37 foreign companies to invest in Iraq cancels contracts

Writings Saturday September 26 0.2015

Iraqi government sources revealed the withdrawal of 37 foreign investment company after the cancellation of its contracts signed with the Iraqi government in 2013 and 2014 include tourism and industrial projects and agricultural different up to a total cost of $ 2.8 billion.
A senior Iraqi official national investment body of the Iraqi Council of Ministers that 37 companies, including three American British and one West European and remaining Asian and Arab, canceled investment contracts preliminary signed with Iraq for tourism projects, agricultural, industrial and other related oil and gas sector and the construction of housing complexes and a network for water desalination in Basra .
He said the Iraqi official, who asked not to be named, that led negotiations, the government recently with representatives of a number of those companies failed to persuade them to return because of the deteriorating security situation and the relaxation of regular troops grip on the security of the capital, file, and aggravated that the abduction of workers of the Turkish company of a sports stadium east of Baghdad, noting that the value of investments in those companies amounting to $ 2.8 billion.
For his part, said a member of the Investment Committee and the development of Iraq's parliament, Mohammed Majid, in a newspaper that the investment movement of Arab and foreign companies have stopped almost entirely in Iraq, and the situation is currently limited to the statements of some local investors. Mohammed added that 'Daash organization seeks to expel Western oil companies in Iraq through repeated shelling plants, oil fields and export lines, and this in itself is a serious challenge and cost the state large sums of money currently in securing the protection of foreign workers'.
In the same context, Iraq Stock Exchange adviser, Ali al-Saadi, the government demanded power of attorney international lawyers to sue companies withdrawing. He explained that these companies breached the initial contract and pulled out of the projects that have been agreed upon under the pretext of security factor, and there are companies that were competing with it if it was agreed to withdraw, noting that some of these projects is vital to the Iraqis.
The Iraqi Investment Authority has announced the end of last month, the formation of a higher committee to follow up on delayed projects by companies. This comes in conjunction with the statement of the Council of the Iraqi capital Baghdad Secretariat, released last week, he confirmed the stop 10% of the investment projects in the capital alone, and more than 40% late project, out of the project in 1000 because of the financial crisis in the country and upset the security situation. Showed Iraqi draft budget for 2016, the Ministry of Finance proposes to balance the size of 113.5 trillion Iraqi dinars (99.65 billion dollars), with a deficit of 29.4 trillion dinars (25.81 billion dollars). Iraq and reduce public expenditure in the draft budget estimates for the next year, up 41% from the estimated expenditure for the current year, under pressure from the oil crisis that toppled more than half of its revenues.