Iraq secures US$195mn loan from Japan for power project

thermal Erdenebayar pixabayJapan will lend Iraq up to US$195mn for a project to help repair a thermal power station in the southern province of Basra, an Iraqi government statement said

“Though Iraq is a major OPEC oil producer, the country faces chronic electricity shortages, with its fragile grid struggling to meet demand after years of war, sanctions and neglect,” it added.

The loan was signed during a visit to Iraq by Japan’s state minister for foreign affairs, Kentaro Sonoura, who met Prime Minister Haider al-Abadi recently, the Prime Minister Office said in a statement, according to Reuters.

Iraq needs external financing to plug a budget deficit of approximately US$21.44bn for this year as it grapples with lower global oil prices and costs associated with the fight against Daesh, the agency added.

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