Press Release

On December 28, 2022 in Baghdad, Mr. Kenichi Masamoto, Chargés d'Affaires ad interim of Embassy of Japan in Iraq, and Mr. Gen Yoneda, Chief Representative of Japan International Cooperation Agency (JICA) Iraq Office, signed Exchange of Notes and Loan Agreement respectively with H.E. Ms. Taif Sami Mohammed Al-Shakarchi, Minister of Finance of Iraq, for Upgrade of Basrah Refinery Project. The loan amount is JPY 120 billion.

The loan is the fourth tranche for the project, one of the mega projects of Japanese cooperation known in the region, with the concessional terms: the annual interest rate of 0.20% and the repayment period of 40 years including 10-year grace period.

For the same project, JICA previously concluded four loan agreements: (i) the engineering services in the amount of JPY 2,079 million, (ii) the first tranche in the amount of JPY 42,435 million, (iii) the second tranche in the amount of JPY 110,000 million, and (iv) the third tranche in the amount of JPY 30,000 million.

The project aims to increase the quantity and quality of oil products including gasoline, diesel and kerosene, by installing a new refining plant called Fluid Catalytic Cracking (FCC) Complex in Basrah Refinery. This project is regarded as a high priority project in line with the latest Government Program of Iraq to increase volume of the high-value added oil products, thereby energizing private sector involvement in the downstream of Iraq's energy industry and provide economic opportunities for the people of Iraq. The new plant will also reduce sulfur content in the products in accordance with the international environmental standards.

Since the commencement of the contract on October 2020, the project construction has progressed smoothly under the strong leadership of the Government of Iraq, South Refineries Company (SRC) and Japan Gasoline Company (JGC), a Japanese contractor with extensive international expertise in the sector.

JICA provides concessional loans, technical cooperation, and grant worldwide. For Iraq JICA signed 33 sovereign loan agreements, total amount of which is JPY 983 billion since Year 2008. The Agency has also provided the grant-based training programs for more than 10,000 Iraqi officials as well as several technical cooperation projects since 2003.