PM Advisor details government decisions supporting industrial projects

INA - BAGHDAD

PM Advisor for Industry, Development and Private Sector Affairs, Hamoudi Al-Lami, detailed on Friday the most prominent government decisions and privileges granted to industrial projects, while confirming that Iraq has achieved self-sufficiency in reinforcing steel and cement.

"The recent decisions of the Cabinet granted many privileges to owners of industrial projects. The Prime Minister confirmed that Iraq is about to establish industrial cities in Baghdad and all governorates, as the cities will need large quantities of construction materials that include reinforcing steel, cement, bricks, paints, pipes, and others," said Al-Lami to the Iraqi News Agency - INA.

He highlighted, "The Prime Minister directed industrialists to seize the opportunity of government support and decisions taken by the Cabinet, as to race against time, considering that some projects have already started and other projects will be launched after completing the legal procedures by contracting with the implementing agencies." 

"Among the government decisions that were taken is that the customs duty be 5 per thousand on raw materials, production lines, supplies and everything related to expanding existing production projects, which is a number close to zero, and it will be a major factor in supporting industrialists and their products," he included.

Al-Lami stressed that "there is another decision that industrialists have benefited from related to the rent allowance, considering that most projects are built on leased lands that belong to the state. The decision obligated the Ministry of Construction, Housing, Municipalities and Public Works as well as the State Real Estate Department to collect reduced rents for the lands on which industrial projects are built."

"Among the decisions is also obligating all government banks to lend to owners of industrial projects to establish the project or expand the project or by guaranteeing the project's assets. A committee was formed in the Advisory Board to prepare a mechanism for implementation in the coming few days, in addition to providing petroleum derivatives, as the projects need petroleum derivatives to operate them and those obstacles have been resolved," he explained.

Regarding industrial production capabilities, he pointed out that "Iraq has achieved self-sufficiency in reinforcing steel, as the current capacity is 5 million and 120 thousand tons, while the need does not exceed 4 million and 400 thousand tons. There are new projects that will produce 3 million and 250 thousand tons. Iraq has also achieved self-sufficiency in cement, as 17 factories produce about 45 million tons, while the actual need reaches 35 million tons, meaning that there is a surplus of up to 10 million tons."

"We also have 15 factories under construction that will double production after completing them to higher numbers. PM Al-Sudani stressed an important point, which is the expansion of projects, considering that Iraq is approaching projects and those projects need more materials," he concluded.