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Japan announces 57.72 billion yen loan to
Iraq and Kurdistan
2.8.2007
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August 2, 2007
TOKYO, -- Japan announced Wednesday it had
granted Iraq a 57.72 billion yen (US$489.12 million;
€356.84 million) loan to improve the embattled
country's water supply and electricity systems.
Of the total, 42.97 billion yen (US$364.14 million;
€265.66 million) will be used to improve the water
supply systems in both Basra and Hartha city in
southern Iraq, the Foreign Ministry said in a
statement.
The remainder of the loans will be spent on
stabilizing the power supply in Kurdistan region,
with new machinery and equipment for the substation
and distribution systems, the ministry said.
The projects are part of US$3.5 billion (€2.55
billion) in loans that Japan pledged to Iraq during
a donor's meeting in 2003. With the latest projects,
about 60 percent of the total amount has been
allocated to mostly infrastructure- improvement
projects, it said.
Japan backed the U.S. invasion of Iraq and provided
ground troops for a non-combat, humanitarian mission
from 2004-2006 in the southern Iraqi city of Samawah.
Japan withdrew its ground troops in July 2006.
Last month, Japan's government approved extending
the country's air force transport mission in Iraq
through next July.
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.),
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
(1) Basrah Water Supply Improvement Project: 42,969
(million yen)
(2) Electricity Sector Reconstruction Project in
Kurdistan Region: 14,747 (million yen)
3. Terms and conditions of the loans:
(1) Interest rate: 0.75%
(2) Repayment period: 40 years (including a 10-year
grace period)
(3) Procurement method: general untied
4. Outline of the Projects
(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 Duhok Governorate, Erbil Governorate and
Sulaimaniyah 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.
AP | reliefweb int
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