Infrastructure Act can not be delayed for cost and its effects on economic development

BAGHDAD – Yasser incumbent – Haider Flaih Rubaie accounted Act infrastructure interest economists and stakeholders from parliamentarians and government Mahadda Institute Iraqi economic reform to hold a seminar during which discuss the draft law, because of its importance in the process of accelerating development programs Economic desired, was based symposium on the study by economist Dr. Kamal Al-Basri, select which benefits law infrastructure, and focused on the need to adopt the principle of private sector participation for the year, and called for the study to establish a body or council reconstruction project management covered the law, which drew reactions matched in many cases, however, present at the seminar stressed the indispensability enriching law observations of person experts and concerned that the mostly providing guarantees completion of both parties, the government and companies contracted.

confirmed study optical importance of this law in satisfying the needs of the citizens of various development and reality sector private and public alike, and Toverwrs work and operation of a broad spectrum of citizens, and rid the government of a problem it great source of job creation.

believes Basri, said the delay in legislation law leads to delayed bridge the gap of civilization between Iraq and other countries (including the neighboring countries). As will leave infrastructure to continued weakness in the physical environment for investment, since investment requirements and lack of infrastructure (maid) such as ports and bridges that will reduce production costs and thus raise the economic competitiveness of Iraq. And that all the foregoing contributes to deprive citizens of adequate job opportunities and keep the government is the only source of job creation (has reached it’s peak in the moment).

drew visual that in the case of non-approval of the law will be impossible to do projects vital required in the near term, is also expected to decline in oil prices in the next few years until 2016 due to excess supply (as referred to in circles global oil competent).

concluded optic during his that the law came several advantages aimed at the implementation of strategic projects and services are complementary and rebuilding facilities and structures infrastructure projects vital that have an impact on the economic and social life, but also implements projects covered by this law in a way payment on credit, taking into account the size of annual revenues to the treasury, not to exceed contract amounts covered by this law for $ 37 billion, as well as forcing companies implementing projects run manpower Iraqi projects by specific and depending on the nature of the project.

hinted expert to that for the second time is dealing within the corridors of Parliament are political with the draft law, as some consider that approval is political support for a class political at the expense category other political, forgetting that political entities as a whole make up the government and parliament.

believes The draft law does not represent the desire of the Prime Minister alone, but represent the views of the majority of ministers that not all of them and that parliamentary approval of the law is the completion of the political process and the completion of Iraq of all factions, stressing that if the law was passed not post any category, political Tagirh for itself . If the construction of the port of Faw example according to this law, can not be considered this an achievement in terms of certain political «Iraq» or «rule of law» or «Kurdistan Alliance», prompting visual to say firmly: that failure to approve the law is a clear expression of the failure the political process in alleviating the suffering of the citizens and raise their standard of living.

Not only did the visual his offer positive benefits of the law when he went to diagnose some weaknesses when he said: that writing the draft law represents the pattern in government departments which lacks the artistic side, citing that: building infrastructure in the new Iraq should not be randomly sense not to link reconstruction projects integrated plan including one complements the second (eg construction of the port of Faw without regard to projects complementary road and rail or construction residential area without regard to service projects related … etc.), and wondered visual : Is that a draft law was written according to a specific plan, and if it was a plan of the Ministry of Planning for the year 2010 – 2014 are approved they are not at the required level has led this matter, and the Ministry of Planning to prepare a new plan (National Development Plan 2013-2017), which did not recognize yet.

The other thing that person visual in determining the amount of $ 37 billion, wondering whether this amounts represent costs of reconstruction, and while difficult to answer that question little visual: This allocation few as required total costs, according to estimates by the Ministry of Planning in 2006, the reconstruction and development of the oil sector requires 36 and 30 housing and transportation $ 52 billion .. Etc., and Yin visual need that law provides for phased borrowing and duration him and also be accompanied with the law doors exchange by sectors.

said optical also: We all know that existing ministries exhausted completely unable to carry out investment projects of the budgets of the Federal, as did ratios exceed the financial implementation of the ministries this year 51 percent to mention the real implementation and quantity.

stressing that the consequences of this law right will be an additional burden on the technical ministries or departments in charge of running the requirements of this law. As the Angels ministries present time does not have the advanced skills (K), which leads to poor performance in quality and quantity. As that of the consequences of this law to deal with global financial institutions with devices advanced technical, and because of the scarcity of talent the current time was better that law contains explicit work on the formation of a body or council for reconstruction according to the visual stressed the need to be machined away from the pattern formation of ministries or public functions (quotas), stressing that this body requires attracting the best talent and rewarding assignments Iraqi. The absence of such a body to keep the door open for negotiations with international companies and institutions disproportionately.

The case diagnosed in such acts is the absence negotiator who speaks the language of technical and economic negotiations, and McCann for Iraq to be completed, for example, to address the external debt if you do not hire specialized foreign offices and the support of friendly countries. He added: We all know that the problem of reconstruction in Iraq Ataatoagaf on the availability of financial allocations, but to manage money and projects. Admonished study to the fact that the nature of the contracts have an effect on the outcome of the project, where moving most of the world, if not all to “contracts sector participation of the Year “These are contracts under which the government gives companies specializing in the construction of the draft concession (eg hospital) in accordance with the technical standards and specific period of time that the government after the end of the project implementation and the receipt of payment according to a formula payment on credit. Pointing out that this type of contract has drafted in the absence of specific legal impossible to work with. These formulas are available for use to some extent we can say they do not always get priority, which is in fact a crucial means to overcome the prevailing corruption. In fact, we find that rich countries such as Saudi Arabia and United Arab Emirates are using such contracts because of its benefits is the transfer of technology and management practices modern.

study concluded to emphasize that it is appropriate to allocate paragraphs in the law to curb corruption inherent in the contracts, as contained in the draft law oil and gas, which stipulates the draft on the grounds contracts void in the event of discovery of corruption where, as well as give priority distribution of projects by the economic feasibility of projects before the adoption of the distribution by ratio of the population (eg ports, airports and coefficient of iron and steel and specialty hospital high level).

Turning visual that the law included many of the reasons for approval, suggesting that approval at the present time is the need infinitely important and must be put a time limit not to exceed this year for approval, as the lack of approval is the cost of humanitarian and economic underestimated them and shame big in the political process.

explaining that among those reasons cation to approve the law is scarce budget allocations to fulfill pre-requisites of reconstruction and the provision of basic services from outside the budget allocations: (was estimated reconstruction costs after 2003 b 187 billion dollars for the period 2007-2010, according to estimates the basic needs of various economic sectors, which represent the minimum investment required for reconstruction and the provision of basic needs of citizens,) The report pointed out the Ministry of Planning issued in 2006 «to strategic economic development» that Aalmoisna can not fulfill more than 43 percent of these expenditures and that is providing the remaining 57 percent through loans and investment.

also investment environment in Iraq is backward to some extent have been classified by the World Bank for occupies ranked 164 of 183 countries (while ranked Singapore 1, Saudi Arabia 12, Jordan 96) that this backwardness explains the weakness of foreign investment in Iraq and the unwillingness companies sober contracted with various government departments to mention that wages work in Iraq is not competitive and that the Iraqi labor laws clamping down on foreign labor. As for internal borrowing is true that there is a balance financially when various financial institutions could reach $ 50 billion, but in fact that most of these deposits are government deposits earmarked for doors Exchange general budget and should be ready when demand may not borrow them according to the visual confirmed The adoption of this law will facilitate the transfer of modern technology to the country and raise the performance and scope of the domestic private sector (in the case of the adoption of Tama work of the private sector with foreign companies) and provide additional job opportunities. That this law fruit great beyond direct services to citizens to include move and motivate all sectors of the economy to ensure job creation full employment, and reducing the role of government in the necessity of creating additional jobs.

Called optical During his studies to overcome the reluctance of private and public sector in the implementation of projects, which were referred to in previous studies, it has made capital expenditures execution rates low, especially at the provincial level, either in terms of total investment expenditures, the average implementation rate for the period from 2004 until 2008 was $ 52.45 percent. believe that those confronting ministries and provinces of technical problems and legal and administrative will continue List What we are afraid that the growing problem (poor performance) in the implementation of investment projects due to increased investment allocations in the years the list. The expansion in the number of projects suspicion over the possibilities executive to slow the progress of the work. opinions and interventions and sparked the study of many opinions and questions about the importance of law and the need to take into account the amendment of some paragraphs of the law according to what came proposals present at the symposium, it was the Under-Secretary General of the Council Minister for Financial and Administrative Affairs, Dr. Obaid replaced that the problem is not physical but relate to the management of funds, stressing the need to know how to work the mechanisms of law, which stressed the importance to be one payment on credit for projects of strategic and not projects that can be implemented well and less money, calling for controls of the law in order to reach the best solution, especially that of Iraq prior experience in it.

criticized the MP Hassan Sinead during his speech all the laws that have reached the parliament, adding that many of them need to be reviewed, attributing this to the majority was the result of quotas and political consensus, which pay Sinead to say: It’s hard to political positions to be flexible. put Sinead number of questions and stressed the importance of finding clear answers to them, particularly in relation to government entities that contract with companies, and are observers, and the guarantor of the implementation of projects? He also said: What is economics course for governments to come, and whether he will stay with the present method, or is it going to change? payment on credit .. and liquidity needed not far behind economic adviser in the Office of the Deputy Prime Minister for Economic Affairs, Dr. Jacob Shonia opinions that went to the importance of approving the law when it confirmed The need for Iraq to infrastructure projects require times that amount allocated by law, calling for the need to clarify what projects he intends law implementation. said Shonia during his speech: that the style of payment on credit is one of the methods employed by States while executes provide liquidity full have to cover their development programs , suggesting style dubbed (bot), which means building, then Run, and transfer of ownership to the state. and via video and audio over the Internet showed economic expert, Dr. Superficial inch view from Germany saying: the law two important aspects are the finance and administration, but he pointed out that Reservations determined funding strategic projects, and wondered about the role of the Ministry of Planning in the completion of this law. was shared this view economic expert, Dr. appearance of Mohammed Saleh, sometimes said that this project is important for Iraq provided free of corruption, and expressed surprise at the need for Iraq to borrow due payment on credit, warning and there is a problem with the country in the seventh item, expressing optimism in attracting more investment to Iraq in the future.