Iraqi Council of Ministers holds regular session, make crucial decisions

Shafaq News / On Tuesday, the Iraqi Cabinet, in a session marked by deliberations on the country's overall situation and various service, economic, and social matters, made several significant decisions, among which was the notable reduction of costs for service projects.

These resolutions were enacted during the eighth regular session of the Cabinet, where agenda items were addressed, and necessary decisions were made.

The Cabinet remained committed to issuing resolutions aimed at both completing long-delayed projects and tackling the obstacles hindering their implementation.

The following decisions were issued:

Firstly:

1. Approval of increasing the reserve amount for the project (Construction of a 100-bed hospital in Safwan district) by 6.811% to become 16.81% instead of 9.999%.

2. Increase of the total cost of the project to 52,953,041,924 IQD, instead of 49,942,711,000 IQD, by 6.027% of the total project cost.

3. Exclusion of the special order for the aircraft runway designated for critical medical cases from the increase in project costs due to its non-inclusion in the committee's recommendations.

4. Basra Governorate bears the responsibility for the accuracy and validity of the data provided to the Ministry of Planning and the compatibility of prices.

5. Basra Governorate is to exercise precision in preparing quantity tables for upcoming projects.

Secondly:

1. Approval of increasing the reserve amount by 8.5348% to become 14.819% instead of 6.2847%. This includes the execution of the component (implementation of the conveyor line, Administration and Economy Street, Sinalko Street, Olympic Street, and Najibiya), which is part of the main project (implementation of the conveyor line, Administration and Economy Street, Sinalko Street, Olympic Street, and Najibiya).

2. Increase of the total cost of the main project by 7,038,716,553 IQD, to become 99,863,095,093 IQD, instead of 92,824,378,540 IQD. This represents a percentage of 8.9559% on the adjusted cost, by 27.0647% on the approved cost of the main project.

3. Affirmation of the Basra Governorate's responsibility for implementing substitution orders by 6.2847%, while the available reserve after referral is 5.202%, which is beyond the authority of the governorate. The Ministry of Planning was not informed of the cost adjustment at the time.

4. Emphasis on Basra Governorate's precision in preparing quantity tables for projects and considering future expansions.

Thirdly:

1. Approval of increasing the reserve amount for the project (Construction of the Presidency Building of Tal Afar University) by 55.480% to become 65.5% after approximation, instead of 10%.

2. Increase of the total cost of the main project detailed in the aforementioned paragraph (1), by 1,441,768,496 IQD, to make the total cost 4,441,768,496 IQD, instead of 3 billion IQD, representing an increase of 48.058%.

3. Affirmation of the violation against Nineveh Governorate, which includes issuing substitution orders without a designated financial ceiling according to the referral contract, exceeding the amount previously indicated by the Ministry of Planning.

Fourthly:

1. Approval of increasing the reserve percentage for the contractor (Rehabilitation and Development of Kirkuk Olympic Stadium / Turnkey) included in the project (Rehabilitation and Development of Kirkuk Olympic Stadium / Turnkey), by a rate of 24.62% after approximation, to implement two substitution orders: the first one 5,114,965,550 IQD and the other 954,644,000 IQD, making it 49.62% instead of 25%.

2. Increase of the total cost of the project (Rehabilitation and Development of Kirkuk Olympic Stadium / Turnkey) to 38,856,846,460 IQD, instead of 33,500,000,000 IQD, representing an increase percentage of 15.99% on the adjusted total cost and 159.04% on the approved total cost.

3. Noting a violation on the Ministry of Youth and Sports for entering contractual obligations on the project exceeding the total cost without obtaining the necessary approvals.

Fifthly:

1. Increase of the total cost for the project (Water Kut - Wasit) by 33,045,423,530 IQD, making it 157,016,423,530 IQD instead of 123,971,000,000 IQD. This represents an increase of 26.66% after approximation on the adjusted total cost and 96.27% on the approved total cost.

2. Noting a violation by the Ministry of Construction, Housing, Municipalities, and Public Works for referring supplementary works for the project exceeding the total cost without consulting the Ministry of Planning to obtain the necessary approvals. One of the substitution orders was executed within the contracting entity's authority at the time, considering a reserve percentage of 10% according to the instructions and authorities for implementing project expenditures for the year 2012, as per the referral year. Despite the violation and lack of rectification, the executed substitution orders amounted to 7.62% of the referral cost.

Sixthly:

1. Increase of the total cost for the project to establish a water project with a capacity of 1200 cubic meters per hour, along with a conveyor line to supply areas towards Shamia in the city of Nasiriyah, by 5,998,249,000 IQD, representing an increasing percentage of 85.7%. This increase is due to the addition of a component for equipping and extending conveyor lines to deliver water to the tourist city of Ur and Nasiriyah International Airport as part of its components.

2. Amendment of the project's name referred to in paragraph (1) above to become (Establishment of a water project with a capacity of 1200 cubic meters per hour, with two conveyor lines to supply areas towards Shamia in the city of Nasiriyah and the tourist city of Ur, and Nasiriyah International Airport), to align with its implemented works.

Continuing the governmental approach towards economic and administrative reform, the recommendation of the Ministerial Economic Council No. 241089 Q regarding the standardization of procedures for importing vehicles through all border crossings was approved. Careful consideration was given to the observations of the Ministerial Economic Council on some paragraphs of the Diwan Order Committee 23558 for the year 2023, and the legal memorandum of the Cabinet General Secretariat Legal Department. The decision will be reviewed within six months of its implementation.

In the same context, the Cabinet approved the recommendations of the final report of the Diwani Order Committee 23559 for the year 2023 regarding customs exemption, taking into consideration the recommendations of the Ministerial Economic Council No. 24004 Q dated January 14, 2024, and the remarks of the Legal Department in the General Secretariat of the Council of Ministers. The entities mentioned in the recommendation are required to establish mechanisms within 30 working days and present them to the Ministerial Economic Council for approval and enforcement.

Furthermore, aiming to proceed with electronic payment procedures, the Cabinet agreed to issue the Electronic Money Payment Services System for the year 2024, per the provisions of the Constitution.

This decision also took into account the remarks of the Legal Department in the General Secretariat of the Council of Ministers.

Additionally, there will be a review of the wording of some texts by a committee composed of the Legal Department in the General Secretariat of the Council of Ministers, the Central Bank (CBI), Information Technology, and other relevant entities, including the Advisory Board.

Moreover, the Cabinet approved the exemption of devices, equipment, and laboratory supplies related to the import of gold and precious metals from the contracting methods stipulated in the Government Contracts Execution Instructions 2 for the year 2014. This exemption allows the Ministry of Planning to directly invite reputable entities for procurement, for 1,526,585,000 IQD per airport, to establish units for examining and tagging jewelry and alloys at airports.

This was detailed in the Ministry of Planning's letter dated February 18, 2024, and implemented in two phases: the first for Baghdad, Najaf, Basra, and Kirkuk airports, and the second for Al-Sulaymaniya, Erbil, Mosul, and Thi Qar airports.

Additionally, the Cabinet considered other agenda items during the session and issued the following decisions:

1. Amendment of Cabinet Resolution 23224 for the year 2023 by adding the required financial allocations to the budget of the Iraqi Atomic Energy Commission for the fiscal years 2024 – 2025 under the provisions of the Federal General Budget Law 13 for the year 2023.

2. Approval of the Arbitration Law draft, as scrutinized by the State Council, and its referral to the Council of Representatives, following the provisions of the Constitution, taking into account the remarks of the Legal Department in the General Secretariat of the Council of Ministers.

3. Approval of exempting employees of the Federal Financial Control Bureau from the provisions of the State Funds Sale and Lease Law 21 for the year 2013 as amended, due to the purchase of the land by the employees of the aforementioned bureau, while considering the remarks of the Legal Department in the General Secretariat of the Council of Ministers.