Iraq will use a USD 4.5 billion soft loan from the Japanese government mainly for the development of the power sector and port infrastructure this year, a ministry of planning spokesperson told Zawya.
Abdul Zahra Al-Hindawi said that projects under the 15-year loan would be carried out in coordination between the Ministry of Planning, other government entities and the Japanese International Cooperation Agency (JICA).
"The most important of these projects is rehabilitation and development of some Iraqi ports and the construction of power plants in 2014," Hindawi said.
He said that the first of 15 projects to be implemented under the agreement would be the building of the Al-Hartha power station and to rebuild and deepen berths in Khor Al Zubair port, both in Basra.
Ministry of Electricity spokesperson Masaab Al-Mudarris said that projects in the power sector included upgrading transmission and distribution stations.
He said two power plants would be build in Akaz, in Al-Anbar governorate; a 120 MW plant and a 250 MW plant. In addition, a gas-powered plant with capacity of 1,500 MW would be built in Dhi Qar province over a 48-month period.
CONFIDENCE STRONG
Haider Al-Abadi, chairman of Iraq's Parliamentary Finance Committee, said the loan reflects Japan's confidence in the Iraqi economy.
"This offer is excellent," he said. "As a long-term loan, it gives Iraq enough time to pay it back and commits Japan to complete the projects while transferring knowledge and building skills in Iraq."
Abdul Redha Faraj, professor of business administration at the College of Management and Economics of the University of Basra, said the projects would assist in job creation and development of the transport sector, especially after work was halted in Al-Faw Port due to financial issues.
JICA is one of the largest agencies supporting rehabilitation and development projects in Iraq since 2003. It has provided 20 soft loans to support infrastructure projects all over Iraq, focusing in sectors such as electricity, water and wastewater management, oil, irrigation, transportation, industrial, health and communication, according to the Iraqi government's official website.
© Zawya 2014
