Economy News – Baghdad
In a regular session held on Tuesday, the Council of Ministers approved several significant measures, primarily authorizing the Ministry of Oil to enter into a contract with the British company BP for the development and production of the four Kirkuk oil fields. Additionally, the council addressed land distribution protocols as related to the Dental Syndicate.
During this session, Prime Minister Mohamed Shi’a Al-Sudani led discussions focusing on the country’s current developments, the execution of government program mandates, and deliberations on listed agenda items.
In the electricity sector, the following resolutions were endorsed:
- The Ministry of Electricity was granted the authority to implement operational and investment budget projects for the year 2025 in the production, transport, and distribution energy spheres, with plans exceeding previous government contract implementation guidelines (2014, instruction 2).
- The previous Cabinet Resolution (215 of 2016) was reinstated, permitting the Ministry of Electricity to reallocate materials from inventory for investment project support, emergency maintenance, and system operational continuity.
Within the clean energy agenda, the council voted to:
- Exempt the national team responsible for renewable energy and energy efficiency projects from certain government contract implementation instructions to facilitate a government initiative aimed at enhancing energy efficiency in public buildings.
- Authorize the General Manager of the General Company for the Distribution of Baghdad Electricity to contract for the project, in line with the prior exceptions defined in Cabinet Resolution (90 of 2009).
In the oil sector, the council also approved:
- The authorization for the Ministry of Oil, through its North Oil and North Gas Company, to sign a developmental contract with BP concerning the Kirkuk fields, which include Baba Wafana, Bay Hassan, Jumbour, and Khabbaz, paving the way for operational beginnings.
- The referral of the tender for the third marine pipeline project to the Italian joint venture, Micoperi, in partnership with Turkish firm ESTA, for a project timeframe of 757 days, which includes an early work package.
- Consensus on the Joint Management Committee’s recommendation concerning the Artawi oil field to proceed with the tender for constructing raw gas pipelines and related infrastructure associated with the Chinese company CPP and the oil projects company.
In efforts to bolster non-oil revenues, the Council of Ministers voted on key initiatives, notably:
- Revising all state real estate rental rates to align with current market values and geographical conditions.
- Authorizing the export of 2 million tons of wheat prone to water damage due to subpar storage capabilities.
- Ensuring the implementation of municipal directives relating to electronic collection processes by the Baghdad Municipality.
- Setting in motion the collection of taxes owed by private colleges, basing dues on actual student enrollment numbers.
For administrative and financial reforms, the office stated that the council approved recommendations to amend Decision No. (13 of 2019) regarding the standardization of goods demarcation. Changes include:
- Import goods’ demarcation will be based on the higher value between the one outlined in commercial listings and that recorded by the Ministry of Finance/Public Authority.
- This approach will continue until a unified system aligns with the electronic customs framework and incorporates updates based on international trade agreements and customs laws.
Moreover, the council voted to identify poverty indicators based on the 2023-2024 economic and social family survey conducted by the Ministry of Planning. These insights will inform the allocation of reconstruction funds for the year 2025, targeting the provinces facing the highest poverty levels as stipulated in Article (15) of the relevant Reconstruction Fund framework.
In agricultural initiatives, the council gave its approval for the Ministry of Agriculture to engage with the Date Palm Development Company Limited for development projects.
Lastly, in the realm of sports, the council confirmed the exception for the Ministry of Oil, allowing it to support the North Oil Football Club’s participation in the first division for the forthcoming season.
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