Iraqi Council of Ministers makes decisive calls on energy and contract fronts

Shafaq News / Iraqi Prime Minister Mohammed Shia Al-Sudani chaired the sixth regular session of the Council of Ministers On Wednesday.

According to a statement issued by Al-Sudani's office, the session discussed the general situation in the country, deliberated on several key issues, and addressed the agenda items, making necessary decisions regarding them.

Furthermore, in line with the government's commitment outlined in its ministerial agenda, the annual progress report on the government program was approved and referred to the Parliament, under Article (38/First) of the Council of Ministers' internal regulations.

Regarding the resolution of the issue of contracted employees in state ministries, it was decided to compel the Ministry of Finance to adhere to the number specified in Cabinet Decision No. (378) for the year 2021, concerning the regularization of contracts for employees of the Ministry of Electricity.

In the energy sector, the Council approved the following:

1. Exception from the criteria for qualifying international companies for licensing rounds and the standards set forth in the letter from the PM’s Office dated August 3, 2023.

2. Granting the Ministry of Oil the authority to negotiate based on the single bid method, exempting it from the contracting methods stipulated in Article 3 of the Government Contract Implementation Instructions (No. 2 of 2014), with the mentioned ministry bearing the responsibility for the validity, integrity, and accuracy of the contracting procedures in advance.

Additionally, the Council approved the invitation to Kazprom company through the single bid method to implement the comprehensive development project for the Nasiriya field, exempting it from the justifications of Article (Third/Sixth) of the Government Contract Implementation Instructions (No. 2 of 2014) and the accompanying standard documents, with the Ministry of Oil assuming responsibility for the validity, integrity, and accuracy of the contracting procedures.

The Council also agreed to the content of the letter from the Ministry of Health dated Feb. 1, 2024, regarding the mixed measles vaccination campaign, with an additional allocation to the Kurdistan Region (KRI), according to the Region's proportion as stipulated in the Federal General Budget Law.

The Council approved the proposal of the Pharmaceutical Council based on Paragraph 3 of Cabinet Resolution 23151 of 2023 regarding the implementation of the aforementioned resolution by factories, as follows:

1. Regarding domestic private factories classified as C-rated, a deadline until the end of August 2024 is given for them to upgrade and achieve a higher classification.

2. Concerning government-owned factories classified as C (such as Samarra and Akai), a deadline until the end of December 2024 is provided for them to upgrade and reach a higher classification.

3. For achieving CGMP (Current Good Manufacturing Practice), a commitment is required from all factories to implement CGMP requirements by the end of 2025, and no renewal will be granted to any factory that fails to obtain CGMP accreditation.

In the context of diplomatic work regulation, the decision of the Cabinet (No. 23103 of 2023) regarding the relocation of the consulate general from Gaziantep city to Mersin province in Turkey is revoked, and the relocation to Mersin, as stated in the letter from the Ministry of Foreign Affairs dated December 6, 2023, is canceled.

Furthermore, in the same context, it was voted to approve the opening of a commercial attaché in the African continent, with its headquarters in the Republic of South Africa, per the provisions of the constitution and the directives of the Ministry of Commerce Formation and Functions Instructions (No. 2 of 2014).

Within the framework of the government's efforts to execute service projects in the governorates promptly and address the causes of delays, the Council approved several resolutions:

Firstly:

1. Increasing the contingency percentage for the completion of the construction of Al-Jabayesh General Hospital (100 beds/Phase II/ Marshes Revitalization Program) by 11.442% after rounding, making it 178.332% instead of 166.89%.

2. Increasing the total cost of the project for completing the construction of Al-Jabayesh General Hospital (100 beds/Phase II/Marshes Revitalization Program) by 883,000,000 Iraqi Dinars (after rounding to become 28,315,000,000 IQD instead of 27,432,000,000 IQD), with a percentage increase of 3.22% after rounding on the revised total cost and a percentage increase of 194.15% after rounding on the approved total cost.

3. The Ministry of Health shall bear the responsibility for the accuracy and integrity of the data and information sent to the Ministry of Planning. The relevant committees in the Ministry of Health shall be responsible for the prices and specifications listed in the required spare parts order provided to the Ministry of Planning, as it is the competent authority for this matter. Additionally, the Ministry of Health shall bear responsibility for the repetition of spare parts orders for the project and the lack of accuracy in determining actual needs and preparing lists accordingly. Furthermore, it shall bear responsibility for including operational paragraphs within the list provided to the Ministry of Planning.

Secondly:

Approval of the recommendations of Meeting No. 36 of the Diwani Order Committee (No. 45 of 2018) regarding the means, mechanisms, and necessary solutions for completing public hospital projects, as documented in the letter from the Ministry of Planning dated February 1, 2024, and approval of the content of the Ministry of Planning's request in its letter dated February 5, 2024.

Thirdly:

Amendment of (Second Item/ Paragraphs (1 and 2) of Cabinet Decision No. 24042 of 2024) concerning the project, rehabilitation, and expansion of the four entrances to Baghdad, as follows:

1. Approval of the opinion of the consulting entity stated in (Second Item) of the Ministry of Planning's letter dated February 1, 2023, regarding the non-division of the required work by spare parts orders for the entrances of Baghdad - Abu Ghraib and Baghdad - Baquba, as they are intertwined with the original contractor's work and require execution in a single phase.

2. Retention of paragraphs (First, Third, Fourth, Fifth, and Sixth) of Cabinet Decision No. 24042 of 2024.

Fourthly:

1. Increasing the contingency percentage for the contractor (Zahra Intersection Project in Najaf Governorate) by 31.177% to become 84.764% instead of the previously adjusted percentage of 53.587%.

2. Increasing the total cost of the main project to become 63,684,917,000 IQD, instead of 53,166,360,000 IQD, with a percentage increase of 19.78% from the total cost.

3. Najaf bears full responsibility for the newly added paragraphs and the additional amounts to the approved project cost.

Fifthly:

1. Establishing a component (Supplementary Works for the Construction of Internal Departments/square meter) with a total cost of 16,672,417,300 IQD within the project (Construction of Internal Departments/square meter) outlined in the investment budget for the year 2023 for Thi Qar University.

2. Increasing the total cost of the aforementioned project to become 17,764,539,355 IQD, instead of 10,960,000,000 IQD, with a percentage increase of 62.1% after rounding on the reduced total cost.

3. The Ministry of Higher Education and Scientific Research bears responsibility for the accuracy and integrity of all data and information provided to the Ministry of Planning.

Sixthly:

Establishing competent supplementary work for the construction of a correctional facility in Southern Basra within the project construction of a correctional facility in Southern Basra with a total cost of 43.361.361.100 IQD, including the contingency, supervision, and monitoring.

Establishing competent supplementary works for the construction of a correctional facility in Diwaniya within the project construction of a correctional facility in Diwaniya with a total cost of 41.955.088.065 IQD including the contingency, supervision, and monitoring.

Increasing the total cost of the project construction of a correctional facility in Southern Basra by 18.114.000.000 IQD, to become 48.114.000.000 IQD instead of 30 billion dinars, with a percentage increase of 60.38% on the total project cost.

Increasing the total cost of the project construction of a correctional facility in Diwaniya by 15.787.000.000 IQD to 45.787.000.000 IQD, with a percentage increase of 52.62% on the total project cost.

The Ministry of Justice bears the responsibility for the accuracy and integrity of the data provided to the Planning Ministry.

Seventhly:

1. Increasing the total cost of the project (Construction of Medical Centers for Cancer and Heart Diseases) by 5,635,685,970 IQD, to become 21,840,075,590 IQD, instead of 16,204,389,620 IQD, representing a percentage increase of 34.778%.

2. Increasing the contingency percentage for the project as detailed in the Ministry of Planning's letter numbered (4/6/2776), dated January 22, 2024, to become 48.03% instead of 8.86%.

3. Affirming the violation by Diyala Governorate, which includes issuing spare parts orders without a financial ceiling within the total cost allocated for the project.

4. Emphasizing to Diyala Governorate the necessity of attention to plans and designs when preparing similar projects in the future to avoid spare parts orders.

5. Diyala Governorate bears the responsibility for the accuracy of the data provided to the Ministry of Planning and the actions taken by it, per its authorities and applicable instructions.

Eighthly:

Increasing the contract cost by an amount of 11,598,000,000 IQD, making the total contract cost 32,585,000,000 IQD, instead of 20,987,000,000 IQD, including seven reserve items, representing a percentage increase of 55.262%. This requires an increase in the total cost of the main project (Supplying Materials to Support Electricity Transmission in Basra) under Tabulation (3-47-1-2-12-5-23) by an amount of 9,904,610,000 IQD, making the total cost 67,450,610,000 IQD, instead of 57,546,000,000 IQD, provided that the financial allocation is fully available from Basra Governorate to ensure implementation within the specified period and completion of the project.

Ninthly:

1. Increasing the total cost of the project (Construction of a 50-bed Hospital in Diyala Governorate/Mandali) by an amount of 4,869,978,650 IQD, to become 19,317,266,100 IQD, instead of 14,447,287,450 IQD, representing a percentage increase of 33.708% from the total cost.

2. Increasing the contingency percentage for the project (Construction of a 50-bed Hospital in Diyala Governorate/Mandali) as detailed in the Ministry of Planning's letter numbered (4/6/2777), dated January 22, 2024, to become 44.733%, instead of 10%.

3. Emphasizing to Diyala Governorate the importance of plans and designs when preparing similar projects in the future to avoid spare parts orders.

4. Diyala Governorate bears the responsibility for the accuracy of the data provided to the Ministry of Planning and the actions taken by it, in accordance with its authorities and applicable instructions.

Tenthly:

1. Increasing the reserve amount for the contractor of the project (Development and Paving of Side Roads for the Kut-Maysan Entrance, spanning 6 km, including the implementation of stormwater drainage lines, a pumping station, and the rehabilitation of the electrical network in Kut District) because the required work is complementary to the original contract, resulting in an increase percentage on the allocated reserve amount of 50.62%, becoming 53.105% instead of 2.48% after part of the reserved amount was depleted during the referral process.

2. Increasing the total cost of the component and the main project by 18,686,475,356 IQD, by a percentage of 14.65%, making the total cost of the main project 146,221,448,900 IQD instead of 127,534,973,544 IQD.

3. Wasit Governorate bears the responsibility for the accuracy and validity of the data and priorities sent to the Ministry of Planning.