LOC20:29
17:29 GMT
BAGHDAD, July 29 (KUNA) -- Iraqi Ministry of Electricity announced Sunday
that it has received Japan's International Cooperation Agency (JICA)'s
approval on financing USD 2 billion-cost power station in South Iraq.
In a press statement a copy of which obtained by KUNA, the Ministry
Spokesman Musaab Al-Mudaras said that in a recent workshop held in Baghdad,
the Ministry has asked JICA to complete a proposal it has offered to finance a
natural gas-powered, 1800 MW-electricity project in the southern city of
Al-Nasseriya.
JICA will seek the final approval of the loan from the Japanese government
to stat the mega project which will take 48 months to complete.
JICA has significant role in Iraq reconstruction efforts since 2003 it has
offered Iraqi government several loans to finance development projects in
different sectors.
The electricity sector in Iraq is facing a lack of capacity in all
sub-sectors, i.e. generation, transmission and distribution, due to
insufficient operation and maintenance and a lack of new investment in the
past, despite its importance for all economic and social activities.
The electricity sector is thus one of the most important sectors for
reconstruction in Iraq.
The generation capacity that exceeded 9,000 MW in the 1990s has plunged to
less than 4,000 MW in recent years, leading to the frequent planned outages
throughout the country.
Power outages are affecting not only households and businesses but also the
operation of basic infrastructure facilities such as water supply and sewerage
systems, and hospitals, posing a major obstacle to the restoration of social
stability and economic recovery.
In addition to power generation facilities, rehabilitating the
transmission, substation and distribution facilities that have been facing a
lack of capacity is also an urgent task.
JICA aims to contribute to the promotion of international cooperation as
well as the sound development of Japanese and global economy by supporting the
socioeconomic development, recovery or economic stability of developing
regions.(end)
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KUNA 292029 Jul 12NNNN