Thread: Archive News - Iraqi Dinar Think Tank - 24/01/201 - 23/07/2011

Central Bank: the right to request the Parliament of borrowing from the reserve in times of crisis

An advisor of the Central Bank Mzarmohamd Saleh, said that legislative authority is the decision maker to borrow from the cash reserve in the event of financial crises or disasters in the country.

And Saleh said in a statement to the Agency by news Sunday that according to the Iraqi constitution, the central bank is linked to the parliament, he will decide to borrow from Ctaaiti cash in the event of a crisis, referring to the bank a basic tenet of the State.

The central bank had refused to lend to the government fiscal deficit amounts of the cash reserves to address the budget in 2011 under the pretext that it would put the country in the (economic quandary) in front of the international community.

http://radionawa.com/Ar/NewsDetailN....066&LinkID=155

Iraqi Oil Exploration – A Diamond in the Ash?

Iraq is possibly unique among the major oil producing nations insofar as its oil production profile over the last 30 years shows a succession of truly spectacular collapses in production. Depicted on a graph, it resembles the jagged blade of a giant wood-saw.

Since its all-time production peak in 1979, Iraq has of course been subjected to three devastating wars which brought the country to its knees and destroyed key elements of its hydrocarbons infrastructure.

As if this wasn’t enough, the source of the world’s fourth largest oil reserves has experienced a number of other setbacks. Religious and cultural divisions (for example amongst the Shia and Sunni muslims, as well as the Kurds in the north and the Marsh Arabs in the south) continue to create barriers. These divisions are also sometimes reflected in the political landscape. Following the elections in 2010 (when no clear majority emerged), it took over nine months for a coalition government to be formed which delayed and further hindered Iraq’s rebuilding effort.

In addition, Kurdistan continues to govern itself semi-autonomously through the Kurdistan Regional Government (“KRG”), with the result that there are differing oil and gas licensing regimes in Kurdistan and the rest of Iraq. These differences (which have arisen partly from a disagreement over the interpretation of the Iraqi Constitution adopted in 2005), resulted in the oil embargo imposed by Baghdad which has recently frozen exports out of Kurdistan. Another source of friction between Baghdad and Erbil has arisen from the KRG’s preference for a traditional PSC-style licensing arrangement in contrast to the south where a form of technical services contract (the “DPSC”) is more typically used (which rewards participants with a cash fee per barrel of oil recovered rather than with a pre-agreed percentage share of physical oil).

One of the starkest logistical problems facing Iraq relates to the lack of transportation facilities and storage capacity for hydrocarbons – particularly in landlocked (and mountainous) Kurdistan. While a network of ageing pipelines does exist up and down the country, Iraq is still a long way short of the infrastructure which will be required if its current production targets are to be achieved.

Of course security also remains an issue of concern – both as regards safety of employees, as well as security of assets and infrastructure. Hijackings and bombings continue – and there is concern in some quarters over the ability of the Iraqis to maintain reasonable standards of law and order in the future once foreign forces have left. On a more practical level, unexploded munitions and mines from the Iran-Iraq war and two Gulf wars often need to be removed before fields can be accessed and developed. Indeed the form of Iraqi DPSC makes specific reference (where appropriate) to the preparation of a “de-mining work program” which must then be performed as a recoverable cost of the contractor parties.

http://www.stockopedia.co.uk/content...the-ash-54160/

CBI calls on the Government to address the impediments to the implementation of the Five-Year Plan

The Central Bank of Iraq adviser said on Monday that the five-year plan adopted by the Iraqi government dominated by the nature of the theoretical and more practical to address the constraints on the government for implementation during the fastest time to advance the rate of economic development in the country.

He said the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "the five-year plan adopted by the government for the advancement by the country's service plan is very special, but convincing economically difficult to apply in practice in Iraq."

The Iraqi government has launched last July the National Development Plan for the next five years, from 2010 to 2014, which is expected to include nearly 2700 projects in various sectors, worth up to $ 186 billion.

He continued that "the difficulty of the application comes because there are considerable constraints facing the Five-Year Plan highlighted the relationship between the private sector and government and the mechanism for the Advancement of sectors across the economic system and clear."

The center "Alistza" French and one of the centers responsible for monitoring the project planning in the countries of the world, especially in developing countries, issued last Friday, a report confirming that Iraq has adopted a five-year plan failed can not meet the needs of the main being the need to plan with the features and clear benchmarks to manage and address the problems of service that affecting citizens.

Confirmed that the Ministry of Planning and Development Cooperation that five-year plan is still in the first way and can not be judged.

Salih noted that "the allocation of 180 billion plan over five years means that each year the government had allocated 36 billion annually from the investment part of the budget, which will raise the level of national income to 7% and will reach 3% of gross domestic product."

The Iraqi Government has allocated $ 186 billion five-year plan to implement the $ 100 billion of public budgets of the country and the remaining $ 86 billion of investment projects, domestic and foreign.

The benefit of that "the government had to address the obstacles that stand in the actual conversion of this plan to practice in the country and raises the level of economic development in the direction of the country easier and more economic benefit to the country."

And see the entire Iraqi provinces wave of protests condemning the poor services and financial and administrative corruption in government institutions demand better living conditions for Iraqis and the provision of services and employment opportunities in accordance with the promises, which was launched before the parliamentary elections last year.

And announced the Federal Ministry of Planning that the percentage of economic growth will in accordance with the strategic plan set by the ministry to 47% after it is completed in 2014.

The International Monetary Fund had said earlier that the economic growth of Iraq has been slower than expected during 2010 in the Economic Review of the Fund, due to expected growth in oil production.

He described the Iraqi Central Bank earlier in the rates of economic growth for the year 2010 as "shameful" compared with past years. He revealed last October that the 2011 budget will raise economic growth to 10% of what it was.

http://www.aknews.com/ar/aknews/2/219737/

Babylon investment: the investment law is disabled due to lack of adoption by the State effectively

The deputy chief of the Investment Babylon, 100 km south of the Iraqi capital Baghdad, the investment law in Iraq, No. 13 of 2006 by the "paralyzed" and inactivated, attributing the reasons for this not to build the Iraqi state has effectively through her ministry and its departments of government.

He said Abbas al-Tai told the Kurdish news agency (Rn) that "Iraq is one of the best places to invest in the world to the availability of many investment opportunities in and rising demand for it because it lacks many basic services such as housing, sewage and electricity," he said, adding that it "depends mainly on its resources of oil revenues and goings of a large portion of the expenditures to salaries that take the largest share of the state budget."

He said al-Tai "So the investment is the best solution to address the deteriorating economic situation in Iraq and radically solve the problem of unemployment in the case of the State's encouragement and support for setting up projects Alastosmarbp."

He said "The investment law has not adopted the State effectively because their constituents governmental obstacle to its implementation and trying to find the bumpers to prevent the investment because of the tyranny of the bureaucratic procedures adopted by the long time periods through which administrative procedures to implement the investment project one, so we find that the majority of investors are reluctant to entering the country because of the deliberate disruption to the terms of the law."

Description of the Tai Investment Law to "good and who can work but its implementation mechanism and activation is the real problem that we face in our work Vwazzarat Iraqi difficulties in order to innovate is not implemented."

He continued, saying, "For example, in Babylon, we have to grant investment license for a residential project, the Ministry of Municipalities refusing because of what she called the ministry that there is no instructions in this regard, as well as project-Kawthar housing which has been obstructed all government departments in the province when expressed objection even on an area of the housing unit after stalling continued on over two years," stressing that "the Ministry of Municipalities hindered our full when it gave itself the right to decide on investment projects in spite of the Investment Authority is the only party in the country authorized in this matter according to law."

He called for "activating the circuit Alastmarip one that includes representatives of government departments and ministries authorized by all decision makers to facilitate the implementation of the investment process and this is not the work done so far in Iraq."

And that "the important problems that are an obstacle to investment is the non-allocation of land required for setting up projects under the mechanism used in the allocation despite the fact that the Investment Law No. 13 of 2006 created a mechanism to solve this problem, but did not work out and government departments do not duty stipulated in the Borders law", praising the "Law No. 6, on the applicable investment in the Kurdistan region approved by the regional parliament, where the law that created the suitable environment for success The investment process in the region."

Tai called the federal government to "take swift action can resolve this problem and directing the government institutions to adopt the investment law and work to avoid Altothirma on the future of investment in Iraq.

http://www.aknews.com/ar/aknews/2/219793/

Iraqi oil: Deputies consider to cancel the contract by a Chinese company to develop the Ahdab

The Iraqi Oil Ministry, said on Sunday that a draft law presented for its first reading in the House of Representatives on Saturday on the abolition of the partnership contract signed by the former regime in the nineties of the last century with the Chinese company (CNBC) to develop the Ahdab province of Wasit, will not affect the company's operations.

He said ministry spokesman Assem Jihad, Oil, told the Kurdish news agency (Rn) that "the abolition of the Convention on the former regime will not affect the work of the company is currently working on development of the field." Explaining that "The ministry had previously amended the terms of the contract and turned it into a service contract."

Jihad and that "there is a misunderstanding, we need to cancel the old contract and the company is working on a new contract is the development of its work in the field."

Under the service contract signed with the Chinese company to obtain wages for each barrel of oil extracted and not sharing the profits that result from the exploitation of resources.

The regime of Saddam Hussein had a 1997 contract with China National Petroleum to develop the Ahdab for 23 years, then worth $ 700 million.

http://www.aknews.com/ar/aknews/2/219724/

Shahristani announced the establishment of power stations during the next two years

Deputy Prime Minister for Energy, Monday, announced a plan to create a power station card 11 thousand megawatts during the next two years, attributing the reason to seek to increase the import electricity from neighboring countries to 1700 MW, stressing the need to fill the shortfall in power now.

Hussain al-Shahristani "Alsumaria News", the new production in addition to the current production of seven thousand megawatts would fill the need for Iraq from the electric power of 12 thousand megawatts.

He attributed the al-Shahristani, Iraq sought to increase its import of electricity from neighboring countries, pointing to add a line a fourth three lines that import of electric power, a line Krkp - Building and a capacity of 200 MW, noting that "the Iranian side has pledged to increase the line of Basra, 100 MW, as well as increased imports from Syria and Turkey with 200 megawatts."

http://radionawa.com/Ar/NewsDetailN....079&LinkID=155

Higher tariffs on hold

On February 14, the National Iraqi News Agency reported that the import tariff increases originally scheduled to go into effect on March 6 are being suspended until further notice. (The story is at http://www.ninanews.com/english/News...ar95_VQ=FFHEEK.) This is not surprising. With protestors already in the streets in some places, now can hardly be the best time to introduce new taxes on consumers.

In my last post, I argued that a case might conceivably be made for some of the new tariffs if they offset distortions elsewhere in the economy. Even if this were true, however, ordinary Iraqis would be unlikely to see things this way. All they would see is higher prices for food and appliances. And they would suspect, probably correctly, that officials were profiting from the situation by taking bribes from importers.

The government’s argument that the new tariffs are necessary to protect Iraqi industry would also be likely to fall on deaf ears. Consider the proposed tariff on window-type air conditioners (harmonized code number 84.15.10.20), for example. In the Arabic version of the schedule, this is given as 20%; the English version has 50%. (These schedules are available at: http://www.iraq-businessnews.com/201...the-full-list/.)

An obvious beneficiary would be a company like Al Hilal Industries (ISX ticker IHLI), whose main product is evaporative coolers. Unlike most air conditioners, which use compressed refrigerants, an evaporative cooler is water based. The only moving part is a fan, which draws the outside air through wet pads to lower its temperature. (See the illustration, by Nevit Dilmen, downloaded from Wikimedia Commons.)

On one of Baghdad’s 110 degree summer days, I think I’d prefer a real air conditioner. But faced with higher prices for imports, some consumers would be forced to buy one of IHLI’s products instead. Eventually, perhaps, the tariff might make it possible for the company to develop a viable air conditioner business. But in the meantime, their customers—presumably already unhappy about electricity shortages—would find that even when the power was on they were still pretty hot.

If the government’s plan is to wait until the public is ready to accept situations like this before introducing the new tariffs, they may be on hold for quite a while.

http://www.iraq-businessnews.com/201...riffs-on-hold/

UK Construction Industry Looks to Iraq

The Financial Times reports that Iraq is an increasingly popular destination for British construction firms, with the International Monetary Fund (IMF) forecasting a rise in GDP of 6.75 per cent during 2011.

A project manager at one construction company bidding for work in Baghdad, says: “For the very bravehearted among us there is a huge opportunity there, but the totality of destruction in parts of the country makes planning any rebuild far from straightforward.”

The University of Salford is setting up a built environment research centre in Basra to establish building and civil engineering practices tailored to the country’s needs.

Professor Mustafa Alshawi, the Associate Dean at Salford’s College of Science & Technology, says: “Iraq has some very specific needs in its built environment sector, and there are some areas where it lacks expertise and a critical mass. By opening this new centre we will be able to train more researchers and provide staff and students with new skills and ways of working.”

“Iraq is certainly one of the next big places for the industry,” says John Barrow, a senior principal at Populous, the UK practice behind Wembley, the O2 Arena and Arsenal’s Emirates Stadium.

Populous is in advanced bidding talks to secure the design contract for a 100,000-seater stadium in central Baghdad and is eyeing work on five other stadiums across the country.

Rider Levett Bucknall, a UK construction consultancy, has been in talks with former military personnel about providing security assistance for projects in the region.
“Part of the job of project management is going to be the provision of security on developments,” says Lance Taylor, chief executive of RLB. “There is a real risk in doing work there and if you are going to manage construction projects you need to man up and make sure the security is tight.”

http://www.iraq-businessnews.com/201...looks-to-iraq/

Shell Confirms Participation in Basra Oil & Gas 2011

The 2nd Basra Oil & Gas Conference, sponsored as ‘Official Digital Media’ byIraq Business News, is heading to be the foremost oil and gas event in Iraq. Shell’s participation in the event as one of the super-majors of the oil and gas industry clearly indicates how successful the event will be.

At the start of 2011 Iraq’s oil production reached a new 20-year high, with oil output standing at 2.7 million bpd, up from 2.4 million bpd a year earlier. This increase is seen as the result of improved efforts by the country’s oil ministry and investments by the IOCs. The organizers invite you to join the three Iraq oil and gas events in 2011 to be held in:

• Baghdad (2-5 October);
• Basra (25-28 November); and
• Erbil (16-19 December).

The events’ organisers are currently running a special discount campaign: For Basra and Baghdad events, they are offering 15 per cent off early bookings until the end of February 2011, and for the Erbil event the discount is extended until the end of March.

http://www.iraq-businessnews.com/201...-oil-gas-2011/

Iran agrees to raise stake in Iraq’s power sector

Iran has agreed to raise its exports of electricity to Iraq to more than 1000 megawatts, about one fifth of current Iraqi output.

The decision came during talks Iraqi Deputy Electricity Minister Adel Mahdi is holding in Tehran as part of a high-ranking government delegation.

Mahdi is a member of high-level Iraqi delegation visiting Iran. The delegation is headed by Husain Shahristani, deputy prime minister for energy affairs.

Iran is building two lines of high voltage pylons linking its national grid with Iraqi border provinces.

One line, reaching the Province of Diyala north of Baghdad, is operational through which Iran currently exports more than 600 megawatts to Iraq. The second line, to be completed soon, extends to the southern Iraqi Province of Missan.

The delegation’s visit comes following Iraqi complaints about an Iranian firm constructing a power plant in the low-income district in Sadr City in Baghdad outskirts. Iraq had given the company until June to finish the plant or face the consequences.

But it seems the sides have solved differences as Iran has given the Iraqi delegation assurances that the 324 megawatt plant in Sadr City will be completed on time.

Another Iranian firm is involved in the construction of yet another 324 megawatt power plant to meet the domestic needs of the holy cities of Karbala and Najaf.

http://www.azzaman.com/english/index...02-22\kurd.htm