Japan offers loan for Iraq to upgrade oil refinery

The Iraqi Ministry of Finance and Japan International Cooperation Agency (JICA) signed an agreement on Sunday under which JICA will offer Iraq a loan of 110 billion Japanese Yen (nearly USD one billion) to upgrade Basra oil refinery.

The deal was inked by Fuad Mohammad Hussein, Iraq’s Deputy Prime Minister for Economic Affairs and Minister of Finance, and Naofumi Hashimoto, Ambassador of Japan to Iraq.

The loan, considered to be one of the largest amount provided by Government of Japan for one project in the Middle East and North Africa, is refundable over 40 years with a tenyear grace period and 0.02 percent interest rate, according to a statement from the Iraqi Ministry of Finance.

The project aims to increase Iraq’s oil refining capacity by constructing a new plant (fluid catalytic cracking (FCC) complex) at AlBasra refinery, south Iraq, and introducing light gas oil hydrodesulfurization (HDS) technology.

Source: Kuwait News Agency