2024.11.18
On November 17, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Iraq in Baghdad, to provide Japanese ODA loan for the Basrah Refinery Upgrading Project (VI).
Signing ceremony
Outlines on the project are provided as below.
Terms and Amount of Loan
・Project Title
Basrah Refinery Upgrading Project (VI)
・ Country (Target Areas)
The Republic of Iraq
（Basrah City in the Governorate of Basrah）
・ Project Objective
This Project aims to improve the quality and productivity of petroleum products, reduce the supply-demand gap, decrease the environmental load, and transfer related technologies, by installing a new fluid catalytic cracking (FCC) Complex with relevant units at Basrah Refinery in Basrah Governorate in the southern part of Iraq, thereby contributing to economic and social reconstruction in Iraq.
・Project Component
１）Construction of FCC Complex
２）Consulting Services
・Maximum Loan Amount
60,040 million Japanese Yen
・Annual Interest Rate
Project:0.2%, Consulting Services:0.01%
・ Repayment Period
40 Years
・Grace Period
10 Years
・Procurement
Japan Tied
・ Executing Agency
Ministry of Oil
・Contribution to SDGs
Goal 7 (Affordable and clean energy)
Goal 9 (Industry, innovation and infrastructure)
・ Planned Implementation Schedule
1. Completion of the Project: December 2025, when the facilities are put into service
2. Issuing of letters of invitation for consulting services (including detailed design work): already hired
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction: already procured
Package for EPC
＜STEP＞
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and Japanese technology, Japan’s advanced technical know-how and engineering skills will be utilized at the FCC complex being constructed under the project.
* STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.
Sns share!
scroll