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Berlin 29th September 2015 Iraqi -German Joint commission.

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Presentation on theme: "Berlin 29th September 2015 Iraqi -German Joint commission."— Presentation transcript:

1 Berlin 29th September 2015 Iraqi -German Joint commission

2 Population: 35000000 ap. Area: 435052 sq. km Oil production: 3.75 mbd Average importing value: 40$Billion /year Energy sector consumes:40%Of Budget 1 € = 1326 ID FACTS

3 Potential development in all sectors Huge demands and needs Long term investments Natural resources Prime location Human resources Political issues Doing Business, Why Iraq?

4 Strong economy Advanced technology Excellent quality Heavy industry / production lines Iraqi Public endorsement To strengthen Eco-political ties Business partner, Why Germany?

5 Low taxes No custom Free money movement Cheap fuel Less competition Local partner availability High profitability Being in Iraq Advantages

6 Security 70% of Iraq is safe Corruption Serious steps are taken Banking system improvement needed Being in Iraq Disadvantages

7 Public bidding contracts (regulation 2/2014) Direct investment (law 13/2006) Private partnership (law 21/1997) Joint venture (laws 21or 22 / 1997) Public Private partnership PPP (law 22/1997) Defer payment (budget law 26 and cabinet approval) How to make it work

8 P. P. P. 100s of state owned companies & 1000s of state owned factories High Tech. Machine Factory H. Res L. Mart Land & loc Con. &Gov. support Evaluation SuperBusiness Opportunity Opportunity P.P.PP.P.PP.P.PP.P.P SOE Privet Sector

9 Government’s support Assets ( land, machineries ) Local knowledge Local market Human resources Clean companies ( no loans, no legal dispute, no masked unemployment ) P.P.P. We offer

10 P.P.P. We need Upgrade, expand, and rehabilitate production. Introduce new products. Develop sales and marketing skills. Build capabilities to assess market needs pricing strategy, etc. Upgrade technical and R&D capabilities. Resize labor force and introduce systematic training. Improve quality control systems. Introduce modern accounting processes and systems.

11 Defer payment Sovereign Guarantee available ($5b) Interest rate not to exceed 6% Grace period more than 2 years Repayment instalments more than 4 years Energy, infrastructure, industrial & Health Ready to negotiate

12 Improving Iraqi Economy Central bank of Iraq injected 6 Trillion ID equivalent to €4.5 billion into the market as soft loans (4% Int.) to the Private sector as follow: -€1.5 billion to improve manufacturing sector through industrial bank -€1.5 billion to improve agricultural sector through agricultural bank -€750 million to improve housing sector through housing fund and mortgage bank -€750 million to privet loans through Private banks

13 Improving Iraqi Economy 5 years loans No cash, LCs only to avoid misuse of the loans Reduced unemployment Equal opportunities Quality control

14 Projects on Defer payments basis projectLocationMinistry Rehabilitation of sprinkles irrigation system Pro. L. BabylonI&M Tractor pro L.40% manufacturing BabylonI&M M V A transformers pro L. DyalaI&M Middle tension cables Pro L. NasiryaI&M Medical gazes Pro L. 2000 L/h BaghdadI&M

15 projectLocationMinistry Fertilizer plant Phase 3 BasraI&M Radial tyres for trucks Pro L. NajafI&M Solid waste treatment project producing elect and brick 4000 t/d BaghdadI&M Solid waste treatment project producing ethanol 1000 t/d Kerbala Dewanya I&M 8 irrigation Projects 6 Dams rehabilitation South & EastW R

16 projectLocationMinistry Modern tech to estimate water reserve in dams and lakes GeneralW R Installing measuring device for water flow and quality GeneralW R Limiting salty area in Shat Alarab Basra water project BasraW R 11 Concrete sailo of 100000 tons and 60000 tons Kerbala Dewanyageneral Trade 2 metal sailo of 60000 tons Basra Salahdin Trade

17 projectLocationMinistry 30 power station 132 KV GeneralElectricity 5700 km of high tension line 400 KV GeneralElectricity 2300 km of high tension line 132 KV GeneralElectricity 10000 housing units 10 provenanceC& H, M Water and sewerage 8 provenanceC& H, M (16 projects from oil ministry to be distributed)

18 Thank you See you in Iraq


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