Power for the Mosul area: KfW helps to rebuild necessary infrastructure

Frankfurt am Main (ots) -

- First loan agreement for EUR 45 million signed in Baghdad
- Major contribution to stabilising the region

Today KfW Development Bank signed a first EUR 45 million loan
agreement on behalf of the German Federal Foreign Office. The funds
will finance substations, power lines and pylons to restore
electricity supply to the greater Mosul area.

Loans totalling up to EUR 500 million will be made available to
support stabilisation efforts in Iraq. Mosul, once the stronghold of
the so-called "Islamic State" (IS), is now liberated, just over a
year after the Iraqi military and Kurdish Peshmerga forces launched
their offensive. Work has now has begun to restore vital
infrastructure in a city whose western districts have been completely
destroyed. Many surrounding towns and communities also lie in ruins.
Demining and restoring power and water supply is important for the
displaced residents who are now returning to their homes, now that
they have been freed from IS rule.

"Functioning basic services are key to returning the displaced
inhabitants to their homes - and to stabilising the region", said
Prof Dr Joachim Nagel, member of the Executive Board of KfW Group.

Deliveries of the first power lines, substations and spare parts
are expected to arrive from February 2018 onwards, so households,
hospitals, schools and food producers can soon look forward to a
reliable supply, especially in Mosul's western districts and
surrounding communities.

"The signing lays the groundwork for an important stabilisation
project managed by the Iraqi government. It is a great step towards
restoring electricity supply to Mosul. The German Federal Government
is pleased to be able to support the Iraqi Government with a loan of
EUR 500 million to implement this and further projects", said Stephan
Evers, chargé d'affaires of the German embassy in Baghdad.

Another two loans totalling EUR 90 million are being prepared at
the request of the Iraqi Government. They will finance the
reconstruction of destroyed roads and bridges and the restoration of
water supply and sanitation systems in the Mosul area.

Germany has contributed more than EUR 1 billion to supporting the
reconstruction and political stabilisation of the country through
humanitarian aid, stabilisation measures and long-term development
cooperation since 2014. It is also providing advisory services to the
Iraqi Government on political and economic reforms and training of
military personnel.

For more information on the business area KfW Development Bank go
to www.kfw-entwicklungsbank.de

Pressekontakt:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM), Dr Charis Pöthig,
Tel. +49 (0)69 7431 4683, Fax: +49 (0)69 7431 3266,
E-Mail: Charis.Poethig@kfw.de, Internet: www.kfw.de

Original-Content von: KfW, übermittelt durch news aktuell