Japanese US$2 billion power-plant loan to Iraq wins approval

Monday, 30 July 2012 08:04

A US$2 billion loan to finance the construction of a power station in southern Iraq from the Japan International Cooperation Agency (JICA) has won approval from the Iraqi government

According to the Kuwait News Agency, Iraq’s Ministry of Electricity spokesperson Musaab Al-Mudaras said that the department had asked JICA to complete a proposal it offered to finance the 1,800MW natural gas-powered electricity project in the Nassriya District.

JICA will now look to gain final approval of the loan from the Japanese government in order for the 48-month long construction project to start.

In addition to the power generation facilities, the JICA loan will fund the rehabilitation of transmission, substation and distribution facilities in the surrounding area.

JICA has played a significant role in the financing of projects across the Middle East in 2012, including a US$392mn loan to Egypt earlier this year to fund the construction of Cairo’s fourth metro line, and by providing US$2mn towards the construction of a fertiliser plant in Basra, Iraq.