berlin 29th september 2015 iraqi -german joint commission

Berlin 29th September 2015

Iraqi -GermanJoint commission

Population: 35000000 ap. Area: 435052 sq. kmOil production: 3.75 mbdAverage importing value: 40$Billion /year Energy sector consumes:40%Of Budget 1 € = 1326 ID

FACTS

•Potential development in all sectors

•Huge demands and needs •Long term investments•Natural resources •Prime location •Human resources •Political issues

Doing Business, Why Iraq?

•Strong economy •Advanced technology •Excellent quality•Heavy industry / production lines

•Iraqi Public endorsement •To strengthen Eco-political ties

Business partner,Why Germany?

•Low taxes •No custom •Free money movement •Cheap fuel •Less competition •Local partner availability•High profitability

Being in IraqAdvantages

• Security 70% of Iraq is safe

• Corruption Serious steps are taken

• Banking system improvement needed

Being in Iraq

Disadvantages

• 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

P. P. P. 100s of state owned companies

& 1000s of state owned factories

High Tech.

MachineFactory

H.Res

L.Mart

Land&

loc

Con.&Gov.

support

Evaluation

Super Super BusinessBusiness

OpportunityOpportunity

PP..PP..PP

SOESOE

Privet SectorPrivet Sector

• 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

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.

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

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

Improving Iraqi Economy

•5 years loans•No cash, LCs only to avoid misuse of the loans

•Reduced unemployment •Equal opportunities •Quality control

Projects on Defer payments basis

project project Location Location MinistryMinistry

Rehabilitation of Rehabilitation of sprinkles irrigation sprinkles irrigation system Pro. L. system Pro. L.

Babylon I&M

Tractor pro L.40% Tractor pro L.40% manufacturing manufacturing Babylon I&M

M V A transformers M V A transformers pro L. pro L.

Dyala I&M

Middle tension Middle tension cables Pro L.cables Pro L.

Nasirya I&M

Medical gazes Pro Medical gazes Pro L. 2000 L/hL. 2000 L/h

Baghdad I&M


Fertilizer plant Fertilizer plant Phase 3Phase 3

Basra I&M

Radial tyres for Radial tyres for trucks Pro L.trucks Pro L. Najaf I&M

Solid waste Solid waste treatment project treatment project

producing elect and producing elect and brick 4000 t/dbrick 4000 t/d

Baghdad I&M

Solid waste Solid waste treatment project treatment project producing ethanol producing ethanol

1000 t/d1000 t/d

KerbalaDewanya

I&M

8 irrigation Projects8 irrigation Projects6 Dams 6 Dams

rehabilitationrehabilitationSouth & East W R


Modern tech to Modern tech to estimate water estimate water

reserve in dams and reserve in dams and lakeslakes

General W R

Installing measuring Installing measuring device for water flow device for water flow

and qualityand qualityGeneral W R

Limiting salty area Limiting salty area in Shat Alarab in Shat Alarab

Basra water project Basra water project Basra W R

11 Concrete sailo of 11 Concrete sailo of 100000 tons and 100000 tons and

60000 tons60000 tons

KerbalaDewanyageneral

Trade

2 metal sailo of 2 metal sailo of 60000 tons60000 tons

BasraSalahdin

Trade


30 power station 30 power station 132 KV132 KV

General Electricity

5700 km of high 5700 km of high tension line 400 KV tension line 400 KV

General Electricity

2300 km of high 2300 km of high tension line 132 KV tension line 132 KV

General Electricity

10000 housing units10000 housing units 10 provenance C& H , M

Water and sewerage Water and sewerage 8 provenance C& H , M

(16 projects from oil ministry to be distributed)

Thank you

See you in Iraq

berlin 29th september 2015 iraqi -german joint commission

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