23.11.2017 – 10:00
Power for the Mosul area: KfW helps to rebuild necessary infrastructure
Frankfurt am Main (ots)
- First loan agreement for EUR 45 million signed in Baghdad - Major contribution to stabilising the region
Today KfW Development Bank signed a first EUR 45 million loan agreement on behalf of the German Federal Foreign Office. The funds will finance substations, power lines and pylons to restore electricity supply to the greater Mosul area.
Loans totalling up to EUR 500 million will be made available to support stabilisation efforts in Iraq. Mosul, once the stronghold of the so-called "Islamic State" (IS), is now liberated, just over a year after the Iraqi military and Kurdish Peshmerga forces launched their offensive. Work has now has begun to restore vital infrastructure in a city whose western districts have been completely destroyed. Many surrounding towns and communities also lie in ruins. Demining and restoring power and water supply is important for the displaced residents who are now returning to their homes, now that they have been freed from IS rule.
"Functioning basic services are key to returning the displaced inhabitants to their homes - and to stabilising the region", said Prof Dr Joachim Nagel, member of the Executive Board of KfW Group.
Deliveries of the first power lines, substations and spare parts are expected to arrive from February 2018 onwards, so households, hospitals, schools and food producers can soon look forward to a reliable supply, especially in Mosul's western districts and surrounding communities.
"The signing lays the groundwork for an important stabilisation project managed by the Iraqi government. It is a great step towards restoring electricity supply to Mosul. The German Federal Government is pleased to be able to support the Iraqi Government with a loan of EUR 500 million to implement this and further projects", said Stephan Evers, chargé d'affaires of the German embassy in Baghdad.
Another two loans totalling EUR 90 million are being prepared at the request of the Iraqi Government. They will finance the reconstruction of destroyed roads and bridges and the restoration of water supply and sanitation systems in the Mosul area.
Germany has contributed more than EUR 1 billion to supporting the reconstruction and political stabilisation of the country through humanitarian aid, stabilisation measures and long-term development cooperation since 2014. It is also providing advisory services to the Iraqi Government on political and economic reforms and training of military personnel.
For more information on the business area KfW Development Bank go to www.kfw-entwicklungsbank.de
Original content of: KfW, transmitted by news aktuell