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28 February 2024

Cash-strapped Iraq cancels 296 projects, freezes 2,169

By Staff

Iraq has cancelled 296 projects and froze 2,169 others because of the financial crisis caused by low oil prices and soaring military costs, a newspaper in the conflict-battered Arab country reported on Tuesday.

“296 projects on the 2015 budget were cancelled while 2,169 were suspended because of the large fiscal deficit,” the Arabic language daily New Al-Sabah said, quoting planning ministry spokesman Abdul Zahra Al Hindawi.

He said the government is planning to enforce a post-payment system for nearly 6,000 other projects, allowing for paying contractors after the completion of the project.

He said many local and foreign firms have accepted that system and that it would be enforced once the 2016 budget is released.

“The problem is not in the new projects but those which are under construction…budget allocations are not enough to fund these projects so we will benefit from the post-payment system to have them completed and avert their collapse,” he added.