Signing of the Exchange of Notes for Japanese ODA Loan (5th Stage) to the Republic of Iraq

February 22, 2010
Japanese

  1. The Government of Japan has decided to extend to the Republic of Iraq a Japanese ODA loan to support economic and social reform efforts by Iraq of up to a total of 87.84 billion JPY for the Water Supply Sector Loan Project in Mid-Western Iraq, the Al-Akkaz Gas Power Plant Construction Project, and the Deralok Hydropower Plant Construction Project. Notes to this effect were exchanged on February 21 (Sun) (local time: same day) in Baghdad, the capital city of Iraq, between Mr. Shoji Ogawa, Japanese Ambassador to Iraq, and H.E. Mr. Baqer Jabor Al-Zubaidy, Minister of Finance of Iraq.

    Target projects and maximum loan amounts
    (1) The Water Supply Sector Loan Project in Mid-Western Iraq   41.274 billion JPY
    (2) The Al-Akkaz Gas Power Plant Construction Project              29.570 billion JPY
    (3) The Deralok Hydropower Plant Construction Project              16.996 billion JPY
                                                                             Total       87.840 billion JPY

  2. Outline of the projects
    (1) The Water Supply Sector Loan Project in Mid-Western Iraq
    This project will contribute to the economic and social reconstruction of Iraq as well as the reconstruction of the mid-western region of Iraq through rehabilitation and expansion of water purification plants and water intake facilities as well as the provision of facilities including water distribution facilities in Ninawa, Al-Anbar, and Salah Ad-Din - three provinces in Mid-Western Iraq.
    (2) The Al-Akkaz Gas Power Plant Construction Project
    This project will increase the amount of supplied power in Iraq and contribute to the economic and social reconstruction of the country through provision of a 120 MW gas-fired power plant and power lines in Al-Anbar – a province in Mid-Western Iraq.
    (3) The Deralok Hydropower Plant Construction Project
    This project will contribute to the economic and social reconstruction of Iraq as well as the reconstruction of the Kurdistan Region through provision of facilities including an approximately 30 MW hydraulic power plant (run-of-river power generation equipment) in Dahuk Province, the Kurdistan Region.

  3. Terms and conditions of the Loan
    (1) Interest rate: 0.65% per annum
    (0.01% for the consulting service portion)
    (2) Repayment period: 40 years (including a 10-year grace period)
    (3) Procurement method: General untied

(Reference) At the Madrid Conference held in October 2003, Japan announced a maximum of 3.5 billion USD in ODA loan aid to meet the mid-term needs of the reconstruction of Iraq. Through these projects, approximately 3.28 billion USD of that ODA loan has been decided.

(END)


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