Reconstruction adopts a new approach to finance stalled projects

Reconstruction adopts a new approach to finance stalled projects



17/8/2017 1:24 am

Baghdad / Wafa Amer The
Ministry of Construction, Housing, Municipalities and Public Works is preparing to adopt a new method of financing suspended projects, after the approval of the Council of Ministers, to complete the important projects by international companies, in return for giving profits after operating for a certain period, and revealed the suspension of 20 investment projects in the housing sector because of The financial crisis.
The Undersecretary of the Ministry, Engineer Dara Hassan Rashid said in an exclusive interview with «morning»: The financial crisis experienced by the country because of the decline in world oil prices, significantly affected the projects implemented by the ministry and included in its plans, noting that his ministry is trying as much as possible to accomplish the task In accordance with the budgetary allocations in the budget.
He added that his ministry has worked during the past period to find alternatives to finance the stalled projects, as it recently filed a request to the Council of Ministers, including funding BOT method, explaining that this method includes the assignment of important projects not completed by large international companies in order to accomplish them, These companies return financial from the project after operating for a certain period, and then return the full profits of the state.
Rashid pointed out that his ministry is waiting for the approval of the Council of Ministers to this, revealing the adoption of both Turkey and Jordan for the said system, pointing out at the same time that he has achieved great success, especially as he contributed to the advancement of infrastructure in a large number of developed countries.
He revealed the possibility of the ministry to finance its projects through loans from international financiers, but the problem lies in the absence of a banking system grants guarantees to these financiers, which makes the ministry a big problem.
On the housing projects, the Undersecretary of the Ministry referred to the twenty projects on investment in Baghdad and the provinces, but these projects are currently stalled because of the financial crisis and the control of the gangs "da'ash" terrorist on some areas of the country, indicating that these projects were supposed to provide 20 to 30 thousand units Housing at the end of this year.
He pointed out that the investment law No. 13 of 2006 amended includes paragraphs attractive to investment, so the ministry seeks to build new complexes, within the post-«dads», noting that it works continuously to get rid of slums and the social, economic and psychological problems, Is increasing in poor areas, and therefore the focus on building residential complexes includes the population of those slums as the basis.

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