Thread: Iraq/Dinar News until 6/17/07 8:30 PM CST

Army to Reconsider Bids On Iraq Security Contract
By Alec Klein and Steve Fainaru
09 June 2007 (The Washington Post)


The U.S. Army has agreed to reconsider the bids of companies that were eliminated from the competition to win the largest private security contract in Iraq, according to sources familiar with the matter.
One of the companies, the British firm Erinys Iraq, had filed a complaint with the U.S. Court of Federal Claims after being removed as a bidder on the contract, which is worth about $475 million and calls for a private company to provide intelligence services to the Army and security for the Army Corps of Engineers on reconstruction work in Iraq.
Government lawyers outlined the Army's plans to reconsider bids during a closed hearing Thursday on Erinys's complaint, according to officials familiar with the proceedings who spoke on the condition of anonymity because the matter is ongoing.
"Erinys is pleased that the Army has recognized the significant errors in this procurement and has volunteered to take corrective action," an Erinys spokesman said in a written statement. "We look forward to competing for the . . . contract on a level playing field."
Army officials did not respond to requests for an interview. It is unclear how many other companies are affected by the decision. Blackwater USA, a North Carolina firm, also challenged its elimination from the competition. Blackwater officials could not be reached for comment.
The Army's decision could be a setback for what sources said were the two finalists, Aegis Defence Services and ArmorGroup International, both British firms. Aegis has the current contract, a $293 million deal that was to expire in May but was extended as competitors challenge the bidding process. The sources said there is no timetable for the military to reevaluate the bids.
In its complaint, Erinys said the Army required all bidders to obtain business and operating licenses from the Iraqi government before submitting offers but then did not enforce those requirements.
Erinys, which provides security for some military personnel in Iraq under a separate U.S. contract, said it has both licenses. Erinys also said the military failed to communicate with the firm, which would have cleared up confusion about its offer.

Army to Reconsider Bids On Iraq Security Contract | Iraq Updates

Equity segment Faili Kurds and restore their rights

(صوت العراق) - 10-06-2007

(Voice of Iraq) - 10-06-2007

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Equity segment Faili Kurds and restore their demand for postponement accepts .. movement of the fraternity as Faili assess memorial ceremony in memory of martyrs and Wasit


Wasit / Star Toki
Established in response to the fraternity Faili its annual Martyrs of the Faili Kurds in Wasit governorate under the slogan "fair slice Faili Kurds and the restoration of their usurped rights requirement does not accept postponement" The ceremony started reading any of the above-Hakim Al-Fatihah reading, followed by standing for the souls of martyrs of Iraq.
He started Chairman of the Movement fraternity in Wasit just Shuhani ceremony welcoming speech which explained what these conferences, which is the fulfillment of all those who sacrificed for the sake of Iraq and all denominated and their nationalities and affiliations, considering that the blood of the martyrs and all the Faili Kurds in the necks of all officials in the government, they should not forget the understanding and Ihamloha waiting for the injustice and oppression that occurred to them.

The governor of Wasit Lateef Hamed Blink made a speech explaining the stand supervisor for the sons of the Faili Kurds in Wasit governorate in the period de****e all the means used by the Principles in them, but did not deter their tenacity and fortitude to tell the (not) against injustice, tyranny, and then
And Sheikh Mohammed Said Al-Numani representative of the supreme authority to provide for the defense of the principles and creed and the homeland of the best and noblest types of generosity and magnanimity and generosity This is the path of the martyrs and the prophets, not even the Patriarchs is the shortest way to meet God

The President focused institution martyrs behind Abdul Samad behind on two main points : first, that injustice had been in Iraq nor deny that there was therefore unjust and Mazloum The important question now is what must we do to the oppressor and what we must do to the oppressed? , He emphasized that, after four years of darkness were able to change their faces, they are calling today need to forget the past so that we can manufacture future and say here that we can not make and build the future forget the past, every oppressed and their families need to documenting the crimes and dissemination, and added : The second point is focused upon by the oppressed, who said to the torturer, I think we should applaud Paradise heritage, He explained that the Martyrs Foundation is working to restore their rights and coordination with the Ministry of Displaced Persons and Migrants All departments are directly related to and overcome the obstacles and difficulties faced by working to fulfill this tranche, which made their lives and for the rest of Iraq.

He concluded the annual ceremony, which was attended by Minister of the Displaced and Migrants Dr. Abdul Samad Rahman Sultan and Dr. Tha'ir Al-Feeli adviser in the government and a number of members of the Wasit governorate, number of people in this regard and a crowd of people Wasit governorate seal reading political statement to Al-Feeli Kurdish brotherhood movement, which focused on the need to restore all the rights of the disadvantaged and martyrs and the emphasis on the dissemination of heritage and the codification of grievances and claim that the application of the laws which would raise the inequity and injustice and restore part of Almstelph rights to their owners and taking into account the families of the martyrs and tributes and pay heed to them I overheard his parents, It also organized an exhibition on the sidelines of the ceremony for pictures, offering dozens of photographs and sacrificed extent of the injustice and inequity and deprivation, displacement and starvation, displacement, killings and confiscation of freedoms which occurred on this segment oppressed.
Long Iraqi

Translated version of http://www.sotaliraq.com/

Originally Posted by Hkp

Will the division of wealth to partition Iraq?

Adnan Al-Salihi

At a time when the situation of the Iraqi people from poverty, unemployment and the deterioration of services of all kinds, tend attention to the people's representatives in Parliament and the government to adopt appropriate resolutions that would take

However, society and the advancement of the situation deteriorate to progress and prosperity. Since all the conditions experienced by Iraq, which witnessed the Iraqi arena is an exceptional situation and unnatural to be careful reflection and decision-making particularly crucial and shed light and find out the truth and the dimensions of those decisions.

As long as oil wealth in Iraq is its main asset, which hopes the Iraqi citizen depend on the economy, we must not alienate those of wealth and study everything that would respect the thorough, careful, and so we had to study on this project with some precision and out of concern for the public good.

It is through reading the draft law approved by the current Iraqi government, which is hoped to introduce to the House for a vote, noted the following : -

First : in legal terms :

1-follower of this law considers that the draft law had been drafted in English, and noted that there was a difference in the translation into Arabic, which begs the question, any texts adopted in the event of a disagreement between investing companies and oil and gas between the federal oil and gas, or a difference between political elites? It is the body that will be invoked?

2-what is stated in paragraph (17) of Article IV in the definition of "person" Iraqi is the definition was heavily tinged with ambiguity has exploited persons holding more than one nationality and therefore this person has used foreign nationality in the event of any forms with the government of the province or the federal government, to get rid of the legal consequences. ( "person" Iraqi-any citizen of Iraqi nationality, or any company or institution legal personality list and registered according to Iraqi legislation with a key position in Iraq, with more than 50% of the shares of capital owned by Iraqi citizens or by the institutions or public companies or special Iraqi.

3-what is stated in paragraph (23) of the previous article "operator", it could create a problem resulting from the conversion of the original contract to a series of contracts with companies that do not have high efficiency required as happened in Iraq reconstruction The legal problems that Giffen. ( "operator" body designated by the competent authority in consultation with the owner of the right of exploration and production for oil operations on behalf of the latter.

4-what is stated in paragraph (24) of the same article, in the "definition of maintaining productive," We believe that it is unnecessary to determine the quantity of production that could lead to legal and political problems resulting from a lack of coverage of some provinces this definition capitalizing determine the quantity of production of oil. An example of this province of Dahuk and Sulaymaniyah. (Governorates less production of 150 thousand barrels per day). "Preservation productive" - any of the provinces of the Republic of Iraq, in which there is production of oil and gas in a sustainable and commercial rates not less than (150) thousand barrels / day.

5-what is stated in paragraph (29) of the same article, in the definition of "carrier" This definition makes the government bears responsibility in the transfer of a product from oil alone without taking any responsibility on the companies. ( "carrier" - designated by the Council of Ministers to take crude oil or gas from the owner of the right of exploration and production at the point of conversion and delivery of crude oil or natural gas for export the owner of the right exploration and production at the point of delivery.

6-Article V, paragraph (eleven) there is a clear flaw in the wording of this paragraph and to receipt of the word "members present" which proves that it is possible decision presence of three members, two of them voted in favor of the resolution, as well as Article X paragraph II. (Federal Council of oil and gas to develop an "internal" to organize work to take its two-thirds majority of members present in the development of the petroleum policies, plans, models and instructions to negotiate contracts and contracting.

7-Article X, Th. Thirdly, in the "approval of the contract," So it is the effect unless rejected in the vote (60) days and this would send a lot of contracts pretext months to the end of a decision rejected by the Federal Council of oil and gas, and this method into contracts to be inoperative in the Iraqi laws. (with the ministry or the Iraqi National Oil Company, or regional body to reluctance on the initial contract and the reasons for it during the sixty (60) days of receipt of the initial contract by the Federal Council of oil and gas, The initial contract will be considered approved in the absence of a decision from the Council after the period mentioned. In the case could not be a meeting of the Federal oil and gas during the sixty (60) days from receipt of the first contract, the Council must take a decision on the contract during the last (45) and forty five days "following the use of various means of communication available, and the contract would take effect" in the absence of a decision after the expiry of the period mentioned).

8-as stated in Article (39), on "conflict resolution" is supposed to be Iraqi law is the first reference must be resolved such disputes through the Iraqi justice between the contracting parties may not resort to the courts or arbitration committees outside Iraq. Therefore, we find that there is an imbalance in paragraph "w" on (1) of the above article, that the Iraqi justice system has jurisdiction on all public and private persons in addition to the adoption of the international conventions in this regard requires an endorsement of the State of Iraq to those conventions.

Being an arbitration between the Republic of Iraq and foreign investors as follows :

1-systems arbitration proceedings to the International Chamber of Commerce in Paris, Geneva and Cairo for the settlement of disputes between States and Nationals of Other States, according to the settlement of disputes between States and Nationals of Other States, on the basis of Iraqi law).

Second : economic terms :

1-focused law in most aspects of the production without the need of refinement and interior of oil derivatives.

2-law did not take into account periods of time for the processing of oil tankers and delays that may result from the technical and political problems, which could lead to the cessation of production, which is expected to be obtained after the direct action, This causes the imposition of fines on the oil sector Takhireh paid to tankers anchored in the port of Basra, which amounted to one hundred million dollars as a result of stopping the tanker in some lines of production.

3-stated in paragraph (d) of article 14, where the State is obliged to compensate the investor for any loss, without specifying the type of loss, It must be a new formulation of this paragraph, taking into account the likelihood of the collapse of the oil market any circumstance emergency. (compensate affected parties for any loss or damage resulting from oil operations, as required by law).

4-paragraph (b) of Article 32 seemingly not subject to the investment law which provides for Iraqi failure compensate any of the period of time after the expiration of investment and the above paragraph violation of this law. (All tasked to restore the site and the Wolf accompanying become due upon conversion with respect to any business and facilities are paid by the Iraqi National Oil Company, the owners of the other production licenses under the plan termination commissioning).

5-ratios set forth in paragraph (a) of Article (34) on the right to property "rent" rates are low, This should provide for higher percentages of the above paragraph (paid the Iraqi National Oil Company and the holders of exploration and production licenses others royalty on oil produced from areas of development and production by "12.5%" of total production is calculated from the entrance lip link to the main entrance).

6-paragraph (a) of Article (35) of the "record-keeping" with a major financial forms in which the state in a weak position compared to producing companies as the conversion net profits belonging to the investing companies out of Iraq is not in the direct interest of the Iraqi economy, where they are supposed to benefit the preservation of productive (in particular) of the profits in other projects contribute to the development (owners have the right to convert licenses net profits derived from the operations of oil out of Iraq after the payment of taxes due on them.

7-nothing in this remark is taken from a study of economists (1) Should the percentages in this equation will be lost material about Iraq ($ 18 million plus million barrels of crude oil per day) and the equation is :

(What is now producer of oil from the Iraqi oil production and expected after investment, the country will be the loss of approximately 32 billion, a quarter of a billion annually if the law remains as it stands, as follows :

Iraq now produces about two million barrels per day.
Average price per barrel of 55 dollars.
Financial benefits per day of Iraqi oil 110 million dollars (daily).
After application of the law of oil and gas is expected to increase production of Iraq in the period close to three million barrels (per day).
Assume that the average price per barrel is still 55 dollars.
Financial benefits in the day, 165 million dollars will be divided as follows :
royalty production, as the law provides the equivalent of 20.5 million dollars (twenty and a half million dollars) of this amount going to the Iraqi government.
Cost of production of around 3 per barrel equivalent of nine million dollars going this amount production companies.
The amount remaining in the limits of 135.5 million dollars (one hundred and thirty-five and a half million dollars).
This amount is 2 between the Iraqi government and the company involved in production 67.750 million (Sixty-seven and three quarters million), the share of each party.
The macro-financial benefits to the Iraqi government is collecting royalties production with half the profits to get the 88.250 million (Eighty-eight and a quarter million).

Conclusion

When national Bemlakath Iraq produces 2 million barrels a financial return 110 million dollars by imposing average price of 55 dollars a barrel.

When Iraq produces three million barrels per day by helping companies, as set forth in the draft law of oil and gas declining financial benefits to the Iraqi government to about 88 million dollars per day.

Third : the political point :

1-through reading history note that the most important decisions taken in serious and critical times and the extraordinary life of peoples, which would negatively affect their lives if taken in a hurry, On this basis we believe to be a very high accuracy in decision-making in this period they would be binding for future periods may require a lot of difficulties to avoid mistakes.

2-The political positions of the different political blocs in the parliament, which shows similarities complete loss of confidence between the components may make this law as it stood at the current time is a time bomb which may explode at any moment, the community where the first oil target. where could turn any problem between the two rival political camps in the door of investment to the battle raging on the geographical oil wells.

3-believe, as we understand the reality that making historical long-term should not be used in exceptional circumstances and the urgency of time and circumstance and the presence of the occupation, which makes the occupier fingerprints clear in passing the law.

4-believe that the solid Earth, which must be established by law is the credibility and good faith, with most parties, and mutual confidence and almost lost between the political blocs.

5-There are some paragraphs including law, which are almost unanimously persecution of many of the communities where it is one of the paragraphs in the law to the formation of the Federal Council of the basic components of the Iraqi people, and the clear marginalization of minorities to the rest of the people, anchors of sectarian clear.

6-speed in decision-making and pass this way without definition by showing their clear imprint to the pressure the IMF and the generals oil in this area.

7-There are many ambiguities on the issue of economic advisers, and what identity! This facilitates the entry of many lovers positions and the position and therefore requires exploitation and leads to involve political and professional work.

8-lack of understanding of district councils to the administrative and legal powers, may create traffic intersection in the center to work with the government and perhaps into conflict in some provinces controlled by some parties control almost to the emergence of hot spots threatening to erupt at any moment.

9-may be with the state or the government is now addressing the idea of trying out their control in the above-quoted in the use of military force, and the solution is here in the worst way (militarily), and we have thus wasted lives and money before the battle could be avoided drafting laws binding possesses the duties and rights guarantees. We diagnose those observations on oil and gas law to be voted on in the National Assembly, we welcome any decision that the purpose of the supreme interest of the country, and our goal of diagnosing those gaps only for the purpose of processing and upgrading so as not to leave the area to forsake human Iraqi citizen.

As if the law was applied correctly and in good faith, to work hard, we believe in the near future, significant achievements at the economic level, which will cast a shadow on other levels.

1-d. Riyad Gharib (reading the eyes of Iraqi oil).

Translated version of http://www.alsabaah.com/

any one; read between these lines, and tell me in layman's terms exactly
what they are saying:


As if the law was applied correctly and in good faith, to work hard, we believe in the near future, significant achievements at the economic level, which will cast a shadow on other levels. 1-d. Riyad Gharib (reading the eyes of Iraqi oil).

Guarantor requirement for Industrial loans dropped

Guarantor requirement for Industrial loans dropped Translated by IRAQdirectory.com - [08/06/2007]


An official source in the Ministry of Industry and Minerals said on Monday that the ministry has

decided to amend regulations for granting industrialists facilitated loans through the industrial development department. The requirement for guarantors and the actual presence of a project’s owner have been canceled, giving necessary flexibility to the loan granting mechanism.

The source, in a statement issued by the ministry, explained, "the industrial development department will make loan grants to 150 out of 500 applicants very soon," but he did not specify a date.

He said, "Al-Rasheed Bank and all its branches is preparing to start working out delivery, which will cover loans for three categories - 15, 20, & 25 million dinars in the province of Baghdad (exclusively); special requests will be studied by a legal and technical committee, examining such indicators concerning industrial projects as type, energy requirements, and products, as well as ownership of land for the project and the number of workers registered in the computer database. "

Among the conditions to be met by the industrialist are: to be identified in the current year, 2007, the amount of the loan required (depending on the nature of the project), and estimates of the special grants committee of three categories or their equivalent in dollars; the loan to be repaid within a period of four years, including the approval period of one year, with calculated benefits, and the amount of interest on the loan is set at 2% annually.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3895

Will petrochemical industries be equal to international competition?

$120 million rehabilitation budget inadequate Translated by IRAQdirectory.com - [09/06/2007]



Petrochemical industries need substantial capital because of their large industrial plant. The Ministry of Industry and Minerals has estimated the total value of development and startup at $120 million. Some experts consider such amounts inadequate to develop and rehabilitate these giant industrial institutions, as their capital and operating funds must be highly liquid to meet high technical specification and enormous production energy needs.

Petrochemical Industries require certain basic factors to grow, especially capital and technological progress. Petrochemical industries in Iraq have had success both because of those factors and because of the availability of large quantities of raw material. In addition to refined oil derivatives, there are also large quantities of natural gas accompanying oil production (plus large pure natural gas plays), and this normally provides the enormous wealth essential for petrochemical industrial competitiveness. Most of Iraq’s natural gas production from oil wells, until recently, used to be burned in the oil companies’ incinerators or 'flared' without providing any benefit.

The two most important petrochemical industry projects in Iraq are:

First, the plant for extracting sulfur from gas. This project is part of a network collecting natural gas from oil fields, a plant for extracting sulfur from gas, a plant for water liquefaction on the river “Lower Zab”, and a pipeline for pumping water into the factory, designed to treat 84 to 88 million cubic feet of acidic natural gas per day. Output is 100 tons annually of pure sulfur, 402 million cubic feet per day of dry natural gas, equivalent to about 385 thousand tons annually, and in addition 15 -18 thousand barrels per day of liquid natural gas (LNG). Large quantities of sulfur are always a by-product of such plants, and are consumed by other industries such as the synthetic silk industry at Hindia Dam, the paper industry in Basra, the fertilizer industry, and Al-Daura refinery in Baghdad.

Second, the Chemical Fertilizers Project in Basrah, another project of the Petrochemical Industries established in Iraq in the later years of the last century. The project was completed at the beginning of 1971 at a cost of 30 million dollars and started actual production in 1971/6/1.

Now, the Ministry of Industry and Minerals is determined to restart these industries because the requirements for operation are available. The question is: “Will our petrochemical industries again compete internationally?”


http://www.iraqdirectory.com/DisplayNews.aspx?id=3901

In responce to Dontdenydatdinar's question.

Sounds Great!
But one must wonder if they are talking about the economic levels of their
neighbors, the levels of the their economy in the 1980's & 90's or are they
talking about levels from just the past 4 years.

Option D= All of the above. lol

Guarantor requirement for Industrial loans dropped

Guarantor requirement for Industrial loans dropped Translated by IRAQdirectory.com- 08/06/2007


An official source in the Ministry of Industry and Minerals said on Monday that the ministry has

decided to ammend regulations for granting industrialists facilitated loans through the industrial development department. The requirement for guarantors and the actual presence of a project’s owner have been canceled, giving necessary flexibility to the loan granting mechanism.

[FONT=Verdana]The source, in a statement issued by the ministry, explained, "the industrial development department will make loan grants to 150 out of 500 applicants very soon," but he did not specify a date
He said, "Al-Rasheed Bank and all its branches is preparing to start working out , which will cover loans for three categories - 15, 20, & 25 million dinars in the province of Baghdad (exclusively); special requests will be studied by a legal and technical committee, examining such indicators concerning industrial projects as type, energy requirements, and products, as well as ownership of land for the project and the number of workers registered in the computer database. "

Among the conditions to be met by the industrialist are: to be identified in the current year, 2007, the amount of the loan required (depending on the nature of the project), and estimates of the special grants committee of three categories or their equivalent in dollars;the loan to be repaid within a period of four years, including the approval period of one year, with calculated benefits, and the amount of interest on the loan is set at 2% annually.

Loans for Industry
loans for three categories - 15, 20, & 25 million dinars
There is no way this is todays rate
The Rv has to have been decided already

Originally Posted by bluedangle

Loans for Industry
loans for three categories - 15, 20, & 25 million dinars
There is now way this is todays rate
The Rv has to have been decided already

Ohhhhh my gooooodnesssss! I think you may have found something great!

Originally Posted by readytogo

Ohhhhh my gooooodnesssss! I think you may have found something great!

I AGREE. 25 MILLION DINARS NOW ONLY WORTH $20000 DOLLARS. YOU CAN'T FINANCE A PROJECT FOR THOSE PEANUTS. OTHER COMMENTS PLEASE.

Just wanted to take a minute to thank you HKP! You do a FABULOUS job digging up articles and info!

Tiff