Basra News


$6bn Iraqi Port Development available for Investment

By John Lee.

Iraq’s National Investment Commission (NIC) has included the “Grand Port of Al Faw” in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

Project cost: $6 billion

Location: Basra

Design capacity:

  • Phase one 2018: containers: 24 million ton/year, unpacked materials/ 24million ton/year
  • Phase two 2028: containers: 40 million ton/year, unpacked materials/ 32 million ton/year
  • Phase three 2038: containers: 70 million ton/year, unpacked materials/ 44 million ton/year

The project includes:

  • Eastern breakwater 8km
  • Western breakwater 15km
  • Two lines for containers berth 3.5km each 12 berth to each line total 24 containers berth and area for containers storage.
  • 13 Berths for unpacked materials (grains, cement..etc.) 3.5km with conveyor belts
  • Berths for Oil products export and import (outside the port basin)
  • Roads and railways
  • Area for buildings and trucks (around 4km²)
  • Navigational channel 30km length, 17m depth.
  • Berths for various goods 4.5km (22berths)
  • industrial zone (approximately 8.5km²)
  • depth in the port basin is 15-17 m

The full 46-page document can be downloaded here.

(Source: NIC)

$6bn Iraqi Port Development available for Investment

By John Lee.

Iraq’s National Investment Commission (NIC) has included the “Grand Port of Al Faw” in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

Project cost: $6 billion

Location: Basra

Design capacity:

  • Phase one 2018: containers: 24 million ton/year, unpacked materials/ 24million ton/year
  • Phase two 2028: containers: 40 million ton/year, unpacked materials/ 32 million ton/year
  • Phase three 2038: containers: 70 million ton/year, unpacked materials/ 44 million ton/year

The project includes:

  • Eastern breakwater 8km
  • Western breakwater 15km
  • Two lines for containers berth 3.5km each 12 berth to each line total 24 containers berth and area for containers storage.
  • 13 Berths for unpacked materials (grains, cement..etc.) 3.5km with conveyor belts
  • Berths for Oil products export and import (outside the port basin)
  • Roads and railways
  • Area for buildings and trucks (around 4km²)
  • Navigational channel 30km length, 17m depth.
  • Berths for various goods 4.5km (22berths)
  • industrial zone (approximately 8.5km²)
  • depth in the port basin is 15-17 m

The full 46-page document can be downloaded here.

(Source: NIC)

4 Metropolitan Transport Opportunities in Iraq

By John Lee.

Iraq’s National Investment Commission (NIC) has included four subway and metropolitan rail projects in its list of major strategic projects to be presented during the Kuwait International Conference for Iraq Reconstruction, to be held in Kuwait from 12th to 14th February:

1. Baghdad Metro

The project consist of two lines with total length of 46km. it has 47 station, two locomotive garages on both lines, and three power transferring stations.

  • The first line (23km 25 station) starts from the main locomotive garage north east of Baghdad through (10*10) project location –previously, to Al Sadir city crossing Al Thawra St. heading to Baghdad center to Al Jimhoriya St. to its final destination Antar Sq.
  • The second line (23km 22 stations) starts from south east of Baghdad near Aqaba Bin Nafee Sq. –Sadoon St. City center, crossing the Tigris to reach Al Faris Al Arabi Sq. forming two branches, one to Al Mansoor and the other to Al Bayaa where the second locomotive garage is located.
  • The project can provide comfortable and efficient transportation services to 250 thousand passenger/h in all stations.
  • Ministry of Transportation contracted a number of specialized consulting companies in the mid-seventies to conduct a study regarding Mass Transit that resulted to using tracks according to the feasible study done in 1978 (Feasibility study and Preliminary Design of an integrated Transport System within the City of Baghdad)
  • A contract was signed with Sestra Co. (French), one of the specialized international companies, to conduct the initial designs and the tender documents under the title (Technical, Legal and Contractual Requirement for Baghdad Metro Project)
  • The estimated cost of the project including detailed designs and execution of the two lines excluding extensions is €5.7b which is roughly $6b according to the French Co. feasible study adding to that $2b for acquisitions, total cost will be $8b. EPC document was based on turnkey delivery system.

2. Baghdad Mono Rail

A vital project with good financial revenues, prepared by French Alstom Co.

  • Estimated cost: $ 1.5b
  • Duration: 5 years
  • Project purpose: to solve traffic jams and improve services in Baghdad.
  • Phases, locations, implementation lines in Baghdad
  • Phase one: 15.5 km, Kadhmiya-Al Sadir City-Shaab, with 12 internal station and crossing the Tigris
  • Phase two: 4.45km, the International Station in Alawi-Utaifiya with two internal stations.

3. Mono Rail in Holy Karbala Province

This project is considered to be one of the major strategic projects in Holy Karbala Province for its importance in resolving the transportation problem of visitors coming to the Holy city. The project starts from the station Bada’at Aswadin Al-Husainiya District and going toward the Baghdad road taking the middle path of the main road toward Bab Twerej and passing through Al-Salam bridge and then through Al-Ibrahimiya station.

  • Length:18 km/ dual line/ 20 passengers stations.
  • Estimated cost: 450 million dollars.

4. Basra Metro

This project is considered to be one of the major strategic projects in Basra Province for its importance in resolving the transportation problem.

  • The metro contains 5 main lines with 35 main and branch lines
  • First line: Sa’ad square-Basra University-can be extended to the city center.
  • Second line: sa’ad square-Zubair-can be extended to Safwan
  • Third line: Sa’ad-Al-Ashar-Shalamja
  • Fourth line: Sa’ad square-Abu Al-Khaseeb-Faw
  • Fifth line: Sa’ad square-14th July street-presidential palaces.

The full 46-page document can be downloaded here.

(Source: NIC)

MHPS to Upgrade Hartha Power Station

By John Lee.

Iraq’s Ministry of Electricity has reportedly awarded a contract to Japan’s Mitsubishi Hitachi Power Systems (MHPS) to refurbish the Unit 1 of the Hartha thermal power station (pictured) in Basra province.

According to Energy Business Review, the power station is claimed to account for approximately 25 percent of Basra’s total power generation capacity.

It’s original equipment was developed by Mitsubishi Heavy Industries (MHI).

Funding will be provided by Japanese Official Development Assistance (ODA) through the Japan International Cooperation Agency (JICA).

Mitsubishi Electric will be responsible for the generator-related work, while the Turkey’s Gama Power System will be responsible for installation and other work.

The work is scheduled to be completed in 2020.

(Source: Energy Business Review)

Mövenpick Signs Basra Hotel Deal

Swiss-based Mövenpick has signed a deal to manage a five-star, 152-key hotel in Basra, Iraq”s economic capital and a regional oil and gas hub.

The Mövenpick Hotel Basra is scheduled to open in the first quarter of 2018. Located in the center of Basra, within the commercial district of Al Baradi’yah and 25km west of Basra International Airport, the new property will help to fill a gap in the market for upscale hotels.

Olivier Chavy, President & CEO, Mövenpick Hotels & Resorts, said:

Basra is one of the Middle East”s fastest-growing economic centres, a major oil producer and is undergoing rapid infrastructure development, so the time is right for Mövenpick to cement its presence in this flourishing city.

“Our upcoming property will cater to pent-up demand from the corporate sector, which contributes around 90% of hotel demand in Basra due to the high volume of oil and gas and shipping companies based in this booming region of Iraq.

Amenities at the Mövenpick Hotel Basra will include one all-day dining and one specialty restaurant; an executive lounge and a lobby lounge; a meetings and events area featuring a 700-square metre ballroom, multi-functional hall and meeting room; an indoor swimming pool, gym, spa, and beauty salon; and a retail area.

Mr. Akeel Ibraheem Al-Khalidy, Chairman of the South Group Corporation and Chairman of the Committee on Economic Development and Investment, part of Basra Council, said,

“With tens of thousands of foreign workers and businessmen travelling in and out of Basra every day and thousands more based in the city, Mövenpick Hotel Basra will be well placed to provide them with high-quality business, dining and leisure facilities and accommodation that set new hospitality standards in this thriving area of Iraq.”

(Source: Movenpick)

Basra’s Barrier Against Poisoned Iranian Water Crumbling

This article was originally published by Niqash. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

A soil barrier built to protect Basra’s farms and oil fields from polluted water flushed out of Iran is leaking. It’s the latest in a long list of water woes between Iran and Iraq.

A soil bund established to prevent the seepage of poisoned water from Iran into Iraq, in the Basra province, is starting to leak. It protects Iraqi land in Basra from a highly saline pool of water that stretches from the Shalamijah border crossing to the Majnoon oil fields.

“The damage that this lake filled with run-off could do is enormous,” says local researcher Kathem al-Ghilani. “That’s because the run off comes from private fish farms and sugar cane farms and the amount of water is huge.”

After looking at satellite imagery, al-Ghilani believes that the Iranian water comes mostly from farming. “When Iran harvests its sugar cane, it empties farms of water and this water contains fungicides and pesticides. It’s highly toxic. There is also waste water from petrochemical plants, oil refineries and Iranian plastic factories,” he explains.

Al-Ghilani says that some of this water has already leaked into Basra, via the waters of the Shatt al-Arab inlet. This is where the Tigris and Euphrates rivers meet and empty into the sea, but in recent years a reduced flow of water from the rivers has seen the salt water creep inland.

The Karun river, which flows from Iran, is another tributary to the Shatt al-Arab and it also brings polluted water from the neighbouring country. The Iranians have previously denied flushing polluted water into the Karun.

Now the potential collapse of the soil berm is causing even more concern. There are cracks in the 80-kilometre berm and the leaks stretch for 50 kilometres. Farmers have already been forced off their land by increased salinity and pollution to freshwater, and there is fear that more may be pushed out of agriculture. Land used by oil companies is also at risk.

Jacobs signs MOU with Iraq Oil Company

US-based Jacobs has signed a Memorandum of Understanding (MOU) with the Iraq Oil Company to explore mutual benefits of cooperation in the region of Basra, Iraq.

The vast majority of Iraqi oil production takes place in Basra. Iraq Oil Company is looking for business partners based in the Kingdom of Saudi Arabia to support economic and social development in the Basra region through investments in upstream, downstream, refining, and other sectors.

David Zelinski, Jacobs Petroleum and Chemicals Senior Vice President and General Manager Middle East, said:

Jacobs was selected as single engineering partner to sign this strategic non-binding agreement.

“We will explore possibilities to deliver our services in support of the Oil & Gas, Refining and Petrochemicals sectors in Iraq, from our Saudi Arabian office – where we have had a presence for more than 40 years – as this aligns well with the Kingdom’s Vision 2030 to increase the export of services.

The signage took place during a business event attended by HH Khalid Al Faleh, Minister of Energy, Industry and Mineral Resources of Saudi Arabia and Chairman of Saudi Aramco; Jabbar al-Luaibi, Iraq Minister of Oil; Asad Al Eidani, the Governor of Basra; and Abdulaziz Al Shammary, the Saudi Ambassador in Iraq.

The governments of Iraq and Saudi Arabia work closely together to establish a clear regulation and warrantees for potential investors in terms of protection, trading and financial transactions.

(Source: Jacobs)

Alstom to Develop Rail Projects in Baghdad, Basra

French company Alstom has signed a Memorandum of Understanding (MoU) with Iraqi government for the development of urban transport in Baghdad and Basra.

The MoU was signed during the Franco-Iraqi government authorities meeting, in the presence of Dr.Sami Al Araji, Head of National Investment Commission (NIC) of Iraq and Jean-Baptiste Lemoyne, French Secretary of State.

The MoU covers two major projects. The first project is to implement a 20 km Elevated Train in Baghdad, with the supply of rolling stock, electromechanical systems, tracks, associated civil works. The light rail system would link Al-Mustansirya, AlShab, Al-Wazyria, Alsarafia AlEtafia bridge, Al-Khadumia, AlMuthana airport and Al-Alawi.

The second project focuses on the development of the Metro System in Basra, which consists of two elevated lines of approximately 30km each, 15 stations and one depot for each line from North to South, from Zubair to Shat Alarab and from East to West, from Karma to the Desert.

These projects would significantly contribute to the development of the country’s urban infrastructure and national economy.

“We appreciate the opportunity to develop industrial cooperation with the Republic of Iraq, in order to better address the country’s needs for urban transportation. Alstom is ready to bring its innovative technologies and sees the signature of this MoU as a first step towards the development of a long-term partnership with Iraq”, said Bernard Peille, Managing Director of Alstom in Western & Central Asia.

Alstom is already well established in the Middle East & Africa Region with more than 3,800 employees, 1,800 suppliers and present in more than 15 countries in the region with offices and joint-ventures in Algeria, Morocco, South Africa and Kazakhstan.

(Source: Alstom)

Jereh Enters Iraqi Oil Market with Integrated Solutions

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Basra Oil, Gas & Infrastructure is held under the high patronage of the Basra Governorate, the Basra Council and Iraq’s Basra Oil Company from October 30 to 31 in Beirut, Lebanon. Government officials, project stakeholders and buyers and suppliers attend to explore the expanding energy projects in the South of Iraq.

Jereh Group made its debut in the panel discussion about investment. It displayed integrated solutions covering investment, financing, manufacturing, EPC to turnkey delivery under the Belt and Road Initiative. The solutions facilitate the development of local infrastructures and boost the economic growth.

Authoritative reports show that Iraq is OPEC’s second-largest crude oil producer and holds the fifth-largest proved crude oil reserves in the world. And Iraq is developing its oil fields and expanding infrastructure capacity in the south to accommodate more production growth. Large-scale increases in oil production would also require large increases in electric power generation. Significant upgrades to the electricity sector would be needed. To achieve this, reliable partnership and excellent investment and financing solutions are needed.

Johnson Jiang, President of Jereh Mid-East Region, made a keynote speech in front of more than 200 participants representing Basra’s thriving industries. He shared Jereh’s best practice in oil & gas, power and environment industry and what it can bring to the local industries, saying that:

“The China-proposed Belt and Road Initiative offers a unique opportunity for development and social progress among B&R countries. Jereh can provide flexible investment and financing mode to help Iraqi customers build a reliable and secure project. We also collaborate with global partners to provide customers with integrated solutions covering investment and financing, turnkey engineering, technical services and equipment manufacturing.”

Jereh is a preferred partner for the energy industry. Based on technology-driven innovation, a deep understanding of customer requirements, and unique expertise, it is committed to offering customers the optimal solutions and project execution. Jereh has been working with industry-leading International Oil Companies (IOCs) and National Oil Companies (NOCs) on turnkey engineering, well service equipment manufacturing, oilfield services and environmental management.

The company has a large number of implementation cases in Iraq and Middle East area in fields such as natural gas boosting and storage, nitrogen pumping, cementing and coiled tubing for oil production, and oily waste treatment. It also has extensive experience in delivering projects worldwide, supported by its local teams and abundant partners in more than 60 countries and regions.

With the support of Belt and Road Initiative, Jereh will leverage its experience to conduct more cooperation in a compliant way in Iraq and provide private-sector investment to assist in developing Basra to provide the infrastructure that’s vital to boost the economic growth,” said Johnson.

(Source: Jereh Group)