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Provision of Yen Loan to Iraq

August 1, 2007
Japanese

  1. The Government of Japan has announced its intention to provide ODA loans up to the total amount of 57,716 million yen to the Republic of Iraq for implementing “Basrah Water Supply Improvement Project” and “Electricity Sector Reconstruction Project in Kurdistan Region.” Notes to this effect were exchanged on July 31 (Tue.) (August 1 (Wed.), (same Japan Time) in Baghdad between Mr. Kenjiro Monji, Japanese Ambassador to the Republic of Iraq, and Mr. Baker Jabr Al-Zubaidy, Minister of Finance of the Republic of Iraq.
     
  2. Projects and the maximum amount of the loans

    3. (1) Basrah Water Supply Improvement Project                                 42,969 (million yen)

    (2) Electricity Sector Reconstruction Project in Kurdistan Region        14,747 (million yen)

  1. Terms and conditions of the loans:

    2. (1) Interest rate: 0.75%

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

    (3) Procurement method: general untied
     

  2. Outline of the Projects

    3. (1) Basrah Water Supply Improvement Project

    Water supply system both in Basrah and Hartha City, Basrah Governorate, in Southern Iraq, was in good condition until almost 20 years ago.  However, the water supply system has now many challenges both in terms of quality and quantity of water supply, such as lack of enough water supply, high rate of water leakage and unsatisfied level of water quality.  These are caused by insufficient new investment and maintenance for the water supply system, resulting from conflicts including Iran-Iraq War and the Gulf War, and economic sanctions.
    Therefore, it is necessary to improve the water supply situation in the both cities by improving water supply facilities.

     (2) Electricity Sector Reconstruction Project in Kurdistan Region

    The electricity sector is the basis of every economic and social activity in Iraq.  However, the function of power substation and distribution in Kurdistan Region (Northern Governorates comprising of Dohuk Governorate, Erbil Governorate and Sulaimaniya Governorate) as well as all over Iraq, has been greatly deteriorated by insufficient new investment and maintenance of the power sector, resulting from conflicts including Iran-Iraq War and the Gulf War, and economic sanctions.

    Therefore, by supplying the machinery and equipment and by developing necessary facilities for the substation and distribution systems, this project aims to stabilize the power supply in Kurdistan Region.

(END)

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