A project to build a new oil refinery in Iraq's southern city of Basra will begin by the end of the year following financial aid by Japan.
The project was agreed by Japan and Iraq back in 2012 but was later delayed partly due to the war with Islamic State group.
South Refineries Co. is set to call for bids by December for the building of the plant in the southern city of Basra, with plans for construction to begin next year, according to director general Husam Weli in a recent interview with Kyodo News.
Weli visited Japan in late September to meet with officials of companies wishing to participate in the bidding. According to the director general, Japan, which has already provided around 42 billion yen in loans for the project, will increase financial support to kickstart the project by bringing the total pledged to more than 300 billion yen ($2.6 billion).
Many of Iraq's existing refineries are outdated or damaged following the war with IS, meaning that the country is dependant on importing gasoline and other petroleum products. New refineries are vital to help the country become self sufficient in oil products, given that they are one of the world largest oil producers.
Source: The Mainichi