The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the Republic of Iraq on August 16 in Baghdad for up to 203.06 billion yen for the “Basrah Refinery Improvement Project (Phase V)”. This project aims to improve the quality and productivity of petroleum products by constructing a new FCC complex (oil refinery plant including FCC) including Fluid Catalytic Cracking (FCC) at the Basrah Refinery, one of the largest refineries in Iraq, located in Basrah Province, southern Iraq. The signing ceremony Signing Ceremony
Due to the effects of the war that has continued for many years, many of Iraq’s oil refining facilities have been forced to cease operations, and the aging of these facilities has made it difficult for Iraq to keep up with the refining of the oil it produces in the country.
The project aims to contribute to the economic and social reconstruction of Iraq by enabling the refining of high quality petroleum products that meet environmental regulations in the oil sector, the most important sector of the Iraqi economy, through the introduction of the FCC complex, thereby contributing to SDGs (Sustainable Development Goals) Goal 7 (Energy for All and Cleaner) and 9 (Let’s build the foundation for industrial and technological innovation). and Cleaner Energy for All) and Goal 9 (Lay the foundation for industrial and technological innovation) of the SDGs (Sustainable Development Goals).
The first phase (L/A signed in October 2012, with a maximum loan amount of 42,435 million yen), the second phase (L/A signed in June 2019, with a maximum loan amount of 110 billion yen), the third phase (L/A signed in October 2021, with a maximum loan amount of 32.7 billion yen), and the fourth phase (L/A signed in December 2022, with a maximum loan amount of 120 billion yen) have been provided for this project. The current yen loan is the fifth phase of the loan.
The yen loan for the project will be subject to the Japanese technology utilization condition (STEP) (see note), and the FCC complex to be developed under the project will make use of Japan’s excellent engineering and service know-how.
(Note) Abbreviation for Special Terms for Economic Partnership. Terms and conditions for the provision of yen loans established to promote Japan’s “face-to-face assistance” through the transfer of technology to developing countries utilizing Japan’s superior technology and know-how. The main contractor is Japan Tide and the subcontractor is General Untied. The main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV; the Japanese company is the lead partner) between a Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and an equity-method affiliate of the Japanese company (with the Japanese company as the lead partner) can also be the lead contractor.
Details of the project are as follows
Amount and terms of loan
Project name Loan amount
(Millions of yen) Interest rate (%/year) Redemption period
(years) Settlement period
(Year) Procurement Terms and Conditions Main Body Consulting Services Basra Refinery Improvement Project (Phase V)
(Basrah Refinery Upgrading Project (V) 203,060 0.2 0.01 40 10 Japan Tide
- Project Implementing Agency
Iraqi Ministry of Oil (Ministry of Oil)
Address: Ministry of Oil Building, Baghdad, The Republic of Iraq
Schedule for future project implementation (tentative)
(1) Project completion date: August 2025 (project completion upon commencement of commercial operation)
(2) Consulting services (detailed design, etc.): Contracted
(3) Publication of bids for the first procurement package through international competitive bidding for the main body of work: Procured
Name of procurement package: EPC Contract Package (EPC Contract Package)
- JICA Information Desk
For information on the procurement schedule for this project, please contact the following office.
Japan International Cooperation Agency, Middle East and Europe Department, Middle East Division II, Contact person for Iraq
(Contact Point for Iraq, JICA Headquarters)
Address: Nibancho Center Building, 5-25 Nibancho, Chiyoda-ku, Tokyo
TEL: +81-3-5226-6660
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