Iraqi government to promote economic cooperation with Japan
The Iraqi Prime Minister, Mohammed Shia Al-Sudani, and the Japanese Ambassador to Iraq, Futoshi Matsumoto. Photo: PMO
Baghdad (IraqiNews.com) – The Iraqi Prime Minister, Mohammed Shia Al-Sudani, confirmed on Sunday the Iraqi government’s desire to promote economic cooperation with Japan.
Al-Sudani’s remarks took place during his meeting with the Japanese Ambassador to Iraq, Futoshi Matsumoto, where both sides discussed bilateral relations between the two countries and mutual cooperation in different sectors, according to the Prime Minister’s Office (PMO).
Al-Sudani indicated that Iraq has promising investment opportunities that would contribute to development and prosperity.
Matsumoto announced last week that the Japanese government is setting up seven new projects in Iraq.
The Japanese Ambassador indicated that two projects are scheduled to be carried out in 2023, clarifying that the first is the Basra Refinery Upgrading Project and the second is a water desalination project in Muthanna governorate.
Matsumoto elaborated that the cost of the project in Muthanna is $300 million, noting that it is a very important project to develop the infrastructure in Iraq.
The Japanese Ambassador confirmed that Japan continues its support for Iraq through soft loans.
The Japanese embassy in Iraq mentioned in mid-August that Matsumoto, the Iraqi Minister of Finance, Taif Sami, and the Japan International Cooperation Agency (JICA) signed an agreement concerning the provision of the fifth batch of the Official Development Assistance (ODA) loan worth $1.4 billion for the Basra Refinery Upgrading Project, the biggest Japanese project in Iraq.
The project aims at saving foreign currencies spent on importing fuel, improving trade, reducing the fiscal deficit, and providing economic and employment opportunities for the people of Iraq, according to a statement issued by the Japanese embassy in Iraq.
The project will also contribute to modernizing Iraq’s energy industry and paving a way to attract the private sector to Iraq’s energy sector, in addition to reducing air pollution by reducing sulfur content in oil products.
The statement illustrated that Japan’s advanced technical and engineering skills will be utilized at the Fluid Catalytic Cracking (FCC) Complex in Basra Refinery with a remarkably low interest rate of 0.2 percent per annum, contributing to the financial stability of Iraq.