Setting Up Shop

Azzaman (03.02.06), via Informed Comment:

"Iraq has agreed to invest $1 billion to rehabilitate the country’s industrial sector, said Industry and Minerals Minister Abdulaziz al-Najafi in a statement. The statement, obtained by Azzaman, said the money from Tehran will be invested in several industrial projects and Iraqi entrepreneurs were welcome to make use of it." Iran to invest $1 billion in Iraq

According to the article, this is the first deal of its kind signed with a foreign country. "Negotiations with other countries failed due to security reasons." The Iranians, however, "have said they will proceed ahead with their investment despite mounting insecurity." It's a done deal. Not only are they sending in "a team of Iranian industrial experts...to map out the sectors of mutual interest", but all the pieces are already in place. "'The money is there. The companies willing to do the job are there. And above all the governments of the two countries are keen to see the projects implemented,' said Sami al-Araji, undersecretary of [Iraq's] Industry and Minerals Ministry." A few more specifics. Sounds like Iran is making good on its announcement last July, when it pledged $1 billion "for rebuilding projects to include schools, hospitals and libraries." Back then, Iran also said it was going to begin supplying electricity to Iraq, especially in light of the fact that "American-led efforts to fix Iraq's outdated and war-damaged power grid have yielded little difference in the lives of Iraqis, who are enduring their third sweltering summer with sporadic electricity since the war began." Ahh, the Iraqi electrical grid. Not exactly in the greatest of shape. In addition to setting up "a new car company...as well as factories for the manufacture of electrical transformers and appliances, steel and glass", Iran has another deal going. It's going to help the Iraqis "build a multimillion-dollar international airport near the southern city of Najaf, a holy center for Shiite Muslims, that would be financed largely by a low-interest loan from Iran, according to Iraq's transportation minister." Did we mention that "Iran and Iraq are planning to build three pipelines, at Iran's expense, to cover Iraq's urgent need for petroleum and refined oil products"? No? Forbes (07.18.05):

"Iraq will export crude oil to Iran, and Iran will transport petroleum and other refined products to Iraq, which is suffering from shortages in its petrochemicals industry, the minister told a press conference, attended by Iraqi Prime Minister Ibrahim Jaafari, who is visiting Iran. Zanganeh said the agreement has not yet been signed, but the exchange will begin 10 months after it is signed." Iran, Iraq to build 3 pipelines to exchange Iraqi crude for Iranian oil products

Construction is underway, and at least one is slated to become operational within the next several months. Oh and did we mention Iran is helping the Iraqis build a railway from the border to Basra?