More belt-tightening in store for Iraqis

The outgoing government is reported to have agreed to these conditions, which among other things, require that Iraq to enter into long-term partnership deals with foreign firms to develop the country’s massive oil wealth.

Sources, refusing to be named, leaked information of the deal which the government has so far opted to keep under wraps.

Fuel prices will have to be raised to levels comparable to those in neighboring countries, according to the deal.

The expected upsurge in fuel prices will come on top of the hikes the government made recently and which led to demonstrations across the country.

The sources said millions of Iraqis dependent on food rations for a living need now to prepare themselves to do without government-subsidized food.

The deal will have to be ratified by the parliament but the outgoing government of Prime Minister Ibrahim al-Jaafari, though agreeing to it, has refused to send it to the legislators.

World Bank, International Monetary Fund and creditor countries have written off most of Iraqi debts.

But these institutions and countries, the sources said, would like Iraq to open up its oil fields to foreign investments.

Any further hikes in fuel rates are bound to backfire on the new government and are very likely to lead to large-scale rioting.

But the scrapping of food rations will have far graver consequences as millions of Iraqis will find it almost impossible to make ends meet without them.(Source)Nidhal al-Laithi, Azzaman

China ready to provide training in oil in Iraq and other fields aswell

The pledge to provide the training came following a meeting between Foreign Minister Hoshyar Zaibari and the Chinese envoy in Baghdad.

“The (Chinese) ambassador has expressed his government’s willingness to develop relations with Iraq … and provide the country with assistance in the training of Iraqi cadres,” the statement said.

It said initially China would provide training for 80 Iraqi oil personnel “and donate X-ray machines” to help the country control its borders and combat violence.

“China is keen to do whatever it takes to press ahead with the Iraqi reconstruction,” the statement quoted the envoy as saying.(Source)Haqi Ismael,Azzaman

Iraq needs $60 billion US Dollars to revive domestic industry

Otherwise, Iraqi industry will not be able to cope with the rest of the world, he said.

He said currently his ministry was receiving only 10% of the actual allocations it needs to modernize the industry.

Currently, the industry makes a modest contribution to GDP but exports are negligible.

But Abdulaziz said with the necessary investments domestic industry’s contribution should not less than 25%.

This will be a boost to the oil sector, currently the country’s sole foreign cash earner.The minister said his companies have signed several contracts with other ministries.

He said state fertilizer plants now meet domestic needs.“We have signed a $50 million contract for the construction of four refineries,” he said.

The ministry’s pharmaceutical companies meet 50% of the country needs, he said.(Source)Ali Kareem,Azzaman

India to carry out housing projects in Iraq Najaf – governor

Najaf and Karbala are cities holy to Muslim Shiites around the world.

“Najaf suffers from an acute housing crisis,” the governor said.

He said housing was in such shortage that residents were camping or squatting illegally on private or state-owned land.

The governor did not say whether he had signed any contracts during his visit or whether the Indian firms would come to Iraq despite insecurity.

However, Najaf has a special status in the government and is given preferential treatment in budget allocations.

Kallal said the low-priced houses to be built by the Indian firms will be given to low-income families who do not own a house.(Source)Saadoun al-Jaberi,Azzaman

Iraq and Iran sign industry cooperation deal

He said the agreements cover “industrial fields of ceramics, detergents, cooking oil, dairy products and vehicles.”

He said under a deal with Iran Khodro, Iraq’s biggest automobile manufacturing company, the Iranians have agreed to start a truck division in the country.

Iraq will import more vehicles from Iran Khodro, including ambulances, he said.

Iran Khodro is reputed for its Samand brand of which $200 million are exported every year.

Aziz said the ministry and Iran’s enterprises, whether private or state- owned, will each have 50% ownership of the divisions to be constructed in the country.

Iran is the only country which has agreed to start cooperating with Iraq despite mounting insecurity and violence.

Aziz said his ministry presented similar joint projects to countries like Jordan, Malaysia, the U.S. and the United Arab Emirates but these countries said they would start cooperating in earnest when security improves.

(Source)Azzaman

Iraq to add 500,000 barrels to daily oil output in 2006

The source said the target was within reach “due to massive financial allocations” the government has made to the ministry.

He said the ministry will have access to $3 billion this year and that nearly 70% of the money will be spent on upgrading the industry’s upstream and downstream activities.

International media had quoted the ministry as saying that production had already reached 2.2 million barrels a day and that 1.5 million of it was earmarked for exports.

But the source said there was no way for Iraq to export 1.5 million barrels a day as maximum the southern terminals currently can handle was 1.1 million barrels daily.

He said exports from the northern fields to terminals in Turkey were negligible and would not resume on a regular basis without marked improvement in security conditions.

“If we can hike production to 2.25 million barrels a day by the end of 2006 that will be an achievement in itself,” the source said.

He said the ministry was confident of adding half a million barrels to the current daily output of 1.75 million “because we are certain this time that we are going to get all the money allocated for us.”

Previous years, he said, the ministry was not given the money needed to make the necessary investments.(Source) Ali Khaleel, Azzaman

One bilion Iraqi dinar for Baghdad University

An official source at the university said to as-Sabah that the technical and engineering cadres in the university have contributed to develop and rehabilitate as-Salam, al-Aqaida, al-Wahda, veterinary college for hostels with cost of Iraqi dinar 400 millions.

He added that a compound for class halls will be established at College of Arts and College of Languages at Bab al-Mu’adhum with cost of Iraqi dinar 400 millions.(Source) Al Sabaah

Foreign firms find oil in Iraq's border town

Zaibari, speaking in a local television interview, did not name the foreign firms but said they were exploring for oil in northern Iraq under an agreement with the central government.

"The preliminary explorations have shown very good results," he said.

Zakho is a town in the Kurdish north bordering Turkey.

Zaibari did not give the names of the foreign firms involved in the exploration.

But said: "The explorations in Zakho provide conclusive evidence that Iraqi crude reserves are is immense indeed."

Proven Iraqi reserves are estimated at 14 billion barrels, the world’s second largest after those of Saudi Arabia.

Zibari is in charge of fuel distribution in the three Kurdish provinces of Dahouk, Sulaimaniya and Arbil as welll as Taameem (kirkuk) and Nineveh (Mosul).

He claimed that the five provinces currently suffer from no fuel shortages.

He said his company’s policy of rationing the distribution particularly of gasoline has slashed what he called “waste” in the three Kurdish provinces by 40%.

Despite its massive oil wealth, Iraq currently imports fuel from Turkey and Zaibari said fuel bills due to Turkey, and still unpaid by the government, were worth up to $1 billion.(Source) Azzaman

Stolen masterpiece from Iraq exhibited for sale in New York city

The source informed the newspaper that the president of State Commission of the International Antiquities Dony George has confirmed that the masterpiece is exhibited for selling in Fortuna Fine Arts located at 984 Madison St. in New York City, referring that an archeologist specialized in ancient Iraqi minerals stated that the source of such kind of axes are from Iraqi archeological sites, particularly, from Selima and Hassan hills, indicating that forged marks have been put on these axes such as “Loastan ,Amlash and others marks. (Source) Al Sabaah

Oil refinery deal between Poland and Iraq

The ministry showed the Iraqi desire to develop the mutual relations between the two countries in all fields.The Polish ambassador on Iraq handed an invitation from the deputy of Polish minister of foreign affairs to his counterpart to visit Poland to discuses the methods of developing cooperation between the two countries and making deals in the mentioned fields.(Source) Al Sabaah