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Provision of Japanese ODA Loan to Iraq

June 29, 2008

  1. The Government of Japan has decided to provide a Japanese ODA loan 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)". Notes to this effect were exchanged on June 29 (Sun.) 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) Water Supply Improvement Project 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) Water Supply Improvement Project in Kurdistan Region

    (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) Baghdad Sewerage Facilities Improvement Project (Engineering Services)

    (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 facilities, 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 water processing has not been done in many areas 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 the projects above is expected to improve securing safe water and to improve sanitary situations in urban areas.

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