UNDP, Japan Bank for International Cooperation to support Iraq reconstruction

The United Nations Development Programme (UNDP) and the Japan Bank for International Cooperation (JBIC) have signed a landmark agreement for the provision of loans aimed helping reconstruction efforts in Iraq.

“In accordance with this new agreement, UNDP will establish a facility to support the provision of $150 million in soft loans from JBIC to Iraq, which will primarily support the Ministry of Electricity of the Kurdistan Regional Government in its efforts to reconstruct electricity networks in Northern Iraq,” the agency said in a news release.

These soft loans mark the first installment of a $3.5 billion pledge made by the Government of Japan at a 2003 donor's conference held in Madrid.

The agency said the agreement will “serve as a model allowing UNDP and JBIC to explore opportunities for similar agreements around the globe.”