MEED Events

MEED MEED EventsEvents

REPUBLIC OF IRAQREPUBLIC OF IRAQMinistry Of Construction & HousingMinistry Of Construction & Housing

Iraq Finance 2012 Iraq Finance 2012 London London

18-19 September

• Housing unitsHousing units

• Public BuildingsPublic Buildings

• Roads and BridgesRoads and Bridges

• State owned companies / contracting State owned companies / contracting

• Design & Consultancy CentresDesign & Consultancy Centres

• Laboratories and Research Centres Laboratories and Research Centres

Duties and responsibilities


GovernmentPrivate sector

P. ResourcesLoans

Banks

S.O.EP. Sector

Companies

Housing Fund

Investment commission

Housing ProvidersHousing Providers


Localgovernments

MOCHMOCH

Other Organisations

61 continuous Projects

10 new projects Every year

(Ave.600units each )2 Billion $

7000 units for MoCH staff

Oil contracts

2012 – 20152012 – 20152012 – 20152012 – 2015

Investment

Total Cost3 Billion $

Housing ProjectHousing ProjectHousing ProjectHousing Project


Weigh Weigh BridgesBridges

New75

130Milion $

New97

1.1Billion $

Maintenance20

100Milion $

2012 – 20152012 – 20152012 – 20152012 – 2015Road and bridge projectsRoad and bridge projectsRoad and bridge projectsRoad and bridge projects


Express way

BridgesBridges

Investment Opportunity

For Silk Road

508 KM New Express way

392 KMTo connect cities

1200 KM Express way

No.1to be maintained

BAGHDAD - Samarra - a length of 94 kmBAGHDAD - Samarra - a length of 94 km

Samarra - Kirkuk - a length of 133 kmSamarra - Kirkuk - a length of 133 km

Kirkuk - Nineveh - a length of 174 kmKirkuk - Nineveh - a length of 174 km

Nineveh - Bacetka Olay - a length of 64 kmNineveh - Bacetka Olay - a length of 64 km

Bacetka Olay - Turkish border length of 43 kmBacetka Olay - Turkish border length of 43 km


Capital of 300M$ ( to be increased to 1 Billion $ by 2016(Housing Fund Legislation 2011))

1- 50% Mortgage system •Max. of $30,000•New construction or Extensions only•Management fees of 2%•Repayment period of 25 year

Capital of 300M$ ( to be increased to 1 Billion $ by 2016(Housing Fund Legislation 2011))

1- 50% Mortgage system •Max. of $30,000•New construction or Extensions only•Management fees of 2%•Repayment period of 25 year


2- 50% investment in Housing project

• Housing projects only:• up to 50% of project value • Finance start after 25% of work program • Partnership (% of profit) • Risk assessment

2- 50% investment in Housing project

• Housing projects only:• up to 50% of project value • Finance start after 25% of work program • Partnership (% of profit) • Risk assessment


TWO WAY Partnership with Housing Fund

- Private sector to use Housing Fund money in Housing projects - Private sector to invest their money in Housing Fund (increase investment capital).

- Private sector to use Housing Fund money in Housing projects - Private sector to invest their money in Housing Fund (increase investment capital).


HighTech. Machine &

Factories

H.Res

L.Mark.

Land&

Loc.

Gov.support

EvaluationP.P.PP.P.P

MoCH companiesMoCH companies

Public Private PartnershipPublic Private Partnership


State Owned Companies


• Building ( Al Fao )

• Roads ( Ashor - Hamoraby)

• Bridges ( Al Mutasim)

• InfrastructureInfrastructure( Al Farooq )

• Construction Material prod.(Al Rasheed)

• Property Development (Al Mansor )

• Oil upstream services ( Saad )

• Upgrade, expand, and rehabilitate production facilities• Introduce new products• Develop sales and marketing skills • Build capabilities to assess market needs, develop pricing strategy...• Upgrade technical and R&D capabilities• Resize labour force and introduce systematic training• Improve quality control systems• Introduce modern accounting processes and systems

• Upgrade, expand, and rehabilitate production facilities• Introduce new products• Develop sales and marketing skills • Build capabilities to assess market needs, develop pricing strategy...• Upgrade technical and R&D capabilities• Resize labour force and introduce systematic training• Improve quality control systems• Introduce modern accounting processes and systems

S.O.E needs:S.O.E needs:

• Government support• Assets (land and machineries) • Local market knowledge• Human resources

• Government support• Assets (land and machineries) • Local market knowledge• Human resources

What S.O.E Offer ?



Partnership Methodologies: Partnership Methodologies: • Legislation No. 22 1997 Public 51% min Private 49% max Governmental companies law applies

• Legislation No. 21 1997 Public 24% max Private 76% min Private companies law applies

• Legislation No. 22 1997 Public 51% min Private 49% max Governmental companies law applies

• Legislation No. 21 1997 Public 24% max Private 76% min Private companies law applies

REPUBLIC OF IRAQREPUBLIC OF IRAQMinistry Of Construction & HousingMinistry Of Construction & HousingPilot SOE

McKinsey & com. findingsPilot SOE

McKinsey & com. findings

Annual Con. Output

15

165.026.7%

2012

144

2011

115

2010

81

2013

Source: IMF

Iraq GDP (IMF)

US$ billionsNominal dollars

CAGR%


Potential partner will provide:• Technology (New precast factors)• Technical Knowledge (Improve marketing abilities)• Operational System (Finance, management)• Capital investing (Production lines and equipments)

• Technology (New precast factors)• Technical Knowledge (Improve marketing abilities)• Operational System (Finance, management)• Capital investing (Production lines and equipments)

- No loans - No financial commitments (loans ,bounds guarantees) - No legal disputes - No masked Unemployment

- No loans - No financial commitments (loans ,bounds guarantees) - No legal disputes - No masked Unemployment

Potential Partner wishes a trouble free company:


• MOCH as the rest of public bodies, lack many elements;• MOCH as the rest of public bodies, lack many elements;• Online banking

• Overseas Transactions

• Proper Payroll System

• Cash machines

MOCH Financial and Operational Needs

• Cost/ Benefit Analysis

• Economical appraisal on grants and salaries

• Financial Planning


- Direct Investment- Direct Investment - Partnership (Housing Fund/ S.O.C)- Partnership (Housing Fund/ S.O.C) - Deferred payment (Grace Period)- Deferred payment (Grace Period) - Oil Investment Contract- Oil Investment Contract

YourYour questions and

questions and suggestions

suggestions

P.P.PP.P.P

Possible Economical Models

Documents

MEED Events