Iraq’s Cabinet and Ministries Work on Energy, Infrastructure and Technology Development

The Iraqi Cabinet gives the green light for a waste-to-energy facility in Baghdad to be developed by China’s Shanghal SUS Environment Co. Ltd., utilizing incineration technology. The National Investment Commission will oversee the licensing process. Founded in 2008, SUS Environment specializes in providing sustainable energy solutions.

The Iraqi Cabinet has authorized the Finance Minister to sign a loan agreement with the US EXIM Bank to finance combined-cycle projects for the Kirkuk Gas Power Plant. This initiative aligns with the Federal Budget Law and the principles of energy cooperation.

The Iraqi Cabinet has approved the development of the Basra-Haditha oil pipeline, designed to transport 2.25 million barrels per day. The $4.5 billion project will be executed under the Iraq-China Framework Agreement. A 56-inch, 685-kilometer pipeline, valued at 1.6205 trillion dinars, will be procured and integrated into the Oil Projects Company’s budget. The project is exempt from the 2014 Government Contracts Guidelines, paving the way for expedited implementation.

The Iraqi Cabinet has approved a $180 million contract between the Midland Refineries Company (MRC) and Rawad Al-Qimmah to manage operations at the Karbala Refinery. The contract includes safety measures, laboratory services, and training programs, offered at a lower cost compared to the previous contractor.

A management team under MRC, exempt from the 2014 Government Contracts Guidelines, will oversee operations with a dedicated $15 million budget. The Karbala Refinery, built by Hyundai with a capacity of 140,000 barrels per day, commenced operations in April 2023.

The Iraqi Ministry of Communications has signed an agreement with Vodafone to establish a fully Iraqi-owned 5G network. Under the agreement, Vodafone will assist with network design, strategy, and management, focusing on enhancing service quality, reducing costs, increasing state revenues, and creating job opportunities. The initiative also includes training programs leveraging Vodafone’s global expertise.

The Iraqi Ministry of Electricity has signed a World Bank-funded contract to construct three power substations in Basra, adding a capacity of 3×90 MVA at 132 kV to enhance grid reliability.

The project will be executed by Turkish companies BEST and BETAS, with German consultancy Antec Koba providing oversight. Scheduled for completion within 18 months, the substations will serve Al-Qibla, Al-Ghadeer, and Al-Fayhaa, significantly improving power supply and grid stability in the region.

Iraq’s Oil Minister, Hayan Abdul Ghani, has emphasized the country’s dedication to achieving gas self-sufficiency through capture, field development, and exploration. Speaking at the handover of the Subba Oilfield, he unveiled plans to boost production from 70,000 barrels per day (bpd) to 100,000 bpd, with a focus on utilizing gas for power generation, emission reduction, and petrochemical production.

The project, spearheaded by the Oil Projects Company in collaboration with Dhi Qar Oil Company, features advanced systems and phased upgrades, starting with an increase of 8,000 to 10,000 bpd.

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