The Council of Ministers takes a series of economic decisions
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Council of Ministers
Council of Ministers
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Today, Tuesday, Prime Minister Muhammad Shiaa Al-Sudani chaired the twenty-third regular session of the Council of Ministers, during which the most important files and topics related to the progress of implementation of the government program were discussed, as well as the topics on the agenda were discussed, and the necessary decisions were taken regarding them.
At the beginning of the session, the Prime Minister expressed his appreciation for the House of Representatives’ step by approving the budget schedules, submitted pursuant to Law No. (13 of 2023), the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023, 2024, 2025), appreciating the great effort made by All political forces, the Presidency of Parliament, and the Finance Committee considered it a responsible position that would complement what the government and relevant ministries had begun, to accommodate financial capacity and various obligations.
Al-Sudani directed the Ministries of Planning and Finance to take into account procedural aspects, as the government places great importance on launching projects without obstacles, noting that the budget amounting to (211) trillion dinars requires sound procedures and care in investing financial allocations, in a way that preserves public money and blocks corruption attempts.
Al-Sudani reiterated the need for all regulatory bodies to cooperate to set an implementation path for projects, especially since the citizen is waiting for improvement in the service, livelihood and development reality. The tables also include positives that flow into the path of economic reform, supporting the private sector and enabling it to contribute strongly to creating job opportunities and providing services.
With the advent of Eid Al-Adha approaching, the Prime Minister directed that the official departments’ holiday be from Sunday, June 16, until Thursday, June 20, with official work resuming on Sunday, June 23.
In implementation of the directive of the Prime Minister during his presidency of the second meeting of the Supreme Committee for Coordination between the Council of Ministers and the Federations and Syndicates to periodically host the heads of the federations and unions in the Council of Ministers, the Iraqi Bar Association hosted Ms. Ahlam Al-Lami, who presented a paper containing several proposals related to improving the conditions of lawyers and facilitating their reviews in... Ministries and other government institutions, and amending some laws that support and facilitate the work of lawyers.
The Prime Minister praised the role of lawyers in building the state and ensuring rights, stressing the government’s work to provide all requirements that help in the success of this mission, in a way that contributes to achieving justice and ensuring legal and constitutional rights, and directed all ministries to cooperate with the Bar Association.
His Excellency also directed the formation of a committee from the secretariat of the Supreme Committee for Trade Unions and Federations, a representative of the Legal Department in the General Secretariat of the Council of Ministers, and the government representative in the House of Representatives to study what was stated in the paper submitted by the Bar Association.
In order to support investment projects and the work of the private sector; The Council of Ministers approved what was stated in the letter of the Council of Advisors dated May 29, 2024, as follows:
●Land ownership for industrial projects
The Ministry of Finance/State Real Estate Department shall sell lands on which industrial projects are built to the project owner, who has obtained a license to complete establishment under the Industrial Investment Law for the Private and Mixed Sectors No. (20 of 1998) at the time of issuance of this decision, as an exception to public bidding, in accordance with the following conditions:
1. The industrial projects included in this decision must have obtained a license to complete establishment from the General Directorate of Industrial Development before the issuance of this decision, and that a minimum of 3 years have passed since the industrial project was granted a license to complete establishment.
2. The industrial projects included in this decision must be outside the basic design of the cities.
3. The project owner must submit a release from the General Tax Authority or one of its branches, and a clear position from the Social Security Department for workers in the project.
4. The provisions of this decision include all lands owned by the state and lands burdened with alienation rights, on which those with the right to alienate have established an industrial project.
5. The Ministry of Agriculture - Agricultural Lands Department is responsible for raising the hand of agricultural reform, based on a request from the State Real Estate Department, with regard to the lands covered by this decision, in accordance with its applicable legislation and regulations, and the Ministry of Agriculture may take all necessary measures in the event that the beneficiary violates the provisions of this decision. In accordance with applicable legislation.
6. The Ministry of Finance - State Real Estate Department must take the following:
A. Estimating the sale price for the purposes of this decision in accordance with the provisions of the Law on the Sale and Rent of State Funds No. (21) of 2013 as amended and its instructions.
B. The collection of the sale allowance for lands burdened with alienation rights (class correction in cash) shall be in accordance with the percentages specified in the Law for the Unification of State Land Classes No. (53) of 1976, and in accordance with the provisions of the Real Estate Registration Law No. (43) of 1971, as amended, taking into account the provisions of Clause (5) of this law. the decision.
C. Coordinating with the Ministry of Justice - Real Estate Registration Department, to take the necessary measures to change the type and type of property covered by the provisions of this decision, in accordance with the legislation in force.
7. All real estate registration directorates and their supervisors shall place a non-disposal sign on the real estate records covered by the provisions of this decision, indicating that it is not permissible to dispose of them for purposes other than industrial use.
8. The procedures set forth in accordance with this decision apply to requests for expansion and development of industrial projects covered by its provisions, as of the date of granting approval to complete the expansion and development.
9. Cabinet Resolution No. (227) of 2020 is cancelled.
Supporting the private industrial sector
1- Obligating the Ministry of Oil to do the following:
a. Not cutting off the monthly fuel quota for all industrial projects, for any reason.
B. Not imposing a maintenance month on industrial projects, and not withholding the monthly fuel ration for this reason.
C. Providing all industrial projects with their actual shares of petroleum derivatives confirmed according to the need assessment list, prepared by the General Directorate of Industrial Development.
Dr. Monthly industrial projects' quotas of unprocessed petroleum derivatives are rolled over to the following month.
e. Issuing an annual fuel card for each separate industrial project for the purposes of supplying these projects with petroleum derivatives, according to the annual need estimate prepared by the General Directorate of Industrial Development, after completing all requirements.
And the. Providing industrial projects with gas oil, at the approved price at gas stations (400) dinars per liter, and not at the commercial price according to the need estimate prepared by a joint committee of the Ministry of Oil and the General Directorate of Industrial Development; To operate electrical power generators for each project.
2- Customs duties are collected for raw materials, production lines, and production requirements involved in local industries as follows:
First - The customs duties imposed on raw materials used in all local industries are (0.05%), and the General Authority of Customs is responsible for implementing this according to the following:
A - The General Directorate of Industrial Development, the National Investment Authority, the investment authorities in the governorates, and the Iraqi Federation of Industries (each according to the entity granting the industrial project license) estimate the annual need for raw materials for industrial projects according to certified lists for each separate project, which are sent to the General Authority for Customs, provided that The project has an establishment completion license or an effective investment license.
B - The General Authority of Customs collects the aforementioned customs duties, regardless of whether raw materials arrive with or without containers, and from all border crossings, as an exception to Cabinet Resolution No. (23672) of 2023.
Second - Customs duties for production lines and production requirements are (0.05%), for industrial projects under establishment or expansion of fully established industrial projects, based on an endorsement issued by the donor agencies to approve the industrial project, and sent to the General Authority of Customs.
Third: The General Directorate of Industrial Development, the National Investment Authority, the investment authorities in the governorates, and the Iraqi Federation of Industries are responsible for the validity and integrity of the procedures and information submitted to the General Authority for Customs.
3- Obligating all government banks to do the following:
a. Lending industrial projects for the purpose of purchasing (raw materials, production lines, or production requirements), or constructing new or additional buildings for projects that have received a license under establishment, or have been completed, with a guarantee of the assets of the project itself, provided that a joint committee is formed from the General Directorate of Industrial Development and the Federation Industries, with the possibility of seeking the assistance of experts accredited by the Iraqi courts to undertake the task of evaluating the guarantees provided.
B. A specialized committee shall be formed, headed by a body of advisors and with the membership of representatives from the relevant departments. To prepare lending mechanisms and controls that determine reservation and redemption rates for the guarantees provided, within a period of two months from the date of issuance of this decision.
C. In the event that borrowers fail to pay their obligations related to loans for industrial projects, and the guarantees provided by them cannot be liquidated, the management of the lending bank will not bear any legal consequences, if granting the loan is in accordance with the conditions stipulated in accordance with this decision.
4- The Ministry of Justice/Real Estate Registration Department is responsible for isolating and dividing agricultural lands on which existing industrial projects are built and that have obtained an establishment license from the General Directorate of Industrial Development or the Investment Authority, with separate real estate bonds, regardless of their areas.
5- Obligating the Ministries of Finance, Construction, Housing, Municipalities, Public Works, and land-owning entities to collect rental fees for all industrial projects established before and after the entry into force of the Industrial Investment Law for the Private and Mixed Sectors No. 20 of 1998, in accordance with the decision of the Economic Affairs Committee dated June 9, 2011.
6- The General Directorate of Industrial Development, in coordination with the National Data Center Department in the General Secretariat of the Council of Ministers, shall establish a unified electronic window within a maximum period of two working months from the date of the decision. In order to complete the procedures for establishing industrial projects; With the aim of facilitating procedures and shortening the period for granting permission to complete establishment within 15 working days, a maximum for projects that meet all requirements.
7- Obliging the Ministry of Finance to issue one liability release annually to taxpayers (individuals or companies that own industrial projects) and for each industrial project, a separate project, addressed to all government institutions, and obligating ministries and entities not affiliated with a ministry and all governorates to approve it during the fiscal year that includes its effectiveness, and not Claim a clearance addressed to a specific department.
8- Obligating the Central Agency for Standardization and Quality Control, in coordination with the Directorate for Combating Organized Crime, to follow up on all factories that are not officially licensed and take legal measures against their owners and shop owners who trade in the products of those factories and confiscate the produced materials.
9- Obligating the Ministry of Electricity to do the following:
a. Collecting electricity supply fees for industrial projects approved by the General Directorate of Industrial Development, the National Investment Authority, the investment authorities in the governorates, and the Iraqi Federation of Industries, according to the industrial tariff, not the commercial tariff.
B. Take the necessary measures to isolate industrial areas’ feeders from residential areas within a maximum of one year, and equip them with electrical power for no less than 8 hours a day during daylight hours.
10- Obliging all municipal departments, districts and districts to grant (initial written approval) for the establishment of constructions for industrial projects that have obtained an industrial project license under establishment, issued by the Directorate of Industrial Development or an investment license from investment authorities in all their branches, built on agricultural lands, the property is pure, or Burdened with the right to dispose of, the project owner submits a written pledge to the aforementioned departments to complete all the fundamental requirements for issuing a building permit, within a maximum period of one year from the date of issuing the initial approval. Otherwise, he will bear the legal consequences and remove any construction that does not meet the required conditions.
11- The security forces, in all operations sectors, are responsible for facilitating the entry of construction materials and all other requirements for the purpose of constructing the required buildings, for the establishment of industrial projects that have obtained an establishment license for an industrial project under establishment, issued by the Ministry of Industry/General Directorate of Industrial Development, or an investment license from Investment bodies with all their branches, or licensed by the Federation of Iraqi Industries, and initial approval from municipal departments, districts, and districts, immediately, without requesting any additional approvals.
12- Obligating all ministries, entities not affiliated with a ministry, and all governorates to implement Article 30 Second of Federal Budget Law No. 13 of 2023, and to cover all their own needs and project implementation requirements, using the tender method for local products, and in the event that three local producers are not available for the required materials, an exception will be made. This is part of Government Contracts Instructions No. (2) of 2014, and the regulatory authorities must follow up on this.
13- Suspending all previously issued circulars and controls related to restricting the transport of iron waste (scrap) and allowing the transport of these materials without any restrictions between governorates and within a single governorate and region.
14- Cabinet Resolution No. (24150) of 2024 is cancelled.
During the session, the recommendation of the Ministerial Council for the Economy (24150 Q) was approved as follows:
1. The price of fuel oil will be the same as the price for preparing it for oxidized asphalt plants, which is (35%) of the price of the global bulletin in Dubai, provided that the price of one ton does not exceed (250 thousand) dinars per ton.
2. The price of the white oil product shall be 50% of the global bulletin price.
3. The price of liquid gas (LPG) will be (415 thousand dinars) per ton, prepared from the Halfaya Gas Plant, and the buyer will bear the transportation costs.
4. The prices indicated in paragraphs (1, 2 and 3) mentioned above are for the purposes of selling the industrial city’s products for local consumption, with priority given to meeting the Ministry of Oil’s need for industrial and petrochemical products.
In the field of energy, the recommendation of the Ministerial Council for Energy (24040 T) for the year 2024 was approved as follows, according to financial powers:
First: Purchasing energy from the Silver Crescent Company’s investment station with a capacity of (250) megawatts, and from the simple cycle, by the take and pay method and with the energy purchase tariff:
a. Energy purchase tariff on gas: $24.94. MW. hour.
B. Energy purchase tariff on heavy fuel: $32.37. MW. hour.
C. Combined cycle energy purchase tariff: $36.81. MW. hour), provided that the contract period is (20) years.
Second: The Ministry of Finance issued a payment guarantee for energy purchase dues from the Ministry of Electricity for the duration of the energy purchase contract of (20) years, from the competent committee.
The Council excluded AMEA Power Company from Cabinet Resolution (245 of 2019) amended by Resolution (23374 of 2023), and authorized the Ministry of Electricity to extend an invitation (the only offer) to the aforementioned company. In order to submit its offer to establish a solar power station with a capacity of (500 megawatts) with the option of adding batteries, so that the Ministry of Electricity can proceed with the procedures in accordance with the investment law.
An increase in the cost of the contract (EPCM) BOC-1540 concluded with (KBR) regarding the production and development of the Majnoon field/Basra Oil Company was approved, according to the authority set forth in Cabinet Resolution (23713 of 2023).
It was also approved to increase the cost of the project (rehabilitation of gas generation plants in the central region).
The Council also agreed to exclude the Northern Refineries Company from Council of Ministers Resolution No. (23672 of 2023) so that it can bring in materials present at Baghdad International Airport. Due to the urgent need for it in operating the North Refinery, the aforementioned company pledges to provide the General Authority of Customs with original documents from the company that supplied the materials.
The Council took its decision to approve the issuance of the first amendment to the Reconstruction Fund System for the Poorest Governorates (5 of 2023), based on the provisions of the Constitution, and to facilitate the implementation of the provisions of Article (55) of Budget Law No. (13 of 2023), taking into account the observations of the Legal Department in General Secretariat for the Council of Ministers.
The Council approved the draft civil aviation law, which was reviewed by the State Council and referred to the House of Representatives, based on the provisions of the Constitution, taking into account the observations of the Legal Department in the General Secretariat of the Council of Ministers.
In the field of completing lagging service projects, the Council decided the following:
1- Deleting the two projects (Haidariya sewers and Al-Muqdadiya sewers), which are included in the investment budget schedules of the Ministry of Construction and Housing/General Directorate of Sewerage, and re-listing them at the new cost, in accordance with the listing requirements submitted to the Ministry of Planning.
2- Including all infrastructure projects, for which the Ministry of Planning has not been approached by the Ministry of Construction, Housing, Municipalities and Public Works, and providing the Ministry of Planning with the listing requirements that may require increasing their total cost with one of the proposals, which are approved by the Council of Ministers.
In the same path, the component (electricity supply to the Kut Water Project - Wasit) was created within the components of the (Kut Water - Wasit Project) fixed in the investment budget tables of the Ministry of Construction, Housing, Municipalities and Public Works/General Directorate of Water for the year 2024, and the total cost of the project was increased.
The two components (the cultural city, the main squares, and the platform in the tourist city of Ur) and (the service buildings, the main streets, and the parks in the tourist city of Ur/Dhi Qar Governorate) were also created within the components of the Archaeological City of Ur project, which is included in the investment budget tables of the Dhi Qar Governorate Reconstruction Fund for the year/ 2024, and increasing the total cost of the project, and the Ministry of Planning is responsible for transferring the required amount from one of the sections of the investment budget to the Dhi Qar Reconstruction Fund.
Within the framework of regulating external cooperation in combating corruption, the Council approved authorizing the Chairman of the Federal Integrity Commission, as an agency, to sign the (Mecca Al-Mukarramah) Agreement for member states of the Organization of Islamic Cooperation, to cooperate in the field of enforcing anti-corruption laws, based on the provisions of the Constitution, as well as preparing The Ministry of Foreign Affairs provides the necessary authorization document on behalf of the Government of the Republic of Iraq to the Chairman of the Federal Integrity Commission, acting as an agent, in accordance with the approved contexts.
In support of the government for cultural and artistic activity, it was approved to allocate (5.170) billion dinars to the Ministry of Culture, for an initiative to support cinema, drama, theatre, plastic arts, literature and books.
In the same context, the Council agreed to allocate (5) billion dinars to the Ministry of Culture/Department of Cinema and Theater; To complete the reconstruction of the remaining floors in the Al-Rashid Theater building, re-work the building and remove the sandwich panel material in accordance with the recommendations of the Ministry of Interior. Based on the provisions of the Federal General Budget Law (13 of 2023).
The Council issued its decision to amend the name of the company mentioned in Paragraph (5) of Cabinet Resolution (24072 of 2024) to be (Ora Developers Horizon Limited), and to exclude it from the registration conditions set forth in the amended Foreign Company Branches Law (2 of 2017).
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