An oil-for-projects agreement signed between oil producer Iraq and China in 2019 covers only new projects in infrastructure and other sectors, an Iraqi official was reported as saying.

About 4,000 stalled projects in the 5th largest oil power aren't included in that agreement and would be restarted through annual budgetary allocations, Planning Ministry spokesman Abdul Zahra Al-Hindawi told the official news agency INA.

"Stalled projects in Iraq will not be funded through the agreement with China as this agreement covers only new projects, including the Grand Faw Port," he said.

Hindawi said the Planning Ministry would prepare a list of new projects to be executed by Chinese companies under the agreement that allows Iraq to supply them with 100,000 barrels per day of crude in exchange for project execution and funding.

He confirmed with Zawya Projects that the agreement with China would focus on the implementation of new projects in all the provinces.

Besides Faw, the China fund covers projects in various other sectors involving housing, education, health, roads and other infrastructure projects.

Separately, Mudher Mohammad Saleh, financial adviser to the Iraqi government told Zawya Projects that the total financial allocations for projects must be included in the 2020 budget and approved by parliament in the budget law.

(Writing by Nadim Kawach; Additional reporting by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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