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Iraq opens state firms to foreign investors
Better security in the country draw over 120 companies and consortia keen to bid for 10- to 15-year joint ventures.
- Reuters
- Published: 23:29 July 11, 2008
Amman: Iraq hopes by year-end to conclude production sharing deals with foreign firms to renovate 35 major state industries, including its sole petrochemical complex, the industry and minerals minister said.
Fawzi Al Hariri said better security in the country had drawn over 120 firms and consortia keen to bid for 10 to 15 year joint ventures that aim to revamp ailing industrial firms under an ambitious multi-billion dollar privatisation plan.
Al Hariri said foreign investor bids would be evaluated as soon as a July 31 deadline closes for international firms vying for six cement factories, a major petrochemical plant in Basra, an iron and steel facility, pharmaceutical, chemical, textile and other plants.
"We have had over 120 international investors from the US, Europe, Asia and the Arab Gulf who have sent expressions of interest and will submit bids soon," Hariri said in Amman.
"After shortlisting an average of three firms for every plant I hope to conclude these deals between October and end of December," he added.
For decades before the 2003 invasion, oil-rich Iraq had invested billions of dollars to set up a massive industrial base that once made it a major regional economic powerhouse.
Sanctions, which brought industries from petrochemicals to construction set up under Iraq's former command economy to a standstill, were worsened after the war by electricity shortages and rampant corruption, officials privately say.
Al Hariri said investors would be offered attractive terms such as production sharing percentages that offer them a bigger share than what the government gets to entice them to invest both technology and funds to restore idle capacity.
"We want investors to have a quick return on their investments and that is what will make most of them take the risk into coming into the Iraqi market," Al Hariri said.
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