Launched in 2009 and managed in conjunction with the Office of the Deputy Prime Minister for infrastructure, the Working Group on Infrastructure Finance in Iraq examines selected projects and recommends different approaches that will hasten Iraq’s infrastructure development. The Working Group also assists the Government of Iraq in accessing extra-budgetary sources of finance for essential projects that would be delayed or shelved if they depended solely on government revenue, and in rendering budgetary funds that are available for infrastructure more effective by combining them with private capital and the associated technical expertise.
The Working Group:
- identifies regulatory and policy developments most likely to encourage private sector involvement in infrastructure finance
- prioritises infrastructure needs, identifies crucial infrastructure projects and their appropriate financing mechanisms
- identifies financing risks and examines and recommends risk mitigation strategies
- helps government officials to prepare proposals and implementation strategies
- monitors the implementation of infrastructure projects
The Working Group mobilises 11 Iraqi ministries and agencies through the Office of the Iraqi Deputy Prime Minister for Infrastructure, as well as international experts from OPIC, Coface, the Islamic Development Bank, MIGA, and the World Bank.
Seventh Working Group Meeting
13-14 November 2012, Amman, Jordan
The agenda focused on two of the main infrastructure sectors discussed in earlier meetings:
- Residential real estate - to deal with housing demand, which might reach 2.5 million units by 2015, the Working Group recommended that the Iraqi government form a single housing agency. Experts noted severe constraints on the housing market’s demand and supply side and presented policy scenarios designed to spur private sector investment.
- The Grand Fao Port project - currently Iraq’s most important infrastructure project, the Working Group recommended that, with appropriate sovereign guarantees, either part of all of the project could be carried out as a public-private partnership. However, to attract investors the projects will need to be well prepared and presented to investors in detail. A complete feasability study will be undertaken.
Iraqi delegation members also participated in a project finance training session with a focus on public-private partnership models and their application to major infrastructure projects, in particular the Baghdad-Mosul Highway and the Middle Euphrates airport.
The next Working Group meeting will: continue to address the Grand Fao port and real estate construction; select two other major infrastructure projects to examine; and, discuss a planned feasibility study for the Baghdad-Mosul Highway.
Iraq project home page
WORKING GROUP MEETINGS
6th meeting, June 2012
5th meeting, November 2011
4th meeting, March 2011
3rd meeting, November 2010
2nd meeting, April 2010
1st meeting, February 2010
Workshop on opportunities for infrastructure financing in Iraq, November 2009
DOCUMENTS AND LINKS
Supporting Investment Policy and Governance Reforms in Iraq, OECD 2010
Policy Framework for Investment Toolkit
MENA-OECD Investment Programme
Principles for Private Sector Participation in Infrastructure
Paris Declaration on Aid Effectiveness and Accra Agenda for Action
For further information, contact
Anders Jonsson (firstname.lastname@example.org)