The Cabinet holds the 49th regular session, decisions included

INA - BAGHDAD

The Cabinet held the 49th session on Tuesday chaired by PM Muhammed S. Al-Sudani. 

The session included discussions on general developments in the country, a review of key issues, and follow-up on their implementation. The Cabinet also addressed agenda items and made the necessary decisions, according to a statement by the PM Media Office - received by the Iraqi News Agency - INA.

Al-Sudani addressed recent regional developments, particularly in Syria, which he emphasized as a matter of national security for Iraq. He highlighted the government’s ongoing efforts since its formation to enhance the readiness of security forces and strengthen the Iraqi borders.

The Prime Minister stated that he conducted a series of communications with leaders of several countries regarding the situation in Syria to support regional stability and prevent further escalation, especially given the ongoing Zionist war crimes for over a year, highlighting the importance of coordinating positions with friendly and neighboring countries to avoid a deeper crisis in Syria.

The Cabinet proceeded with its agenda and issued several decisions, including:

1. Declaring Tuesday, December 10, 2024, a public holiday for all ministries and government institutions in celebration of Victory Day and the liberation of Iraq from ISIS terrorist gangs.
2. Approving free flights to Beirut to transport Lebanese citizens wishing to return to their homeland, in accordance with the Prime Minister’s directives.
To address security challenges and mitigate risks, the Cabinet approved the following:
1. Allocating 31 billion dinars from the emergency reserve to the Ministry of Interior.
2. Directing the Ministry of Planning to urgently include a project for developing Iraq’s western border protection, including constructing a bridge over the Euphrates River, exempting it from standard procedural requirements.
3. Authorizing the Ministry of Interior to implement the project, exempting it from Article (3) of Contracting Execution Instructions No. 22 of 2014, and awarding the project to a company through direct contracting.

The Cabinet approved instructions for overtime pay based on Article 17 of the State and Public Sector Employee Salaries Law No. 22 of 2008 as follows:

• Regular Overtime Pay:
• 5,000 dinars per hour for employees in grades 1–4.
• 4,000 dinars per hour for employees in grade 5 and below.
• Overtime Pay on Weekends or Official Holidays:
• 6,000 dinars per hour for employees in grades 1–4.
• 5,000 dinars per hour for employees in grade 5 and below.

Ministers and heads of non-ministerial entities may assign 10–20% of employees to work outside regular hours, weekends, or holidays. The Ministry of Finance will issue the relevant instructions.

As part of the government’s efforts to advance Al-Faw Grand Port and its associated projects, the Cabinet approved including the naval base at Al-Faw Grand Port under Cabinet Decision No. 63 of 2019, amended by Decision No. 220 of 2020. This ensures necessary infrastructure to secure the port during operations and enhance control at the Khawr Abdullah inlet and Iraq’s territorial waters.

The Cabinet approved assigning South Gas Company to establish a fixed platform for importing liquefied natural gas and authorized the following:

1. Coordinating with the State Company for Iraqi Ports to determine the platform location, gas storage sites, and required specifications, and negotiating with the Ports Company to prepare the site (excavation, backfilling, and pier construction).
2. Authorizing the Ministry of Oil to invite qualified global companies for direct contracting.
3. Engaging KBR, under its contract with the Ministry of Planning, as a consulting firm for the project and related organizational and contractual matters.
4. Tasking the Cabinet Affairs and Committees Department at the General Secretariat of the Cabinet to monitor the implementation of this decision and submit regular reports to the Prime Minister.

The Cabinet approved the following measures:

1. Exempting the Ministry of Electricity from the requirements of the Federal Budget Law Instructions (No. 13 of 2023) concerning the advance payments stipulated in the contracts for Khawr Al-Zubair and South Baghdad Gas Power Plants (1). This exemption will enable the ministry to provide initial operational advances to activate these contracts, essential for converting the plants from simple cycle to combined cycle to enhance the power grid.

2. Requiring the contractor for the mentioned projects to provide an unconditional bank guarantee issued by an accredited bank, equivalent to the initial cash advance, in accordance with Government Contracts Implementation Instructions (No. 2 of 2014).
The Cabinet approved the adoption of regulations for projects exempted from public announcements and competition, as outlined in the letter from the National Investment Commission dated November 19, 2024. However, the Cabinet excluded clause (2) based on recommendations from the Legal Department of the General Secretariat of the Cabinet, while considering observations from Cabinet members during the session.

Additionally, the Cabinet voted to amend Article (of the Regulation for the Sale and Lease of State and Public Sector Real Estate for Investment Purposes (No. 6 of 2017, as amended), by adding a new clause (Third). This clause maintains the validity of Regulation (No. 7 of 2010) both before and after its amendment for investment projects licensed under its provisions.

The Cabinet approved the recommendation of the 16th meeting of the Sovereign Guarantees Initiative Committee, held on November 3, 2024, concerning private-sector industrial and agricultural projects financed by the Japanese loan. The approval is subject to the following conditions:

• Projects must comply with sovereign guarantee issuance regulations, with guarantees provided individually for each project.
• The Trade Bank of Iraq (TBI) will finance the approved projects from the Japanese loan in accordance with the loan agreement with the Japan International Cooperation Agency (JICA).

The Cabinet approved the following measures to complete delayed or halted projects:

1. Increasing the contingency allocation for the demolition and reconstruction of Al-Hussein Mosque in Saqlawiyah, Anbar, while reducing the project’s overall cost.
2. Adding a component for rehabilitating the within the framework of the “Production of Communication and Power Equipment” project, listed under the Ministry of Industry and Minerals’ investment budget. This also involves increasing the project’s overall cost to accommodate these updates.

The Cabinet approved exempting the project for demolishing, rebuilding, and furnishing 38 schools in the city of Kadhimiyah from the contracting methods stipulated in the Government Contracts Implementation Instructions (No. 2 of 2014), to expedite the completion of this critical educational infrastructure project.

The Cabinet agreed to exempt the Shia Endowment Office from the provisions of Facilitation Instructions (No. 1 of 2023), which were issued to implement the Federal Budget Law (No. 13 of 2023). This exemption will allow the office to contract with Al-Rasheed Hotel to accommodate delegations participating in the Iraq International Quran Recitation and Memorization Competition.

The Cabinet endorsed the report on Minamata Convention on Mercury Initial Assessment MIA, prepared by the Ministry of Environment. Observations made by Iraqi authorities were taken into account, with a timeline set for stakeholders to provide their feedback for inclusion in the report. The final report will be submitted to the Minamata Convention Secretariat for approval as Iraq’s official national report.

To streamline Iraq’s agreements on international taxation, the Cabinet decided to revoke several previous resolutions regarding double taxation avoidance agreements and prevention of tax evasion on income and capital with the governments of the following countries:

• Czech Republic
• Slovakia
• Romania
• Senegal
• Azerbaijan
• Armenia

The canceled resolutions include:

• Resolution No. 298 (2014)
• Resolution No. 17 (2015)
• Resolution No. 32 (2017)
• Resolutions No. 19 and 39 (2020)
• Resolution No. 101 (2022)

The cancellations aim to align Iraq’s agreements with its current priorities and legal frameworks.