Friday, August 17, 2007
Iraq sells three mobile phone licences for $3.75 bn.
Telecommunications
(Reuters) - Iraq has sold three mobile phone licences for $3.75 billion to Kuwait's Mobile Telecommunications Co (MTC), AsiaCell and Iraq's Korek Telecom, the Iraqi Finance Minister Bayan Jabor said on Friday. The three firms, which already run networks in the war-torn country, made the highest bids in an auction in the Jordanian capital that began on Thursday.
TurkCell and Egypt's Orascom had also bid for licences but dropped out of the race for one of the few sectors to thrive amid Iraq's instability and crumbling infrastructure. The fixed-line network was hit by sanctions after Iraq's invasion of Kuwait in 1990 and by bombing during the US-led invasion in 2003. Less than 4 per cent of Iraqis have landlines. "To get the best return from the auction in such circumstances is a great vote of confidence in the Iraqi economy," Jabor told reporters in Amman.
Orascom's withdrawal appeared to be a major upset as the operator was the first to provide a full mobile phone service in Baghdad after the 2003 invasion, through Iraqna. "Since they were first to establish in Iraq, we were surprised by Iraqna's pullout from the auction after bidding reached $1.25 billion," Jabor said. The 15-year licences replace three short-term contracts awarded soon after the invasion. Iraqi mobile use rose to 8 million out of a population of 26 million at the end of 2006, from virtually nothing three years earlier, according to officials.
Labels: (MTC), Asiacell, Bayan Jabor, Iraqna, Korek Telecom, mobile phone licences, Mobile Telecommunications Co, Orascom, Turkcell
Thursday, May 03, 2007
Iraq wins some debt relief at Sharm el-Sheikh
Conference
(Reuters) - Iraq won a trickle of debt relief pledges at a big international conference in Egypt on Thursday and the United States prepared for the highest-level contact with Syria in more than two years. Egypt and three East European countries agreed to waive debts owed by Iraq as part of an International Compact to support Iraqi institutions in exchange for political and economic reforms by the Baghdad government.
The first day of the two-day conference in the Red Sea resort of Sharm el-Sheikh is dedicated to the International Compact, a five-year plan to restore stability and economic prosperity through national reconciliation. But much of the attention is on whether the United States will abandon its longstanding reluctance to hold high-level talks with the Iranian and Syrian governments, as recommended by the Baker-Hamilton commission on Iraq last year.
In his opening speech to the two days of meetings in Egypt, Iraqi Prime Minister Nouri al-Maliki appealed for debt relief. "We call on everybody participating in this conference to write off the accumulated debts of Iraq," he said. Iraq sits on the world's third-largest proven crude oil reserves but is struggling to rebuild after four years of war.
Iraqi Finance Minister Bayan Jabor said the three Eastern European countries -- Slovenia, Bulgaria and Poland -- would agree to forgive 80 percent of Iraqi debt but did not say how much that would be. He said the European Union would grant Iraq $200 million, and he expected grants from some Asian countries as well. But James Dobbins, an analysts at the RAND Corporation, said debt relief was of secondary importance because the Iraqis are not paying off the money they owed anyway.
"It is a purely paper transaction. It's symbolic but it doesn't have any immediate effect," he said. Jabor said that Iraq had rejected as unacceptable an offer from Russia to forgive the debt it is owed by Baghdad in return for access to a major Iraqi oilfield. "The Russians are hesitant. They want investment in the Rumaila oilfield in return for eliminating the debt," he said. When Saudi Arabia announced last month that it was writing off 80 percent of the more than $15 billion it was owed by Iraq, Jabor estimated his country's debt at $140 billion.
The first day of the two-day conference in the Red Sea resort of Sharm el-Sheikh is dedicated to the International Compact, a five-year plan to restore stability and economic prosperity through national reconciliation. But much of the attention is on whether the United States will abandon its longstanding reluctance to hold high-level talks with the Iranian and Syrian governments, as recommended by the Baker-Hamilton commission on Iraq last year.
In his opening speech to the two days of meetings in Egypt, Iraqi Prime Minister Nouri al-Maliki appealed for debt relief. "We call on everybody participating in this conference to write off the accumulated debts of Iraq," he said. Iraq sits on the world's third-largest proven crude oil reserves but is struggling to rebuild after four years of war.
Iraqi Finance Minister Bayan Jabor said the three Eastern European countries -- Slovenia, Bulgaria and Poland -- would agree to forgive 80 percent of Iraqi debt but did not say how much that would be. He said the European Union would grant Iraq $200 million, and he expected grants from some Asian countries as well. But James Dobbins, an analysts at the RAND Corporation, said debt relief was of secondary importance because the Iraqis are not paying off the money they owed anyway.
"It is a purely paper transaction. It's symbolic but it doesn't have any immediate effect," he said. Jabor said that Iraq had rejected as unacceptable an offer from Russia to forgive the debt it is owed by Baghdad in return for access to a major Iraqi oilfield. "The Russians are hesitant. They want investment in the Rumaila oilfield in return for eliminating the debt," he said. When Saudi Arabia announced last month that it was writing off 80 percent of the more than $15 billion it was owed by Iraq, Jabor estimated his country's debt at $140 billion.
Labels: Bayan Jabor, Bulgaria, debt relief, Egypt, International Compact with Iraq, Poland, Rumaila field, Russia, Sharm al-Sheikh Conference, Slovenia
