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JICA approves USD 2-bln loan to Iraq

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) mhg.ibi KUNA 292029 Jul 12NNNN