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Iraq to borrow $10bln from China for reconstruction

Iraq has agreed to form a joint fund with China with a capital of $10 billion to fund post-war reconstruction projects, an Iraqi official was quoted on Monday as saying.

China will provide most of the funds while Iraq will supply it with 100,000 barrels per day of crude oil, said Mudhar Saleh, a cabinet adviser.

Quoted by the Iraqi Alittisad news network, he said the 20-year agreement provides for an increase in the capital and funds would be used in rebuilding war-damaged facilities, mainly the infrastructure, in Iraq.

“Chinese companies wishing to join the agreement will execute infrastructure and rebuilding projects selected by Iraq as per its own terms,” he said.

He did not provide further details of the agreement but Iraqi officials said in September the two countries agreed to set up such a fund during a visit to Beijing by Iraqi Prime Minister Adel Abdul Mahdi.

They said the fund would cover a large number of projects and would contribute to supporting the Iraqi economy with an emphasis on the development of its infrastructure that was badly damaged during the war.
Source: Reuters (Writing by Nadim Kawach; Editing by Anoop Menon)

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