IFC, Iraq partner on port + energy projects: Iraq tapped the International Finance Corporation (IFC) to back some USD 620 mn (c. IQD 812 bn) worth of investments in Iraq’s port and energy sectors, according to a press release. The backing comes as part of IFC’s commitments to projects totaling USD 1 bn in investments — also covering housing resiliency, manufacturing, health, and food security.

Here’s a rundown of the notable projects:

#1- The IFC is leading, arranging, and syndicating a USD 500 mn loan to support a gas flaring reduction project by Basra Gas Company, the press release said. The project will capture associated gas — a byproduct of crude oil extraction — and will be based at Umm Qasr Port, according to a statement by the Iraqi Prime Minister's Office. The funding builds upon an initial IFC loan of USD 360 mn announced back in 2021. A timeline for the project has not been disclosed.

On Basra Gas Co: Established in 2013, Basra Gas is a 25-year JV between Iraq’s South Gas Co., Shell, and Mitsubishi, according to its website. Its main activities include capturing and processing natural gas produced from oilfields instead of flaring it.

#2- Umm Qasr gets a USD 120 mn upgrade: The IFC has partnered with Aloreen Company for Investment — with USD 120 mn in financing — to better support new container handling equipment and expand yard capacity at Iraq's Umm Qasr Port, the press release said. This will be carried out in partnership with Mediterranean Shipping Company’s subsidiary Terminal Investment Limited.

On Aloreen Co. for Investment: Established in 2013, Aloreen operates a multipurpose terminal in Umm Qasr Port and has been doing so under the commercial name Basra Multipurpose Terminal (BMT), according to its website. In 2021, BMT secured a USD 125 mn financing package led by the IFC to establish a container terminal, two new berths, and increase its handling capacity.

#3- Trade finances get a piece too: IFC has partnered with the Bank of Baghdad to open a USD 10 mn trade finance line under its Global Trade Finance Program, the press release said. This will enable Bank of Baghdad to connect with international partner banks, facilitating cross-border trade and helping improve the availability of vital goods.

IFC’s been active in Iraq: The IFC is acting as a transaction advisor for the Iraqi government on a public-private partnership project to rehabilitate, expand, finance, operate, and maintain Baghdad International Airport. The IFC’s most recent investment push in Iraq brings its commitments in the country to more than USD 2.5 bn since 2005.

Tags: