KRG to rely 100% on Natural Gas for Electricity

Ten electricity plants were provided with transformers at a ceremony attended by Deputy Prime Minister Qubad Talabani in Koya town on Thursday.

The Deputy Prime Minister commended the Koya transformer project and addressed developments in the electricity sector, including the Kurdistan Regional Government’s decision to go all in on natural gas.

“The power generation costs are still high,” said Deputy Prime Minister Talabani, “and to solve this, we are planning to increase the dependency on natural gas to 100 percent as a source of fossil fuel in power generation.”

Also in attendance at the Koya ceremony was Minister of Electricity Kamal Mohammed Salih, who provided more information on the 2.728 billion dinar (or roughly 1.8 million USD) transformer project.

Minister Salih hailed the cabinet’s achievements in power generation and distribution, and stated that more than 450 projects have been initiated with a total worth of 60 billion dinars.

KRG is planning to open three more power plants in the Kurdistan Region by the end of this year: a steam power plant in Khabat District, a gas power plant in the Garmian region, and a 37-megawatt plant in Deraluk.

The Deputy Prime Minister Qubad Talabani also talked about his latest visit to Baghdad with the KRG delegation to discuss the region’s share of the budget.

He noted that one of the topics of discussion was cooperative power generation between the federal and regional governments, a step that would drastically increase Iraq’s supply of electricity.

(Source: KRG)

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Iraqi Cabinet Awards Energy Contracts

By John Lee.

At its regular meeting on Tuesday, the Iraqi Cabinet agreed to send an invitation, “in a single bid manner“, to the French company Total to invest in a project to generate 1,000 megawatts of solar electric power.

The project was originally agreed in March as part of a larger engagement with the French energy company, which last week announced that it would rebrand itself as TotalEnergies.

The cabinet also approved a request from the Ministry of Electricity to award a contract “in a single bidding manner” to the Chinese company PowerChina (Power Construction Corporation of China).

(Source: Govt of Iraq)

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The Dutch Disease and Iraq’s Foreign Exchange Rate

By Dr. Zeki Fattah, for The Iraqi Economists Network (IEN). Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The Dutch Disease and Iraq’s Foreign Exchange Rate

Economists who studied the reasons for the low per capita growth of GDP in developing countries that rely on revenues from abundant natural resources, (called ‘resource curse’), found it was actually caused not by high exchange rates, but by wrongly conceived economic policies over a long period of time.

We will visit this point again at the end of the paper. Meanwhile, and until recently, monetary economists in Iraq explained the fall in the Dinar exchange rate against the Dollar (a change within the expected norm) as a passing event caused by falling oil prices, and trepidation in the markets in the wake of COVID-19.

This explanation whilst went some way toward dampening the need for currency devaluation for a while, it didn’t help the Iraqi Government to raise the cash it needed to meet its obligations. Recently, the Government had to reduce the Dinar exchange rate against the Dollar considerably to increase the Dinars it receives from the Central Bank in exchange for the Dollar it receives mainly from oil exports.

Please click here to read the full report.

(Source: IEN)

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COVID-19: Iraq announces 10-Day Lockdown

By John Lee.

The Iraqi Cabinet on Tuesday approved a recommendation by the Higher Committee for Health and National Safety to impose a 10-day full curfew from May 12th to 22nd, following a rise in COVID-19 infections across the country.

All malls, restaurants, cafes, cinemas, event and wedding halls, swimming pools and gyms will be closed and public and private gatherings will be prohibited.

(Source: Govt of Iraq)

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IBBC Webinar: Causes and Cures for Iraqi Corruption

Corruption Worse Than ISIS: Causes and Cures for Iraqi Corruption

The Iraq Britain Business Council (IBBC) is delighted to invite you to the public launch of Professor Frank Gunther’s new paper on corruption in Iraq on Monday 26th of April from 1pm – 2pm BST.

Following the presentation of the paper there will be comments from Dr Renad Masour, Chatham House, and Maya Gebeily, AFP. The ensuing discussion will be moderated by Shwan Aziz Ahmed from the IBBC Advisory Council.

Read the paper here

Register Here

Speakers:

Frank R. Gunter is a Professor of Economics, a Senior Fellow at the Foreign Policy Research Institute, and a retired U.S. Marine Colonel. After receiving his Doctorate in Political Economy from Johns Hopkins University in 1985, Frank joined the faculty of Lehigh University where he teaches Principles of Economics, Economic Development, and the Political Economy of Iraq. He has won four major and multiple minor awards for teaching excellence. Based on his two years in Iraq as an economic advisor to the US Government, Frank wrote The Political Economy of Iraq: Restoring Balance in a Post-Conflict Society (Edward Elgar Publishing, 2013). This book was published in both English and Arabic and was selected as an “Outstanding Academic Title” by Choice magazine. His most recent work, “Immunizing Iraq Against al Qaeda 3.0” (Orbis, 2018, Vol. 62, No. 3, pp. 389-408), discusses the possible economic causes of political instability in Iraq. Frank is married with three children and his family shares their Pennsylvania home with over 4,000 books.

Ms Maya Gebeily is a reporter with Agence-France Presse based in Baghdad, where she covers Iraqi politics, security, economics, and societal developments. Before this posting, Maya spent three years at AFP’s Beirut bureau covering the Syrian conflict. She covered Lebanon and Syria at local Lebanese news website NOW News, and have reported as a freelancer out of Beirut, Istanbul, and the Kurdish region of Iraq in recent years.

Dr Renad Mansour is a senior research fellow and project director of the Iraq Initiative at Chatham House. He is also a senior research fellow at the American University of Iraq, Sulaimani, and a research fellow at the Cambridge Security Initiative based at Cambridge University. Renad was previously a lecturer at the London School of Economics and Political Science (LSE), where he taught the international relations of the Middle East and, from 2013, he held positions as lecturer of international studies and supervisor at the Faculty of Politics, also at Cambridge.

Moderator:

Abdul Aziz (Shwan) A. Ahmed, is the immediate past Chief of Staff to Deputy Prime Minister Dr Fuad Hussain and before him Deputy Prime Minister Dr Rowsch Nouri Shaways. As Chief of Staff he oversaw an office of 70 including 5 Director Generals,  covering the portfolios of Politics, Economics, International Partnerships, Media & Public Relations and Finance & Administration. In this position he has been at the heart of the Iraqi Government for the past 10 years actively participating in the work of several administrations. From 1997 to 2009 Shwan had a distinguished career at UNDP in several countries with his last posting being the Head of UNDP office in Puntland/Somalia from 2006 to 2009. He managed his own engineering business in Iraq from 1993 to 1997 and worked for the Ministry of Industry from 1987 to 1993. He graduated from the University of Technology in Baghdad in as Systems and Control Engineering in 1983. Shwan is happily married with three adult children. He is of Baghdadi Kurdish and Finish origin and is fully fluent in Arabic, Kurdish and English.

Media Partner:

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Iraqi Oil Minister Visits Tatneft HQ

By John Lee.

On a recent visit to the Russian republic of Tatarstan, Iraq’s Oil Minister Ihssan Abdul-Jabbar Ismail attended a presentation that the headquarters of the oil company Tatneft.

The Iraqi delegation also visited the Taneco Oil Refining Complex, the Kama Tyres manufacturing plant, and the Nizhnekamsk Truck Tyre Factory.

Nail Maganov, General Director of PJSC TATNEFT:

“Our Company has had a long-standing partnership with the Republic of Iraq. Our professionals have participated in the construction of 700 wells in the West Qurna, North Rumaila and Luheis oil fields, as well as in other projects.

“Tatneft has unique competencies in the Upstream and Downstream, the use of digital technologies in the industry. We are confident that our experience and knowledge could find their application in the Republic of Iraq as well, and we are ready to continue cooperation with our Iraqi partners in areas of interest to them”.

(Sources: Ministry of Oil, Tatneft)

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Invitation to IBBC Members’ Introduction Webinar







Dar Al Handasah has provided consultancy services to more than 950 clients in 60 countries, and has handled projects involving a total investment cost of over US$ 300 billion. Through these projects, we participate actively in the development of our societies. With a permanent staff of 9,850 and over 4,000 successfully completed projects, DAR has in-house expertise and experience to cover a wide range of engineering fields.

AlBilal Group was Founded in 1993 by Mr. Akeel Abdul Razzak, AlBilal Group has for more than two decades operated across diverse development sectors including Oil & Gas, Power, Water and Infrastructure. The years that followed the tenuous security, socio-political and economic dynamics in Iraq, AlBilal Group emerged as a preferred and a reliable partner to international development agencies and companies such as USDoD, USACE, Black & Veatch, and Washington International in support of the Iraq’s re-construction and development programs.

The National Bank of Iraq (NBI) was founded in 1995 as a publicly traded, private sector company, offering comprehensive banking services to individuals and businesses in Iraq. As a result of the Bank’s success and to fuel future growth, its paid up capital was increased from the initial 400 million IQD (USD 361,000) to IQD 250 billion (USD 215 million) in December 2013. In 2005, Capital Bank Jordan acquired majority shares (61.85%) in NBI, allowing the Bank to expand its business offerings, strengthen its global footprint and help promote financial inclusion across the country.

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Iraq passes $89bn Federal Budget Bill

By Joe Snell for Al Monitor. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq passes $89 billion federal budget bill

The budget confronted issues of unemployment, currency devaluation and non-oil revenues and was passed as lawmakers prepare for October’s general election; the challenge is implementation.

Click here to read the full article.

The post Iraq passes $89bn Federal Budget Bill first appeared on Iraq Business News.

Protesters Block Entrances to Oil Facilities

By John Lee.

Protesters have reportedly blocked the entrances to the Dhi Qar Oil Company (DQOC), Dhi Qar Refinery, and the Oil Products Distribution Company.

According to Anadolu Agency, they were protesting the passing of the 2021 budget by the Iraqi parliament, which did not meet their expectations regarding guaranteed employment.

More here.

(Source: Anadolu Agency)

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