Cabinet decisions during the 39th regular session

INA - BAGHDAD

PM Muhammed S. Al-Sudani chaired the 39th Regular Session of the Council of Ministers on Tuesday. 

During the session, they discussed the nation's current situation, tracked progress on national issues, reviewed government program priorities, and addressed agenda items, issuing relevant decisions and recommendations, according to a statement by the PM Media Office, received by the Iraqi News Agency - INA.

At the session's outset, Al-Sudani discussed his recent participation as the head of the Iraqi delegation at the United Nations General Assembly meetings in New York, highlighting the meetings held with world leaders, heads of state, and international organizations, which led to agreements and statements promoting Iraq's international cooperation and fostering economic partnerships with friendly nations. His Excellency directed all ministries to actively follow up on the outcomes of this visit and implement bilateral agreements.

The Prime Minister also reaffirmed the government's commitment to international resolutions and good neighborly principles. He emphasized Iraq's dedication to resolving disputes with Kuwait, particularly the navigation issue in Khor Abdullah, in a manner consistent with Iraq's constitution and international law, stressing that such challenges can be resolved through rational dialogue, avoiding emotional and populist statements that only escalate tensions. He expressed full confidence in resolving this issue, given the strong determination of both Iraq and Kuwait to seek resolution through mutual understanding and dialogue.

In celebration of Iraq's National Day, the Prime Minister has declared Tuesday, October 3rd, 2023, as an official holiday for all government ministries and institutions.

In the ongoing pursuit of financial and administrative reform, the Cabinet has made the following decisions:

1. All state contracts executed within Iraq shall be denominated in Iraqi dinars, except for those opened through external documentary credits, which will be based on the agreed terms between the parties and limited to the value of the documentary credit.

2. The Ministry of Planning will compile a comprehensive list of past state contracts originally denominated in U.S. dollars, excluding those tied to external documentary credits. This list will be forwarded to the Ministry of Finance and the Central Bank of Iraq, along with the corresponding contract amounts. The Ministry of Planning will also establish a maximum monthly limit for covering these contracts in U.S. dollars, with the Central Bank of Iraq responsible for ensuring the coverage at an exchange rate of 1,320 dinars per U.S. dollar. The funds will be deposited into the Ministry of Finance's account to facilitate monthly payments for these contracts, adhering to necessary release controls.

3. Concerning Iraqi borrowers from government banks, including the Trade Bank of Iraq, who have taken loans in U.S. dollars, these banks are obligated to get repayment of their loans at an exchange rate of 1,320 dinars per U.S. dollar. The Central Bank of Iraq will cover these loans in U.S. dollars, which will be returned to the lending banks. This process exclusively applies to loans issued before the issuance of this decision.

The Cabinet has endorsed the Ministerial Council for the Economy's recommendation (230204) with the following decisions:

1. The Ministry of Transportation will postpone collecting debts associated with fees and fines owed by the General Iron and Steel Company. Instead, they will arrange for a new payment schedule, contingent upon the resumption of operations at the mentioned company's factories.

2. The Ministry of Transportation, in collaboration with the General Company for Ports of Iraq, has taken necessary measures to establish an efficient process for the prompt clearance of goods from the ports. This aims to prevent any fines or fees that may arise due to delays in goods clearance.

In pursuit of energy sector improvements and the effective utilization of gas resources, the Cabinet has given its approval to the recommendations of the Ministerial Council for Energy (23083 of 2023). This pertains to the gas gathering and compression project in the Nasiriyah oil field, as follows:

1. Approval of the request made by Dhi Qar Oil Company, one of the companies of the Ministry of Oil, to proceed with the gas gathering and compression project in the Nasiriyah oil field, managed jointly by the Oil Projects Company (under the Ministry of Oil) and the Italian PEG consortium. The approved amount is $272,000,000, which exceeds the estimated cost by 7.3%, as indicated in Dhi Qar Oil Company's letter dated July 26, 2023.

In the context of the electricity sector, the Cabinet has also endorsed the Ministry of Electricity's letter dated September 4, 2023, which proposes amendments to the Iraqi-Jordanian electrical interconnection project contract signed in 2019. These amendments are designed to accommodate a new preparation period and revised terms while preserving the price equation outlined in the energy sale contract. This contract involves the sale of electrical energy from the National Electricity Company in Jordan to the State Company for Electric Power Transmission- Central Region (under the Ministry of Electricity) in Iraq, spanning a 36-month period following the completion of the connection between the two conversion stations in Jordan and Al-Qaim transformer station in Iraq, operating at a voltage of 400 kV.

In the context of advancing the oil sector, enhancing export infrastructure, and bolstering Iraq's capabilities in this domain, the Council of Ministers has made the following decision:

1. The Ministry of Finance has deposited the full cost of the two marine pipeline projects (4 and 5) and the new marine platform, amounting to $1,265,444,000,000, with the Trade Bank of Iraq. This deposit is part of the investment plan for 2023 as outlined by the Ministry of Oil and the Basra Oil Company.

2. The Ministries of Planning and Oil are responsible for covering the entire cost of the mentioned project, including the annual allocations specified in the investment budget of the Ministry of Oil for the years 2023, 2024, 2025, and 2026.

3. Both the Ministries of Oil and Planning will inform the Ministry of Finance's Accounting Department about the financing needed for the contracting company based on project progress and approved conditions. The Ministry of Finance will fund the company's account using the deposit mentioned in Paragraph (1) above.

4. The Cabinet has canceled Cabinet Decisions (29 of 2020), (6 of 2021), and (83 of 2022).

In addition to its ongoing efforts to enhance security measures and promote stability, the Cabinet has made the following decisions:

Approved an exception to the contract for the implementation of the Wadi Al-Tharthar surveillance project, which involves the procurement of cameras, the construction of concrete towers, and the establishment of fortified points. This exception allows for deviating from the standard government contract procedures outlined in the Instructions for Implementing Government Contracts (2 of 2014) and the armament regulations set forth by the National Security Advisory concerning the equipping of security services. This exception is granted due to the project's vital tactical and strategic significance.

Approved the establishment of the Air Defense Institute, in accordance with the provisions of the Defense University Law for Military Studies (No. 4) of 2016 and the constitutional framework, while taking into consideration the feedback and observations provided by the Legal Department within the General Secretariat of the Cabinet.

In its commitment to monitor agricultural initiatives, address water scarcity, and promote modern irrigation methods, the Cabinet has ratified the recommendations arising from the joint permanent committee meeting between the Ministries of Agriculture and Water Resources concerning the winter agricultural plan for the 2023-2024 season. The approved measures include:

1. The Ministry of Water Resources is entrusted with adhering to the winter agricultural plan, aligning it with the predictions of international meteorological centers.

2. The winter planting and seed distribution period will commence on October 1, 2023. Concurrently, the Ministry of Water Resources is tasked with initiating increased water releases starting on November 15, 2023, to support these agricultural efforts.

3. Re-reviewing the indicators of the winter agricultural plan during the period from November 15th, 2023, until November 30th, 2023.
4. 

The winter season's irrigation areas are determined as follows:
-    Irrigation from rivers and streams: The coverage includes one and a half million dunums of land.
-    Irrigation from underground wells: The allocation is set for four million dunams of land. However, a crucial condition is imposed – modern irrigation systems must be employed. Additionally, individuals or parties found negligent in their water usage will be held accountable and will not be included in the subsequent agricultural plan if misuse of irrigation water is detected.

5. Agriculture Focus Areas: Agriculture will be concentrated along rivers and streambeds, and cultivation within marshes and floodplains in the governorates of Wasit, Maysan, Basra, Diyala, and Dhi Qar will be prohibited.

6. Interest-Free Loans: Interest-free loans will be provided to facilitate the purchase of modern irrigation systems, including pivot, fixed, and drip systems, as well as solar energy systems.

7. Fuel Subsidies: The price of fuel for the Ministry of Water Resources will be subsidized, and fuel quotas will be allocated to address water scarcity conditions effectively.

8. Violation Removal: A campaign to remove land violations, particularly unauthorized fish lakes, will be continued.

9. Joint Committees: Joint committees comprising representatives from Water Resources Directorates, Agriculture Directorates, Agricultural Committees, Farmer Associations, and Police Directorates in all governorates, and local governments will be established. These committees will oversee farmers' and peasants' compliance with the approved irrigation areas outlined in the plan. Legal action will be taken against violators. Both ministries are not responsible for considering or promoting compensation requests. Bi-monthly meetings will be scheduled and coordinated between the Ministry of Agriculture and water resources directorates in all governorates for effective implementation and monitoring.

In the realm of culture, the Cabinet has taken several significant steps:

Approval of the third amendment to the Musical Studies Institutes system (Law 10 of 1987), which underwent review by the State Council. This decision aligns with the Constitution and Article 8, Clause Three, of the Ministry of Culture Law (Law 17 of 2001). It also involves submitting the curricula for approval to the Ministry of Education's General Directorate of Curricula.
Endorsement of the second amendment to the Baghdad School of Expressive Musical Arts system (Law 16 of 1985), reviewed by the State Council. This action is in accordance with the Constitution and the Ministry of Culture Law (Law 17 of 2001).
In the sector of diplomatic education, approval for the reopening of the Iraqi Cultural Center in Berlin, Germany.

The Cabinet also addressed various agenda items and made the following decisions:

1. Granting the Ministry of Justice the authority to be exempt from the standard selection mechanism and enter into contracts with law firms, where fees will be determined based on the case's value. This decision is in response to the committee's request, as outlined in a letter from the General Secretariat of the Cabinet dated September 12, 2023. The aim is to streamline legal, political, and technical efforts in managing the arbitration decision for the Horus Company case.

2. Approval of the Ministry of Foreign Affairs' recommendation to establish non-resident diplomatic representation with the Republic of Moldova, using our embassy in Bucharest. This decision aligns with the provisions of Articles 25 and 26 of Foreign Service Law No. 45 of 2008, and the Vienna Convention on Consular Relations of 1963.

3. Endorsement of the Ministerial Council for Human Development's recommendation (23028 of 2023) for the approval of the national strategy for suicide prevention in Iraq for the period 2023-2030.