Erecting Three 28-Megawatts Electricity Stations and Establishing a Giant Bridge in Kufa within the Framework of the Campaign of Reconstructing Najaf

The source said, "This project is considered as one of the projects that the ministry has established in a number of provinces, except for the city of Baghdad, for the purpose of increasing the generation capacity and decreasing the cuts hours in them.

On the other hand, the source pointed out that the technical cadres in the province has continued to maintain its campaign, which aims at improving the distribution networks in the city center and a number of old residential districts, including Al Seha, Al Mo'alemeen, Al Imam Ali, Al Mahdi, Al Shorta and Al Thawra districts, through erecting new feeders.

The source pointed out that the campaign has included extending new wires to a number of new residential districts and executing new illumination project on Karbala- Najaf road, as the majority of the necessary materials for achieving the project were secured.

On the other hand, an official approval was obtained for the establishment of a huge bridge in Al Kufa for the purpose of reducing the occurring jams on the only bridge in the city. A source in Al Najaf province said that the engineering cadres in the province have started the process of survey for specifying the location of the bridge. He added that a committee has been created from Al Najaf Agriculture, real estate and the reconstruction committee for the purpose of compensating the farmers, whose lands would be used in building the bridge. (Source) Al Mada

Al Khaleej seeks Iraq deal

'They have not signed up yet,' Jamal, chairman of Dubai's Al Khaleej sugar refinery, the only sugar refinery in the UAE, said by telephone.

He said he believed Al Khaleej was one of four bidders in the tender. He gave no further details.

Iraq held the tender for the sugar around June 17-18, trade sources said.

Some traders said Iraq currently requires a big quantity of white sugar promptly after previous deals fell through.

They said they believed Iraqi authorities had not bought sugar for some months.

Jamal said availability of prompt white sugar was very limited, which explained the recent surge in white sugar futures.

'There is a huge tightness in the nearby,' he said.

'It is because people have delayed purchases.'

London front-month August white sugar futures traded just off a contract high of $278.0 per tonne on Friday morning, standing at $277.80 per tonne, up $3.8 or 1.39 per cent, in volume of 316 lots at 0904 GMT.(Source) Trade Arabia

Economic Study Warns the Iraqi Central bank from Continuing the Policy of Fixing the Dinar exchange Rate

The study noted that despite the success of the Iraqi central bank in fixing the exchange rate of the national currency through the process of connecting it with the American currency and preparing the proper atmosphere that has a positive effect on creating a stable environment in the Iraqi market that have to a certain extent led to restoring the confidence of businessmen and investors through relying on the policy of selling 30 million American dollars in the bank's daily auction , which achieved a stability in the remaining of the exchange rate of the Iraqi dinar at 1465 against the dollar in the past two years, this policy has resulted in negative consequences and has harmed the Iraqi economy.

The study, which was conducted by the administration and economy college in Al Basra university, has pointed out that the Iraqi central bank has used a significant part of the reserve of foreign currency for the purpose of fixing the exchange rate of the Iraqi dinar, and the continuation of such method would lead to using up this reserve, which, through time, would consequently result in that the central bank would lose its ability to maintain the equivalence value of the Iraqi dinar, especially as the sums that the bank uses of the dollar is so great and exceeds 7.5 billion dollars a year, which is equivalent to half of the oil revenues.

The study noted that the stability of the exchange rate of the Iraqi dinar as an ultimate goal for the monetary policy did not lead to the stability of the prices of commodities and services, which tended to the great continuous rise. The criteria of prices record show that they increased by 2.5% a month, which means the invalidity of this policy in reducing the rates of inflation in Iraq.

The study stated that this led to evaluating the Iraqi currency more than its value against other currencies, which represents an exaggeration in the Iraqi exchange rate against other currencies that led to the escape of capitals. Reducing the Iraqi exchange rate, for any reason, might lead the people to shift from dealing in the local currency to the foreign currencies to avoid potential loss. The study confirmed that for the monetary policy in Iraq to be effective and active in the economic environment, it should be a part of an efficient economic policy as each of the policies affects and is affected by the other. Maintaining the exchange rate of the Iraqi currency then increasing it at a later stage require, first of all, increasing the efficiency of performance in various economic sectors and increasing the commodity supply of the local production. This would later lead to increasing the purchase capacity of the Iraqi dinar, and consequently improving its exchange rate compared to foreign currencies, in addition to increasing the monetary budgets of commodity sectors, especially the agricultural and industrial, to secure the needs of the Iraqi market. The study said that it is not wise that the general budget of this year designates only 2% for agriculture and 8% for industry. Scientific planning is necessary at the time that agriculture and industry should be supported in an exceptional manner, similar to what developed countries do, such as the United States, which leads the globalization process as it did not hesitate in posing customs fees on its imports of steel, which is imported from Europe and China, when it became necessary to protect the American steel industry.

The study concluded that the cancellation of supporting the agricultural sector and freeing the foreign trade have participated in destroying Iraqi industry, which was, until recently, fulfilling the foodstuffs demands of the local market that is currently full of Iranian, Syrian and Egyptian, and even Kuwaiti, commodities.

This also applies to the industrial field. The continuation of this situation would increase the demand for foreign currencies, which would make the Central Bank subject to continuous attrition to maintain the exchange rate of the Iraqi dinar. It is impossible to continue such a process, unless procedures that reinforce the monetary and economic situation are taken, which would increase the capability of the state to execute more significant projects that are related to the daily needs of the local market. (Source) Jassem Dakhel Al Sharq Al Awsat

Manager of the National Secretariat of the Property Claims Department in Basra: The Finance Ministry is Responsible for Compensations

The statement of Mr. Khodeir Abbas Al Ahmed explains the nature of the work of the department and is urging citizens to hurry in completing their incomplete applications.

The office manager said, "Since starting its works on 07/05/2004, our office has finished one thousand claims that were sent to the legal committee to inspect them." He added, "Among the duties of our office are: authenticating all claims that are submitted to it through laser discs. Then they are sent to the competent legal committee to decide on it. Al Ahmed has urged citizens to follow up with the applications in the office, as more than 2000 applications need some documents to meet the conditions of committing them to the legal committee. He confirmed, "We are serious regarding the return of the rights of those, whose lands and real estate were seized during the previous regime, pursuant to the law.

Finance Ministry and Compensations

The office manager pointed out that the legal project has given the last purchaser, the right for compensation. The value of the real estate is estimated pursuant to the law issued in Iraqi Minutes, issue No.3985 for 2004. In case of contradiction and objection, there is a council specialized in appeals of the property department decisions. We have the right of interpreting the law and that our decisions would be obligatory for legal committees. Al Ahmed considered the finance ministry of the former regime as responsible for dealing in the confiscated estate, which were sold and their value were placed into the state treasury. Therefore, the finance ministry is the one that would pay for the compensation. The office manager called citizens to hurry in submitting their applications. He pointed out that the deadline for receiving new claims would be 30/06/2005 and that such claims are exempted from fees, taxes and inspection expenses, as the office would pay for them. (Source) Al Mada

Iraq to buy hard wheat

European trade talk was of open-origin wheat including from the US, Australia, Canada and Europe for August shipment.

"We have heard the talk but we have received nothing concrete," one European exporter said. "People are talking about a tender for 150,000 tonnes but no one really knows what is happening."

Another European exporter said: "It is impossible to say whether they have extended the bidding on their old tender or issued a new one, we have no email or verbal confirmation."

"With Iraq closed on Friday for the Islamic weekend, no official confirmation would be possible until Saturday unless some emails turn up."

Iraq has issued a series of wheat tenders this year which faded into unresolved status after weeks of bidding.

"Their purchasing and tendering procedure is so chaotic that no one really knows what they have bought so far this year," a European trader said. "The news reports are totally conflicting."

In the last reports on June 8, Middle Eastern traders said Iraq had issued a tender to buy 200,000 tonnes of flour after cancelling its previously-active tender to buy 150,000 tonnes of hard wheat.

A newly appointed trade minister was said to be behind the cancellation of the 150,000 tonnes wheat tender, but they said another wheat tender with new conditions was expected to be issued in June.

But on June 9, the US Agriculture Department said Iraq had purchased 55,000 tonnes of US wheat in the week ending June 2.

Iraq is also involved in a dispute with Australian grain exporter AWB about alleged contamination of a large purchase of Australian wheat.

Traders also say they suspect Iraq is coming under pressure from the US to buy more American wheat. (Source) Trade Arabia

Iraq plans on reducing state subsidies

In an interview, Iraq's central bank's chief economist said that Iraq is committed to phasing out subsidies built-up over decades as the oil-based economy became more centralized.

Discontent over high unemployment and low standards of living and tensions between the majority Shiite and minority Sunni sects have already raised concerns that daily attacks may turn into civil war. Iraq has agreed to restructure the subsidies system, not scrap it altogether, in meetings with donors and creditors, the economist said.

He was speaking after a conference organized by the United States and the European Union to discuss ways to stabilize Iraq and activate billions of dollars of international aid promised two years ago. More than 95 percent of the $15 billion non-American aide pledged, mainly from Japan and Europe, had not been committed because the level of violence had prevented work being done. Disagreements between donors and slow economic reforms in Iraq making project management difficult had also stemmed the aide flow.

Iraq expanded handouts and subsidies to help people cope with crushing sanctions imposed by the United Nations from 1990-2003, which contributed to the economic collapse of the country with the world's second largest world reserves. This came on top of $120 billion of debt mostly accumulated in the 1980s to finance an eight-year war with Iran. (Source)Menafn

Iraqi Women Enter Contracting Works of $270 Million Value

Yesterday, in a statement on the Internet, Ilella Senil, contracting manager in the Gulf Region Team, said that the objective of the participation of this number of women is giving an opportunity to get to know the contracting works in the division and the joint command in Iraq, providing with opportunities for women to participate in secondary contracting works and supplying them with advice on behalf of the major contractors. She pointed out that 91 electricity and 5 drinkable water projects have been offered at $270 million to be executed by local contractors.

It is worth mentioning that the conference of “Iraqi Business women” has been recently held in the conferences palace hall and was attended by a group of Iraqi businesswomen. It stressed viewing the plans and projects to activate the role of Iraqi women and investing their capitals in various commercial, agricultural and production projects. (SOurce)

Al Khalil: Al Zaman

Oil, gas corporations bid for $40b 'Rebuild Iraq' projects

OGS 2005, the premier Arab Oil and Gas Show which is to be held from November 7 to 9, 2005, at the Dubai International Exhibition Centre, is expected to be an important link between cutting-edge technology providers and investors in Iraq's resurgent Oil & Gas sector.

In the 12th edition of its showing, OGS will provide companies with a platform to network and discuss business prospects, innovation and issues related to exploration, extraction, processing, storage, transportation and security in the oil and gas industry. "With investment in Oil & Gas infrastructure growing exponentially all across the GCC region, investors are increasingly on the look-out for technologies and services that provide the optimum combination of high return on investment and competitive edge in a dynamic global market-place.

OGS, as a forum, has created a niche where industry leaders can be assured of hands-on inspection of newly launched technologies and services," said Anselm Godinho the Managing Director of International Conferences & Exhibitions (IC&E). The show bears tremendous importance to the region as the Gulf's economy is largely driven by reserves of oil and natural gas. Saudi Arabia, according to independent research, has one-fourth of the world's proven oil reserves. (SOurce) Kheleej Times

Iraqi Airways first flight to UK

Salah Al Shaikhly, the new Iraqi ambassador in London, said Jaafari arrived in London, where he lived as an exile during Saddam's rule, for a private visit during which he will meet members of the Iraqi community.

Government spokesman Laith Kubba said from Baghdad that Jaafari had flown from Kuwait, the airline's "longest flight since 1990 owing to the limited capabilities of Iraqi aircraft". Jaafari flew on a Boeing 727, one of two planes owned by the Iraqi flag carrier, with the other being a slightly more recent Boeing 737.

Iraqi Airways operates daily flights from Baghdad to Amman, and flies three times a week to the Iraqi cities of Arbil and Basra, and to Damascus. International flights resumed last September.

The UN sanctions were lifted after the US-led invasion that toppled Saddam in April 2003.

Jaafari will leave London on the same plane to travel to Brussels for an international conference on rebuilding Iraq sponsored by the European Union and US that will be held Wednesday, the ambassador said.

He will then travel to Washington before returning to London, where he will have talks with British officials, the ambassador added.

Al Aayan contributes in establishing the first Islamic bank in Iraq

The fact that this growing market mobilizes for economical leaps connected with political and security stability, and it is a market which is insufficiently banking served, Aayan in cooperation with an elite group of Iraqi investors have established the first Islamic bank there, and it is expected that the bank will start its works in Baghdad and in secure areas in the north to serve foreign companies and Kurds, indicating that Iraqi north areas are definitely not been served just like other Iraqi areas, he added

He declared that Aayan’s percentage is 35% while the total percentage of the Kuwaiti side is 49% of the capital that comes down to 50 milliards Iraq Dinars, which is equivalent to 35 millions USD, Al Aayan alone has also got the administration right for five years according to an agreement that has been signed with the founders.

He confirmed that Aayan company for rent and investment has deposited its share of the capital, and subscription procedures are on going, as currently there is a general subscription process for Iraqi people in about 20% of the bank capital, according to the Iraqi central bank demand.

He also indicated that Iraq has turned from being a threaten source and fears wellhead in the past under the former regime to be a source for investment opportunities in all market sectors, and it is expected that gulf and Kuwaiti companies will get more interests and opportunities related to reconstruction process.

(Source) Al Qabas