Tishwash: A “huge” economic future awaits Iraq … 6 “important” joints with a “free” step that makes Baghdad reap money from “all directions”
The Chinese paper submitted to Iraq, by a Chinese government company, related to establishing a railway linking FAO with Turkey along Iraq, managed to draw and attract the interest of economists in Iraq, because of what the paper implies of a comprehensive “economic vision” of China towards Iraq.
The Chinese Machine Engineering Corporation has submitted to the Iraqi government a letter of interest for the design and construction of the highway from Safwan in southern Iraq to Zakho in northern Iraq to connect the large port of Faw to Turkey.
For his part, the economist, Nabil Al-Marsoumi, said in a post monitored by “Yis Iraq”, an economic reading in the speech of the Chinese company, the Chinese company CMEC made an important proposal for the design and construction of the highway from Safwan to Zakho to connect the large port of Faw to Turkey, and we can mark this offer The following notes:
First: China’s realization of the strategic importance of Iraq in its geographical location, which is located in the heart of the Middle East, which is a region of communication and convergence of the continents of the ancient world, and this location makes Iraq the focus of the direction and interest of Chinese policy, and therefore Iraq has great strategic importance for China, for the sake of Ensuring its grand strategy called (One Belt – One Road), which is supposed to connect Europe and Asia with China by 2050.
Second: Iraq was and remains an important and pivotal part of the Silk Road, but it is the heart that is burning, which puts an end to those trying to reduce the importance of the large port of Faw and the dry canal by exaggerating the challenges related to the Pakistani port of Gwadar or the rail link between China and Turkey.
Third: The dry canal project is an integral part of the large Faw port project, through which goods are transported across Iraqi lands by linking Iraqi ports with northern Europe through Turkey and Syria, and thus Iraq becomes a link between the Arabian Gulf and the Mediterranean Sea through a land corridor is the only one.
Which connects the East with Europe and the West through Iraqi ports, which is the shortest, least expensive and safest route for international ships and goods. The project will contribute to facilitating transport, transit and intra-trade between Iraq, the Mashreq countries, and Europe.
Connecting the dry canal to the ports of Iraq will give it great economic gains that are not limited to the tariff for the passage of trains through Iraqi railways and trucks via land roads in Iraqi lands, but also to the wages and revenues of sea vessels coming to the ports of Iraq, as well as the wages and revenues of marine agencies and job opportunities for shipping workers.
Fourth: Iraq is very important in the Chinese economic strategy as China is the largest trading partner of Iraq, as the volume of trade exchange between them reached 30 billion dollars in 2018, as the Iraqi market is close to China compared to the European and American markets, as well as Iraq is the second largest oil supplier Of China, the fourth largest trading partner of China in the Middle East.
Fifthly: The new offer presented by the Chinese company CMEC is the same one that made a few weeks ago a bid for the large port of Faw, which is a government-owned company of the state of China, which means that it does not care much about the size of the direct profits it gets from the implementation of its new project as much as it is interested in achieving the higher interest of China And represented by completing the Silk Road as the gateway through which the huge Chinese surplus production, which equals one third of the global industrial production, is spent.
Sixth: The proposal presented by the Chinese company indicates that China will implement the project and bear its costs through financing it with long-term loans that include easy payment terms through the length of the contract, the grace period, and the interest rate that can reach 5%.
In order to allay the concerns of some of Iraq bearing new external debt burdens, the Iraqi negotiator can work to persuade the Chinese to reduce the interest rate to a level of 2%, for example, or submit a new offer that includes the implementation of the project in the BOOT format, which means building – owning – operating – transferring ownership, and through This system bears the costs of building the highway provided by the Chinese company that it operates for an agreed period of time during which it obtains the fees imposed on road users in order to pay the costs of the Chinese company, and after that the ownership of the project returns to Iraq.
This is the most used method in the world for implementing infrastructure projects. link
KMan: Have you ever wondered what the redemption people do from 7am to 11pm? is it cleaning, dusting, reading a good book, or playing video games on their phones?
G8way2k: My opinion would be: You called me in to perform the function of my job, not anyone elses. So I’m free to read a book, or play on my phone. Otherwise somebody push the “Go” button.
SusanaC: 12/15…get ready…shine your shoes, dustoff your suit…get your papers and currency in order and review your strategies mentally so u have it down cold.