A thread on the Iraq investment and reconstruction conference in Kuwait, what will happen going forward and how Iraq plans to implement these projects and prevent corruption:
The @IraqiGovt working with @WorldBankMENA assessed Iraq's needs for reconstruction and vital infrastructure projects at $88.25bn of which $45.73bn is the cost of damage to existing sectors (see: cabinet.iq/uploads/Iraq%2…). The GOI plan is to address these needs over next 5 years
A total of 212 projects were identified, of which 157 were made available for foreign investors. The GOI will not receive any direct cash for these projects, instead foreign public & private sectors will implement projects and audited by UN & WB. Projects are based all over Iraq
The aim of the conference was to announce these projects, encourage state support for investors, and open up financing through pledges, credit, etc. It was not a donor conference. Now firms can bid on projects with assurance that financing/credit/guarantees are available
Firms will bid on projects over next few months & awards made by end 2018. These will stipulate a high % of jobs created must be to local Iraqis, UN+WB will assist Iraq with consulting & legal. No hard loans being made, Iraq's debt will not balloon nor future oil sales affected
Strategy of @HaiderAlAbadi is to involve foreign investors, states, agencies at all steps, bypass inefficient bureaucracy, prevent corruption by avoiding funds transfer into local agencies, insist on local job creation, and work with WB to encourage investors
Also aims to develop his 'security through economic development and shared interests' policy by involving many nations with previously strained ties with Iraq such as Saudi, Turkey, etc.
Of $88.25bn needed the conference got pledges of $30bn. This figure will increase over the summer as Saudi are awaiting result of Iraq's May election & will pledge several $ billions more if Iraq remains stable after results (they want current PM as feel they can work with him)
The remaining amount of $50bn+ will be met by the GOI itself over the next 5 years through its budget, local investors, and private sector. If oil prices remain or exceed current levels then the GOI should be able to meet this figure
In summary, the conference is about encouraging investment in Iraq through foreign support and financing, and the $30bn figure achieved is a huge amount if followed through, which will be a massive success. Crucial period is 2018 Q4 to 2019 Q1 where talk should turn to action
