Thread: Archive News - Iraqi Dinar Think Tank - 28/03/10 - 21/06/10

MerchantBridge focuses on Middle East investments, invests $1.5bn in debt and equity in Iraq

With its latest deal, MerchantBridge, a direct investment and private equity company focused on Middle East investments, has now invested and managed in excess of $1.5bn in debt and equity in Iraq.

MerchantBridge has recently been awarded an existing cement plant contract under a 15-year lease in the Kerbala Governerate, 80 miles south west of the capital Baghdad. The contract was awarded by the Government of Iraq's Ministry of Industry and Minerals.

This transaction marks the largest privatization and debt arrangement in Iraq (outside oil and gas), as well as the largest contract in the Middle East region so far this year. The plant will go through a complete rehabilitation program via an investment of $200m and it is expected the facility will achieve production in excess of 1.8 million tons per year. By 2013 the rehabilitated plant could contribute approximately 10% of the total cement market in Iraq. Lafarge, the world leader in cement production, is joint partner and will be operating the plant.

The plant has been damaged by years of underinvestment and lack of spare parts and is operating at 300,000 tons per year, which is well below capacity. Domestic production currently meets around half of the local demand, a trend which is expected to continue for the coming decade.

The current Kerbala project has already attracted investment interest from foreign direct investors, including the International Finance Corporation ("IFC"), the private arm of the World Bank, and France's Proparco, which is 67% owned by the French Development Agency ("AFD").

MerchantBridge is now embarking on a targeted campaign in the GCC to highlight the opportunities Iraq offers and actively encourage investment in what it considers the first 'live' opportunity for regional investors in the country.

Mr. Basil Al-Rahim, MerchantBridge's Chief E.xecutive Officer, confirms:

"Our strategy is to engage GCC and MENA investors and partner them on entering the Iraq market. The potential there is huge. With projects such as the Kerbala plant, MerchantBridge is at the forefront of creating unique investment opportunities, from their inception, identification of partners, deal development and on right through to the end."

MerchantBridge with its extensive experience and knowledge of Iraq, has generated substantial returns for its investors, as well as establishing a number of partnerships with international companies in Iraq. In 2003 and 2004, it advised the Iraqi government on the leasing of 35 state-owned enterprises in several economic sectors.

Mr. Ameen Killidar, Managing Director, explains, "Iraq represents a unique opportunity for early investors given the expected economic growth to be generated by the massive investments announced by the IOCs and the large government reconstruction plan."

The Iraqi government has estimated $180bn of investment is needed over four years to fulfil its reconstruction and infrastructure programme, targeting sectors that will create a heavy demand for cement.

Mr. Killidar added, "The Kerbala cement plant is strategically located to serve the needs of the entire south of Iraq and is one of the few plants which can produce specialised cement for dams, bridges, ports, airports, oil installations and any other construction where ordinary cement cannot be used. Our market potential is enormous, especially when you consider the needs of the international oil companies which have recently signed contracts with Iraq. The plant is already operating albeit at a much reduced rate due to lack of investments since the early 1990's. The qualified workforce is already present and the new capital will ensure that the plant is brought up to the latest standards."

Construction and infrastructure are expected to remain the driving force in Iraq over the coming decade, with over $140bn of projects already announced, of which $60bn is from GCC investors.

http://www.ameinfo.com/232890.html

Economist: Inflation in the Iraqi economy exists as long as the state raises its support for oil products

said an economic expert said that the debate about the existence of inflation in the Iraqi economy exists as long as the state raises its support for oil products and higher prices, because they consume 50% of the income of the Iraqi citizen according to the circumstances experienced by the country from the fluctuation in energy saving.

The economic expert on behalf of Abdul-Hadi in contact with the agency, the independent press (Iba) "The issue of inflation in the Iraqi economy is suffering from some flexibility in the interpretation of the opinion of the Central Organ of the Ministry of Planning and treated according to the Central Bank of the concept of inflation."

"Hadi said," the central bank supports the definition of inflation in the Iraqi economy to differentiate between the base and inflation, which excludes from which some indicators that depend on the policies of the country such as rising prices of oil derivatives that relate to oil policy of the government."

And Abdel-Hadi, "said the central bank through the exclusion of the price indices of petroleum products to find that the rate of inflation is low during the follow-up of the prices of other services, in addition to the Central Organ of the Ministry of Planning confirms the same thing."

Abizaid and "This does not mean he can not see the Iraqi economy, a potential crisis to the fact that the production sector still suffers from several problems concerning the operations of industrial installations and operation of labor." "The failure to stop the import, codified turn the country into a nation of consumers and contribute to increase the size of inflation.

He noted that the specter of inflation will remain Bdilalh firing on the Iraqi economy, despite attempts by the central bank to control money supply in the country.

He explained, "control on the cluster through the Iraqi monetary limit inflation would be considered a kind of temporary solution, the drug of inflation, the real impact on Iraqi citizens directly, but I can not imagine he would dissolve the basic problem."

http://www.ipairaq.com/index.php?nam...onomy&id=25311

Iraq mulls inviting firms to develop Furat oilfields - UPDATE 1

Iraqi Oil Minister Hussain al-Shahristani said on Monday the Oil Ministry was considering inviting foreign oil companies to develop the Middle Furat oilfields.

No bids were received for the cluster of three oilfields when they were auctioned off in Iraq's second round of oilfield tenders last December. The fields have estimated reserves of 600 million barrels of oil.

"We are planning to communicate with the companies to know which are willing to reconsider their previous offers," Shahristani told reporters.

"If we find enough companies willing to compete we will invite the companies. We are now contacting the companies to see if they are willing to develop the fields."

Iraq on Monday signed the 11th in series of oilfield development deals that could take its crude output capacity to near Saudi levels of 12 million barrels per day within six to seven years.

The deal for the Maysan oilfield complex was signed with China's CNOOC and state-run Turkish Petroleum Corporation (TPAO).

http://www.forexyard.com/en/news/Ira...3855Z-UPDATE-1

Kurds warm to oil exports from Iraq

Oil from the Kurdish provinces of Iraq could technically begin soon, though the decision ultimately lies in developments from Baghdad, officials said.

Oil from the Kurdish regions of Iraq halted after just four months of exports in 2009. Khalid Salih, a spokesman for the Ministry of Natural Resources in the Kurdistan Regional Government, said both governments in Iraq "technically" agreed to resume oil exports, the Kurdish Globe newspaper reports.

Iraq is still without a federal law governing the oil and gas sector in the country. Meanwhile, no government has emerged from March 7 elections for the Council of Representatives.

The Kurdish and central governments have been at odds over oil deals signed with foreign companies. Baghdad says any independent deal with the KRG is illegal.
Baghdad ministers, however, said both sides reached agreements in revenue and other financial issues on the sidelines of licensing rounds for international oil companies last week.

Iraqi Oil Minister Hussain al-Shahristani said his Kurdish counterparts, however, might not receive "full authority" to develop independent oil contracts "because (oil) is a national treasure that belongs to all Iraqis."

http://www.upi.com/Science_News/Reso...2371274105345/

Activating Egypt-Jordan-Iraq axis to enhance inter-trade

During his visit to Jordan , Egypt Trade and Industry Minister Rasheed Mohamed Rasheed told MENA News he had extended talks with Jordanian officials on how to activate the Egypt-Jordan-Iraq axis and future steps to enhance inter-trade according to specific procedures among the three states.

"Egypt and Jordan have actually started discussions on the issue and Iraq has fully accepted the idea," he said.

He referred to Iraqi President Jalal Talbani's recent visit to Egypt during which he discussed the issue with Egyptian Prime Minister Ahmed Nazif.

Rasheed said Egypt and Jordan were waiting for the formation of the new Iraqi government to put the proposed axis into effect.

Egyptian and Jordanian trade ministers Rasheed Mohamed Rasheed and Amer al-Hadidi respectively stressed the importance of removing any obstacles that could hinder the development of joint cooperation in the coming phase.

During a meeting at the Jordan Chamber of Industry on with a delegation of the Egyptian and Jordanian private sectors, the two ministers said the Egyptian and Jordanian governments are willing to work together to remove any obstacles that might harm the volume of trade exchange and joint investments.

Addressing the meeting, Rasheed said Egypt and Jordan have been committed in the past years to economic reform policies and are working to set up an effective partnership with the private sector.

Rasheed arrived in Amman on Wednesday a two-day visit leading a high-level business delegation for talks with his counterpart Amer Al-Hadidi and Prime Minister Samir Rifai on ways of increasing trade exchange and joint investments.

http://www.english.globalarabnetwork...ter-trade.html

The Long Road to a Government

Despite dubious political maneuvering, especially an attempt to eliminate Sunni candidates, the recount of Iraq’s parliamentary elections was encouraging.

The election commission said on Sunday that after a manual examination of the ballots cast in Baghdad in the March 7 elections, it found no widespread fraud. It affirmed that the cross-sectarian coalition led by Ayad Allawi, a former interim prime minister, had, indeed, bested the mainly Shiite coalition of Prime Minister Nuri Kamal al-Maliki by a mere two seats — 91 to 89.

Candidates still have time to appeal to Iraq’s Supreme Court, but the recount was considered a main stumbling block to the formation of a new government.

The absence of obvious ballot manipulation — which so marred the recent election in Afghanistan — is a testament to Iraqi voters and their shaky but maturing political system. It was reinforced on Monday when an appeals court rejected the disqualification of nine winning candidates — seven on Mr. Allawi’s slate — for alleged ties to Saddam Hussein’s banned Baath Party.

These decisions suggest that Iraq is on its way to forming a new, legitimate government. It is disappointing that Iraqi politicians are still talking about a protracted power struggle over the country’s next leadership. Attacks by suspected Sunni insurgents have killed scores of people since the election. Iraqi and American officials need to stay focused on ensuring a swift and clean transition so American troops can be withdrawn as planned by the end of August.

There is much serious and difficult work for Iraq’s next government, including passing a new oil law and resolving the future of the disputed city of Kirkuk.

Even though his Sunni-backed Iraqiya coalition won the most votes, Mr. Allawi is considered a long shot to become the next prime minister. That’s because Mr. Maliki’s coalition has aligned with the other major Shiite coalition, which is friendly to Iran. Four seats short of a majority, it is the biggest bloc in the new Parliament. (Mr. Maliki seemed to lose enthusiasm for election challenges after he forged this alliance.)

Iraq’s leaders should look beyond their sectarian and ethnic bases and show the skill and vision to govern all of their people. Iraqis unhelpfully voted mainly along sectarian and ethnic lines. But they also gave Mr. Allawi significant representation that needs to be reflected in the government. Sunnis need a reason to stay in the political process and not turn to violence as many did after the last parliamentary election in 2005.

http://www.nytimes.com/2010/05/18/opinion/18tue2.html

Iraqi Kurdistan's oil exports will not begin before the formation of a new government

Minister of natural resources in the Kurdistan Regional Government Ashti Hawrami that oil exports from the semi-autonomous Kurdish region in the north of the country will not begin until after the formation of a new Iraqi government.

Did not result in the parliamentary elections that took place on the seventh of March, for a clear winner. And caused a recount of the vote in Baghdad, talks to form a coalition of the delay in forming a new government.

The debate has been simmering for months between Kurdistan and the central government over oil deals signed by the Kurdistan independently with foreign companies. The Arab-led government that such agreements are illegal and refuse to pay dues to related companies such as De. That. Or Norwegian, Turkish Energy Genl.

And stopped oil exports from Kurdistan last year, but the deputy oil minister said last week that an agreement between Baghdad and the Kurdish region to resume oil exports have come into effect within days.

The agreement aims to resume exports, such as the formation of new government, but Minister of Natural Resources Kurdish Hawrami told Reuters late on Sunday that it was unlikely to implement it.

He said he believed that the exports will begin once the new government, and not before.

Showed a recount of the votes on Sunday that a multi-ethnic coalition led by Iyad Allawi, former prime minister has maintained his lead ahead of two seats in the March elections.

But winning does not stand on solid ground as it announced two big Shiite blocs in the country have already formed their alliance to the biggest bloc in parliament, which would prolong the formation of a governing coalition.

The minister said that if oil exports to begin before the formation of the government, it must be addressed technical issues such as how the Central Government may review the expenses and the transfer of funds to the regional government.

He said at least Baghdad and the Oil Ministry are demonstrating good intentions on the agreement, but no answer with respect to payments of Finance.

He said he immediately address that can start in the export of oil, as that the opening of the pipeline will not take more than two or three days and can start at about one hundred thousand barrels per day.

http://www.iraqdirectory.com/Display....aspx?id=12517

Shahristani: the rule of law to qualify the results of the elections Baghdad

Oil Minister Hussain al-Shahristani, a leader of the "coalition of the rule of law" led by Iraqi Prime Minister outgoing Nuri al-Maliki, a reservation of his coalition on the results of a recount of the vote in Baghdad.

Shahristani said in a statement to the German news agency: "We in fact we have 300 appeals to the Electoral Commission for elections in Iraq on the process of re-counting and election results, but the problem is that the Electoral Commission for elections is the adversary and the referee being carried out under the process of counting which is responsible for the defect so that it is considering in all of these things."

He added, "We have a reservation to the whole process of counting and the Office's performance, especially when it decided not to open voter registration for compliance with the number of votes in the Fund, was clear to us that there is a deliberate intention not to let us know the truth of what Iraqis voted by the list of state law."

Shahristani said, "but we care to Iraq and the further development of the political process, will overcome these errors and deliberate these positions of the Office." He added that the bloc was sticking by Maliki's nomination to head the new Iraqi government

http://www.uragency.net/index.php?aa=news&id22=7426

Senior Economist: Some private banks have negatively affected the Iraqi economy

An economic expert in the financial sector, some private banks adversely affected the economy of Iraq through the disabling of funds and weaknesses in performance.

The Professor of Finance at the University of Mustansiriya Hilal miller in contact with the agency, the independent press (Iba) "There are banks have already contributed to disrupt the money and have affected the Iraqi economy, and by comparison with the banking sectors in other Arab countries, we find considerable variation in performance."

Abizaid and "in the United Arab Emirates, for example, contributes to the banking sector in the gross product by 28%, while in Iraq, we find that the contribution to the banking sector in the Iraqi economy did not exceed 7%."

He noted that the "weak banks in the performance will expire over time and disappear from the frame and placed in competition with other outstanding performance good, especially after the intervention of the state in directing and defined."

The miller "that some of the constraints of the banking sector in Iraq, both public and private sectors stemming from the adoption of the Iraqi citizen on the monetary system and the vulnerability in the use of instruments," explained "that the banking sector will require a period of time to reveal its positive influence on the Iraqi economy in general."

http://www.ipairaq.com/index.php?nam...onomy&id=25377

Obama and Iraqi funds

President Obama's turn to issue a presidential decree protects Iraqi funds from prosecution, which was one of the headstones a problem starting the Iraqi Airways director of detention and the crisis of the fonts on the impact of a lawsuit from the State of Kuwait.

New Obama realized that the money belongs to Caesar any money Iraq to Iraqis, was demonstrated through his speech to the U.S. Congress, because Iraq's money in the absence of protection would hinder the march of the reconstruction of Iraq as a regular and advance sustainable development, motivate and develop the administrative and economic institutions in Iraq, which are still in need to be developed to manage these funds, let alone end the specter of debt and prosecutions of the Iraqi Development Fund, or deposit in the U.S. Fed.

The new United States gave a positive signal that it will support Iraq's position and vision of Iraq and accurate evidence of debt and end the issue of reparations for Iraq to be financially independent and The management of free economic activity.

But the question remains on the table in front of the next Iraqi government is how to respond to this, but a badge of mature, is not it incumbent upon the composition of the debt and the National Compensation to end these files are conflicting and have membership from all the ministries in charge of this file fateful for the future of Iraq's next. To Iraq a future year, or even the year But next time, as the saying goes gold, need for us to form a body of highly skilled in negotiating strategic for the protection of Iraqi funds and maintain the wealth of future generations.

http://www.alsabaah.com/paper.php?so...age&sid=102568