Iraq's oil for projects agreement with China would come under the purview of the soon-to-established Reconstruction Council, a top Iraqi government official said.

The two countries had signed a 20-year agreement in September 2019 to create a joint fund to finance projects being implemented by Chinese companies in the country.

Mudher Mohammed Saleh, financial advisor to the Iraqi government, told Zawya Projects that the draft law to create a reconstruction council had been sent to Parliament last year and is on the ministerial agenda of the new government.

The draft law endows the Council with wide powers to quickly launch major projects across the country, according to Iraqi government statements.

Saleh said the council would have an independent budget and promote strategic infrastructure projects as well as public-private partnership (PPP) projects and foreign direct or private investment under the investment law.

He added that future projects under the Iraq-China deal and any such agreements in going forward would be managed by the Council.

He said the joint fund, made up of revenues from the sale of 100,000 barrels/day of crude oil to China, covers sectors dams, ports and railway projects and income-generating projects such as oil refineries but cannot meet Iraq's huge investment needs.

Saleh said an improvement in oil prices would benefit the fund and encourage more Chinese companies to bid for projects in Iraq.

(Reporting by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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