WASHINGTON, April 16, 2007 –The World Bank, represented by Daniela Gressani, Regional Vice president, Middle East and North Africa, and the Government of Iraq, represented by Minister of Finance Baker Solagh Jabr Al-Zubaidi, signed a credit agreement today to finance the Emergency Electricity Reconstruction Project. The credit amount is US$124 million. 
The project's objective is to restore the base load generating capacity of Units 2 and 3 of the Hartha Power Station to 400 MW. The project will also help lay the groundwork for improved power system planning by building the capacity of the Ministry of Electricity to prepare, implement, and operate current and future projects. “We are delighted to sign this project agreement today. This is an important project that addresses one of the constraints to the Iraq economy by supporting electricity services. We hope that this project is implemented and delivered without delays in order to help Iraq provide a reliable supply of electricity to the entire population”, stated Daniela Gressani. The project was approved on March 29, 2007 by the World Bank’s Board of Executive Directors.The overall project cost is estimated at US$150 million. The World Bank's credit of US$124 million is on standard IDA (International Development Association) terms with no interest, 35-year maturity, a 10- year grace period, and 0.75 percent service charge. The credit is accompanied by counterpart financing from the Government of Iraq of US$20 million and through parallel funding of US$6 from the World Bank-administered Iraq Trust Fund on grant terms. “We are grateful to the World Bank for the support it is providing. This is the 4th IDA project that we sign with the World Bank and we look forward to the implementation of this project which will help our people in addressing a major constraint in their daily lives” concluded Mr. Al-Zubaidi at the signing ceremony. For more information on the World Bank’s work in Iraq, visit www.worldbank.org/iq and www.irffi.org |
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