Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

President Jalal Talabani Receives US Secretary of State

His Excellency, President Jalal Talabani received the US Secretary of State Condoleezza Rice and her accompanied Delegation in his private office in Baghdad today.

The meeting was attended by Mr. Massud Barzani the President of Kurdistan Region, Dr. Adel Abdul Mahdi and Tariq al-Hashimi the Iraqi President Vices and a number of senior officials.

PUKmedia :: English - President Jalal Talabani Receives US Secretary of State

Financing security exhausts productive sectors

Economic expert in Iraqi government, Kamal Al-Basri, believes that the aggravating security crisis is a burden to the economic situation, and therefore to welfare of citizens, and the budget of 2008, which exceeded $48 billion, reflected this situation through allocating about $9 billion, or %19 of the total, to security forces. Al-Basri considered security and the rule of law is one of the requirements of investment and economic growth, and pointed out that the lack of electricity, fuel and low level of government services led to a sharp decline in the standard of living of citizens, and the worsening economic situation.

Al-Basri said that the electric power shortage is the first factor in the high rate of inflation, and hence low real value of the currency; therefore, $1,389 billion has been allocated to develop the electricity sector. As for the oil sector and because of the weak investments in it, its allocations in the budget have been reduced to $2,103 billion from 3,387 billion in 2007. He also expected the crisis of electricity to continue for more than three years.

He explained that securing the necessary environment for the growth of economy, developing a network of social protection, improving transportation services, electricity, health, treating unemployment and the expansion of infrastructure projects, are all priorities that would provide incentives for the implementation of those projects.

He also called for the establishment of development banks to finance specific projects without returning to the budget, stressing the need for the restructuring of public sector institutions. He pointed out that Iraqi economy lacks diversity in sources of revenue, and the inability of the State to apply the reconstruction tax which amounts to %10.

Financing security exhausts productive sectors | Iraq Updates

Lower demand for the dollar in daily auction

Demand for the dollar went down in the Iraqi Central Bank's auction on Tuesday, registering at $56.115 million compared to $161.380 million on Monday.

"The demand hit $8.265 million in cash and $47.850 million in money transfers outside the country, all covered by the bank at a stable exchange rate of 1,214 Iraqi dinars per dollar, same as yesterday," according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).

The 15 banks participating in the auction offered to sell $2 million, which the bank bought at an exchange rate of 1,212 Iraqi dinars per dollar.

Speaking to VOI, Ali al-Yasseri, an Iraqi trader, said that most investors sent their remittances during Monday session, benefiting from the one-tick drop in the exchange rate following a few days of stability.

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

Aswat Aliraq

Turkish and Kuwaiti sides causing power shutoffs

Aziz Sultan, media spokesman for the Ministry of Electricity, said that power shutoffs in Baghdad and many other provinces in the south, north and center were caused by the Turkish and Kuwaiti sides, pointing out that the shortage in producing electrical energy has increased the hours of the programmed shutoffs in the last few days for reasons beyond the will of the Ministry of Electricity.

The spokesman explained in a statement released by the ministry, "The Turkish side stopped the electric power line that feeds the provinces of Dohuk and parts of Arbil for technical reasons, while the Kuwaiti side stopped feeding (gas-oil) to the power plant of the Ministry of Electricity in the province of Basrah for reasons not identified by the Kuwaitis."

He added, "the stoppage of pumping oil from Ajeel oil field in Kirkuk caused a halt in most power stations in the northern region, while the stoppage of pumping gas that supplies power stations in the north and south during the past week, has caused a great shortage in power production; there is about (600) megawatts of available electricity stalled due to lack of fuel."

Sultan said that the power transmission lines from Baiji to Baghdad and the northern governorates were exposed to subversive acts; three explosive devices targeted the power transmission lines between Salahuddin, Baghdad and Kirkuk, and between Salahuddin and Kirkuk. He pointed out that such acts of sabotage contributed to the increasing scarcity of electric power, and confirmed that the ministry is working hard to overcome these problems to improve the status of the electrical system and thus reducing the hours of the programmed shutoffs.

Turkish and Kuwaiti sides causing power shutoffs | Iraq Updates

Multi-Pronged USACE Effort To Improve Electricity Sector In Iraq

The challenges in rebuilding Iraqi's electrical infrastructure are formidable, says the U.S. Army Corps of Engineers Gulf Region Division's electrical sector lead.

Col. Michael Moon has a full plate working on USACE's $4 billion in electrical projects and helping Iraq's Ministry of Electricity elevate the country's system to something the Iraqis can depend on in their daily lives.

On top of decades of neglect, the ravages of war and ongoing security concerns, Moon said, the power industry is booming globally, which makes the lead time on major components lengthy, and qualified and available people in short supply.

The Ministry of Electricity - Dr. Karim Hasan - has developed a capital requirements plan that exceeds $27 billion and will take five to 10 years to achieve a world-class national grid, generation, transmission and distribution, Karim predicts.

While the export of crude oil is now steady, the challenges Iraq now faces are a cumbersome financial and procurement system, as well as continued security issues.

"At present, most large U.S. and western firms are reluctant to bid on the MoE's major projects, citing security concerns and the problems with the banking/financial systems," Moon said. However, Moon added, "There is interest and we are beginning to work with Department of Commerce representatives to assist the MoE in improving his systems to attract U.S./western bidders."

Recently, the MoE negotiated two large contracts for power projects, one with a Chinese company for nearly $1 billion and the other with a Russian firm.

"Until U.S. and Western companies return to bid on these types of major contracts, the MoE will have to rely on the Chinese and Russians," Moon said. Meanwhile, USACE is actively engaged with the MoE on a number of fronts.

Add into the equation the fact that the power industry is booming globally.

"Lead time for major components, like a 400 kV transformer, is 12-plus months," Moon said. "There is a lack of qualified people for the demand across the globe. There is a three- to five-year backlog of power generation in the U.S. alone. GE has already sold out of Frame 9 turbines through 2008. China and India are adding substantially to their energy sector and both require huge resources that impact the rest of the world."

USACE is doing its part through its "teams in major power plants, coaching, teaching and mentoring the Iraqi plant managers and technicians," Moon said. There also are regular meetings between the Dr. Karim, the DoS senior electrical consultant, and Moon. "Discussion covers the full range of operations and planning, from strategic issues to maintenance and sustainment and capacity development and training," he said.

USACE and the Iraq Transition Assistance Office (ITAO) have put together a Ministerial Engagement Team that works on long-range strategic goals with the MoE staff. Additionally, a Ministerial Liaison Team assists with coordination and planning with the MoE's subordinate director generals. The team is fluent in Arabic and are technically qualified in the engineering/electrical field.

It's a team effort, Moon said. USACE, ITAO and the MoE are working together to jumpstart the nation's electrical infrastructure. But ultimately, Moon said, it will be up to the MoE and the people of Iraq.

"The ME is working hard for the people of Iraq and there are many dedicated employees throughout the Ministry of Electricity," Moon said. "From repair crews for transmission and distribution lines to plant managers and technicians, these dedicated Iraqis are working courageously to improve the electricity service to the people and improve the economic potential of the Iraq."

Note: John Connor is a Public Affairs Officer with the Gulf Region South district, U.S. Army Corps of Engineers, Iraq.

Multi-Pronged USACE Effort To Improve Electricity Sector In Iraq | Iraq Updates

Rice Meets with Iraqi Prime Minister

Secretary of State Condoleezza Rice met Iraq's prime minister during a surprise visit here Tuesday, congratulating him on the passage of legislation reinstating former Saddam Hussein loyalists to government jobs and pushing for progress on other benchmark laws.

Rice flew from Riyadh, Saudi Arabia, where she was accompanying President Bush on a tour of the Middle East. Her trip was announced as Bush was holding talks with Saudi officials.

"President Bush and Secretary Rice decided this would be a good opportunity for the secretary to go to Baghdad to meet with Iraqi officials to build on progress made and to encourage additional political reconciliation and legislative action," National Security Council spokesman Gordon Johndroe said. He said Rice would return to Riyadh Tuesday night.
Ali al-Dabbagh, Prime Minister Nouri al-Maliki's spokesman, said he and Rice met for about 45 minutes, of which 30 minutes were one-on-one.

He said she briefed the premier on Bush's trip and passed along Bush's congratulations on the passage of legislation reinstating thousands of former supporters of Saddam Hussein's now-dissolved Baath party to government jobs.

The so-called de-Baathification law is one of 18 steps which the United States considers benchmarks to promoting reconciliation among the country's Sunnis, Shiites and Kurds.

A senior aide to al-Maliki said Rice also encouraged the prime minister to promote the progress of the other benchmark legislation, including provincial elections, constitutional amendments and a law to share the country's oil and gas resources among the different sects.

On Saturday, Bush had commended Iraq's parliament for the de-Baathification legislation.

"It's an important step toward reconciliation," Bush said then, after more than a year of prodding by the U.S. for action on the law. "It's an important sign that the leaders of that country understand that they must work together to meet the aspirations of the Iraqi people."

At the same time, Bush said more progress was needed.

PUKmedia :: English - Rice Meets with Iraqi Prime Minister

Basra's Sheiaba refinery ablaze

Fire broke out at al-Sheiaba oil refinery west of Basra province during the early hours of Tuesday amidst speculations that it was the result of an "act of sabotage."

"A huge fire erupted in al-Sheiaba refinery and most probably was the result of an act of sabotage," an official source from Basra province told Aswat al-Iraq – Voices of Iraq – (VOI).

"Explosions, which could be either explosive charges or Katyusha rockets, were heard before the fire broke out," the source said, adding "the fire started in two fuel-producing units and then spread to other parts of the refinery.

"All fire engines and civil defense teams in Basra rushed to the scene in a bid to control the fire," the source noted.

Al-Sheiaba, one of the largest refineries in southern Iraq, lies 20 km west of Basra province. Set up in 1974, the refinery is not the first time to catch fire. A fire in the oil facility in 2004 caused severe damage.

Iraqi oil facilities in northern and southern Iraq occasionally come under attacks by gunmen or suffer from technical failure that immensely affect the country's production of oil derivatives.

This prompted Iraq, one of the countries with largest oil reserves *********, to sign contracts with some neighboring countries like Kuwait and Iran to import oil products to meet local needs.

Aswat Aliraq

Iraqi Kurdistan president in Baghdad to meet Rice

Iraqi Kurdistan Region President Massoud al-Barazani is now in the Iraqi capital Baghdad to meet visiting U.S. Secretary of State Condoleezza Rice, who arrived in the country on Tuesday morning, a Kurdish official said.

"Barazani will discuss with Rice the issue of article 140 of the Iraqi constitution pertaining to Kirkuk as well as other issues on the Iraqi arena," Fouad Hussein, the Iraqi Kurdistan presidential cabinet chief, told Aswat al-Iraq – Voices of Iraq – (VOI) by telephone.

Article 140 of the Iraqi constitution deal with disputed areas including the oil-rich city of Kirkuk.

According to the article, the dispute over Kirkuk should be solved over three stages:

normalization, demographic consensus, and a referendum on the status of Kirkuk as to whether it should remain an independent province or be annexed to the Kurdistan region.

These phases should have been finalized on a deadline of December 31, 2007 but their application was postponed for a period of six months.

Aswat Aliraq

Iraq committee deals with resigned ministers

In a joint press conference with Iraqi Prime Minister Nuri Al Maliki, President Jalal Talabani confirmed that a committee has been put forth to study the situation of resigned ministers from the government.

As for Al Maliki, he affirmed that the coming stage will open up to all Iraqi political components in order to overcome differences and participate in decision making.

On the other hand, Vice President Tarek Al Hashemi denied any intention to form new alliances. While meeting Sayyed Abdul Aziz Al Hakim, Al Hashemi announced that the Accordance Front is willing to return to government after meeting its demands. For his part, Al Hakim stressed that Iraq will witness some progress in the political process calling on all parties to boost up the process and activate political agreements.

Alsumaria Iraqi Satellite TV Network | Iraq News | Iraq committee deals with resigned ministers

Iraq prepares new reconciliation conference

On the path of national reconciliation, 22 figures representing all political blocs in Parliament, in addition to other opposition parties are meeting in the Lebanese capital, Beirut, in preparation for a wider conference on national reconciliation due in Baghdad or Cairo. Head of Foreign Relations Committee in Parliament Humam Hamoudi announced that Beirut’s meeting will tackle a series of disputed issues with opposition parties to the current political process in Iraq. He noted that the meeting completes a series of similar meetings held earlier in the same regard. Hamudi clarified that the meeting is sponsored by a civil community institution in the United States called the sustained dialogue while it is supported as well by the Italian government.

Alsumaria Iraqi Satellite TV Network | Iraq News | Iraq prepares new reconciliation conference