Provision of Japanese ODA Loan to Iraq

April 22, 2008

  1. The Government of Japan has announced its intention to provide Japanese ODA loans up to the total amount of 36,407 million yen to the Republic of Iraq for implementing “Water Supply Improvement Projects in Kurdistan Region” and “Baghdad Sewerage Facilities Improvement Project (Engineering Services)”. This announcement was made by Senior Vice-Minister for Foreign Affairs Mr. Itsunori Onodera to Minister of Foreign Affairs of the Republic of Iraq, Mr. Hoshyar Mahmoud Zebari on April 22nd. After the prior notification to the Iraqi side, the Exchange of Notes will be signed regarding the provision of these loans.
     
  2. Projects and the maximum amount of the loans
  3. (1) Water Supply Improvement Projects in Kurdistan Region   34,266 (million yen)

    (2) Baghdad Sewerage Facilities Improvement Project (Engineering Services)    2,141 (million yen)

  1. Terms and conditions of the loans:
  2. 2. (1)

    (a) Interest rate: 0.65% (0.01% regarding payments to consultants)

    (b) Repayment period: 40 years (including a 10-year grace period)

    (c) Procurement method: general untied

    2. (2)

    (a) Interest rate: 0.01%

    (b) Repayment period: 40 years (including a 10-year grace period)

    (c) Procurement method: general untied

  1. Outline of the Projects
  2. (1) Water Supply Improvement Projects in Kurdistan Region

    This project is intended to expand water intake facility, to construct and expand the existing and new water purification plants, and to develop water supply and distribution system in Kurdistan Region.

    (2) Baghdad Sewerage Facilities Improvement Project (Engineering Services)

    This project is intended to provide engineering services for expansion and rehabilitation of the existing superannuated pumping stations.

  1. Significance of the Projects
  2. Water supply system in Iraq was once in a good condition. However, appropriate processing has not been done in many parts in Iraq.

    The government of Iraq regards improving water and sewage facilities as one of the important agenda in its country’s reconstruction program, which will lead to improve public welfare.

    Therefore, providing Japanese ODA loans for projects above is expected to improve securing safe water and to improve sanitary situations in urban areas.

(END)


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