Thread: Archive Latest News - Think Tank - 15/04/08 - 26/08/08

Government is worried about the suspension of ratifying the supplementary budget for this year by the Parliament

The Iraqi government expressed today its concern about the suspension of the parliament to ratify the supplementary budget for the current year ,and stated that linking political issues that have nothing to do with the topic of the budget bill, including the provincial council elections or other political issues would be extremely detrimental to the interests of the state and for the Iraqi people and the government will not be able to perform their duties because of this delay.

The Iraqi government spokesman, Dr. Ali Al Dabagh in a press statement to "Elaf" said the Cabinet had discussed in its third ordinary session held on Tuesday, the theme of this validation of the Federal Assembly supplementary budget for fiscal year 2008 and expressed its concern at the delay in the Parliament to approve the supplementary budget , which is originally earmarked for the Service projects and securing financial allocations all of which serve the large segments of the Iraqi people note that the parliament did ask to provide supplementary budget. He explained that the cabinet stresses that disrupt ratification of the supplementary budget by linking them to political issues unrelated to the topic of the budget, including what with the draft election law provincial assemblies or other political issues would be extremely detrimental to the interests of the state and the Iraqi people and that the cabinet will not be able to perform its duties due to the delay in ratification of the supplementary budget.

Al Dabagh added that the cabinet appealed to the parliament to assume their national and constitutional responsibilities and ratify the supplementary budget bill of the Federal Assembly for fiscal year 2008 as the entity that represents the Iraqi people and charge reconciliation.
The supplementary budget for Iraq during the current year 21 billion dollars and 7.4 billion U.S. dollars has been allocated for investment and $ 13.6 billion for operating budget including Iraqi ministries and state governorates, adding the 48 billion dollars which the original amount of general budget for the current year , added to the supplementary budget for the current year 2008 will reach approximately 70 billion dollars, the largest budget in the history of Iraq, according to official sources in the government.

It was scheduled that the parliament would approve the supplementary budget for 2008 but was delayed to Wednesday because of some political blocs linked ratification of this law by passing the provincial council elections.

Iraqi government is worried about the suspension of ratifying the supplementary budget for this year by the Parliament

Kuwaiti government asking Iraq to pay the debts

The Kuwaiti government expected Iraq to achieve a surplus in the annual budget for the current year, and believes that they have to pay the debts owed by Baghdad to Kuwait.

The Kuwaiti News Agency quoted from the Minister of Foreign Affairs Sheikh Mohammad Al Sabah as saying in a ********** interview on Saturday that the overdue of old debt of Kuwait, which Iraq has to pay, and these are the rights of Kuwaiti people.

Kuwaiti debt owed by Iraq related to the eighties, during Iran-Iraq war.

Some experts estimated the amount between 15 to 16 billion dollars, provided by Kuwait to support the Iraqi war effort during the years from 1980 until 1988.

The Kuwaiti minister said that the Iraqi economy in a marked improvement, and Iraq will witness a considerable surplus budget this year, in an allusion to large hikes in global oil prices.

Although the Kuwaiti minister said that his country does not want to burden Iraq with this payment, but also stressed that the Kuwaiti National Assembly (parliament) is the only unit's decision to cancel or not to cancel these debts.

It is noteworthy that a number of Kuwaiti MPs refuse to exempt Iraq from those debts, because of the bitterness that is still in the hearts of many of the Kuwaitis after the invasion of the Iraqi former regime President Saddam to their homeland in 1990.

The Emirates has cancelled in last mid-July all debts owed by Iraq, estimated at about seven billion dollars, including benefits.

The UAE President Sheikh Khalifa bin Zayed Al Nahayan said that his decision is aimed at helping the Iraqi government in facilitating the implementation of reconstruction projects.

The U.S. State Department estimated the decline of Iraq's debts by $ 66.5 billion in the last three years.

Pledges not implemented

The Paris Club countries, counting 19 creditor nations, has dropped about 43.2 billion dollars from the club's debts of Iraq, and this figure does not include the dropped debt by Emirates.

The remaining debts on Iraq are estimated at about 80 billion dollars, due mostly to Saudi Arabia and Kuwait.

Iraq borrowed from Saudi Arabia about 15 billion dollars, and the latter had pledged last year to cancel 80 percent of this debt, but have not been implemented so far.

http://www.iraqdirectory.com/DisplayNews.aspx?id=6692

Shahrastani: Council of Ministers approved the plan places to develop oil sector

D said. Hussein Shahrastani oil minister said the Cabinet approved the plan places to develop the oil sector, after having delayed adoption of legislation and petroleum law which it has ratified the Iraqi government in February 2007.

He said in a broad dialogue with the newspaper Noor, T. bulletin next week, the Cabinet approved the plan last week decimal to the Ministry of Oil, to be able to proceed with the implementation of development plans and projects of oil fields and raise the ceiling on production and build a new rank and conclude contracts and implemented vigorously and rapidly rising, so as to contribute All workshops in the development of the oil sector.

He said. Shahrastani added that the Ministry of Oil does not suffer from a legislative vacuum at all, in order to move forward in implementing development plans, explaining that the Oil Ministry and the laws in force with adequate powers to carry out its tasks fully, to develop a wealth of Iraqis, and maintain that together. He pointed out that the Iraqi government made a decision in February 2008 to invest existing laws and powers conferred upon which to develop the oil sector.

It should be noted that the Cabinet had endorsed unanimously in February of last year, the petroleum law and to prosecute the four, the presence of ministers trend Sadr and the Iraqi List and the Kurds, the United Iraqi Alliance.

http://translate.google.co.uk/translate?u=http%3A%2F%2Falmalafpress.net%2Findex. php%3Fm%3D39&sl=ar&tl=en&hl=en&ie=UTF-8

Deputy for the Arab bloc: I do not expect an agreement soon on Kirkuk and the Kurds to provide guarantees

A member of the House of Representatives Iraqi deputy independent Arab bloc Omar al-Juburi, today, Thursday, lack of optimism to reach a final agreement in the coming days, on the issue of organizing elections in the city of Kirkuk and the Kurdish side asked to provide guarantees he described as "real" about the status of the city.

The Nation said in an interview with "Uzmatik", that "the positions of the political blocs of electoral law, especially the issue of Kirkuk still remain unchanged, since the end of Chapter VI of the legislature in the current month of August."

The MP added that the Arab bloc as "the Committee agreed that the Iraqi parliament formed on the merits of the issue of Kirkuk city did not begin its work after it had been agreed so far to members who serve on the Committee."

The Nation that "efforts are currently ongoing between the political blocs to remove tension and resentment that has occurred in the Iraqi street, during the debate on the issue of Kirkuk city, to pave the way to reach a compromise on the issue and pass the electoral law without any problems."

He also called on the Arab bloc of independent Kurdish side "to give real guarantees on the city of Kirkuk and should be mentioned clearly in the election law, so as to ensure their implementation in the event of failure to reach a final solution on the city."

The Nation pointed out that "failure to provide the Kurdish side of any guarantees on the city of Kirkuk, will lead to the adoption of the electoral law rejected by representatives of the city Turkmen and Arabs in the House of Representatives on Iraq."

The Chairman of the Committee on Territories in the House of Representatives from the Iraqi Accord Front MP Hashem Al-Taee disclosure of the "Uzmatik" on an agreement semi-final between the political blocs on the issue of organizing elections in the city of Kirkuk, "by passing the law to allow elections in the Iraqi parliament during the next legislative term," according to He said.

It is noteworthy that the Iraqi Parliament Speaker Mahmoud scene had decided to lift the parliamentary session on the sixth of this August, declaring the end of the current legislative without voting on the law of provincial council elections, identifying the ninth of September next date for the start of the new legislative chapter.

Translated version of http://iraqalaan.com/

Budget could reach ‘$100bn next year’

Iraq is expected to prepare a budget of up to $100bn for 2009, an increase of $30bn over 2008, if oil prices remain at their current level, head of the oil and gas committee at the Iraqi parliament said yesterday.

“The finance ministry is expected to submit to the parliament in October an estimated budget of $80bn to $100bn for 2009,” Ali Hussein Dali told the government’s daily newspaper Al-Sabaah.

Dali, however, said budget could only be reached if oil prices remain high. World oil prices had fallen last week to $115 a barrel after reaching a record high of $147 at the beginning of July.

Revenues from oil sales usually finance around 95% of national budgets of Iraq, which is selling an average of 1.9mn bpd, he said. Iraq’s total foreign currency assets were around $30bn, he added.

The Iraqi parliament last week endorsed an additional $21bn to the country’s 2008 capital budget, bringing the total budget for the year to around $70bn.

Iraq needs to spend billions of dollars to improve its aging infrastructure, which has been hard-hit by sanctions and wars.

The US Government’s Accountability Office said recently Iraq was generating revenue of about $80bn this year.

Gulf Times ? Qatar?s top-selling English daily newspaper - Finance & Business

Foreign investors pour billions in Kurdish Iraq

Foreign investors have pledged projects worth more than $16 billion dollars to be implemented in the autonomous Kurdish region of Iraq, according to a Kurdish official.

Kameran al-Mufti, head of the region’s project evaluation and license department, said more than $6 billion of the pledged investments has already turned into “real’ projects.

The department was established in 2006 in accordance with a new law the region’s government had issued to lure foreign investors.

The law gives investors several privileges among them a 10-year net of tax period and removal of tariffs on exports and imports related to the project.

Foreigners even have the possibility of owning property including the land on which they set up their projects.

Investors, including Iraqi nationals, have the right to transfer their profits to bank accounts abroad. Even workers in these projects have the right to transfer their wages in hard cash abroad.

Mufti said these privileges and the region’s relative security have been “very tempting” for foreigners.

Since the promulgation of the law foreign capital has increased more than three folds – to more than 50 percent of foreign investments from 15 percent.

He said investors were mainly interested in industrial and tourist projects as well as housing.

But he said investors were still meeting many difficulties despite his department’s efforts to remove hurdles.

He cited the backward state of the region’s banking system and red tape as the main impediments.

http://www.azzaman.com/english/index.asp?fname=news\2008-08-15\kurd.htm

China begins work on $900 million power plant and agrees to develop oil field in southern Iraq

The Chinese firm, Shanghai, has started constructing a major thermal power plant in the southern Province of Wasit, the Ministry of electricity said.

Electricity Minister Kareem Waheed attended the laying down of the foundation stone for the plant, the largest ever project a foreign firm begins constructing in Iraq since the 2003 U.S. invasion.

Kareem said on completion the plant will generate 1320 megawatts of electricity.

He said under the $924 million contract the Chinese were to have the plant constructed in 48 months.

“It is a good initiative from a foreign firm to start implementing such a project in the country following the improvement in security.

“Hopefully this will encourage other firms to follow suit,” Waheed said.

The Chinese have a much bigger stake in the province as they have also agreed to develop the al-Ahdab oil field there.

China National Petroleum Corporation is to develop the field with proven reserves estimated at more than 1 billion barrels.

Kareem said the Chinese will be producing nearly 90,000 barrels a day from al-Ahdab by the time the thermal plant is completed.

“The plant will rely for its operation on the crude which al-Ahdab will be producing,” he said.

The Oil Ministry is building small-scale refineries in Wasit, with the capacity of producing 10,000 barrels a day each.

Azzaman in English

Symposium on Iraq's access to WTO late this month

Preparations are underway to convene the first symposium on Iraq's position regarding its proposed access to the World Trade Organization (WTO) in Baghdad late this month, an Iraqi economist said on Friday.

"The event is being prepared in coordination between the Iraqi Center for Economic Reform and the trade ministry after arguments on whether Iraq should accelerate its access to WTO or delaying the step until the country restores its economic stamina," Mannaf al-Saegh of the ICER told Aswat al-Iraq – Voices of Iraq – (VOI).

The Iraqi trade ministry had sent a message to all Iraqi economic institutions asking them for views on Iraq's plans to join WTO.

Saegh said no specific date was set yet to hold the symposium, adding the event would envisage thorough deliberations on the WTO laws.

Aswat Aliraq

Ministerial campaign to follow up on investment projects

The Iraqi Ministry of State for Provincial Affairs has organized a campaign to follow up on the implementation of investment activities in all Iraqi provinces, an economic advisor said on Saturday.

"Concerned ministerial bodies have started constant tours to many provinces to follow up on what has been allocated for investment and provincial development projects from the general budget," Manaf al-Saegh told Aswat al-Iraq- Voices of Iraq- (VOI).

"Those bodies have carried out an assessment of what has been achieved so far…," he added.

"Delays have been reported in the implementation of the Kut water project, which was scheduled to be completed in mid-2007, in addition to a pause in the Samawa water project in light of competition between companies that won the bid," he noted.

The ministry has taken all measures to ensure the resumption of the two projects and the questioning of those responsible for the delay.

Aswat Aliraq

Govt. plans huge tourist facilities countrywide

Senior officials revealed governmental plans to establish huge tourist facilities, citing the improvement in the security situation in the country.

"Baghdad's mayoralty is currently planning to set up tourist facilities, including a so-called 'city of gardens' with huge games on an area of 650 donums and at a cost of over $300 million (1 U.S. dollar = 1,119 Iraqi dinars)," Baghdad's mayor, Sabir al-Issawi, told Aswat al-Iraq- Voices of Iraq- (VOI).

Cultural, flower, water, ice and children parks will be established, in addition to many others, the mayor noted.

The parks will reflect Iraq's cultural face. "We demanded that the companies use international and modern technology in the establishment of the parks," Issawi noted, adding that the designs will cost $2 to $3 million, while the total cost of the project will exceed $300 million.

"Nine companies made bids for the project and a committee, headed by a Baghdad mayoralty general director, was formed to pick the winner."

The project is expected to be completed in 2009, Issawi said, adding that it will be carried out in partnership between the government and investment companies.

Meanwhile, the minister of municipalities and public works, Riyadh Ghareeb, revealed another huge project to build an integrated tourist city in Najaf province by an English company.

The minister said that he expects other tourist cities to be set up in a number of Iraqi provinces.

When asked about theme parks that are currently under construction, the minister said, "There is al-Hussein theme park in downtown Karbala with a total cost of 9 billion Iraqi dinars."

Najaf, about 160 km south of Baghdad, has an estimated population of 900,600 in 2008, though this has increased significantly since 2003 due to immigration from abroad. The city is one of the holiest cities of Shiite Islam and the center of Shiite political power in Iraq.

Najaf is renowned as the site of the tomb of Ali ibn Abi Taleb (also known as "Imam Ali"), whom Shiites consider to be the righteous caliph and first imam.

The city is now a great center of pilgrimage from throughout the Shiite Islamic world. It is estimated that only Mecca and Medina receive more Muslim pilgrims.

The Imam Ali Mosque is housed in a grand structure with a gilded dome and many precious objects in its walls.

Karbala, with an estimated population of 572,300 people in 2003, is the capital of the province and is considered to be one of Shiite Muslims' holiest cities.

The city, 110 km south of Baghdad, is one of Iraq's wealthiest, profiting both from religious visitors and agricultural produce, especially dates.

It is made up of two districts, "Old Karbala," the religious centre, and "New Karbala," the residential district containing Islamic schools and government buildings.

At the centre of the old city is Masjid al-Hussein, the tomb of Hussein Ibn Ali, grandsone of the Prophet Muhammad by his daughter Fatima al-Zahraa and Ali Ibn Abi Taleb.

Imam Hussien's tomb is a place of pilgrimage for many Shiite Muslims, especially on the anniversary of the battle, the Day of Ashuraa. Many elderly pilgrims travel there to await death, as they believe the tomb to be one of the gates to paradise. On April 14, 2007, a car bomb exploded about 600 ft (200 m) from the shrine, killing 47 and wounding over 150.

Aswat Aliraq