The Iraqi Cabinet issued a series of decisions during its session held today, Tuesday, related to energy, development pathways, health, financial reform, youth and sports, and other files. In a statement, it mentioned that "the Prime Minister of Iraq, Mohammed Shia' al-Sudani, chaired today the eighteenth regular session of the Cabinet. At the beginning of the session, al-Sudani appreciated the efforts of the Ministry of Labor and Social Affairs and all relevant government agencies for their success in holding the 50th Arab Labor Conference, which was hosted in the capital, Baghdad. He also expressed his appreciation for the successful efforts of the Ministry of Water Resources in holding the fourth International Water Conference in Baghdad, highlighting the current water issues and challenges related to this vital axis."
According to the statement, the session discussed the general situation in the country, deliberated on a number of service and economic files, and examined the agenda items to make the necessary decisions regarding them. In terms of monitoring energy projects and the implementation of the government program in this important sector, the Cabinet approved the recommendations of the Energy Ministerial Council as follows:
First, the recommendation of the Energy Ministerial Council (24034 T) for the year 2024, which includes:
1. Proceeding to sign the (Mansouriya Gas Field) contract between the Ministry of Oil/North Oil Company and the consortium (JERA Co. and Petro Iraq) in principle.
2. Approval of the following:
A. Provision of the financial share for North Oil Company amounting to (51%) of the project, which is (506 million dollars), for the first three years of the project's lifecycle, with the share recorded in the bank account of North Oil Company specifically for this project, distributed as follows: - (73 million dollars) for the first year, (187 million dollars) for the second year, and (246 million dollars) for the third year.
B. The share will belong to the Ministry of Finance, and the Ministry of Oil/North Oil Company is authorized to manage it according to a contract signed between the two parties to undertake the task of operating and managing the share according to applicable laws and regulations.
C. Listing the project as a component within the licensing rounds to settle dues in crude oil or condensates, as per the contract, similar to licensing round contracts.
D. Proceeding with the final signing procedures according to the established regulations in the Ministry of Oil.
Second, the recommendation of the Energy Ministerial Council (24028 T) for the year 2024, which includes approval to amend Cabinet Decision (24102 for the year 2024) regarding the mechanism for implementing social benefit projects for licensing contracts by adopting the updated mechanism for 2023, as well as modifying paragraph (2) of Cabinet Decision (23169) for the year 2023 as follows: - Local governments are obligated to develop a five-year or three-year plan in coordination with the relevant ministries in defining urban policies, consistent with the amounts allocated annually, provided that this plan is approved by the (Council of the Province), directing expenditures to the sectors of health, education, municipalities, and the environment, as well as to the administrative unit where the oil field is located.
Third, the recommendation of the Energy Ministerial Council (24030 T) for the year 2024, which includes referring the tender numbered (MOD-2024) for the operation and maintenance of diesel stations specific to the stations (North Diwaniyah, East Diwaniyah, East Karbala, and North Amarah) to DASSOFF PETROLEUM SERVICE LLC, at a price of (13.5) dollars per megawatt/hour, using the "Take and Pay" method, for a period of five years, according to the decision of the Central Committee for Review and Approval of the referral in the Ministry of Electricity.
The statement continued that, within the Council's follow-up on the development pathway project, the following was approved:
1. Granting the Ministry of Transport the authority to contract with Oliver Wyman for consulting services for the Iraq Development Road Project, exempting it from the instructions for the implementation of government contracts (2 for the year 2014) and the accompanying regulations.
2. Exempting the project from inclusion requirements and conditions in case it is listed as an investment project.
3. The investing company shall bear all fees of the consulting contract, which will be paid by the Ministry of Transport.
4. Granting the General Director of the Iraqi Republic Railways the authority to sign the contract.
In follow-up on youth and sports sector affairs and providing necessary requirements and supplies, the Cabinet approved according to the statement the minutes of the meeting regarding the property numbered (4/20264 M11 Hamdi Farm) as follows:
1. Continuing the allocation of the property numbered (4/20264 M11 Hamdi Farm) to the Ministry of Youth and Sports, which belongs to the Ministry of Finance, based on Legislative Order No. (6 for the year 2004), with both parties (Ministry of Finance and Ministry of Youth and Sports) proceeding with the procedures to cancel all legal cases filed between them in the courts.
2. Coordination between the Baghdad Investment Board and the State Real Estate Department in the Ministry of Finance to carry out the necessary procedures for replacing the investment license for the same purpose, exempting it from the procedures for announcing the investment opportunity, provided that the alternative land is nominated by the Ministry of Finance/State Real Estate Department.
3. The Ministry of Youth and Sports is obligated to implement its projects on the subject property exclusively for its purposes and activities, in accordance with the applicable laws, coordinating with the relevant parties.
4. Coordination between the Ministry of Youth and Sports and the State Real Estate Department to find suitable solutions for the land occupied by the Ministry of Interior and the Popular Mobilization Forces within the boundaries of the aforementioned property.
In this context, the Prime Minister directed sending the draft law for the first amendment to the National Federations Law No. (24 for the year 2021) to the State Council for legal scrutiny, within a maximum period of two months.
The statement added that, in line with government efforts to address the reasons behind stalled projects, the Cabinet approved the following:
1. Increasing the reserve amount and total cost for the project (Establishment of the College of Education in Seven Bekar).
2. Increasing the reserve amount for the project (Pilgrimage Road Phase 1 (50 km), to implement compensations for unfinished works, regarding the exchange rate difference between the Iraqi dinar and dollar, and increasing the reserve amount for the contract (Pilgrimage Road Phase 2, 50 km) to implement Amendment No. (3), as well as increasing the total cost of the project.
3. Increasing the reserve amount and the amount of contract number /28/P/2171/PMC/2013 documented within the (Karbala Oil Refinery) project contracts, and increasing the total cost of the (Karbala) project, based on current regulations and authorities, with this amount to be recovered from revenues generated by the refinery; as the benefiting company is a public company (self-financing) subject to the instructions (4 for the year 1999), and directing the Ministry of Oil to take all necessary measures to assign the project to the benefiting governmental entity, which operates the project (Middle Oil Refineries Company), to avoid future requests to sign contract appendices for operation, maintenance, and consultancy without preparing the specialized workforce responsible for managing and operating the project from the benefiting governmental entity from the project's outputs.
4. Increasing the reserve amount for the project (Establishment of the Road from Doura to Yousifiya (Phases 1 and 2) south of Baghdad), and increasing the total cost for the project (Establishment of Doura to Yousifiya highway, 14 km long).
The statement continued that regarding health projects, the council approved that the municipality concerned, with the approval of the relevant minister, allocate the piece of land numbered (2251/28 Al-Tajiyat), owned by the Baghdad Municipality, to the General Secretariat of the Holy Hussain Shrine, for the purpose of establishing a cancer hospital and a specialized center for autism, based on the provisions of Article (60/4) of the Municipalities Law (165 for the year 1964) as amended.
In the framework of financial and administrative reform decisions, particularly regarding banking sector reforms, the council approved according to the statement what is included in the letter from the Office of the Prime Minister dated April 3, 2024, regarding contracting with an external auditor for the Iraqi Trade Bank for the purpose of auditing the bank's accounts, as the bank deals with a network of robust international banks.
Due to the urgent need to allocate land for school projects, and in order to eliminate double and triple shifts in the Al-Sadr city/1 area suffering from population congestion, the cabinet approved the following:
1. Allocating a space of (3 dunams) from the land parcel numbered (67162/4), to build (3) schools (with a capacity of 18 classrooms, 24 classrooms, and a kindergarten as part of the Ministry's project No. (1).
2. Granting the Minister of Education the authority to remove sites where companies have not started work and sites where it is difficult to complete construction work, and then add those parcels through amendment orders for construction purposes for companies that own ready-made building factories and have advanced completion rates within the work progress schedule, with pricing preference based on completion time.
The session concluded with the approval of the recommendation of the Social Services Ministerial Council (24008 S), which included canceling the financial amounts owed by employees of Maysan Province amounting to (425,191,548 dinars), considering them beneficiaries who have received land parcels according to applicable regulations and instructions, based on the provisions of the Federal Financial Management Law (6 for the year 2019) as amended, with the Ministry of Finance to allocate the canceled amount and pay it to the relevant landowner.
