During the meeting with investors interested in executing the project of the One Million Housing Unit

During the meeting with investors interested in executing the project of the One Million Housing Unit

Dr. Sami R. Al Araji, assured that the real criteria for choosing project investors for the 1 million housing unit in Iraq will be the technical and financial competence. He clarified that all investors will enjoy privileges guaranteed by investment law 13 of 2006.
He mentioned that during a meeting with more than 37 companies interested in participating in executing the 1 million housing unit project, referring that each company should clarify their attitude, and start from the very beginning to work on the organizational side of the project which includes many elements such as developing a study for the basic design of the province regarding the height of the building, number of stories and type of the soil. All this must comply with the engineering aspect and the economic benefit and attention must be paid to the historic criteria and the nature of the area. 5-7 designs and alternatives must be developed for the housing units.
Interested companies must provide all infrastructure services including (water, electricity, sewage and communication) also a primary school with 12 classes and one clinic, police station, civil defense center. He pointed that all additional services such as (entertainment centers, sports centers, malls) will be under direct investment to investors for at least 25 years. NIC will be organizing this type of activities and relevant administrational procedures which links them with the governmental agencies. Investors shall be responsible for post project maintenance according to a previously agreed price. Investment companies can utilize Iraqi workers and local materials provided guarantying standard specifications and quality control.
Dr .Al- Araji warned the companies that there are some important points which NIC cannot tolerate such as quality control for used materials, performance safety, environmental requirements, basic services for citizens and the general view of the complex.

Regarding the financial aspect in funding the project, NIC Chairman declared that we have governmental banks that assures the financial flow and guarantees investor’s capital (Al Rafidain, Al Rasheed, and Trade Bank of Iraq). Organizational procedures for payment will be 25% from the beneficiary, 10% to be given directly to the investor after signing the contract, the rest 15% to be received after procedures and land preparation. The investors shall provide approvals from international and local banks guaranteeing completing the rest of the project, (75%) to be divided into 7 annual payments equally with a yearly interest to be paid by Iraqi banks to investors after completing the project which represent the first payment. The beneficiary can pay directly without interests and have the unit registered in his name and avoid gradual payment which can last from 10 -15 years with interests.