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Baghdad Cabinet Session: Key Economic Decisions Unveiled by Prime Minister Al-Sudani

Fifth Council of Ministers Session Convenes in Baghdad

On Tuesday, Prime Minister Mohamed Shaya Al-Sudani presided over the fifth regular session of the Council of Ministers. The session focused on significant national matters, reviewing key economic and service initiatives, and prioritizing the government’s strategic program.

The Prime Minister’s media office reported that discussions included various topics listed on the agenda prior to decision-making. Among the decisions made was the approval of municipal land ownership linked to the construction of new cities, specifically the ongoing Al-Sadr City project. This approval grants the Municipality of Baghdad titles to archaeological lands within designated plots, contingent on compatibility with the city’s overall design, as mandated by the Law of Ownership of Elasta and Emiri Buildings (No. 3 of 1960).

In a move aimed at expediting infrastructure projects, the Cabinet approved the development of engineering and technical supervision for the Al-Hilla Al-Kabeer project, delegating oversight to Babil Governorate. The Ministry of Construction, Housing, Municipalities, and Public Works was directed to forfeit its supervisory role due to previously articulated reasons and is now required to report on project progress to the Cabinet every three months.

The Cabinet further sanctioned a substantial social services project, awarding a contract to Shan Dong Shi GG for the design, implementation, operation, and maintenance of a water project in southern Karbala, with a capacity of 16,000 cubic meters per hour, at a cost of 699.75 billion dinars.

Additional approvals for infrastructure enhancement included:

  • Development of infrastructure and electrical connectivity for the Al-Hakim General Hospital project in Najaf Al-Ashraf, with an increased project budget.
  • Enhancement of stormwater drainage networks and the establishment of treatment facilities for residential neighborhoods in the Imam Al-Sadiq District, with a project length of 31 km in Basra Governorate.
  • Additional funding allocated for the construction of the Basra Governorate Traffic Directorate building.

To support agricultural stakeholder interests, the Council of Ministers approved the Ministry of Agriculture’s guidelines concerning rental fees for agricultural lands leased under Law No. 24 of 2024. These fees are structured as follows:

Land Type Category Rent Allowance (Dinars)
Al-Merwia Lands A. Fully Reclaimed 7000
B. Partially Reclaimed 5000
C. Non-Reclaimed 3000
Demandy Lands A. Rainfed 7000
B. Semi-Rainfed 4000
C. Non-Assured Rain 500
Desert Lands A. Contains Wells 1000
B. No Wells 500

The above rental allowances will guide public bids, effective from the date of publication in the Official Gazette.

In pursuit of environmentally sustainable energy initiatives, the Cabinet approved the following projects:

  • Referral of the waste treatment and electric power plant project in the Nahrawan region of Baghdad to Shanghai Sus Environment for a two-year implementation period and 25-year investment, following National Investment Authority protocol.
  • Provision by Baghdad Municipality of 3000 tons of solid municipal waste per day, with land handed over to the company within six months for project execution.
  • The energy purchase tariff will be determined based on environmental and public health standards, not exceeding an average production of 100 MW, with negotiations for any excess capacity.
  • Under Cabinet Resolution No. 24305 for 2024, the Ministry of Electricity is mandated to purchase energy from the waste treatment project, with financing from the Ministry of Finance aligned to the agreed allocations.

Moreover, the Cabinet discussed developments in oil projects, including the amendment of the contract area for the Eastern Baghdad field by adding an additional 95 km² west of the Diyala River, enhancing the development and production capacity regarding an estimated 710 million barrels of oil.

Additionally, the council approved the exclusion of a project involving the establishment of 12 tanks at the Cask refinery in Nineveh from budget implementation regulations, while empowering the Deputy Prime Minister and Minister of Oil with an exchange validity of 500 million dinars for one year for this project.

Finally, the Council addressed ongoing international agreements related to civil aviation, allowing the Civil Aviation Authority to contract with the International Civil Aviation Organization (ICAO) to facilitate government contracts funded through prior budgetary allocations.

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