Baghdad-INA
During its session held today, Monday, the Cabinet issued a number of decisions, including increasing the fees for examining gold jewelry to 350,000 dinars per kilogram, and obligating all scrap owners to obtain certificates of freedom from radioactive materials, issued by the competent authorities.
The Prime Minister's Media Office said in a statement received by the Iraqi News Agency (INA): that "Prime Minister Mohammed Shia Al-Sudani chaired the fifty-third regular session of the Cabinet, during which the general conditions in the country were discussed and a number of important files and priorities of the government program were discussed, in addition to discussing the topics included on the agenda and taking the necessary decisions regarding them."
In response to the demands of the residents of Al-Sadiq District in northern Basra Governorate, the Prime Minister directed the allocation of urgent funds for the implementation of quick service projects in the district, resolution of land allocation issues for building schools, initiation of hospital construction, and completion of main and secondary roads connecting the district to the governorate. The Prime Minister also instructed ministries to expedite the implementation of previous Council of Ministers decisions regarding Al-Sadiq District and northern Basra areas.
As part of follow-ups on Ministry of Electricity projects, the Council of Ministers approved granting the Minister of Finance, or an authorized representative, the authority to sign the loan agreement to fund combined-cycle projects for the Kirkuk Gas Power Plant. This loan will be guaranteed by the Export–Import Bank of the United States (US EXIM Bank), in accordance with the provisions of the three-year Federal Budget Law and the principles of energy cooperation in Iraq. The Council of Ministers also approved the financing terms outlined by the Ministry of Finance.
In the oil sector, the Council of Ministers approved the recommendation of the Ministerial Energy Council regarding the construction of the Basra-Haditha oil pipeline with a capacity of 2.25 million barrels, as follows:
1. Approval of the contract between Basra Oil Company and the Oil Projects Company, amounting to 5.97225 trillion dinars, funded within the framework of the Iraq-China agreement.
2. Approval of the recommendation by the Central Committee for Review and Approval of Awarding in the Ministry of Oil to award the procurement order for the Basra-Haditha crude oil pipeline at a reduced cost of 1.6205 trillion dinars, which is 5.5% below the estimated cost. The pipeline will be 56 inches in diameter, 685 kilometers long, and 22 millimeters thick, made from reliable materials. All materials will require approval from the Ministry of Oil prior to manufacturing, with a delivery period of 720 days. The project will be included in the operational budget of the Oil Projects Company before awarding.
3. Exemption of the mentioned contract and award from Government Contract Execution Instructions (No. 2 of 2014) and the attached controls.
In the same context, the Council of Ministers followed up on the Karbala Refinery operation file and approved the following:
1. Exemption of the Ministry of Oil/Midland Refineries Company – Karbala Refinery from the contracting methods stipulated in Government Contract Execution Instructions (No. 2 of 2014) to contract with Rowwad-Elqemma Company for one year, renewable for one additional year, at an estimated cost of 180 million dollars per year. The contract includes operational, laboratory, maintenance, and safety responsibilities, as well as the training and gradual transfer of operation to local staff during the contract period. Notably, the previous South Korean contractor charged 219 million dollars annually without including safety and laboratory responsibilities.
2. Formation of a management team from the Midland Refineries Company to oversee the operation of the Karbala Refinery. This team will be led by the company's general director and include eight senior staff members from the Midland Refineries Company and Karbala Refinery. The team will be granted financial and contractual authority, exempt from the contracting methods outlined in Government Contract Execution Instructions (No. 2 of 2014) and associated regulations.
The Council of Ministers approved including the rehabilitation of the shrine of Sayyid Muhammad ibn Imam Ali al-Hadi (peace be upon them) as an exception to listing requirements, with an annual allocation of 1 billion dinars transferred from the Ministry of Planning’s infrastructure projects. The overall cost will be determined in coordination with the Ministry of Planning and the Shiite Endowment Diwan, with the Ministry of Finance recording it in the 2024 budget projects.
The Council of Ministers also followed up on the resolution of direct-execution projects in Salah al-Din Governorate, approving recommendations by Diwani Order Committee No. 24 of 2024. It emphasized adherence to procedural measures for settling project accounts, provided that projects are funded within the governorate’s regional development allocations. The Commission of Integrity will continue its investigations in coordination with the Ministry of Planning, Salah al-Din Governorate, and beneficiary entities to explore options for completing projects.
The Council of Ministers approved several decisions to address infrastructure projects and delayed initiatives:
1. Re-listing the 100-bed hospital project in Al-Shinafiyah, Diwaniyah Governorate, with updated costs after removing the old-cost project.
2. Increasing the cost of rehabilitating the K3 pumping station in Haditha and introducing a complementary works component under the Ministry of Oil's projects.
3. Increasing the total cost and contingency allocation for constructing the Federal Board of Supreme Audit’s Second Region Audit Department building.
4. Increasing the estimated cost for the construction of Al-Aziziyah concrete bridge in Al-Aziziyah District.
5. Increasing the total cost and contingency allocation for constructing the 200-bed hospital in Abu Al-Khaseeb District.
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