Iraq Leader Asks China For Reconstruction Funds

Posted July 18th, 2011 at 2:10 pm (UTC-5)
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Iraq has asked China to help with the reconstruction of the war-ravaged country during a visit to Beijing by Iraqi Prime Minister Nouri al-Maliki.

Mr. Maliki led a high-level delegation in talks with Chinese Premier Wen Jiabao Monday at the Great Hall of the People.

An Iraqi government spokesman said Iraq would like China to set up a fund to help rebuild the country and also to encourage Chinese companies to invest there.

China's state run Xinhua news agency said Mr. Wen told Mr. Maliki that China will encourage companies to establish a long-term and stable relationship with Iraq's oil and natural gas sector and to expand cooperation in oil exploration.

The two leaders Monday signed cooperation agreements on economic technology and the training of Iraqi government personnel.

Mr. Maliki is also expected to meet with Chinese President Hu Jintao during his first visit to China, which winds up Thursday.

In an exclusive interview with China Central Television, Mr. Maliki said Iraq needs to make the best use of its oil and gas to finance its rebuilding needs.

He said he hopes to get more Chinese companies to join in the construction of Iraq's infrastructure as well as in the power, crude oil and other important industries.

China, which needs new energy sources to feed its rapid industrial growth, has become a key investor in Iraq's oil and gas sector.

Its largest state oil company, China National Petroleum Corporation, announced last month that it has begun pumping oil at the al-Ahdab field 180 kilometers southeast of Baghdad, the first new oil project to get under way in Iraq in more than 20 years.

China signed the deal in 1996 with then Iraqi leader Saddam Hussein, but implementation was delayed by international sanctions and the U.S.-led invasion in 2003. The deal was renegotiated in November 2008 on terms under which Iraq retains ownership and pays the Chinese company a fee for services on every barrel pumped.