The World Bank and Iraq have signed a loan agreement worth 200 million U.S dollars. The amount is dedicated to developing the electricity sector in the southern provinces of Iraq. The Deputy Prime Minister for Economic Affairs and Minister of Finance Fuad Hussein signed an MOU (memorandum of understanding) with the representative of the World Bank. Fuad Hussein is in charge of the government’s program to empower the relationship between Iraq and international society, and to get benefit from the expertise of international organizations.
The International Conference on Iraq held on Sunday. There was a project agreement designed at developing and empowering electrical systems in the southern provinces of the country. This project will participate in the increase in electricity supply and regularity. It will also manage the reconstruction and rehabilitation of the network of transmission lines, distribution, and installation of new transmission lines, substations, and information systems to increase the capacity of the network to deliver electricity to Iraqi people. The statement also pointed out that this project will serve 5.2 million citizens in the provinces of Basra, Muthanna, Dhi Qar, and Maysan.
It is noteworthy that Iraq depends on Iranian gas to feed several power plants. The country imports about 1.5 billion standard cubic feet of gas per day via a pipeline in the south and east. The United States is looking to curb Iranian influence in the Middle East, including Iraq, but Tehran is enjoying good relations with Iraq at all levels. Moreover, Iraq has one of the largest reserves of natural gas in the world. The country is slowly moving towards extraction and depends on the supply of gas and electricity from Iran. Point to be noted that Iraq is struggling to remain better relationships with the U.S and Iraq, but the U.S sanctions on Iran are the major hurdles to manage various issues with its neighbor country.