Iraq seeks $100bn to reconstruct transport, agriculture and oil sectors

Local residents remove bodies from the rubble in the Old City of Mosul. Cities across Iraq have been destroyed by years of war with as much as $100 billion needed for the reconstruction effort. (Reuters)
Updated 09 February 2018
0

Iraq seeks $100bn to reconstruct transport, agriculture and oil sectors

BAGHDAD: Iraq is seeksing around $100 billion in foreign investment in transport, energy and agriculture as part of a plan to rebuild parts of the country and revive the economy after a three-year war on Daesh.
The government’s National Investment Commission published a list of 157 projects it will seek investment for at an International Conference for Reconstruction of Iraq to be hosted by Kuwait Feb. 12 to 14.
Some of these projects are about rebuilding destroyed facilities like Mosul’s airport, while others are new investments to strengthen and diversify the economy away from oil, said an economic adviser to Prime Minister Haider Al-Abadi.
“All together, they cost about $100 billion,” the adviser, Mudhar Saleh, told Reuters. Sixteen projects carry a price tag of $500 million or more, according to the list.
Rebuilding homes, hospitals, schools, roads, businesses and telecommunications is key to providing jobs to the young, to end the displacement of hundreds of thousands of people and put an end to several decades of political and sectarian violence.
Iraq declared victory over Daesh in December, having taken back all the territory captured by the militants in 2014 and 2015. A US-led coalition supported the Iraqi forces, especially in the battle to dislodge them from Mosul, their de facto capital in northern Iraq, in July.
The US government will not contribute funds at the conference but will instead encourage investment from the private sector and Gulf Arab allies, US and Western officials said.
A US official in Baghdad said 100 US companies were participating in the conference.
Three rail projects top the list: A 500-kilometer (311 mile) line from Baghdad to Basra in the south estimated to cost $13.7 billion, a line from Baghdad to Mosul in the north estimated at $8.65 billion and an $8 billion metro for the capital.
Iraq reopened to foreign investment in 2003 after the US-led invasion that toppled Saddam Hussein, but the vast majority of the billions invested went to increasing its oil and gas production.
It has become the second-largest crude exporter of OPEC, after Saudi Arabia, with a daily output of 4.4 million barrels.
At the conference, Iraq will seek investment in the downstream oil industry including in storage tanks, refineries and petrochemical plants to process its crude into plastics and fertilizers.
Saleh said investments in the oil industry and agriculture will probably be easier to attract than other sectors given the country’s vast crude reserves, available land and water wealth.
Total land offered for investments to grow “strategic crops” is nearly 1,500 square kilometers (580 square miles). Iraq, one of the world’s largest wheat importers, aims to achieve self-sufficiency and possibly become a net exporter of the grain.
“We feel there will be support for Iraq, from the Americans, the Europeans, the Arab countries, the United Nations, and humanitarian organizations,” said Saleh.


Saudi banks see no significant impact from lira depreciation

Updated 19 min 51 sec ago
0

Saudi banks see no significant impact from lira depreciation

  • National Commercial Bank, Saudi Arabia’s largest bank by assets, earlier on Thursday said there was limited impact from the decline of the lira on the bank

DUBAI: There has been no significant impact from the depreciation of the Turkish lira on the results and quality of Saudi Arabian bank assets, Talaat Hafez, spokesman for Saudi banks, was quoted as saying in a tweet carried by the kingdom’s state TV Alekhbariya on Thursday.
Earlier on Thursday National Commercial Bank, Saudi Arabia’s largest bank by assets, said there was limited impact from the decline of the lira on the bank.
The currency has lost nearly 40 percent against the dollar this year, driven by worries over Turkish President Tayyip Erdogan’s growing influence on the economy and his repeated calls for lower interest rates despite high inflation.