Basra's al-Najibiya power station renovated

The Iraqi Ministry of Industry on Tuesday said that it has completed renovation work on Basra's al-Najibiya electricity station, noting that all work has been carried out by "Iraqi hands."

"Ibn Majid General Company, which is owned by the Iraqi Ministry of Industry and Minerals, has finished rehabilitation work on al-Najibiya electricity station, which generates 90 megawatts for the country's national grid..," according to a ministerial statement received by Aswat al-Iraq - Voices of Iraq - (VOI).

Similar stations would be renovated by international companies, the statement noted, adding that it was the first time to be done by "Iraqi hands."

The statement revealed the company's readiness to implement larger and complex projects, including a project to install equipments and machinery in units 2 and 3 in al-Haritha Electricity Station, which is expected to supply the national grid with no less than 350 megawatts of electricity when fully operated.

There are four main electricity generating stations in Basra province: al-Shuaiba, al-Najibiya, al-Zubeir, and al-Haritha.

Basra, 590 km (340 miles) south of the Iraqi capital Baghdad, has an estimated metropolitan population of 2,300,000 in 2008.

Basra is the cradle of the first civilization of Sumer. It has the seven main Iraqi ports. The first built in Islam 14 A.H. (After Hegira), the city played an important role in early Islamic history.

The area surrounding Basra has substantial petroleum resources and many oil wells. The city's oil refinery has a production capacity of about 140,000 barrels per day (bpd).

Basra is in a fertile agricultural region, with major products including rice, maize corn, barley, pearl millet, wheat and dates as well as livestock.

A network of canals flowed through the city, giving it the nickname "The Venice of the Middle East" at least at high tide.

Iraqi dinar soars despite rising dollar

When the new Iraqi currency went into circulation about four years ago, one dollar bought nearly 1,500 dinars.

But the dinar surged in value, backed by a hike in Central Bank’s reserves of hard cash and financial policies that have prevented the currency from sliding.

Iraq exports nothing of note apart from oil. Unlike industrial countries where expensive currency negatively affects exports, Iraq has no such worries.

Oil prices have nothing to do with the value of national currencies of oil producing states.

Thus the Central Bank’s policy of keeping the dinar appreciating is one of the rare success stories in an economy battered by U.N. trade sanctions and ongoing war since the U.S. invasion of 2003.

When the dollar climbed to a one-year peak versus a basket of major currencies on Monday, it kept sliding vis-à-vis the Iraqi dinar.

The dinar soared to 1l82 to the dollar from 1184.

The Central Bank keeps a close eye on the Iraqi financial market and specifically the exchange rate. Every week the bank sells on the spot Baghdad market up to 1 billion dollars. On Monday it sold $113 million.

(Azzaman)

FM urges Cypriot companies to invest in Iraq

Iraqi Foreign Minister Hoshyar Zebari on Tuesday called on Cypriot companies to invest in Iraq.

This came during his meeting with the special envoy if the Cypriot president on the sidelines of the Arab foreign ministers meeting in Cairo, according to a statement of the Iraqi foreign ministry.

“Foreign Minister Hoshyar Zebari met in Cairo with the special envoy of the Cypriot President, upon the demand of the later, on the sidelines of the Arab foreign ministers’ meeting at the Arab League headquarters,” it added.

“Zebari called on the Cypriot companies to invest in Iraq in various economic domains and also urged Cypriot officials to visit Iraq and coordinate with Iraqi transport ministry regarding the Basra’s ports,” the statement explained.

The statement quoted the Cypriot official as expressing his country’s desire to develop its economic and trade relations with Iraq, mainly in oil and gas fields after the reopening of the Cypriot embassy in Iraq long with other 55 countries which resumed their diplomatic relations with Iraq after the great security improvement in the country.

(Voices of Iraq)

Deputy premier receives U.S., Japanese envoys

The Iraqi deputy prime minister, Rafe' al-Issawi, on Monday received two envoys from the United States and Japan and discussed with them means of improving services and supporting investment in Iraq.

"During a meeting with the U.S. envoy, the deputy premier discussed several issues related to the services sector," according to a statement released by Issawi's office and received by Aswat al-Iraq - Voices of Iraq - (VOI).

The two sides examined the possibility of increasing U.S. support to improve services in the country.

Another statement released by the office quoted Issawi as urging Japanese firms to invest in Iraq and to contribute to reconstruction efforts in the country.

Other issues of mutual concern were also raised during the meeting with the Japanese envoy.

(Voices of Iraq)

Thi-Qar investment plan in symposium

The investment authority in Thi-Qar has held a symposium in Nassiriya city to tackle means of developing an investment plan for the province with the participation of a number of provincial council members, heads of administrative units, businessmen and industry players.

"The symposium took place in a hall in Nassiriya's al-Janoub (South) Hotel and was opened with a speech by an investment authority member, Mohammed al-Battat, in which he outlined the authority's role in attracting investors, and foreign and domestic capital," according to a statement released by the Iraqi cabinet's national media center and received by Aswat al-Iraq- Voices of Iraq- (VOI).

Battat's speech was followed by another by the chairman of the authority, Ismail al-Abboudi, in which he stressed the importance of investment for infrastructure development.

Evening workshops were held with the participation of the heads of administrative units to specify key sectors for future investment in the country, according to the statement.

Thi-Qar, 380 km south of Baghdad, has an area of 12,900 square kilometers (4,980.7 sq mi). In 2003 the estimated population of the governorate was 1,454,200 people. Thi-Qar's capital is the city of al-Nassiriya.

It also includes the ancient Sumerian ruins of Ur, Eridu, Lagash and Ngirsu. Before 1976 the province was known as al-Muntafiq.

(Voices of Iraq)

Governor reveals German intentions to invest in Basra

Basra governor on Sunday said that a number of German firms have shown their willingness to invest in the province, revealing plans by the German government to open a consulate in Basra.

"Some German companies have expressed their readiness to come to Basra and to gain investment and trade contracts to set up projects in the province in different fields," Mohammed Musbah al-Waili told Aswat al-Iraq- Voices of Iraq­- (VOI).

On July 22, Iraqi Prime Minister Nouri al-Maliki arrived in Germany on a European tour that also included Italy and the Vatican.

The Iraqi premier urged the German government to open two consulates in Basra and Arbil and a university in Baghdad. He also called on German companies and investors to participate in investment and development projects in Iraq.

Basra is the cradle of the first civilization of Sumer. It has the seven main Iraqi ports. The first built in Islam 14 A.H. (After Hegira), the city played an important role in early Islamic history.

The area surrounding Basra has substantial petroleum resources and many oil wells. The city's oil refinery has a production capacity of about 140,000 barrels per day (bpd).

Basra is in a fertile agricultural region, with major products including rice, maize corn, barley, pearl millet, wheat and dates as well as livestock.

A network of canals flowed through the city, giving it the nickname "The Venice of the Middle East" at least at high tide.

(Voices of Iraq)

70B dinars in border revenues in Kurdistan

The Iraqi Ministry of Finance on Sunday said that the revenues from border tariff collection in Iraq's Kurdistan region reached 70 billion Iraqi dinars in 2007, comprising 45 percent of Iraq's total border revenues.

"The General Customs Authority in the central government and the customs department in the Kurdistan region have agreed to unify customs procedures countrywide," according to a statement released by the Iraqi cabinet's national media center and received by Aswat al-Iraq- Voices of Iraq- (VOI).

It is noteworthy that 1 U.S. dollar= 1,118 Iraqi dinars.

Earlier, the ministry sent a delegation comprising high-ranking officials to the Kurdistan region to implement Article 18 of the Budget Law of the year 2008 and to discuss a broader unification of customs and tax laws and procedures.

(Voices of Iraq)

IMF sees improving economic prospects in Iraq

Iraq's economic prospects are improving with increased security helping to boost oil output and exports, while inflation has declined, the International Monetary Fund said on Wednesday.

The IMF approved its first performance review of Iraq's $746.3 million IMF loan program. It said Iraqi authorities had largely stuck to the program's agreed economic targets, although it waived those related to a government wage and pension bill.

Still, it said further economic progress depended on more improvements in Iraq's security situation, sound management of oil revenues, and reform measures.

"After several very difficult years, economic prospects for Iraq are improving and the authorities are persevering with the implementation of their economic program in 2008, IMF Deputy Managing Director Takatoshi Kato said in a statement.

To keep inflation in check, the IMF said Iraq's central bank planned to tighten its monetary policy stance, including by increasing the pace of appreciation of its currency.

To speed up rebuilding of Iraq, the IMF said a supplementary 2008 budget allowed for sizable spending increases following years of public underinvestment.

It said a civil service pay hike will be phased in over 2008 and 2009 to avoid overheating of the economy.

"It will be important to step up the pace of structural reform," Kato said.

"Of particular urgency are the early adoption of a comprehensive reform plan for modernizing public financial management, the finalization of the census of public service employees to eliminate ghost workers, and the streamlining of the in-kind public distribution system," he added.

He urged that a restructuring program for two major commercial banks, based on financial and operational audits, should proceed and regulations for commercial banks completed.

A new legislative framework for the country's oil sector will facilitate investments in the sector, Kato added.

The IMF said Iraq had made progress in fighting corruption in the oil sectors by introducing oil meters and increasing transparency. "An extension of the metering system to all oil sector activities will further strengthen transparency in the sector," Kato said.

He said Iraqi authorities were making "commendable efforts" in concluding debt agreements with non-Paris Club and private creditors.

(Reuters)

Iraqi Dinar has strengthened its gains against US dollar and rises 0.002 within a week

The Iraqi dinar has continued to strengthen its gains against the U.S. dollar and the rise registered at (0.002), where the rate of exchange today 1182 dinars for the one dollar as high the value of exchange a week ago, specifically last Thursday and that was 1184 dinars for the one dollar.

The rising of dinar comes within a program adopted by the Iraqi government since the middle of last year, when the government had supported the value of dinar and raised the exchange rate to 1500 dinars to the one dollar during the month of July 2007 to 1182 dinars for one dollar through this September.

The Central Bank of Iraq announced in a statement that it sold by auction today about 113 million U.S. dollars, with new exchange rate of 1182.

It is noteworthy that the value of Iraqi dinar exchange rate determined by the price sold at the auction held by the Central Bank of Iraq daily, which involves a number of Iraqi banks participations.

(Iraq Directory)

Cabinet expects oil proceeds from al-Ahdab field to hit $55B.

The Iraqi cabinet expected the total proceeds from developing the al-Ahdab oilfield in Wassit province to hit $ 55 billion for a period of 20 years, or 87% of the total revenues of $ 63 billion, according to a statement by the official spokesman for the Iraqi government on Wednesday.

"The presumptive investment cost to upgrade al-Ahdab oilfield in association with a Chinese company reached three billion dollars hile the operational cost was put at four dollars per one barrel before adding 15% tax duties over the contractors' profits," Ali al-Dabbagh said in the statement received by Aswat al-Iraq - Voices of Iraq - (VOI).

Al-Ahdab field, in the al-Ahrar district, (25 km) western Kut city, is one of the uninvested Iraqi oilfields that is, if deveoped, expected to hit 200,000 barrels per day (bpd) in capacity.

Discovered in the year 1979, the oilfield boasts a reserve of 225 million bpd.

The statement quoted Dabbagh as saying that "the 20-year-old service contract provides that the Chinese company shall construct all the surface installations necessary to extract oil and separate and treat gas as well as other reservoirs and facilities".

"In return, the Iraqi side will afford the costs these obligations over annual batches to guarantee fine performance," said Dabbagh.

The Iraqi government spokesman pointed out that the contract to develop al-Ahdab field envisages economic previliges for Iraq compared to the partnership agreement signed during the previous regime's time, as the Chinese company's profits from the total revenues of the project are 4% in the current contract compared to 8% in the previous contract, which saves a sum of $ 2.5 billion for Iraq provided that one barrel of oil is worth $ 100.

Wassit, 180 km south of Baghdad, is in the east of the country. Its name comes from the Arabic word meaning "middle," as it lies along the Tigris about midway between Baghdad and Basra.

Its major cities include the capital, al-Kut, and al-Hayy. Prior to 1976 it was known as Kut Province.

(Voices of Iraq)

2 tourist roads to be constructed in northern Karbala

Work has begun on a project to construct two tourist roads in the north of Karbala city at a cost of over $900,000, the head of the construction committee in the city's provincial council said on Wednesday.

"Two local companies have begun their work on two tourist and agricultural roads in al-Huseiniya district (20 km north of Karbala) at a total cost of 951.603 million Iraqi dinars," Fallah Hassan Atiya told Aswat al-Iraq - Voices of Iraq - (VOI).

"The first road is 2,300 m in length and 5 m in width, while the second d it 1,000 m in length and 5 m in length," Atiya explained, noting that the scheduled completion period of the project is six months.

Highlighting the significance of the projects, Atiya said that the two roads will link al-Huseiniya road to the public road in Baghdad and will serve a large number of residents.

Karbala, with an estimated population of 572,300 people in 2003, is the capital of the province and is considered to be one of Shiite Muslims' holiest cities.

The city, 110 km south of Baghdad, is one of Iraq's wealthiest, profiting both from religious visitors and agricultural produce, especially dates.

It is made up of two districts, "Old Karbala," the religious centre, and "New Karbala," the residential district containing Islamic schools and government buildings.

At the centre of the old city is Masjid al-Hussein, the tomb of Hussein Ibn Ali, grandson of the Prophet Muhammad by his daughter Fatima al-Zahraa and Ali Ibn Abi Taleb.

Imam Hussein's tomb is a place of pilgrimage for many Shiite Muslims, especially on the anniversary of the battle, the Day of Ashuraa. Many elderly pilgrims travel there to await death, as they believe the tomb to be one of the gates to paradise. On April 14, 2007, a car bomb exploded about 600 ft (200 m) from the shrine, killing 47 and wounding over 150.

(Voices of Iraq)

Water station maintained in western Basra

A local company on Tuesday has initiated work on a project to maintain Khour al-Zubeir water station at a total cost of nearly $1.8 million.

"New pumps will be installed in the station. Crude and pure water basins will be cleaned up and an administration division will be set up," the engineer supervising the project, Ahmed Kadhim, told Aswat al-Iraq - Voices of Iraq - (VOI).

The project, whose cost will exceed 2.19 billion Iraqi dinars (1 U.S. dollar= 1,118 Iraqi dinars), will be carried out by a local company from Basra, the engineer noted, adding that the scheduled completion period is five months.

Basra is the cradle of the first civilization of Sumer. It has the seven main Iraqi ports. The first built in Islam 14 A.H. (After Hegira), the city played an important role in early Islamic history.

The area surrounding Basra has substantial petroleum resources and many oil wells. The city's oil refinery has a production capacity of about 140,000 barrels per day (bpd).

Basra is in a fertile agricultural region, with major products including rice, maize corn, barley, pearl millet, wheat and dates as well as livestock.

A network of canals flowed through the city, giving it the nickname "The Venice of the Middle East" at least at high tide.
(Voices of Iraq)84re

Intl. economic event in Baghdad in November

The Iraqi Ministry of Trade on Sunday said that it will hold an international economic event for the Baghdad International Fair on November 10.

"Preparations have started for the event in cooperation with the Iraqi government and different ministries," according to a ministerial statement received by Aswat al-Iraq - Voices of Iraq - (VOI), quoting the director general of the Iraqi exhibitions, Sabti Jumaa Hassan.

"It is a good opportunity to directly deal with those concerned with building a modern infrastructure in Iraq and creating a development and an investment breakthrough," Hassan said.

According to Hassan, the Baghdad International Fair deals with contracting works, roads, bridges, modern building and housing mechanisms, trade, electricity, universities, health, mobile phones, computers, investment, motors, medications, agriculture, environment protection, tourism, hotels, tourist services and others.

(Voices of Iraq)