Planning launches controls on credit financing for investment projects within the 2016 budget

By Mohammed Emad

23/11/2015 10:30

Brother - Baghdad
Launched the Ministry of Planning, on Monday, controls and new mechanisms, especially the implementation of investment projects in a manner of payment term, which will be adopted within the next year's budget in 2016.

He said ministry spokesman Abdul Zahra al-Hindawi said in a statement received for News Agency (et) a copy of it today, that "the representatives of the Ministries of Planning and Finance, and in consultation with the Economic Adviser to the Prime Minister acknowledged the controls that will be adopted in the implementation of projects on credit, which stressed that the implementation of projects in this way be Projects developed in accordance with Article 26 of the Budget Law for 2015, taking into account the ongoing projects in the draft 2016 budget and included text refers to this subject. "

He said the "funder of the project's commitment to the total amount of funding will continue until the end of the project and its consequences in the event of any breach of the contract between the two parties items, taking into account the commission that the commitment agreed by the parties."

He pointed out that "the interest rate for financing on credit must not exceed 6 per cent and is calculated on the basis of disbursements of all loan and not on the basis of the total amount, and that not less than the duration allowed for two years after the completion of the project as been identified for repayment of the loan to be between 3 minimum of 5 years and semi-annual installments. "

He pointed out that "bids to be submitted by funded companies must clearly indicate the interest rate and the duration of the repayment period to allow and as well as the necessity that the company is willing to provide financing offers three commercial -ffine {-} financing."

He Hindawi that "the financing on credit includes new projects in ministries and provinces in the service and production fields, including water and sewage systems, hospitals, roads, bridges, land reclamation and projects of agriculture and water resources projects, provided that these projects are included in the investment budget of the Ministry of Planning," adding that "funding will also include any other new projects meet the listing requirements and ratified by the Council of Ministers. "

He stressed that "the inclusion of ongoing projects Order term be according to the controls have been identified, including the commitment to a sequence of priorities for the type of project as well as projects of the same class and agreed between the Ministry of Planning and the implementing agency, and of not less than the physical achievement of the project the proportion of 50 per cent as well as cases approved by the Council Minister ".

He noted "the formation of a higher committee chaired by the Ministry of Finance and the membership of the Ministry of Planning and with the participation of the implementing agencies when needed for project approval, supervision and follow up the implementation of the loan," revealing that "the projects that define within this technique will be presented to the implementation of payment projects on credit of the Supreme Committee for approval and submit it to the Cabinet for approval it. "