Provision of the fifth batch of Yen Loan for “Basra Refinery Upgrading Project”

On 16th August 2023, Mr. Futoshi MATSUMOTO, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Iraq, and H.E. Ms. Taif Sami, Minister of Finance of the Republic of Iraq, signed and exchanged notes concerning the provision of the fifth batch of yen loan for “Basra Refinery Upgrading Project” in Baghdad. The new loan amounts to 203,060 million yen, worth around 1,433 million US dollars, to upgrade the existing Basrah Refinery by installing a new plant called Fluid Catalytic Cracking (FCC) Complex, which converts residual oil from the existing plants into high-value oil products.
The project aims at achieving the following objectives:
--- Saving foreign currencies spent on importing huge amount of fuels, improving trade/current accounts and reducing fiscal deficit.
--- Providing economic and employment opportunities for the people of Iraq, especially in Basra through and after the project.
--- Modernizing the Iraq’s energy industry and paving a way to attract private sector in the Iraq’s energy sector.
--- Reducing air pollution by reducing sulfur content in the oil products in accordance with the international standards.
The project will increase the quality of oil products and will close the gap between supply and demand.
In addition, the new plant will ease the environmental burden by introducing Light Gas Oil Hydro Desulfurization Unit (LGOHDT) with technology transfer with a remarkably low interest rate , 0.2% per annum, contributing to financial stability of Iraq.