Thread: Archive Latest News - Think Tank - 16/08/07 - 03/11/07

Newspaper: Bush dodged press on way to Iraq

Washington - US President George W Bush dodged most of the White House press corps on his surprise trip to Iraq after committing the press pool that travels on his plane to secrecy, the Washington Post reported Monday.

While the main press plane didn't leave for an economic conference in Australia until Monday morning, Bush was spirited out of the White House Sunday night through the streets of Washington in a small caravan to Andrews Air Force Base, Fox News reported.
Earlier in the day, pool reporters were summoned to individual meetings with top White House officials to be informed about their earlier departure.

When reporters arrived at the air base outside Washington, secret service agents collected their computers, cell phones and other electronic devises. They boarded the plane and waited there with the window shades drawn down, the Post reported. Even after their devices were returned to them, they were forbidden to transmit to prevent Air Force One from being tracked.

While Bush's plane flew east toward Iraq, where he landed in Anbar province early Monday, the main press plane flew west via Hawaii on their way to Australia.

Bush is to meet with leaders of the Asia-Pacific Economic Cooperation (APEC)from Tuesday to Saturday in Sydney, Australia.

Newspaper: Bush dodged press on way to Iraq - Middle East

Preparations for the opening of the first exhibition of Italian industries in Arbil

Source: Voices of Iraq - 03/09/2007

An official with the Italian company specialized international fairs, Sunday, on the completion of preparations for establishing the first exhibition of Italian industries in the city of Irbil, next Thursday, with the participation of 80 companies.

He said Angelo Kaspanwa secretary-general of the Italian company Microsoft Exhibitions International in a press conference held city of Irbil that "about 80 Italian company specialized in industrial areas will participate in a variety of industries exhibition opens in the Italian city of Irbil next Thursday and will continue for five days."

He added Kaspanwa "This is the first time we are a special exhibit of Italian industries in the Kurdistan region, which want to participate in the process of rebuilding and reconstruction of the region."

For his part Tanzi Peruvians Italian consul in the Kurdistan region of Iraq, "it is difficult to persuade European companies to come to the Kurdistan region of Iraq, as they look at the province, Kendrtha to Baghdad."

The Italian consul during the press conference "We wish to convey the owners of the companies participating in the exhibition, a picture of security and stability in the region to the European traders, and encourage them to come here."

He continued: "For more than a year and a half we opened our consulate in Kurdistan, and this is the first time the group came to the Territory of Italian companies to mount an exhibition of Italian industries."

With General Manager of the opposition in the government of the Kurdistan region that the opening of the exhibition was delayed several months because of security.

He explained Ahmed Abdullah during the conference that "it was decided to establish this exhibition in the month of June (June) past, but the explosion that targeted Irbil in the month of May (May) past, led to the postponement of exhibition, the group of companies declined to participate in the exhibition after accident the blast. "

The truck bomb exploded on May 9 last May near the Interior Ministry and Security Directorate Irbil (Alaseich) claimed the lives of 14 people and injuring 87 others, mostly staff of the Ministry of Interior and Alaseich Service, and managed security services in the province were arrested planners of the bombing.

It should be noted that this explosion was the first of its kind seen by the Irbil after two years of calm.

And between Abdullah that the exhibition will include the presentation of models of Italian industries in the areas of machinery, construction equipment, generators, cables and electrical equipment, medical equipment, furniture, ho****als, home furnishings, furniture, equipment and hotels, restaurants, factories and technology, food technology, environmental conservation, and agricultural equipment , water pumps, heating and cooling equipment and ventilation.

Witnessing the Kurdistan region stable security conditions compared to the rest of Iraq, reflected positively on many economic activities and investment in various production and service sectors, as encouraged many foreign companies to contract with the relevant agencies in the processes of reconstruction and development in cities throughout the territory of Kurdistan.

It is the city of Irbil, Center Erbil governorate, about 364 km north of Baghdad, the capital of the Kurdistan region.

Iraq inflation down to 17% in July

Iraq's core rate of inflation has been driven down by monetary policy and the central bank is ready to take further action if needed, Iraq Central Bank governor Sinan Al-Shabibi said on Saturday.

"Inflation is our overriding concern," he told Reuters in an interview on the sidelines of an annual central bankers retreat here in the Grand Teton mountains organized by the Federal Reserve Bank of Kansas City.

Bitter sectarian violence between majority Shi'ite and minority Sunni Arabs have driven the country to the brink of civil war. The violence has also greatly damaged economic activity by driving up prices and inflicting terrible hardship on the country's millions of poor and unemployed.

Shabibi has raised interest rates to 20% and lifted the value of the dinar against the dollar, reducing monthly inflation, excluding food and energy prices, to 17% in July from 35% in June.

"Our monetary policy is functioning well," he said, adding that future action "depends on developments in inflation, taking into account developments in the economy and investment."

The actions have also helped to reduce the usage of dollars in the Iraqi economy, which was dominant after the 2003 US-led invasion to topple Saddam Hussein.

The dominance of the dollar was a problem for the central bank, which cannot curb inflation with traditional tools to control the domestic money supply if most of the country's commerce is handled in dollars.

Shabibi said the dinar had taken back its rightful role as the currency of choice for Iraqis.

"There used to be more confidence in the dollar than the dinar but the contrary is now true because of the dollar's loss in value," he said.

The Iraq dinar has appreciated to around 1,240 against the dollar from as low as 2,200 in the aftermath of the war.

Business is booming in the semi-autonomous region of Kurdistan in northern Iraq, but is much more subdued in the rest of the country, which relies almost exclusively on oil revenues for the foreign currency it needs to pay for imports.

Shabibi conceded that the poor security conditions were a big constraint on business, but argued there was a great deal of activity quietly taking place that was hard to spot but remained a source of reassurance.

"You don't get big building projects or other very visible types of activity, but there is a lot of small-scale business taking place," he said. "I would not be here if I was not still optimistic."

http://www.iraqdirectory.com/DisplayNews.aspx?id=4479

Americans recognize the failure to reform the Iraqi oil sector

Source: statement UAE-03/09/2007

Americans admitted failure in the rebuilding of the oil and electricity sectors Iraqis, and before them a very long time to Itaavia. Analysts said that Iraq needs 50 billion dollars for the development of energy, electricity Although the Washington Post says that the United States spent six billion dollars to develop these sectors since the occupation of Iraq so far, no for 4 years.

The newspaper said the American government that the Bush plan focused on the rebuilding of Iraq will cost 5. 44 billion dollars to rehabilitate and develop the oil and electricity sectors and the plan now nearing completion on the reconstruction of Iraq is still in need of 27 billion dollars to modernize the electricity sector, and another $ 20 billion of the infrastructure of oil, may reach $ 30 billion.

According to American government estimates, and reliability Ishermokteb government's estimates that Iraq will take until 2015 for six million can produce oil barrels a day and have no electricity sufficient to achieve this production. The Corps of Engineers says the American that there will be enough electricity in Iraq until 2010 2013.

He said Stuart Bowen inspector reconstruction in Iraq (American) American spending was aimed at reviving these sectors, the official added, which aims to examine and detect deception, manipulation and violations in American spending on reconstruction of Iraq, they are collaborating with the anachronistic system and underdeveloped him through a very long time.

The official said a former high-ranking Ministry of Defense that the American people said that American spending in Iraq was aimed at rebuilding the country, but it was just the beginning only, this expenditure was not enough never to remedy the situation there. It was just a simple aid. The Washington Post did not continue if the solution of problems there will be difficult to establish a strong economy and improve living standards, and because of that people lose confidence in the government.

The oil and electricity industries of the most important in Iraq depends on each other. Iraq and imports worth 6. Two billion dollars of petroleum products annually, and exports of crude oil represents 95% of the country's financial revenue. But oil production falter without electricity and electricity can be generated not turn oil to manage without electricity plants. The paper quoted Robert Abel energy expert and the first advisor of the Center for Strategic and International Studies in Washington, we have tried to help them, but we do not. We thought they Sitaavon rapidly due to rising oil production, but this did not happen.

Iraq studying a $ 2 billion petrochemical plant

Iraq studying the construction of a petrochemical investments of $ 2 billion and possibly begin this year talks with potential foreign investors on the project. Said Fawzi Hariri, the Iraqi Minister of Industry told «Reuters» on the sidelines of a conference in Dubai studying «a completely new facility in the center or north of the country».

He explained that the production capacity of the complex is scheduled million tons of ethylene and derivatives. Hariri had said last Wednesday that Royal Dutch Shell and Dow Chemical conducting talks with the government for the rehabilitation and expansion of plant chemicals in southern Iraq at a cost 1. Two billion dollars.

Iraq still faces obstacles in the Adoption Law oil

Source: Reuters-03/09/2007

Iraqi officials said Monday that the Iraqi Parliament to exceed substantial differences on the control of the third largest oil reserves in the world before it can Adoption Law oil is important to attract billions of dollars of foreign investment.

He said Abdul Hadi Al-Hasani, Vice Chairman of the Committee on Energy Iraqi parliament that the ratification of the new rules would be before the end of the year but not before substantial modifications to the draft which was approved by Baghdad in July after months of bargaining.

Al-Hasani said that the parliament will debate a controversial supplements to determine which Lafarge oil fields by national companies new oil contracts and details of models that will be used to develop the ailing sector, which contributes more than 90% of government income.

He said ABOLHASSANI "in the next few weeks would be offered on a first reading and then come back and discuss it before the vote.

"Will be subject to hot debate. I expect a lot of amendments. "

The expected lifting of the draft approved by the government without supplements.

Said Thamer Ghadban, energy adviser to Prime Minister Nouri Al-Maliki "If the Parliament Act to prosecute would send.

"This is possible within a few days."

Ghadban said he hoped that the Parliament is left of the controversial supplements to the Federal Council's new oil and gas which may allow ratification of the new law within weeks.

He said Sami Military Adviser to the Prime Minister Maliki before a conference on Iraqi oil in Dubai that the Parliament will vote on the Law of the oil until a law for sharing revenue, adding that they would vote in a single package.

The military said that the different political blocs law discussed widely expected and already approved quickly or without annexes.

Inflation in Iraq slumps says central bank chief

raq's core rate of inflation has been driven down by monetary policy and the central bank is ready to take further action if needed, Iraq Central Bank Governor Sinan Al Shabibi said yesterday.

"Inflation is our over-riding concern," he said in an interview on the sidelines of an annual central bankers retreat in the Grand Teton mountains organised by the Federal Reserve Bank of Kansas City.

Bitter sectarian violence has greatly damaged economic activity by driving up prices and inflicting terrible hardship on the country's millions of poor and unemployed.

Shabibi has raised interest rates to 20 per cent and lifted the value of the dinar against the dollar, reducing monthly inflation, excluding food and energy prices, to 17pc in July from 35pc in June.

"Our monetary policy is functioning well," he said, adding that future action "depends on developments in inflation, taking into account developments in the economy and investment."

Shabibi said the dinar had taken back its rightful role as the currency of choice for Iraqis.

The Iraq dinar has appreciated to around 1,240 against the dollar from as low as 2,200 in the aftermath of the war.

Business is booming in the semi-autonomous region of Kurdistan in northern Iraq, but is much more subdued in the rest of the country, which relies almost exclusively on oil revenues for the foreign currency it needs to pay for imports.

Shabibi conceded that the poor security conditions were a big constraint on business, but argued there was a great deal of activity quietly taking place that was hard to spot but remained a source of reassurance.

http://www.iraqdirectory.com/DisplayNews.aspx?id=4474

Source: Iraq halts oil exports to Turkey

Source: Reuters-03/09/2007

A source in the shipping on Monday that Iraq's oil exports through the northern pipeline to Turkey extended Sunday night after pumping 5.2 million barrels in storage tanks at the Turkish port of Ceyhan.

The source said "stop pumping yesterday evening and I do not know why."

The sabotage caused disruption in the pipeline for long periods since the invasion by the United States-led Iraq in March in March 2003.

Iraqi stocks gaining momentum

Khaleej Times - [9/3/2007]

The Iraq Stock Exchange (ISX) is performing "not too badly," gaining 12 to 15 per cent since the beginning of August, which amounts to 0.5 per cent to one per cent a day, said Rand Michael Holtz, operations director of the recently established Iraq Fund LLC, at a conference in Dubai last week.


The Iraq Fund, Iraq's first hedge fund, began trading on August 2, the day on which foreign investors were allowed to start investing in the war-torn country. This follows the Iraqi government's enactment of the new foreign investment law last November, giving foreign investors flexibility to transfer capital into and out of Iraq. Foreign investors can form investment portfolios and can trade shares and bonds listed on the ISX. The Iraq Fund focuses primarily on state-owned enterprises (SOEs), which include steel plants, cement factories and glass works, and banking sector stocks listed on the exchange.

The fund has a $250,000 minimum investment requirement and charges 1.5 per cent for management and 15 per cent for performance, with a high-water market. After a one-year lock-up, investors can redeem quarterly. The Credit Bank of Iraq serves as its prime broker and the fund is domiciled in Delaware, the United States. Earlier, Holtz was reported as stating: "We target $100 million. There have been delays, but we'd like to do it within the next 12 to 18 months." So far the fund has attracted only private investors.

"The Iraq Fund provides investors (with an investment vehicle), who have expressed interest to make intelligent decisions," said Holtz, adding: "Iraq is a challenge because of conditions on the ground, but investors understand the risk." Given the physical conditions and the potential of SOEs "we feel we can turn a profit in three to five years," he said.

Asked about the high level of risk associated with an investment in Iraq, Holtz replied: "The difference between Iraq and US is that the US is a mature market. In Iraq there are boundless opportunities and potential but the risk factor is there." He added, however, that "safe is a relative word," citing the recent crisis in the US sub-prime credit market.

The ISX, established in 2004, has 33 companies trading out of 100 listed companies, said Holtz. And according to data for Thursday August 30 from the ISX web site, 29 companies were trading and 21 were off the trading floor following decisions at their annual general meetings to increase their capital. Of those companies traded, there were 12 banks, one investment company, three services companies, 12 industrial companies and one hotel company. Overall, six companies saw their shares rise, while 12 saw them fall. Another 11 stocks remained stable.

The banking sector accounts for 71.5 per cent of the exchange's capital, which reached ID799.2 billion by April 2007. There are 18 listed banks having a combined capital of ID571.5. The pick up in the stock market is good news for its index had fallen significantly between January 2005 and March 2007, according to research on Iraq by the Kuwait-based Global Investment House. Over this period the general index performance lost more than 50 per cent of its value. The deteriorating security conditions resulted in the ISX index falling from its highest level of 72.6 points, in February 2005, to a low of 25.3 points in December 2006. Currently, the ISX index is trading between 40 and 42 points. The index stood at 40.82 points at the beginning of August and 41.90 points at the end.

The move from a manual trading floor to an electronic trading is expected to bring more liquidity to the market, especially as a greater number of foreign investors will be able to trade in Iraqi shares. This is expected to happen in October, according to a posting on the ISX Web site. Initially, however, only five of the listed companies will be traded electronically, and "we don't know how quickly it will take the other 95 companies to be listed", said Holtz.

The ISX currently trades on two days a week for two hours each day but once the exchange becomes automated trading days will increase to five days a week with two sessions per day.

Last week, the Iraqi Securities Body announced that it was regulating the broker market so that only approved brokerage companies could operate on the Iraqi security market. An approval date for the legislation was not specified, according to a posting on the Investor's Iraq forum web site.

It said that the chairman of the Securities Body, Abdul Razzak Al Saadi, had stated: "No new brokerage company would be admitted to the market with capital under one billion dinars, and no licensed banks' brokerage offices could be turned into limited (or contribution) companies without capital of minimum one billion dinars, majority owned by that bank."

He is also quoted as saying: "Current brokerage companies must ensure this year that each shareholder's stake is at least ID35 million and that they must build capital over the next five years to the minimum specified above."

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Iraq electricity minister says up to 25 bln usd needed to lift supply

Forbes - [9/3/2007]

Iraq will need to spend a total of around 25 bln usd through to 2016 to upgrade its power generation and distribution capacity, said electricity minister Karim Wahid.

Wahid told AFP that the required funding would be provided through the government budget at a rate of around 2 bln usd a year. But he pointed out there would be a shortage of funding during the next four years, which he hoped would be covered through private investment and donations.

He told delegates at an oil conference in Dubai that the total installed generation capacity currently stands at 11,120 megawatts, covering 40 to 50 pct of demand, but this capacity is expected to reach 23,193 megawatts by 2011.

Contracts to build three 150 megawatt power plants have been awarded to Iraqi firms, one for the region of Kurdistan and the others in Najaf and Karbala, but the lack of security in Iraq was keeping away some foreign investors, said Wahid.

http://www.iraqdirectory.com/DisplayNews.aspx?id=4477

US troop surge in Iraq 'working'

THE US troop surge in Iraq is having a positive effect with the overall number of attacks at the lowest level for a year, Defence Minister Brendan Nelson said today.

Dr Nelson, who has just returned from a trip to Iraq, Afghanistan and Washington, said US commander in Iraq General David Petraeus, had given him a detailed briefing on material he would present to Congress next week.

He said General Petraeus had given an insight into what he was likely to say in his testimony - although he declined to reveal what recommendations the General would present.

"One thing that is clearly important is that at a military level the surge is certainly having some positive consequences. It works hand in glove with the Iraqi security forces to which Australia has contributed significantly in training over 15,000," he told ABC radio.

Dr Nelson said ethno-sectarian Sunni versus Shia violence for August was likely to be the lowest for a year, although that was distorted by the recent devastating bombing near the Syrian border.

He said the total attack levels were down for eight of the last 11 weeks and were at the lowest level for a year.

"Al-Qaeda is also off balance. The coalition and Iraqi forces have been killing and capturing on average about 1,500 a month. There has been a significant turnaround in Ramadi and Baquba. The areas around Baghdad and Diyala have seen a tribal awakening.

"One of the key improvements has been if you like a Sunni rejection of al-Qaeda in west and northern Iraq.

"All of these gains need very much to be locked in."

Dr Nelson said those gains had been achieved only in the last two months.

He said the troops surge the president agreed to earlier in the year had really only been fully implemented as of June.

"It is only in the last two months that there has been a statistically significant and noticeable improvement in security and it is obviously something that needs to be seen through," he said.

Dr Nelson said it was not his place to say whether he would be recommending sustaining the surge, increasing or reducing troop numbers.

"That is for the Americans themselves," he said.

"It also involves obviously doing everything we can to drive the Maliki government at a political level. There has also been an improvement of the operation of the civil service.

"The Iraqis have obviously a lot of money and one of the challenges has been to get that money out the door to provide services for Iraqis."

Dr Nelson said the US military was pressed very hard at the moment and needed support.

"It is very important that Australia, the UK and other coalition partners that have been working with the US do everything we can to support them," he said.

"The most important thing for us to do is to stay the distance with the Iraqis and our coalition allies, particularly the US."

US troop surge in Iraq 'working' | The Australian