The Cabinet's 48th Regular Session decisions

INA - BAGHDAD 

The Cabinet held the 48th Regular Session chaired by the Prime Minister Muhammed S. Al-Sudani.

During the session, the Cabinet discussed the country's general situation, the most prominent issues, and the items on the agenda and issued several decisions, according to a statement by the PM Media Office, received by the Iraqi News Agency - INA.

In the field of administrative reform, the Cabinet approved the dismissal and rotation of (12) directors general. This constitutes the third phase of evaluating directors general in government agencies and ministries, employing standards and mechanisms established by the committee formed under Diwani Order (23059) to assess work performance.

 In the pursuit of financial and economic reform, the Cabinet endorsed the recommendations from the Ministry of Planning meeting, specifically amending Paragraph No. (1) of Cabinet Resolution (23545 of 2023) according to the following:

1. All state contracts executed within Iraq must be in Iraqi dinars, except for:

   a. Ongoing contracts related to foreign grants and loans, which will continue in line with the terms of the respective loan or grant agreements.

   b. Contracts to be initiated after the enactment of this decision for grants, foreign loans, and agreements will adhere to the agreement's terms, allowing for a currency other than the Iraqi dinar if specified, considering the guidance in the Ministry of Finance letter dated April 27, 2023.

2. The beneficiary party is permitted to open a letter of credit for importing materials from outside Iraq for the contracted project.

3. The beneficiary party has the authority to transfer foreign workers' salaries, project-related company dues, and profits in foreign currency, adhering to the guidelines set by the Central Bank of Iraq.

 The Cabinet approved the recommendation of the Ministerial Council for the Economy (230272) as follows:

1. The Ministry of Finance will contribute one million dollars, disbursed in two equal installments in 2024 and 2025. The payments will be in cash, with the first installment due on April 15, 2024.

2. The Ministry of Finance is contributing to the Special Program to Strengthen the Crisis Response Window (CRW).

3. The Minister of Finance, in her role as the Governor of Iraq in the International Development Bank group, will finalize the necessary procedures upon the issuance of the Cabinet's decision.

Due to water scarcity conditions and the necessity to address torrents, floods, and harvest water this winter, the Cabinet has sanctioned the allocation of 25 billion dinars from the Ministry of Finance to the Ministry of Water Resources. This funding is designated for the maintenance of minor irrigation projects, dams, and drilling machinery.

The Cabinet endorsed the recommendations from Diwani Order Committee (65 of 2022) concerning the establishment of suitable irrigation fees for agricultural lands. This decision, based on the Ministry of Water Resources minutes dated October 15, 2023, will be implemented in upcoming seasons. The Legal Department's opinion in the General Secretariat of the Cabinet, with specific attention to Ministries of Trade and Agriculture, will be considered, particularly in relation to paragraph (5) of the recommendations.

 In light of the directives of the Prime Minister to support the agricultural sector and mitigate the effects of severe water scarcity, the Cabinet approved the following:

1. The Ministry of Planning has allocated the Iraqi side's share of 15% of the loan amount for the project involving modern irrigation techniques. The corresponding amounts have been determined in the budget for the next year, 2024.

2. Approval has been granted for a 2.5% commission for the Agricultural Equipment Company, a department of the Ministry of Agriculture. This aligns with the existing commission structure in the project involving modern irrigation and mechanization techniques within the Ministry. The commission adheres to the price policy controls for pricing goods imported from outside Iraq, approved by the Cabinet's Economic Affairs Committee, as per its letter dated August 24, 2008.

 3. The Ministry of Agriculture has entered into a contract with the Austrian company BAUER, taking into account the opinion of the Legal Department in the General Secretariat of the Cabinet.

The Cabinet approved contracting with the Ministry of Industry for irrigation systems. The Ministry of Agriculture is exempt as per:

1: Article 3 of the Government Contracts Instructions (2 of 2014).

2: Exemption is granted based on Article 7/First of Section Three of the instructions to facilitate the implementation of the Federal Budget Law for three years.

3: The Ministry of Industry has financial authority to negotiate prices, quantities, and specifications with the Ministry of Agriculture, with a limit of 100 billion dinars.

4: Additional support of 30% is included.

The Cabinet in the air transport and aviation sector approved the following:

1. The separation of the Iraqi Airports Administration from the Iraqi Civil Aviation Authority, linking it to the Ministry of Transport/Navigation Services Company, and renaming it to (The General Company for Airports and Air Navigation) as per Article 47/Second of the Federal Budget Law for the fiscal years (2023 - 2024 - 2025).

2. The General Company for Airports and Air Navigation is to amend its bylaws and founding statement to align with its missions.

3. Transfer of assets from Iraqi airports linked to the Civil Aviation Authority to the General Company for Airports and Air Navigation, along with the transfer of workers' services to this company.

4. The General Company for Airports and Air Navigation will assume the role of the Civil Aviation Authority in fulfilling technical, legal, and financial obligations, with consideration of comments from the Legal Department in the General Secretariat of the Cabinet.

5. Establishment of a joint committee involving the Ministry of Finance, the Ministry of Transportation, the Board of Advisors, and the Civil Aviation Authority to execute the decision and address its financial, legal, and technical decisions.

The Cabinet made the following decisions on various agenda items:

1. Approval of the bill for Iraq's ratification of Protocols amending Articles (50/A) and (56) of the Convention on International Civil Aviation (Chicago Convention) of 1944, forwarded to the Parliament in accordance with the Constitution.

2. Inclusion of Almunthrya border crossing in Diyala Governorate and Arar border crossing in Anbar Governorate to Paragraph (3) of Cabinet Resolution (23111 of 2023) for importing fertilizer.

3. Approval of the bill on compensation for those affected by the ousted dictatorial regime, submitted to the Parliament, considering constitutional provisions and Legal Department opinion.

4. Approval of the bill of securities, forwarded to the Parliament, in accordance with constitutional provisions and Legal Department opinion.

5. Authorization for the Minister of Transportation to negotiate and sign a memorandum of understanding on the Development Road between the Republic of Iraq and the Republic of Türkiye, based on Treaty Contracting Law (35 of 2015), considering the recommendation of the Legal Department in the General Secretariat of the Cabinet.