«Planning» recognizes controls projects in 2016 budget
November 23rd, 2015

Baghdad's new morning:
The Ministry of Planning, on Monday, all controls and mechanisms for the implementation of new and ongoing investment projects manner postpaid and to be adopted within the next year's budget in 2016.
He said ministry spokesman Abdul Zahra al-Hindawi said in a press statement, 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 is for projects developed in accordance with Article 26 of the Budget Law for 2015 taking into consideration the ongoing projects in the draft 2016 budget and included a text referring to the subject.
He said the funding for 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.
Hindawi pointed out that the interest rate for financing on credit must not be more than 6 percent and is calculated on the basis of disbursements of all loan and not on the basis of the total amount, and 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 «the 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 that the company should be willing to provide funding three Offers (commercial, technical and funding)».
He added that «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 be included in the investment budget of the Ministry of Planning.»
He explained that «the funding will also include any other new projects meet the listing requirements and ratified by the Council of Ministers.»
The spokesman for the Ministry of Planning that the inclusion of continuous Order-term projects will 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 party, and that no less than the physical completion of the project the proportion of 50 per cent as well as cases in which approved by the Council of Ministers.
Will be 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.
He concluded his statement by saying that Hindawi projects that determine within this technique will be presented to pay for the implementation of projects on credit of the Supreme Committee for approval and submit it to the Cabinet for approval.
And The Ministry of Planning and Development Cooperation in the middle of this month, the number of projects to be funded on the method of payment on credit in a number of provinces of the country, to 22 new and ongoing projects.