Iraq signs $257m loan deal with JPM, GE to upgrade power plants, 12 nov

Iraq signs $257m loan deal with JPM, GE to upgrade power plants

Shafaq News/ Iraq's Finance Minister, Dr. Taif Sami, signed a $257 million loan agreement with JP Morgan Chase and General Electric (GE) on Sunday to upgrade the country's power plants.

The loan will be used to fund the fifth phase of the annual maintenance program (PUP5/B), which will cover 11 power plants across Iraq. 

The program, according to Iraqi officials, is expected to improve the efficiency of the plants and increase electricity production.

The electricity infrastructure in Iraq has suffered from inadequate maintenance since the 1980s.

Power outages are part of daily life in Iraq, but older generations can vividly recall a bygone era before the 1980s, when Iraq boasted one of the most developed energy sectors in the region. 

The loan is guaranteed by the U.S. Export-Import Bank (EXIM).

The agreement is the latest in a series of loan deals that Iraq has signed with international lenders, including Siemens and TotalEnergies, over the past few months in a bid to raise funds to finance infrastructure projects and other economic development initiatives.

Following the eight-year-long war with Iran, the decline in oil revenue reduced the Iraqi government's spending on public services. The 1990 Gulf War, coupled with the sanctions that followed, devastated state infrastructure, particularly the electric grid and water networks. By the end of the 1990s, most Iraqis did not have consistent access to electricity or water

"This loan will help to close the gap between supply and demand for electricity in Iraq," Sami said at the signing ceremony. "It will also help to improve the quality of life for Iraqis." 

Despite Iraq's natural wealth, decades of conflict and corruption have limited the country's infrastructure, prompting over-reliance on Iran for energy provisions. While previous Iraqi governments have struggled to attract foreign investments, Iraq's complex political system has proven resistant to crises, and the nation's current state of relative peace has catalyzed a shift.

Recently, the sector has focused on new gas-capture and power-generation efforts—including projects in the just-signed $27 billion deal with France’s TotalEnergies, which the Biden administration welcomed.

https://shafaq.com/en/Economy/Iraq-signs-257m-loan-deal-with-JPM-GE-to-upgrade-power-plants

Experts expects a breakthrough as Baghdad-Erbil oil talks progress, 12 nov

Experts expects a breakthrough as Baghdad-Erbil oil talks progress

Shafaq News/ Experts are optimistic about the prospects for an agreement between Baghdad and Erbil on the oil file for the Kurdistan Region.

Speaking to Shafaq News Agency, Kurdish oil expert Gorfed Sherwani said that the visit of the Federal Minister of Oil to Erbil on Sunday reflects the seriousness of the Iraqi government.

"The visit shows that the two sides are ready to discuss the tactical, administrative, and financial aspects of resuming oil exports from the region," Sherwani said.

He added that the main disagreement between the two sides is over the vision for the oil law. The Kurdish government wants to maintain its autonomy, while the federal government wants more control.

"The Constitution guarantees a clear role for the federal government, the regions, and the oil-producing provinces," Sherwani said. "We hope that this will be taken into account in the distribution of responsibilities for managing the oil file."

Sherwani also said that the estimates for the cost of oil production in the region vary. The federal government estimates that it costs $12 per barrel to produce oil and $7 per barrel to transport it. The Kurdistan Regional Government estimates that it costs $24 per barrel to produce oil and $8 per barrel to transport it.

"These figures are realistic and are in line with what is paid to foreign companies that sign a contract with the Federal Ministry of Oil," Sherwani said.

https://shafaq.com/en/Economy/Experts-expects-a-breakthrough-as-Baghdad-Erbil-oil-talks-progress

Iraqi Dinar🔥Final Value Of Iraqi Dinar Between $3.22/4.25 Today🔥IQD hold...

"RV UPDATE" BY MARKZ, 12 NOV

 MarkZ  

  [via PDK]    “The seventh Ambassadors conference confirms the increase in Iraq’s effectiveness regionally and internationally”   Leaders from different regions got together to talk about their progress. This was a especially fruitful conference in Iraq.

  The earliest we expected things was Friday evening… The most probable time is Saturday. But there is nothing yet.  Iraq is embracing alternative currencies like the Indian Rupee and the Chinese Yuan. Euro ect…Many interesting things happening in Iraq that points to an ”International Currency”.  This means a new rate. 

 Iraq is now selling gold to banks and that is good news….  They are doing everything they need to do and are making solid progress toward this Rv…

but, stay grounded. We know we are close…we are hopeful…but, manage your expectations...But everything seems to be pointing to an announcement in the next day or so.

A government source reveals the outcomes of the meeting between the Central Bank and the American side, 12 NOV

  A government source reveals the outcomes of the meeting between the Central Bank and the American side

11/11/2023  Economy News

 A government source revealed, on Saturday, that the Central Bank of Iraq agreed with the American side to enhance the advance balance of five Iraqi banks in dollars.

The source said, to an official agency followed by Al-Iqtisad News, that “Intensive meetings took place in Abu Dhabi in the past few days between a delegation from the Central Bank of Iraq and the American side responsible for foreign transfer operations to cover imports, and the negotiations culminated in a number of decisions and mechanisms that It contributes to facilitating procedures for foreign transfers related to imports through the foreign currency sales window.”

He added, "It was agreed to enhance the advance balance of five Iraqi banks in their accounts in dollars with Jordanian banks and transfers via (JP Morgan)," noting that "the problems related to the rejected transfers were resolved, and it was agreed that the rejection of transfers should be based on strong reasons."

He continued: “There were also other meetings that brought together one of the Emirati banks, the Central Bank of Iraq, and the American side, to implement the mechanism for enhancing balances in the Emirati dirham for Iraqi banks (UAE Dirham pilot),” indicating that “things are going well in this aspect, as all the technical details related to it have been resolved.” In this regard, it is expected that the mechanism for enhancing balances in the UAE dirham will begin within the next few days.”

He stressed that "there are serious negotiations that have reached their final stages to enhance the balances of some Iraqi banks in euros with UBAF Bank to finance trade with the European Union," noting "an increase in the number of banks whose balances in Chinese yuan are being enhanced through the Singapore Development Bank."

He added, "Accounts have been opened for 6 Iraqi banks in this bank, and during the coming period 7 more banks will be added to finance Iraqi trade and imports from China, as these imports are estimated at about 12 billion dollars annually."

The source concluded, saying: “Bank accounts have also begun to be opened in the Indian rupee for a number of Iraqi banks at the same correspondent, the Singapore Development Bank (New Delhi branch), and operations to strengthen the balance of two Iraqi banks have actually taken place as a first stage, and it is expected that this mechanism will contribute to financing Iraq’s imports from India.” Especially medicines and foodstuffs, which are estimated at about $3 billion.”   LINK

Technical support to Iraq’s WTO membership process: UNCTAD to undertake a second round of Services regulatory mapping , 12 NOV

 Technical support to Iraq’s WTO membership process: UNCTAD to undertake a second round of Services regulatory mapping 

Following up on the first advisory meeting on the regulatory audit of selected services sectors in Iraq, UNCTAD is due to undertake on 11-14 November a second workshop, in the city of Erbil, northern Iraq, to assist Iraqi officials in the review and analysis of the legislative and regulatory measures governing insurance, higher education, and postal services. In addition, legislative and regulatory frameworks and practices related to foreign companies’ establishment(registration) and investment, as well as labour conditions (for foreigners) will be examined.

During the first edition of this exercise, held also in Erbil on 21-24 August 2023, four services sectors were covered, namely: Financial (banking services), Transport, Tourism and Education (primary and secondary education services).

The regulatory mapping of laws, rules and regulations would help the government of Iraq, not only to develop and maintain an inventory of laws and regulations that apply to business’s rights and obligations in the services sectors, but also to guide the Iraqi authorities in shaping the trade policy and procedures in the area of services by having a better reading and assessment of the regulatory landscape so as to capture baseline obligations across jurisdictions to avert any potential overlaps among the services sectors’ regulations.

Considering Iraq’s ongoing preparation for WTO accession , the objective of this regulatory mapping is to provide the government with the necessary technical support for the formulation of the terms of competition on market access and national treatment conditions for foreign services providers operating in Iraq. Hence, it would enable Iraqi negotiators to define, on an informed basis, the country’s WTO membership negotiations’ strategy, including the outlining of its specific commitments under GATS.

Ultimately this audit will also facilitate the coordination, development and implementation of any regulatory changes that would be made necessary as part of the WTO accession’s negotiations and obligations in the post accession phase.

Co-organizer(s):

Iraqi Ministry of Trade   LINK

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