Iraq Industry & Trade News


Saudi Arabia to re-open Consulate in Basra

By John Lee.

Saudi Arabia will reportedly re-open its consulate in Basra within two weeks.

Al Arabiya says that the consulate closed in 1990 during the second Gulf war.

(Source: Al Arabiya)

(Picture: Iraqi Prime Minister Haider Al-Abadi meeting Salman bin Abdulaziz Al Saud, King of Saudi Arabia, 19th June 2017)

UN launches Iraq Recovery and Resilience Programme

UN Secretary-General António Guterres launched the Iraq Recovery and Resilience Programme today at the Kuwait International Conference for the Reconstruction of Iraq.

The two-year Recovery and Resilience Programme is designed to fast-track the social dimensions of reconstruction and help ensure that people see tangible improvements in their daily lives at the start of the reconstruction process, rather than waiting years to benefit from large-scale infrastructure projects and structural reforms.

“Iraq surmounted an incredible challenge in its defeat of ISIL, but many challenges still remain,” said the UN Secretary-General António Guterres. “After the last three days in Kuwait, I feel hope for a new Iraq that is open for business and prepared to face the next challenge of rebuilding communities while reconstructing schools, roads, bridges, hospitals and public infrastructure. A prosperous Iraq will be a pillar for development and stability in the region.”

The RRP focuses on urgent priorities – helping people who have suffered the most, revitalizing the areas at the highest risk of return to violence, and advancing broad political participation and inclusive social harmony.

“Reconstruction is not just about rebuilding infrastructure-it’s about improving people’s lives,” said United Nations’ Humanitarian and Resident Coordinator for Iraq Lise Grande.

The RRP includes nine components. Three will be implemented in high priority communities where violent extremism may possibly emerge unless steps are taken to restore community trust, build confidence in the Government and open economic opportunities. Six of the components are national in scope.

These components focus on decentralizing basic services, promoting sustainable returns, providing support to survivors, accelerating community reconciliation and expanding political and social participation.

“Together with community and tribal reconciliation, national political settlement and accord, based on the principle of citizenship with equal rights, obligations, justice and opportunities for all, is critically important for a future stable, united and prosperous Iraq,” said the Special Representative of the United Nations Secretary-General (SRSG) for Iraq, Ján Kubiš.

The UN is seeking USD 482 million for the first year of the RRP and an additional USD 568 million to help stabilize high-risk areas. Separately, partners are seeking USD 569 million to provide life-saving assistance to 3.4 million highly vulnerable people across Iraq through the 2018 Humanitarian Response Plan.

Download the Iraq Recovery and Resilience Programme here in English, and here in Arabic.

(Source: UN)

Jordanian Ministers push for Truck Entry to Iraq

By John Lee.

Jordan’s Minister of Municipalities, Walid Al-Masri, and Minister of Industry and Trade, Yarub Al-Qudah, have met representatives of the chambers of industry and commerce and members of the Jordan Truck Owners and Custom Clearance Associations to discuss arrangements for the entry of Jordanian trucks to Iraq.

According to a report from Petra, they agreed to organise the crossing of Jordanian trucks to Iraq with the concerned Jordanian and Iraqi authorities.

(Source: Petra)

Video: Donors pledge more than $300m to Iraq

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Iraq is hoping for more concrete pledges from international donors on the second day of a conference on rebuilding cities and infrastructure shattered by the conflict with ISIL (the Islamic State of Iraq and the Levant, also known as ISIS).

On Monday, non-governmental organisations pledged more than $300 million to the reconstruction effort, far short of the $100 billion the government says it needs.

Al Jazeera‘s Sami Zeidan reports from Kuwait:

Six Industrial Projects Open for Investment

By John Lee.

Iraq’s National Investment Commission (NIC) has included six industrial 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:

A. Rehabilitation and development of white cement plants in Falluja.

  • Area: 642000m²
  • Production capacity: 290000 ton/year for the two lines. Production capacity can be increased to 350000 t/y
  • Cost for Rehabilitating and operating is $12.800.000
  • Experienced staff is available to operate the plant
  • The plant (which is the only one in Iraq that produces white cement) is not working at the present time. Cement plants in Kubaisa, Qaim, in Anbarand Badoosh, Sinjar, HamamAl Alilin Mosul are going through damage assessment by special committees (for the damages that occurred during 2014-2017).

B. Rehabilitation and development of glass plants in Ramadi

  • Multipurpose raw glass (13 type of glass), such as glass for buildings, automobile and mirrors
  • Iraq’s need for float glass is doubling annually. The current estimate of 1500 t/d covers the local market. The unique location of the plant is suitable for exporting this product to the neighboring countries as raw or final product.
  • Target production capacity: 500000 t/y to be divided into two phases according to market capacity and required types.
  • Annual production cost in full capacity to produce 700 t/d is around 94 b ID.
  • Return 16%
  • It is possible to establish a float glass plant in Karbala and Muthana provinces.

C. Rehabilitation and development of engineering plants in the Ministry of Industry and Minerals such as Al Nassir and Al SimoodCo., IbnMajid, The Heavy engineering equipment Co. (Ministry of Oil) and The Mechanical industries in Eskandariyato cover the needs of the oil & gas, electricity and heavy industries sectors for tanks, heat exchangers, valves, pipes, pumps, poles and cranes and other products the rehabilitation and development of these factories require new production lines as well as supporting infrastructure.

D. Caustic Soda project/ Chlorine/ Samawa/ which includes the production of caustic soda, chlorine, Hypochlorite and Hydrochloric Acid.

  • Area: 50 dunam
  • Production capacity: 40-50 ton/per day
  • Cost : 40 Million Dollars.

E. Sodium Carbonate project/Samawa/ produces Sodium Carbonate and Bicarbonate.

  • Area: 100 dunam
  • Production capacity: 50000 t/y
  • Cost : 50-60 Million Dollars.

F. Sodium Sulfate projects/Samawa

  • Area: 25 dunam
  • Production capacity: 10 ton/per day
  • Cost : 20 Million Dollars.

The full 46-page document can be downloaded here.

(Source: NIC)

UK Confirms Support for Iraq

By John Lee.

Prime Minister Haider Al-Abadi received a phone call from British Foreign Minister Boris Johnson on Tuesday evening, during which they discussed strengthening collaboration between their two countries, and Iraq’s Rebuilding Conference which is to be held soon in Kuwait.

According to a statement from the Prime Minister’s office, Mr. Johnson confirmed the UK’s support for Iraq in the fields of investment, private sector development, and the involvement of British investment companies in Iraq.

Mr. Johnson renewed British Prime Minister Teresa May’s invitation for the Prime Minister to visit United Kingdom.

(Source: Office of the Prime Minister)

IBBC welcomes Guests at House of Lords

The Iraq Britain Business Council (IBBC) held its bi-annual Council Meeting on 30 January, followed by a Reception & Dinner for IBBC members and guests.

Both the meeting and the reception and dinner were hosted by Baroness Nicholson of Winterbourne, President of IBBC and Trade Envoy to Iraq, Azerbaijan, Kazakhstan and Turkmenistan.

The Meeting was Chaired by IBBC’s Deputy Chairman Alistair Kett of PwC and discussed at length the current state of Iraq and presented over 30 members present with a detailed brief of events in the last six months.

The Council also discussed future events and the progress of IBBC’s Sector Tables. Several exciting new developments were reported, including the launch of a new Iraq Britain Business Council website, which is expected to go live in the coming weeks and the development of the Young Executives Network.

The Council Meeting was followed by a Reception & Dinner hosted by Baroness Nicholson in the House of Lords, where the 80 guests present were privileged to hear from Baroness Fairhead, Minister of State for Trade & Export Promotion at the Department for International Trade (DIT), the Rt Hon Alistair Burt MP, Minister of State for the Middle East at the Foreign and Commonwealth and Minister of State at the Department for International Development.

After dinner, Ambassador Jon Wilks, her Majesty’s Ambassador to Iraq, gave an address to members, which highlighted his vision for UK-Iraq relations. The Ambassador spoke at length about the need for a coordinated and fruitful relationship between business communities of both countries to enhance the encouraging signs of stability witnessed in the last six months since the defeat of Daesh.

The Ambassador also touched upon the critical need to redevelop infrastructure in the newly liberated areas and the pivotal role of the private sector to facilitate further economic growth. Ambassador Wilks reaffirmed the Embassy’s longstanding commitment to promote trade and investment with the support of organisations such as the Iraq Britain Business Council.

Christophe Michels, MD of IBBC said:

“2017 has been an exceptional year for IBBC both in the volume and quality of attendees to our conferences in UK and Dubai, the very well attended and successful trade missions to Baghdad and Basrah and for the number of International and Iraqi companies that have joined our network.

“IBBC has welcomed Chevron, Al Burhan, Shamara, Ratba’a and Al Bilal groups, Leicester and Northampton University, Serco, Rolls Royce, MenziesAviation, GulfTek and Al Jaber Company. All in all we are seeing confidence and opportunity return to Iraq with overall economic perspectives for the country being at its best since 2010 – 2011.”

IBBC and its members are determined to build on these foundations to continue building economic and political ties, industry capabilities, knowledge sharing for UK, Iraqi and international businesses sharing the same high values and standards.

(Source: IBBC)

$210m UK Support for GE Power Deal

The UK’s Minister of State for Trade and Export Promotion, Baroness Rona Fairhead (pictured), has announced $210.8 million in support from UK Export Finance (UKEF) for the second project agreed under the UK-Iraq infrastructure Memorandum of Understanding.

The contracts with the Ministry of Electricity in Iraq, valued at $220 million, will see GE Global Services UK upgrade and repair existing turbines across 10 sites to deliver an improved, more secure power source. The project will sustain 6.5 Gigawatts of generating capacity, powering millions of homes across Iraq.

This is the second project supported under the Memorandum of Understanding signed in April 2017 between the UK and Iraq Governments, in which UK Export Finance (UKEF) affirmed its commitment to support Iraq’s infrastructure development.

Baroness Fairhead, Minister of State for Trade and Export Promotion, said:

“I’m delighted that UK Export Finance will be supporting this project under the recently signed infrastructure Memorandum of Understanding between our two governments. This project demonstrates the UK’s commitment to supporting Iraq’s continued economic development, and through Government support we are laying the groundwork for future UK-Iraq trade.”

GE Global Services UK will deploy Advanced Gas Path (AGP) solutions and controls software, a technology that will improve gas turbine performance and enable power plants in the Baghdad, Karbala, Kadisiyah, Babil, Najaf and Basrah regions to operate more dynamically.

UKEF, in partnership with the Swiss export credit agency SERV, will provide the Government of Iraq with $210.8 million in support for the project. UKEF will provide $105.4 million of this support as a direct loan, with the remaining $105.4 million given in the form of a guarantee on a loan from JP Morgan Chase, for which SERV will reinsure UKEF.

This is the second of three phases of a wider turbine maintenance programme as part of the Iraq Power Up Program, where GE Global Service UK has been contracted to deliver in the period from 2017 to 2019. It follows support for a GE and Enka UK contract to construct two new power stations, agreed last year.

(Source: UKEF)

Sulzer appoints Authorized Repair Partner in Iraq

Sulzer, the Swiss-based specialist in pumping solutions, has appointed Al Majal Technical Services (AMTS) as their authorized repair partner in Iraq.

AMTS was founded in 2015 to provide a full spectrum of Oil and Gas services including rotating equipment.

The AMTS workshop, located in North Rumaila, is a 3000 m2 state-of-the-art facility, equipped with a comprehensive set of machine tools and balancing equipment required to maintain and repair rotating machinery of all manufacturers. AMTS is certified according to ISO-9001:2015, ISO 14001:2004, OHSAS 18001:2007, API 6A and API 16A

Sulzer’s engineering and project management expertise together with the local competencies of AMTS strengthen each other’s capability to execute the overhaul, site service, repair and maintenance of pumps, turbines and compression equipment as well as their associated ancillaries.

Both companies are currently jointly engaged in executing service projects in South Iraq.

(Source: Sulzer)

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)