Provision of Yen Loan to Iraq (Prior Notification)

June 19, 2006

1. The Government of Japan has announced its intention to provide a yen loan up to the amount of 3,348 million yen to Iraq for implementing "Samawah Bridges and Roads Construction Project". After prior notification to the Iraqi side, the Exchange of Notes will be signed regarding the provision of this loan.

   Having already announced its intention to provide yen loans for implementing "Port Sector Rehabilitation Project", "Irrigation Sector Loan" and "Al-Mussaib Thermal Power Plant Rehabilitation Project" to the Government of Iraq on March 28, 2006, the Government of Japan will continue to support the initiative of the Iraqi people to build the nation through extension of yen loans and other measures, even after the inauguration of the new government in Iraq.

2. Terms and conditions of the loan:
   1. (1) Interest rate: 0.75%
   2. (2) Repayment period: 40 years (including a 10-year grace period)
   3. (3) Procurement method: general untied
3. Outline of the Project

   Development of transportation network is an urgent challenge in reconstructing the economy and the society of Iraq. However, National Road No.1, which connects north and south, has an undeveloped section, causing heavy traffic congestion in its detour route, National Road No.8, at downtown Samawah where it crosses the Euphrates.

   Therefore, by constructing a new bridge (Samawah North Bridge), rebuilding provisional bridges (Mahdi Bridge and Hillal Bridge) to cross over the Euphrates and constructing their connecting roads in Al-Samawah and its vicinity, this project aims to alleviate traffic congestion and envisage efficient north-south transportation.

Related Information (The Issue of Iraq)