The Cabinet holds the 5th regular session, including decisions

INA - BAGHDAD

The Cabinet held the 5th regular session chaired by PM Muhammed S. Al-Sudani.

The meeting covered a comprehensive discussion of the country's general situation, a review of key files aligning with government goals and priorities, and deliberation on agenda topics, culminating in necessary decisions, according to a statement by the PM Media Office, received by the Iraqi News Agency - INA.

In commemoration of the Prophet's mission and the Night Journey and Ascension (Al Isra' wal Mi'raj), the Cabinet has decided to designate the 27th day of the month of Rajab in the Islamic calendar as a day dedicated to the Holy Qur'an. This initiative positions Iraq as the first country to recognize this day in the annual calendar, establishing it as a national and Islamic occasion. The aim is to celebrate the Holy Qur'an by promoting its blessed teachings across all Iraqi governorates.

Based on the directives of the Prime Minister in the field of charges for electronic payment transactions, the Cabinet approved the following:
1. The recipient incurs electronic payment charges from both private and public sectors, with no charges borne by the payer for electronic transactions. The government compensates 50% of the electronic payment charges paid by the recipient, encompassing merchants, employers, and all private sector entities. This compensation is exclusively applicable for settling obligations to the state through electronic payment, such as license renewals, tax payments, customs, fees, municipal charges, and electricity fees. Notably, this compensation cannot be redeemed in cash under any circumstances.
2. Set electronic payment charges at a percentage established by the Central Bank of Iraq, imposing a maximum limit. The charge amount, determined by the Central Bank, applies to both public and private sectors, with transactions exceeding this limit incurring no charges. Additionally, exempt small transactions in both sectors from charges up to a limit set by the Central Bank of Iraq.
3. Contracts executed according to the Cabinet decisions on electronic payments, namely decisions (23044 and 23620 of 2023), between state institutions and electronic payment companies, will remain in effect until December 31, 2024. Contracting institutions have the option to submit a justified request to the Central Bank of Iraq if they choose not to extend the agreements.
4. The decision will be re-evaluated in light of the results of the application before the end of this year 2024.
5. This decision will be implemented starting March 1, 2024.

In the realm of foreign relations, approval has been granted to authorize the Deputy Prime Minister, the Minister of Foreign Affairs, to negotiate and sign the draft partnership and cooperation agreement between the Government of the Republic of Iraq and the Government of the United Kingdom. This authorization aligns with constitutional provisions.

The Ministry of Foreign Affairs is tasked with preparing the necessary authorization document on behalf of the Government of the Republic of Iraq for the Minister of Foreign Affairs, adhering to approved contexts. The documentation will then be submitted to the General Secretariat of the Cabinet for the Prime Minister's signature, with consideration given to legal advice from the State Council, opinions from relevant ministries and authorities, and observations from the Legal Department in the General Secretariat of the Cabinet.

1. The Cabinet has endorsed the Ministry of Industry and Minerals' recommendations to reorganize imports and safeguard local products. Pursuant to the Iraqi Products Protection Law (11 of 2010), amended, a 60% customs duty will be imposed on printed and unprinted plastic bags (39232130) imported into Iraq from all countries for a four-year period, without reduction. Monitoring of the local market will be conducted throughout this period for additional customs fees.
2. The Ministry of Finance/General Authority of Customs will enforce the extra customs duty on the specified product. Periodic notifications regarding Iraq's imports of these products, additional customs duties imposed on foreign importers, and relevant details such as importer and exporting countries will be provided to the Ministry of Industry and Minerals/Department of Industrial Development and Regulation.
3. The Ministry of Industry and Minerals will consider the following factors: assessing the unjustified increase in imports compared to the past three years, evaluating the complaining company's ability to meet market demand without price inflation, and determining the necessity of protecting the national economy.
4. Regulatory authorities will review the impact of the additional customs protection on the imported product, with implementation set for 120 days from the date of this decision.

The Cabinet has granted authorization to the Ministry of Construction, Housing, Municipalities, and Public Works to finalize the new cities file. This includes signing the contract for Ali Al-Wardi Residential City Project with the designated implementing company. Additionally, the National Investment Commission has been instructed to issue an investment license for the mentioned city.

In the energy sector, the Cabinet has sanctioned a rise in the overall cost for the construction and rehabilitation of the electricity networks (Al-Rifai - Al-Fajr - Al-Qalaa) project by 821,621,000 dinars. Consequently, the new total cost is set at 3,706,621,000 dinars, constituting 28.4% of the approved cost. This increase represents 35% of the sanctioned cost, and the accuracy of the information provided to the Ministry of Planning is the responsibility of Dhi Qar Governorate.

In the ongoing oversight of school building initiatives, the Cabinet has given approval for two projects funded by the Federal General Budget Law No. 13 of 2023: the completion of the new Nasiriyah warehouse and model school buildings supported by the Chinese agreement.

The Ministerial Council for the Economy (24018) recommendations were endorsed:
1. Granting a 50% rent exemption, in accordance with Resolution (995 of 1985), to fish farm owners from 2019 to December 31, 2023.
2. Fish farm owners are excluded from exemption for compensated years due to damage, as per the Ministry of Agriculture's letter dated December 21, 2023.
3. The Ministry of Water Resources will collaborate with the Ministry of Agriculture to identify fish farms with unsustainable water quotas and terminate active contracts accordingly.

The Cabinet also approved the committee's recommendation formed under Diwani Order (22449) to establish a land data management center. The Ministry of Water Resources is tasked with finalizing establishment procedures and work requirements, while the committee will oversee the project until completion.

First,
To expedite the completion of key healthcare projects, the Cabinet has approved the following decisions:

1. Increased reserve funding for Al-Fadhiliya Hospital (200 beds) by 1.69%, amounting to 1,623,019,000 dinars, making the adjusted total cost 34.77% instead of 33.08%.
2. Increased reserve funding for Al Shaab Hospital (200 beds) by 3.75%, totaling 3,608,250,000 dinars, resulting in an adjusted total cost of 24.58% instead of 20.83%.
3. Increased reserve funding for the 400-bed Al-Hurriya Hospital by 2.68%, amounting to 4,627,139,600 dinars, adjusting the total cost to 22.549% from 19.86%.
4. Increased the total cost of the project (Al-Shaab and Al-Fadhiliya Hospitals - 200 beds each, Al-Hurriya - 400 beds, and Al-Numan Hospital 2011) by 9,858,408,600 dinars. The new change orders include a treatment station, lifting station, cooling system replacement, and display screens, resulting in a total cost of 555,819,399,956 dinars, an 11.997% increase over the approved cost.
5. The committees responsible for change orders in Baghdad Governorate and the Ministry of Health assume full responsibility for accuracy, data, prices, and specifications. The consulting company, research center, and consulting office disclaim responsibility for legal and contractual aspects, focusing solely on technical aspects, as the contract is executed as turnkey.

Secondly, the Cabinet has approved the following decisions:
1. Increased reserve funding for supervising the sewage project in Al-Shirqat, Baiji, and Al-Qadisiyah in Tikrit to 17.81%, up from zero.
2. Increased funding for the sewage project in the mentioned districts by 2,157,932,817 dinars, making the new total cost 14,641,932,817 dinars.
3. Increased the total funding for the sewage and rainwater sewer networks project, including lifting and pumping stations and treatment plants in Tooz, Baiji, Balad, Al-Sharqat, Tikrit, and Al-Qadisiyah. The study, designs, and implementation of treatment plants in Baiji and Al-Sharqat will cost an additional 2,157,932,817 dinars, bringing the total project cost to 562,348,401,248 dinars, reflecting a 12.61% increase over the total approved cost and a 0.39% increase on the total adjusted cost.

Thirdly, the Cabinet has approved:
1. Increasing the reserve funding for the contract involving the construction of the Land Hajj Road/First Phase (50 km) within the project stages (Construction of the Land Hajj Road - 239 km) to 34.9% from the initial 10% of the contract amount and the total project cost.

Fourthly, the following decisions were endorsed:
1. Increasing the reserve funding for the Nineveh Passenger Transport Station project to 33.61% from the previous 22.08%.
2. Increasing the total cost of the aforementioned project by 2,690,590,802 dinars to a new total of 31,903,014,884 dinars. This reflects a 27.61% increase over the approved cost and a 9.21% increase over the modified cost.

Fifth, the Cabinet has approved the following:
1. Establishment of a component for supplementary works at the Balad sewage treatment plant in Salah al-Din Governorate. The total cost is 14,451,935,564 dinars, including reserve amounts (7%) and supervision and control.
2. Increase in the reserve funding amount to 12,189,595,391 dinars, resulting in a reserve percentage increase of 100.5% instead of 7%.
3. Adjustment of the component's cost by the same amount as the increased reserve funding, making it 26,641,530,955 dinars instead of 14,451,935,564 dinars, reflecting an 84.34% increase.
4. Increase in the total cost of the Balad sewer treatment project by 12,953,180,249 dinars, bringing the new total to 37,953,180,249 dinars. This represents a 51.81% increase over the initial total cost.
5. The Ministry of Construction, Housing, Municipalities, and Public Works/General Directorate of Sewage System is responsible for the accuracy and validity of the information submitted to the Ministry of Planning, including prices and specifications.
6. Recognition of a violation by the Ministry of Construction, Housing, Municipalities, and Public Works for referring supplementary works without prior consultation with the Ministry of Planning for necessary approvals and updates to the total cost.