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10.2  |  Reconstruction: July 2004 to July 2009
863.  DFID continued to support other initiatives that would promote growth and
investment in Basra, including Basra International Airport and leveraging in Japanese
loans. Officials were working closely with the Japanese Embassy in Baghdad to help
progress Japanese soft loans through a “complex” Iraqi Government approval process.
Japan had committed some US$2bn in soft loans to Iraq, of which US$1.2bn was for
Basra-based projects including US$254m for the rehabilitation of Umm Qasr port.
Japanese support for reconstruction
Japan pledged and disbursed more assistance for Iraq’s reconstruction than any country
other than the US.
Japan pledged up to US$5bn at the Madrid Donors’ Conference on 24 October 2003,
consisting of US$1.5bn in grants (increased to US$1.7bn by July 2009) for power
generation, education, water and sanitation, health and employment, and Security Sector
Reform, and up to US$3.5bn in concessional loans.502 By July 2009, Iraq and Japan had
signed agreements for 12 loan projects worth up to US$2.43bn, of which US$1.37bn was
for seven projects in the South:
Umm Qasr Port Rehabilitation Project. Up to US$270m to dredge shipping lanes,
remove wrecked ships, rehabilitate port facilities, and provide equipment and
materials.
Samawah Bridges and Roads Construction Project. Up to US$30m to build and
rebuild bridges across the Euphrates River and to build connecting roads in the
vicinity of Samawah, in Muthannna.
Irrigation Sector Loan Programme. Up to US$90m for irrigation drainage pumps,
equipment and materials including in Muthanna.
Basra Refinery Upgrading Project. Up to US$20m to increase capacity.
Khor al-Zubair Fertiliser Plant Rehabilitation Project. Up to US$160m to supply
machinery for the Kohr Al-Zubair Fertiliser Plant in Basra.
Crude Oil Export Facility Reconstruction Project. Up to US$430m for the
construction of an on-shore/off-shore pipeline to export oil and installation of off-
shore loading facilities in al-Faw, Basra.
Basra Water Supply Improvement Project. Up to US$370m to improve the water
supply facilities in and around Basra City.
In November 2005, following the Paris Club agreement on debt relief, Japan agreed to
reduce Iraq’s official debt to it by 80 percent, with a value of US$6.7bn.
From February 2004 to July 2006, Japan maintained an Iraq Reconstruction and
Support Group, comprising some 600 troops, in Samawah.503 The Group was mandated
to deliver humanitarian and reconstruction assistance only; Australian and UK forces
provided protection.
502  Government of Japan, Factsheet, August 2009, Japan’s assistance to Iraq (Fact Sheet).
503  BBC News, 8 February 2004, Japan soldiers begin Iraq mission’; BBC News, 16 July 2006, ‘Japan
troops withdraw from Iraq.
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