Activities in Iraq

Japanese ODA loan agreements totaling up to 240,396 million yen for ten projects (as of June 12, 2008) was signed by the former JBIC with the Government of the Republic of Iraq. These are the first Japanese ODA loan assistance supporting reconstruction in Iraq.

In the International Donors' Conference on the Reconstruction of Iraq held in October 2003 in Madrid, the Government of Japan announced financial assistance of up to $3.5 billion mainly by concessional Japanese ODA loans to meet medium-term reconstruction needs, in addition to $1.5 billion grant aid to be applied to immediate reconstruction needs. These Japanese ODA loans consisting of individual loans for ten projects, is part of the efforts made by Japan within the international community toward Iraqi reconstruction.

The people of Iraq are forced to live in a deprived environment, enduring the constant lack of basic infrastructure services, including electricity and water, high unemployment rate and high inflation. While the Iraqi economy has continued to register positive growth since 2003, the country is beset with a range of problems, from lagging recovery in crude oil output, through the exodus of skilled workers due to security concerns, to sluggish direct investment inflow. In particular, reconstruction and reforms in the oil sector pose the greatest challenge to broad-based economic recovery in Iraq, in view of the fact that the oil sector accounts for majority of GDP and government revenue and is practically the only source of foreign currency earnings.

The provision of these Japanese ODA loans was intended to help Iraqi people address these problems. Especially, it will support the development of social and economic infrastructure that provides the underpinnings of improved living conditions and economic growth, thereby contributing to reconstruction and peace-building in Iraq through medium- and long-term economic stability.

Japanese ODA loans to Iraq