emerging markets
A crude stabilizer column weighing 30 tons is shipped from the U.A.E. to Badra oil field site in Iraq. Credit: Fleetline Shipping Services
ONE STEP AT A TIME Iraq’s Path To Reinvigoration Is Winding BY VL SRINIVASAN
W
ith a military occupation finally over and a democratically elected government in place, Iraq is limping back to normalcy and encouraging agencies like the World Bank and the International Monetary Fund to come forward with finance for mega projects in the country. As Iraq turns to rebuilding its country after years of strife, the gov16 BREAKBULK MAGAZINE www.breakbulk.com
ernment and the private sector is expected to spend about US$1 trillion over the next 10 years in all sectors, including infrastructure, housing, hotels and schools, making the country a happy hunting ground for engineering, procurement and construction companies. This, in turn, will generate tremendous business opportunities for project cargo movers in the region and beyond, as Iraq sources equipment for new projects and upgrades for machinery in existing projects.
The World Bank has already entered into an agreement for a US$375 million finance package for an Iraqi-owned power company, while the International Monetary Fund, or IMF, has cleared a US$5.3 billion bailout package. These projects, spread across the country, require large-scale building materials and construction expertise.
EPC ACTIVITIES PICK UP
Iraq holds 145 billion barrels of recoverable oil, the world’s secondlargest reserves after Saudi Arabia, but is exporting less than 5 million barrels per day. According to the International Energy Agency, Iraq also has an estimated 112 trillion cubic meters of natural gas reserves, making it the world’s 11thISSUE 5 / 2016