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15 June, 2007 7:48 PM
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| Newsletter
No. 580
THE STRATEGIC PARTNERSHIP: IRAQI PRIME MINISTER NURI AL-MALIKI IN TOKYO “The reason I have come here is to express thanks for Japan’s contributions to Iraq” -- so spoke Iraqi Prime Minister Nuri al-Maliki as he was meeting with Defense Minister Fumio Kyuma. The Iraqi prime minister’s visit to Japan has been garnering global headlines, but let us review these events here. First of all, there was some controversy when Al-Maliki’s plane was not allowed to cross Iranian airspace, thus delaying the beginning of the mission. It is not entirely clear why that happened, but it doesn’t seem to have had any important effects, according to our current information. The visit kicked off on April 9th -- the fourth anniversary of the collapse of the Bathist regime -- with a meeting between Al-Maliki and Emperor Akihito at the Imperial Palace in Tokyo. Later, Al-Maliki met separately with Prime Minister Shinzo Abe, Foreign Minister Taro Aso, METI Minister Akira Amari, and Defense Minister Fumio Kyuma, among others. Abe is said to have reassured Al-Maliki that, “There is no change in our policy to actively help with the reconstruction of Iraq through official development assistance and activities of the Self-Defense Forces… We want to forge a long-term strategic partnership.” This same kind of language was repeated by a foreign ministry official to reporters: “We have so far offered humanitarian assistance through the Self-Defense Forces, development assistance and debt waivers. Now we want to shift our relations to become a strategic partner of Iraq, which has the world’s third largest oil reserves.”
They may have a shot with this Iraqi government, because Japan is now the Number Two provider of aid to the Baghdad regime, trailing only the United States. However, the yen loan announcements below appear to be part of the overall US$3.5 billion package that Tokyo has already pledged to Iraqi reconstruction.
On April 9, Mr. Nuri Al-Maliki, Prime Minister of Iraq, held talks with Mr. Taro Aso, Minister for Foreign Affairs, for about 40 minutes from 3:00 p.m. The gist of their meeting was as follows (the meeting was attended from the Iraqi side by: Dr. Ghanim A. Al-Jumaily, Iraqi Ambassador to Japan, Mr. Husayn Al-Shahristani, Minister of Oil, and others; and from the Japanese side by: Mr. Kenjiro Monji, Japanese Ambassador to Iraq, Mr. Norihiro Okuda, Director-General of the Middle Eastern and African Affairs Bureau, Mr. Gotaro Ogawa, Ambassador in charge of Reconstruction Assistance to Iraq, and others). At the talks opinions were exchanged on Japan-Iraq relations including Japan’s efforts for reconstruction assistance to Iraq and the situation in Iraq. On Japan-Iraq relations, Mr. Aso expressed his appreciation to Mr. Maliki for having visited Japan as his second overseas destination following the United States, other than Iraq’s neighbors. Mr. Maliki expressed his gratitude for Japan’s assistance already extended to Iraq, such as activities by Japan’s Ground Self-Defense Force Units in the Al-Muthanna province and added that the fact that many cabinet ministers (Mr. Husayn Al-Shahristani, Minister of Oil, Mr. Karim Wahid Al-Hasan, Minister of Electricity, Mr. Riyadh Gharib, Minister of Municipalities and Public Works, Mr. Fawzi Al-Hariri, Minister of Industry and Minerals, and Mr. Rafi Al-Issawi, Minister of State for Foreign Affairs) were accompanying him on this trip, following the recent visits by other high-ranking officials of Iraq, including the visit of Vice President Tariq Al-Hashimi, indicates Iraq’s expectation of Japan. Mr. Al-Maliki explained how much effort has currently been made on such issues as the eradication of terrorism, recovery of security, economic reform and national reconciliation. He also stated his views on how Japan-Iraq partnership should be built and especially how the economic relationship should be strengthened. In response, Mr. Aso said that he hoped Iraq would surmount these problems and that Japan’s commitment to the reconstruction of Iraq remains unwavering.
The Government of Japan has announced its intention to provide yen loans up to the total amount of 102,843 million yen to the Republic of Iraq for implementing the following projects: “Khor Al-Zubair Fertilizer Plant Rehabilitation Project”, “Crude Oil Export Facility Reconstruction Project”, “Engineering Services for Basrah Refinery Upgrading Project” and “Electricity Sector Reconstruction Project”. Notes to this effect were exchanged on April 9 (Mon) in Tokyo between Mr. Kenjiro Monji, Ambassador of Japan to the Republic of Iraq and Dr. Ghanim Al-Jumaily, Ambassador of the Republic of Iraq to Japan. Projects and the maximum amount of the loans: (1)
Khor Al-Zubair Fertilizer Plant Rehabilitation Project:
18,120 (million yen) Terms and conditions of the loan: (1)
Interest rate: 0.75% Outline of the Project: (1) Khor Al-Zubair Fertilizer Plant Rehabilitation Project Agriculture, an important industry of Iraq, accounts for about 10 percent of GDP and about 10 percent of all working population. Two factories are in operation for production of fertilizer which supports the Iraqi agriculture. However, the production of fertilizer is decreasing due to poor operation and maintenance of factories, resulting from conflicts including the Gulf War and from economic sanctions. In particular, Kohr Al-Zubair Fertilizer Plant, located in Basrah Governorate in Southern Iraq, faces the problem of decreasing production capacity due to the dilapidated facilities of the factory. Therefore, it is crucial to supply the necessary machinery in urgent needs for the factory, in order to improve its production capacity and to recover productivity of agriculture therefrom. (2) Crude Oil Export Facility Reconstruction Project In Iraq, the oil sector, which occupies almost 70% of its GDP and almost 90% of the national income, is the largest key industry and almost the single source to gain foreign currency. However, because of the insufficient reinforcement and maintenance of oil related facilities, the reliance of export facilities decreases and the capacity of the crude oil export is unstable, resulting from conflicts including Iran-Iraq War and the Gulf War, and economic sanctions. Therefore, it is necessary to construct an on-shore/off-shore pipeline to export oil from a storage equipment in Al-Fao, Basra in the Southern Iraq, and to install off-shore loading facilities in order to operate oil export facilities stably and to increase the capacity of them. (3) Engineering Services for Basrah Refinery Upgrading Project In Iraq, oil sector, which occupies almost 70% of its GDP and almost 90% of the national income, is the largest key industry. However, increase of consumers’ demand for oil product during postwar reconstruction inflicted shortage of gasoline. This shortage is also caused by poor operation and maintenance of related facilities for oil products, resulting from conflicts including the Gulf War and from economic sanctions. Therefore, it is necessary to increase yield of oil products for consumers by constructing a new plant which will contribute to increasing the productivity in refining gasoline and other oil products in the existing Basrah Refinery. This yen loan is intended for engineering services for the design and management of constructing the new plant. (4) Electricity Sector Reconstruction Project The electricity sector is the basis of any economic and social activities in Iraq. However, the function of power supply and distribution has been greatly deteriorated by insufficient new investment and maintenance for the power sector resulting from conflicts including Iran-Iraq War and the Gulf War, and economic sanctions. Therefore, by supplying the machinery and materials for the transformation in the power supply and distribution section, this project aims to stabilize the power supply mainly targeting the areas with high priority from the view points of the necessity, the feasibility of operation, and the effect of the project in Iraq.
The Government of Japan has announced its intention to provide yen loans up to the total amount of 57,716 million yen to Iraq for implementing “Basrah Water Supply Improvement Project” and “Electricity Sector Reconstruction Project in Kurdistan Region.” This announcement was made by Prime Minister Shinzo Abe to Prime Minister Nuri Al-Maliki during the summit meeting in Tokyo, April 9th. After prior notification to the Iraqi side, the Exchange of Notes will be signed regarding the provision of these loans. Projects and the maximum amount of the loans: (1)
Basrah Water Supply Improvement Project: 42,969 (million
yen) Terms and conditions of the loans: (1)
Interest rate: 0.75% Outline of the Projects: (1) Basrah Water Supply Improvement Project Water supply system in Basrah City and Hartha City, Basrah Governorate, in Southern Iraq, was in a good condition until almost 20 years ago. However, the water supply system has now many challenges both in terms of quality and quantity of water supply, such as lack of enough water supply, higher rate of water leakage and unsatisfied level of water quality. This is caused by insufficient new investment and maintenance for the water supply system, resulting from conflicts including Iran-Iraq War and the Gulf War, and economic sanctions. Therefore, it is necessary to improve the water supply situation in both cities by improving water supply facilities (such as water treatment plants, transmission lines and distribution network). (2) Electricity Sector Reconstruction Project in Kurdistan Region The electricity sector is the basis of any economic and social activities in Iraq. However, the function of power supply and distribution in Kurdistan Region (northern governorates comprising of Dohuk governorate, Erbil governorate and Sulaimaniya governorate) as well as all over Iraq has been greatly deteriorated by insufficient new investment and maintenance for the power sector resulting from conflicts including Iran-Iraq War and the Gulf War, and economic sanctions. Therefore, by supplying the machinery and equipment and developing necessary facilities for the substation and distribution system, this project aims to stabilize the power supply in Kurdistan Region.
The Government of Japan recently invited 13 members of the Iraqi delegation comprising parliamentarians and other influential persons headed by Mr. Akram al-Hakim, Minister of the National Reconciliation, to hold a Seminar on National Reconciliation of Iraq. On March 30 (Fri), the last day of the Seminar, the delegation issued a press statement. The delegation had talks with Mr. Taro Aso, Minister for Foreign Affairs, for about 30 minutes from 17:50 on March 30 (Fri). The outline of the talks is as follows: (1) Mr. Aso stated as follows: “The Government of Japan welcomes your visit to Japan at a time when Iraq is in such a difficult situation. To make a breakthrough in this difficult situation, it is important for the Iraqi Government to take security measures and make efforts for national reconciliation. Although nobody but the Iraqi people can solve Iraq’s problems, the Government of Japan held this Seminar while wishing to contribute to solving these problems. If it did, we are very honored.” (2) Mr. Akram al-Hakim said as follows: “We are very grateful to the Government of Japan for holding the Seminar. We had a wonderful visit and a seminar. Our visit to Hiroshima was also impressive. We have learned a lot from Japan’s experiences. We will make use of what we have learned in Japan for Iraq. As Iraqis know the success of Japan’s Self-Defense Forces’ activities in Samawah, they wish Japan to make a proactive contribution to such issues as national reconciliation and economic rehabilitation. Because we found the Seminar very significant this time, we wish the Government of Japan to hold this seminar regularly.”
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