The Cabinet holds the 8th regular session, including decisions

INA - BAGHDAD

The Cabinet held on Tuesday, the 8th regular session chaired by PM Muhammed S. Al-Sudani as the session included decisions.

The session covered discussions on the country's overall situation, various service, economic, and social matters, as well as deliberations on agenda items, leading to necessary decisions being made, according to a statement by the PM Media Office, received by the Iraqi Media Agency- INA.

The Cabinet issued decisions aimed at expediting the completion of long-delayed projects and resolving issues hindering their progress as it issued the following: 

First/Approval of the following: 
1. The reserve fund for the project (construction of a 100-bed hospital in Safwan district) is increased by 6.811% to reach 16.81%, up from the previous 9.999%. 
2. The total cost of the project is now set at 52,953,041,924 dinars, reflecting a 6.027% increase from the previous total cost of 49,942,711,000 dinars. 
3. The Change order for the airstrip designated for critically ill cases was not included in the project cost increase due to its absence from the recommendations of the committee. 
4. Basra Governorate bears responsibility for ensuring the accuracy and validity of the data submitted to the Ministry of Planning, as well as the appropriateness of prices. 
5. Basra Governorate is urged to exercise caution in preparing bills of quantities for future projects.  

Second: 
1. The reserve fund increased by 8.5348% to reach 14.819%, up from the previous 6.2847%, for the change order executed for the component involving the implementation of the water transmission line, Administration and Economy Street, Sinalco Street, Olympia Street, and Najibiya.  
2. The total cost of the main project increased by 7,038,716,553 dinars, reaching 99,863,095,093 dinars from the previous 92,824,378,540 dinars. This represents an increase of 8.9559% on the adjusted cost and 27.0647% on the approved cost of the main project. 
3. Basra Governorate is penalized for implementing change orders totaling 6.2847%, despite the available reserve fund after referral being 5.202%, which falls outside the governorate's jurisdiction. Additionally, the Ministry of Planning was not informed of the cost adjustment at the time.
4. Basra Governorate is urged to prioritize accuracy when preparing bills of quantities for projects and to consider future expansions.

Third: 
1. The reserve fund for the project, focusing on the construction of the Tal Afar University Presidency Building, is increased by 55.480%, rounded to 65.5%, from the initial 10%. 
2. The total cost of the main project mentioned in the previous paragraph has increased by 1,441,768,496 dinars, totaling 4,441,768,496 dinars, which represents a significant increase of 48.058% from the initial 3 billion dinars. 
3. Nineveh Governorate has been found in violation for issuing change orders without specifying a financial ceiling in the contract, thus exceeding the limits set by the Ministry of Planning.

Fourth: 
1. The reserve percentage for the contract concerning the rehabilitation and development of the Kirkuk Olympic Stadium, turnkey components, is increased by 24.62% after the approximate implementation of two change orders, totaling 49.62% instead of the initial 25%. 
2. The total cost of the project for the rehabilitation and development of the Kirkuk Olympic Stadium, under a turnkey contract, is adjusted to 38,856,846,460 dinars, marking a significant increase of 15.99% from the adjusted total cost and 159.04% from the initial approved cost. 
3. The Ministry of Youth and Sports has been found in violation of contractual obligations by committing to project expenses exceeding the total cost without securing the necessary approvals.

Fifth: 
1. The total cost of the Kut Water project has increased by 33,045,423,530 dinars, reaching a new total of 157,016,423,530 dinars instead of the previous 123,971,000,000 dinars. This represents a notable increase of 26.66% from the adjusted total cost and a substantial 96.27% from the initially approved cost. 
2. A violation is recorded against the Ministry of Construction, Housing, Municipalities, and Public Works for allocating supplementary works to the project beyond the total cost without obtaining necessary approvals from the Ministry of Planning. Additionally, one of the change orders was executed within the authority of the contracting party at the time, with a reserve percentage of 10% calculated according to the instructions and powers for implementing investment project expenditures for the year 2012. Despite this, the percentage of executed change orders amounted to 7.62% of the cost, indicating a violation in addressing the situation. 

Sixth: 
 1. The total cost of the project to establish a water project with a capacity of 1,200 cubic meters per hour, including a transmission line to supply Soub Al-Shamiya suburbs in the city of Nasiriyah, has increased by 5,998,249,000 dinars, marking an 85.7% increase. This rise is attributed to the addition of a processing component and the extension of water transmission lines to supply water to the tourist city of Ur and Nasiriyah Civil Airport. 
2. The project mentioned in Paragraph (1) is renamed to "Establishing a water project with a capacity of 1,200 cubic meters per hour, featuring two water transmission lines to supply the areas of Soub Al-Shamiya in the city of Nasiriyah, the tourist city of Ur, and the airport of Nasiriyah." This change aligns with the project's scope of work.