Exchange of Notes concerning Yen Loans to the Republic of Iraq

1. On 15 September 2018 in Baghdad, H.E. Mr. Naofumi Hashimoto, Ambassador of Japan to the Republic of Iraq, and H.E. Dr. Maher Hammad Johan, Acting Deputy Minister of Finance of the Republic of Iraq, signed and exchanged notes concerning the provision of yen loan for “Water Supply Improvement Project in Kurdistan Region (II)” (total loan provision of up to approximately 22 million US dollars).

2. Overview of the projects
(1) Iraqi National Development Plan (NDP) 2013-2017 presents the policy on the water supply sector to secure drinking water for all Iraqis. It sets a target to increase access to safe drinking water up to 95% by 2025 as its primary goal. According to this policy, the Government of Japan decided to provide yen loan for the water supply sector. Following “Basra Water Supply Improvement Project (II)” agreed upon in April 2018, the exchange of notes for the similar loan for the Kurdistan Region was officially signed today on September 15, 2018.

(2) The Kurdistan Regional Government faces financial stringency for accepting a number of internal displaced people. In this light, this project will contribute to the stability in this region through safe and stable water supply as a basis of economic and social activities.

(3) In light of such circumstances, this project as the second tranche loan for “Water Supply Improvement Project in Kurdistan Region”, the initial notes of which were signed and exchanged in June 2008, aims to improve drinking water supply in the Kurdistan Region by rehabilitating water supply facilities. Ultimately, it is expected to contribute to strengthening basic economic infrastructure of Iraq.