Parliamentary services: Iraq supervises the China Construction Fund

Wednesday 15th January 2020 - 16:31

Parliamentary services: Iraq supervises the China Construction Fund

Baghdad - INA - Omar Abdul Latif

The Parliamentary Services Committee confirmed that Iraq supervises the Chinese Fund for Reconstruction within the agreement with China.

The head of the Parliamentary Services Committee, Walid Al-Sahlani, said today, Wednesday: "The Iraqi party supervises the Chinese Fund for Reconstruction with a guaranty investment company chosen from the Central Bank of Iraq from among 5 international companies," pointing out that "Iraq will not cost huge sums in the implementation of all projects." What he needs because the agreement includes the establishment of an Iraqi-Chinese fund to deposit funds and withdraw funds from it to implement projects signed by it.

He explained that "the agreement is guaranteed by the Chinese party through the Chinese Insurance Corporation, which is a Chinese governmental organization, and revenues of 100 thousand barrels per day of oil sold to China are reserved, specifically for the Chinese and Chinese companies, and its revenues are placed in the Iraqi-Chinese fund," noting that "the credit ceiling of banks Chinese, worth 10 million dollars, with interest subsidized by the Chinese government. "

Al-Sahlani added, “If the first package of projects succeeds and Iraq desires to increase investments, the investment ceiling of Iraq will be paid to 300,000 barrels of oil per day, and China will increase its borrowing ceiling to 30 billion dollars, which will push China to provide its best energy in the package. First, "indicating that" the amount is deposited in Citibank, then the bank transfers it to the Federal Reserve Bank in New York, which oversees the total Iraqi oil sales and is transferred to the investment account. Debt services account is created and allocated to support the interest rate and deducts from the investment account.

He continued, "The Iraqi agreement with China includes the implementation of huge construction projects for airports and railways, as well as schools, paving of external roads and infrastructure projects with housing complexes in addition to energy and environmental projects, pollution treatment and water desalination in the Tigris and Euphrates and Shatt Al-Arab in addition to other projects as requested by the Iraqi government." Calling for "the importance of supporting the Iraqi-Chinese agreement by all governmental institutions and religious and social activities, and that the agreement is a gateway to Iraq out of the accumulated crises and the orientation towards achieving progress in the economy and public services."