World pledges billions in aid to help Iraq’s reconstruction

Kuwait city — Governments from around the world on Wednesday pledged billions of dollars in loans and investment for the reconstruction of Iraq, a nation reeling from a three-year war against the Daesh group.

Iraq secured nearly $25 billion in the first few hours of the final day of an international donors’ conference in Kuwait City, which was still ongoing.

Baghdad says it needs nearly $90 billion to rebuild after a grisly war with Daesh extremists which devastated homes, schools, hospitals and economic infrastructure, displacing millions of people.

The top contributors so far are Britain and Turkey.

Britain said it would grant Iraq export credit of up to $1 billion per year for a decade. Turkish Foreign Minister Mevlut Cavusoglu said his country would provide $5 billion in loans and investment, without specifying the breakdown.

The Gulf states, led by host nation Kuwait, pledged $5 billion in investment, loans and financing for exports. Iran’s deputy foreign minister said that Tehran would contribute to stabilisation efforts through the private sector, without announcing a financial pledge.

Iraq said its 10-year reconstruction plan will cost $88.2 billion, of which $22 billion was required immediately.

Prime Minister Haider Al Abadi’s government is hoping the international community will follow up the end of major combat against Daesh with concrete financial support for reconstruction.

On Wednesday in Kuwait City, Abadi sought to allay fears that funds would be lost to corruption, for which the country is notorious.

“We will not stop fighting corruption, which is not less than terrorism. In fact, it was one of the reasons for the rise of terrorism,” he told the potential donors.

“Last week, we launched a string of measures to simplify procedures for investments,” Abadi said. —