Iraqi cabinet session: Key decisions on economic, security, and infrastructure

Shafaq News / Prime Minister Mohammed Shia Al-Sudani chaired the 22nd regular session of the Council of Ministers on Tuesday.

The session included discussions on the general situation in the country and the progress of the government's program implementation across various fields. Topics listed on the agenda were also deliberated, and necessary decisions were made.

According to the Prime Minister’s media office, at the outset of the session, the Prime Minister highlighted the ongoing transportation of pilgrims to the Holy Land of Mecca, ensuring that state agencies provide the needed services to our citizens. He noted that the cost of this year's pilgrimage was subsidized with 39 billion dinars from the Hajj Commission's budget. All necessary requirements for the pilgrims were provided, including securing the best hotels near the places of worship, introducing automation and modern systems, and the electronic passport to ensure smooth processes without delays. Additionally, a donor has established a city for pilgrims along the land route to ensure their comfort and care. The Prime Minister appreciated the efforts of the Hajj and Umrah Commission for their dedication to ensuring the comfort and safety of the pilgrims and their successful performance of the rituals.

In the context of economic development and supporting industrial investment projects, the Council of Ministers approved the recommendation of the Ministerial Council for Economy (No. 24139) to adjust the price of kerosene to be at (global oil price index - 50%) for the operation of investment petrochemical projects, following the Ministerial Council for Economy's decision (No. 230126). The price of kerosene for the asphalt products plant in Nineveh, affiliated with the State Company for Mining Industries, will be set at (400 dinars per liter), equal to the price for Al-Safwa and AlBaydha factories.

Additionally, the Council approved the recommendation of the Ministerial Council for Economy (No. 24145) to adjust the price of black oil supplied to the Lime Cement Plant in Karbala Province, affiliated with the Iraqi State Cement Company under the Ministry of Industry and Minerals, to 100,000 dinars per ton, down from 150,000 dinars.

The Council also approved the recommendations of the Ministry of Industry and Minerals (Industrial Development and Regulation Directorate), based on the provisions of the amended Iraqi Product Protection Law (No. 11 of 2010), as follows:

1. Imposing an additional customs duty of 50% on the unit price of imported paper bags for cement packaging from all countries for four years without reduction, and monitoring the local market during the implementation of the additional customs duty.

2. The Ministry of Finance/General Commission for Customs shall implement the additional customs duty on the mentioned product and periodically notify the Industrial Development and Regulation Directorate of the quantity of imports, the value of the additional customs duties collected, the value of the imports, the exporting countries, and the importing entities.

3. The Ministry of Industry and Minerals shall consider the increase in imports compared to the previous three years, assess the capacity of the company to meet market demand without inflating prices, and determine the importance of the required protection for the national economy. Regulatory bodies shall audit the impact of imposing additional customs protection on the imported product, and this decision shall be implemented 120 days after its issuance.

Regarding the implementation of the Development Road Project, the Council of Ministers approved increasing the contingency fund for the contract "Construction of Infrastructure – Phase One – Marine Dredging and Reclamation Works – Grand Faw Port" and increasing the cost of the "Consultancy Services Agreement for Supervision of Infrastructure Construction Phase One – Marine Dredging and Reclamation Works – Grand Faw Port" component and the total project cost, as per the media office.

Due to urgent humanitarian needs, the Council of Ministers authorized the Ministry of Foreign Affairs to send medical aid to the Republic of Sudan.

In the energy and oil sector, the Council followed up on ongoing projects and took necessary decisions, approving an increase in the capital of the Dhi Qar Oil Company to 1.969.361.610.210 dinars, based on the amended Public Companies Law No. 22 of 1997, with the Ministry of Oil to take the necessary steps for implementation.

The Council also approved the recommendation of the Ministerial Council for Energy (No. 24041 of 2024) to amend the Council of Ministers' decision (No. 23303 of 2023) to include the solar energy project between the Ministry of Electricity and French company TotalEnergies under the "Take Or Pay" model, to purchase all available energy from the station as per the agreed contract terms, as per the statement.

Furthermore, in the electricity sector, the Council approved the following:

1. The Ministry of Electricity will bear the taxes and fees for the electricity connection project between the Republic of Iraq and the Gulf Cooperation Council Interconnection Authority, to be included in the contract between the parties.

2. The possibility of waiving and writing off the amount due from the Ministry of Electricity for the payment of the mentioned taxes and fees will be considered later, according to the amended Federal Financial Management Law (No. 6 of 2019).

The Council also approved the Real Estate Bank, affiliated with the Ministry of Finance, to contract with foreign companies supplying the banking system, as long as the bank is local, and the entity is foreign and not prohibited from dealing in US dollars, exempting it from the Council of Ministers' decision (No. 23545 of 2023).

The Council approved the recommendations in the letter from the Ministry of Construction and Housing regarding the removal of conflicts and violations on the project linking the Mohammed Al-Qasim Expressway with the Kirkuk-Baghdad Road, passing through the Al-Basateen and Al-Sareedat neighborhoods. The legal committee in the General Secretariat of the Council of Ministers must complete its procedures within 14 days.

The Council also approved the summer agricultural plan for the 2023-2024 season as stated in the Ministry of Agriculture's letter dated May 28, 2024, which includes providing water for crops according to the instructions. The Ministry of Water Resources will continue its procedures to address violations on river waters and secure the feeders of the marshes to mitigate the effects of water scarcity on the marsh residents.

In the field of development and transportation projects, the Council of Ministers approved increasing the total cost for the project "Rehabilitation of the Karbala Building at Baghdad International Airport" and amending the project to "Rehabilitation of Baghdad International Airport." The executing agency will now be the Ministry of Transportation/State Company for Airports and Air Navigation Management, instead of the Civil Aviation Authority, implementing the Council of Ministers' decision No. 23689 of 2023. The project will include additional components, such as runway planning, replacing aircraft stop systems, replacing PAPI lights, rehabilitating the rainwater and drinking water stations, the southern station, and supplying an air chiller.

The Council approved the costs related to the Basra-Shalamcheh Railway Project as stated in the Ministry of Transportation's letter dated May 26, 2024, and referred the project to a Spanish company.

The Council continued to follow up on stalled projects, addressing administrative, technical, and legal obstacles to safeguard public funds and provide the intended comprehensive service. The Council approved the following:

1. Increasing the contingency fund and total cost for the "Emergency Hospital in Ranya/ Sulaymaniyah" project.

2. Increasing the contingency fund and total cost for the "Diwaniyah Sewage Project – Phase Two."

Moreover, the media office reported that the Council also reviewed several topics on the agenda and made appropriate decisions, including:

1. Approving the meeting minutes concerning the salaries of employees of the security company tasked with providing security for Baghdad International Airport, Biznis Intel, and correcting its legal status.

2. Approving recommendation No. 3 in the minutes of the Committee formed by Order No. 24130, regarding amending the Council of Ministers' decision No. 185 of 2021, to exempt part of the land plot No. 11/2097, section 18 Amiriya, owned by the Ministry of Higher Education and Scientific Research/University of Baghdad, with an area of 122 dunams, located between land plots No. 11/7 and 13, section 18 Amiriya, owned by the National Investment Commission, from the Council of Ministers' decision No. 185 of 2021, transferring its ownership to the National Investment Commission, and compensating the mentioned university with the same area.

3. Amending Paragraph 2 of the Council of Ministers' decision No. 24355 of 2024 to become: Referring any remaining surplus demand of Al-Nahrain Company through a public tender process to both public and private sector printing companies, with 50% allocated to each. Each company will be permitted to receive a contract valued at no more than 4 billion dinars, based on the price offer or production capacity.