UNJLC IRAQ BULLETIN No

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UNJLC IRAQ BULLETIN No. 6 of 2004 August 27th, 2004

UNJLC Bulletins aim to provide a clear and concise regular overview of the situation as it exists in Iraq with regards to logistics matters that may affect the work of the humanitarian community. They focus on practical issues that affect the welfare of the populace and related humanitarian work such as the status of transport corridors for humanitarian supplies into Iraq, relevant administrative or commercial developments, and availability of fuels. They further seek to identify major issues for the humanitarian community and other interested parties, to provide relevant background and constructive recommendations on current issues, and to alert responsible parties to emerging issues.

1. Logistics Co-ordination Forum: Amman 2. Transport Corridors

UNJLC convened on August 25th, 2004 a Logistics Co- In this bulletin, UNJLC will focus on the Southern corridor, ordination Forum in Amman, grouping those responsible for part of which provides Iraq’s only direct access from the logistics matters in the respective UN agencies and sea, following a mission by UNJLC to the Iraq-Kuwait international organisations. border at Umm Qasr.

The primary purpose of the forum is to provide an informal The Turkish corridor was covered in UNJLC Bulletin 5 setting for participants to share information and (August 13th, 2004), the Syrian corridor was addressed perspectives on the challenges they face moving more fully in UNJLC Bulletin 3 of 2004 (July 16th, 2004); humanitarian aid and other goods into Iraq so that Jordan in Bulletin 2 (July 2nd); and Umm Qasr in Bulletin common approaches and solutions may be explored, if 1 (June 18th). appropriate. (a) Volumes Estimate It is clear that most agencies and international organisations have well-established logistical arrangements Overall volumes of cargo into Iraq through all means – by in place, generally using professional transporters or land, sea and air – seem to be generally steady. Capacity is forwarders. A number of these parties are still moving adjusting to the evolving situation and commercial significant humanitarian cargoes into the country; others operators in Iraq and regionally become more active. have minimal traffic but may increase volumes once the Excluding military-related and fuel cargos, it is now security environment becomes more permissive and their estimated, based on discussions with transporters and programmes may be more fully reinstated; some have very forwarders and observations at borders and ports, that specialised shipments; others are interested in the overall approximately 60,000 tonnes per day enters the country, logistical picture to assist in their contingency planning. broadly as follows: Est. tonnes The forum proved particularly useful in apprising per day participants of the relative merits of the respective Umm Qasr and other south Iraq ports 15,000 corridors into Iraq and making them aware of transport Turkey, via Silopi/Zakho borders 15,000 options that they may have been unaware of in what is a Jordan, via Karama/Trebil borders 16,000 steadily evolving logistical environment. In particular, there Syria, through both land borders 13,000 seems to be less awareness of the options available for Kuwait and others 6,000 getting goods in by air, with a trade-off between security Estimated total 65,000 costs for ground transports and the more expensive air In addition to this, it is estimated that an average of at freight rates. least 150 tonnes of air cargo enters Iraq daily.

The consensus of participants at the inaugural sessions was that the forum reconvene no more frequently than (b) Southern Corridor: General Description fortnightly, but more frequently than monthly. The next session of the forum is therefore tentatively scheduled for Iraq’s main port of Umm Qasr is now managed by the Iraq mid-September. Logistics personnel from all UN agencies, Ports Authority. Owing to security constraints, the main international organisations and NGO’s operating out of stevedoring activities are now concentrated in the New Amman for Iraq are welcome to participate. Port, located in the northern part of the port complex,

where management has improved security to an acceptable Should demand warrant, a similar forum may be convened level. Part of the security improvement strategy involved for logistics officers and other interested parties operating discouraging dhows calling at Umm Qasr. These smaller out of Kuwait. vessels now frequent the nearby smaller ports of Khor Al-

Zubayr, north of Umm Qasr, and Abu Floos, on the Shatt

Al-Arab Waterway.

ABOUT UNJLC: UNJLC is an inter-agency facility reporting to the Humanitarian Coordinator for Iraq and generally to the Inter Agency Standing Committee. Its mandate is to coordinate and optimise logistics capabilities of humanitarian organisations in large scale emergencies. UNJLC operates under the custodianship of WFP that is responsible for the administrative and financial management of the unit. UNJLC is funded from voluntary contributions that are channelled through WFP. The UNJLC project document for Iraq can be viewed at the UNJLC website (www.unjlc.org). Bulletin 6 of 2004, August 27th, 2004 Page 2 of 6

2. Transport Corridors (cont’d) (e) The Reconstruction Levy: Improvements

(b) Southern Corridor: An Overview (cont’d) The Reconstruction Levy, imposed by CPA Order 38 as amended by CPA order 70, is levied mainly on commercial Khor Al-Zubayr continues to be run by Maersk (AP Moeller) cargo going into Iraq at a rate of 5%. It will be applied at and has experienced few, if any security problems. This is least through to the end of 2005. Food, government in part due to its more isolated location, away from villages purchases and reconstruction materials are exempt, but and other facilities. During July, it saw increased traffic of collections under it provide an indication of the value of inbound food and some exports of dates and lentils. non-exempt imports into Iraq.

The authorities have closed most of the smaller jetties on The Basra region, which covers the southern corridor, is the Shatt Al-Arab, causing the Abu Floos facility to receive responsible for seven entry points as noted in the graph an increased number of calls. The Shatt Al-Arab ports and below. Overall, the region has shown a steady increase in jetties can only accommodate small vessels whereas all collections of the levy in recent months, with more than larger vessels must call at Umm Qasr or Khor Al-Zubayr. US$2 million collected in July, up from less than US$1.5 million in June.

(c) Volumes There has been a significant increase in collections from Abu Floos. This reflects the closure of the Shatt Al-Arab The most prominent commodity imported through Iraq’s jetties where it was more difficult to collect the levy and ports continues to be food. Umm Qasr handles about the concentration of trade on Abu Floos. This area had 10,000 tonnes per day of food with bulk grain through its been considered less manageable than the two main ports silo facility, from break-bulk vessels and containers. Khor of Umm Qasr and Khor Al-Zubayr but marked Al-Zubayr handles around 500 tons of food per day. Food improvements seem to have taken place. volumes through Abu Floos are of a much smaller order. As most of the food and reconstruction material – being All three ports handle containers in addition to food cargos, exempt from the levy yet nevertheless accounting for most with the vast majority going through Umm Qasr. imports - goes through Umm Qasr, the graph cannot give a correct indication of volumes in general. It is, however, Owing to the implementation of regulations on maximum clear that commercial trade into Iraq is increasing, and that age of imported used vehicles and saturation in the the relative freedom of Abu Floos is more appreciated by market, significantly fewer cars were imported through the traders than the two more established ports. The popularity of Abu Floos may be in part due to the onerous Inspection- ports in July than earlier in year. The trade is certainly nd continuing and is expected to do so, but at a reduced level. at-Sea regime (see UNJLC Bulletin 2 of July 2 , 2004) for containerized vessels calling at Umm Qasr and Khor Al- No military cargos seem to pass through Umm Qasr. Zubayr, which makes them less cost-competitive compared to the smaller vessels calling at Abu Floos.

APRIL Basra Region Monthly Customs Levy (USD) MAY JUNE 2,500,000 JULY

2,000,000

1,500,000

$ USD 1,000,000

500,000

- S R R N Y A O A A C M FAO TAL L TO FALO MAQUIL A L SAFW Z ZUB UMM QAS A SHALA BU A A HOR K Location

2. Transport Corridors (cont’d) (h) Tugboats and Pilots

There is general dissatisfaction among operators and (d) Rail Connections agents in Umm Qasr about the availability of tugboats and pilots. Only two tugboats are shipshape and there is a Efforts are under way to re-establish the rail link from constant lack of fuel to run them. Umm Qasr through to Baghdad. Sabotage and a lack of rolling stock have prevented resumption of a full service. Pilots are reported to have demanded separate payment Repair work was near completion when sabotage on some over and above the mandatory IPA pilotage fees. Delays in sections of track delayed re-opening of the connection. boarding have been reported from those vessels that declined to or delayed payment of these unsanctioned requirements. In any event, given the efficiency of the Iraq railways, the rail link may add only marginally to internal transport capacity. Trucks will continue to be the main mode of cargo transport within the country. (i) Future Operation and Management of Ports

The Iraqi Government tender for the future management of (e) Transport Rates Umm Qasr and Khor Al Zubayr has not yet been finalized. Dubai Ports International is considered to be the leading Transport rates out of Umm Qasr have increased by 40% contender for Umm Qasr, and Maersk for Khor Al-Zubayr. to 50% since the beginning of the year. This is a reflection of the general trend within Iraq where transport rates have In Umm Qasr, Stevedoring Services of America (SSA) increased significantly once Jordanian and other non-Iraqi handed over operational management of Umm Qasr Port to drivers were largely forced out of the market. the Iraq Ports Authority (IPA) in late June. SSA still provides support to IPA for accounting and management Within Iraq, the maximum tolerated payload per truck and information. trailer/semi-trailer is 44 tons, equivalent to that allowed in Syria. However, there seems to be little enforcement of There was some concern about the management of the load limits. Axle load limits are unclear but a maximum port after SSA left, despite vocal criticism of their truck limit seems to prevail. This provides transporters with management and lack of investment during their tenure. potential for a relatively high return per tonne-kilometre. The recent efforts of the IPA seem to be more appreciated by users. There is dissatisfaction, but not in the extreme.

(f) Security Two new big mobile harbour cranes will be arriving in Umm Qasr during September. This investment should improve Besides the highly publicised attacks on and kidnapping of the productivity of the port considerably and allow for foreign drivers (mainly from Africa, the Indian sub- quicker handling of heavier loads. A tender for the continent, Jordan and Egypt working for non-Iraqi trucking refurbishing of the two long-unused gantry cranes in the firms), there are reports on attacks on Iraqi drivers around old port closed on 31st July, but the contract has not yet Nasiriyah. These attacks are said to be entirely criminal in been awarded. nature, with the purpose of extorting transit payments from the drivers, or to rob them and loot the cargo. Serious consideration has been given to concentrating container activity in the South Port. This will require This area is known for being generally lawless since the end dilapidated sheds being torn down and the old sulphur jetty of the 1991 Gulf War. It is adjacent to marshlands where being integrated into the main quay-wall. the landscape is ideal for sheltering criminal elements, some of whom are said to be of foreign, non-Iraqi and non- Arab, origin. (j) Dredging and Wreck Removal

As a result of this threat, most operators going from Umm The United Nations Development Programme (UNDP) has Qasr to Baghdad take the eastern road through Amara and recently completed a dredging survey in preparation for Al-Kut, despite this being in much worse condition than the continued dredging of the fairway leading to the ports of modern motorway that serves most of the western route. Umm Qasr and Khor Al-Zubayr. The dredging will resume Although not entirely secure, the eastern route seems to be shortly. much safer in this regard.

Recently Umm Qasr received the largest vessel calling at

the port for at least the past 14 years with the Osge Aksoy (g) Ferry Service: UAE to Umm Qasr discharging 44,500 tonnes wheat. The draft on arrival was

11.40 metres while port management is prepared for The main ferry operator to Umm Qasr port, Dubai’s Naif vessels with up to 11.70 metres draft. Marine Services, has 4 arrivals a week from the United

Arab Emirates with passengers and cargo. They have their UNDP is preparing to remove wrecks in the fairway but is own terminal operation and do not need pilots. Their main awaiting funding. The wrecks are an obstacle to passage of interaction with the port is regarding arrivals and being ships and significant environmental hazard, including to obliged to pay for services they do not use. Naif may be vital desalination plants in neighbouring Kuwait. A meeting contacted in Dubai on telephone +971 4 345-7878, fax +971 4 345- 5570, www.naifmarine.com, [email protected]. with potential donors will take place in Kuwait early October.

3. Aviation (b) Cargo Services: DHL

(a) Overview The biggest and perhaps most important scheduled cargo operator into Iraq is DHL. Operating from its regional hub Baghdad International Airport was closed to civilian in Bahrain, it carries about 100 tonnes per day into Iraq. passenger flights for several days in the third week of This service uses six aircraft rotations with combinations of August, with at least one passenger aircraft stranded Airbus A300B4-200F, Antonov 12, and Boeing 727 aircraft. overnight. It is believed that there was an increased threat from anti-aircraft missile activity directed against a large Destinations include Baghdad, Mosul, Kirkuk, Talil, Al-Asad passenger aircraft. The airport has now reopened. There (between Heet and Haditha, on the road from the border were no civilian aircraft losses before, during or after the crossing point to Syria at Al-Qaim, and Ramadi), Al- closure. Taqadum (west of Falluja, between Falluja and Ramadi), with road connections to Tikrit and Balad. There are direct Aviation capacity into Iraq continues to improve for both flights from Bahrain to Baghdad, and from Bahrain to cargo and passengers. In addition to charter flights for Mosul. The Antonov 12 conducts a daily “milk run” from the specific cargoes, generally available from Europe and the north to south of Iraq and back again, United Arab Emirates, the following regular services have been identified: Cargo weight capacities are about 45 tonnes for the Airbus A300, 12 to 16 tonnes for the Antonov 12, and 18 tonnes Operator Operating from Load type for the Boeing 727. It is understood that refrigerated cargo SkyLink Kuwait Passengers, with may be carried. limited cargo Air Serv Amman Passengers, with Further details are on the respective aircraft type are International limited cargo available on: DHL Worldwide, with Cargo only, but A300: www.airliners.net/info/stats.main?id=18 Bahrain hub very good capacity An 12: www.unjlc.org/content/index.phtmli/itemId/12139 Heston/SAFAIR Amman Passengers & cargo B-727: www.unjlc.org/content/index.phtml/itemId/24711 Royal Jordanian Amman Passengers, with limited cargo Contacts for Iraq, based in Kuwait, are Mr. Michael Nistor, [email protected], phone (965) 901-2599 and Mr. In addition to these services, the International Steve Garside, [email protected], phone (965) 678- Committee of the Red Cross has a small aircraft 9104. The DHL office in Kuwait is (965) 244-2375 or 431- operating from Amman for its own purposes, and those of 8300. Other DHL offices may be directly contacted for the Iraqi Red Crescent Society. Iraqi Airways conducted a further information. The Company has offices and staff in test flight from Baghdad to Amman early in the last week Iraq, including in central Baghdad and at Baghdad of August with a newly-acquired Boeing 737. A regular International Airport. Iraqi Airways service from Amman to at least Baghdad, if not other destinations in Iraq, is probable, but not before Southern Iraq is served by DHL by road from Kuwait. A mid-September. UNJLC is maintaining liaison with Iraqi road service from Jordan is being considered dependent on Airways and will advise of developments. security improvements, together with air links.

Jordan Aviation (www.jordanaviation.com), 962(06)464- There is no indication at present that DHL can carry 9703 or 461-2229, will also consider requests for passengers into Iraq. passenger flights to Baghdad and other destinations in Iraq, depending on security clearance and operational requirements. They operate two Airbus A310’s, an Airbus (c) Civilian C-130 Services: Heston/SAFAIR A320, and two Boeing 737’s. Jordan Aviation advises that they may also provide an air ambulance service. Heston Middle East - Jordan has recently commenced a passenger and cargo air service into Iraq, using an L-100- Further details of services by Royal Jordanian, Air Serv 30 Hercules, the civilian version of the C-130 Hercules, International and SkyLink are available in UNLC Bulletin operated by SAFAIR of South Africa. 4 of 30th July 2004 and Bulletin 5 of 13th August 2004. At present, SkyLink appears to be the only operator providing The aircraft is certified for 90 passengers or between 20 services from Kuwait into Iraq to persons other than the and 22 tonnes of freight, or a combination of both. It can Coalition military, diplomatic and contractor personnel. transport rolling vehicles of various sizes. The service can also execute cargo airdrops, including specialised food None of the services noted above have adequate airdrops, when landing facilities are not available. countermeasures satisfactory to UN security authorities. UN personnel may not use these services. NGO’s with differing Destinations presently served include Baghdad, Basra, security requirements may be able to use these services, Mosul, Erbil, Tikrit, Kirkuk, Balad and Taji. depending on eligibility in the case of Air Serv. The primary contact for this service, based in Amman, is UN Humanitarian Air Services (UNHAS) operations, Mr. Neal Kawar, [email protected], phone 962(06) based out of Amman, remain temporarily suspended but 553-1489 or 553-9657. there is a possibility that they may resume from early November if a suitable aircraft is made available.

4. Immigration: Iraqi Visas Needed 5. Fuels

Immigration has emerged as an issue of concern for (a) Fuel Products Distribution humanitarian staff trying to enter Iraq. There is inconsistent application of new visa rules at various entry The most apparent fuels shortage in recent weeks has been points, and little clear or definitive guidance. in the conflict city of Najaf where little or no fuel supplies of any kind have reached the city. Fuel products availability in Since the cessation of hostilities in April 2003, there has Anbar Governorate is also insufficient, with not more than been little problem in entering Iraq. Visas were not needed. 60% of the required quantities available. However, in mid-August, civilian arrivals at Baghdad International Airport from Jordan were turned back However, from a logistics perspective, particularly for because they did not have Iraqi visas. Other people seem humanitarian cargos from Jordan, the situation is generally to be able to enter Iraq by land from Jordan, Kuwait and good. Fuel stations on Highway 10 from Jordan have Turkey without visas. It is unclear whether ferry enough supplies, albeit at high prices. Truckers on this passengers landing at Umm Qasr require visas. route can afford the fuel; ordinary people cannot.

Discussions with Iraqi consular officials in Amman indicate The situation in the northern governorates is still good for that Iraqi visas are available from the respective Iraqi all fuel products. Imports from Turkey are continuing with Embassies only in Amman, Ankara, Beirut, Cairo and estimated quantities of 130,000 tonnes per day of refined Damascus. An Iraqi Embassy is operating in Abu Dhabi products crossing the border and appreciable quantities but no Iraqi embassies in the Gulf Co-operation Council delivered to the main depot in Mosul. Fuel tankers on this States are yet authorised to issue visas. Iraqi Embassies route have priority through the Turkey/Iraq borders. are not yet operating in Kuwait or Saudi Arabia. In the south, UNJLC witnessed that fuel tankers convoys UNJLC has obtained verbal assurances from an Iraqi from Saudi Arabia destined for the main depots in Latifiya consular official in Amman that Kuwait-based humanitarian have stopped with the closure of the Saudi border at Ar’Ar workers may submit their passports to the Amman in mid-August. This followed the withdrawal of all Saudi embassy for the visa application, without having to attend fuel trucks following attacks on drivers. It is expected that the embassy in person, provided that a responsible this will increase shortages in Baghdad and in the south- authorised individual follows the application in Amman. central governorates that are already poorly supplied.

To obtain a visa, UNJLC was advised that an applicant is required to have their office or counterparty in Baghdad (b) Oil exports and terminals approach the Ministry of Foreign Affairs (MFA) in Baghdad, either directly or through the line Ministry their It is believed that crude oil exports were cut to between a organisation may be working with. The MFA will then third and a half of the normal level during recent weeks endorse the application and issue a reference number with estimates of no more than 1.4 million barrels per day which is then transmitted by the MFA to the respective exported, compared to 2 million bpd in the first half of the embassy where the application is to be lodged and to the month. It seems that the Ministry of Oil decided to close proposed entry point. The applicant’s office or counterparty one of the pipelines to the export terminal because of in Baghdad should also be made aware of the number and heightened risk of sabotage to the line and the effect of the applicant should quote this in their visa application. actual sabotage. It is understood that this was in part Once the number has been transmitted to the responsible related to the Najaf situation. An attack on the premises of embassy, processing should take at least three days, but the South Oil Company, during which the headquarters may take up to a week. A fee of US$40 applies. The building was burned, has also disrupted oil production and application form is available from the Iraqi Embassy or at transportation in the south. www.unjlc.org/content/index.phtml/itemId/21894. Mina Al-Basra and Khor Al-Umaya offshore oil terminals The visa is valid for one month but may be extended in continue to work but with reduced loading rates. The Khor Iraq for, it is understood, up to three months. The visa Al-Zubayr oil terminal remains very busy with the traffic of must be used within one month of issue and a separate vessels calling to load heavy fuel oil or discharge fuel visa is required for each visit. Multiple entry visas do not products such as diesel, kerosene and LPG. The port is at yet seem to be possible. People seem to have no problems or near capacity. Any technical problem might lead to long in Iraq if they are seen to not have a visa, and appear to delays in berthing of vessels. be allowed to leave with few problems.

A curious situation has arisen in the south where (c) Sabotage humanitarian staff have been prevented by the Kuwaiti authorities at Abdaly from entering Iraq unless they have Sabotage to the main Iraqi crude and refined products an Iraqi visa in their passports, whilst it is impossible to pipelines is continuing, with the Iraqi-Turkish pipeline still obtain an Iraqi visa in Kuwait. The Iraqi officials on the out of operation and various lesser attacks disrupting Iraqi side of the border at Safwan seem to be allowing deliveries to refineries and depots. humanitarian workers in without problems. In several cases, communication between the Iraq and Kuwaiti The insurgents seem to have a regular cycle of hitting officers has been required for the Iraqis to assure the strategic locations once repairs to previous sabotage are Kuwaitis that the individuals may cross from Kuwait into complete. This will be a recurring problem for the Iraq without a visa. UNJLC, in conjunction with UNAMI and foreseeable future. other interested parties, will endeavour to clarify this situation with the Kuwaiti authorities.

6. Electrical Power (d) Short-Term Constraints: Fuel Needs

(a) Generating Capacity: An Improving Situation The major constraint on increasing the levels of generation in the short term is the lack of suitable fuel for power Peak power generation levels are now regularly reaching stations. This may seem perverse in a country such as Iraq 5200MW. Hourly energy levels have, for the first time, with large hydrocarbon reserves. It is a question of the exceeded 110,000 Megawatt Hours – a better measure of right types of fuel, and of getting that fuel to the power performance. As summer temperatures abate, the load is stations. decreasing. Most consumers should soon receive between 11 and 15 hours of electricity per day. Every barrel of crude oil or residual fuel oil burnt in power stations represents lost revenue for the Iraqi treasury. Iraq The initial US Army Corps of Engineers projects have undoubtedly needs more electricity; it also needs revenues mostly been completed; initial USAID projects should be to fund reconstruction. A balance therefore has to be struck completed over the coming months. The authorities are between using crude to generate power and to generate confident that 6000MW is achievable by the end of 2004. money. The Ministry of Oil and Ministry of Finance wish to New projects managed by the Ministry of Electricity and the maximise revenues and are resistant to burning ever larger Program and Contracting Office are being commenced. The quantities of crude oil in either thermal or combustion tentative but unofficial target for summer 2005 is 7500MW. turbine stations. This is optimistic; a level of between 6500MW and 7000MW may be more attainable. This would not meet peak Diesel is almost as good as natural gas as a fuel for demand, but the shortfall would be manageable. combustion turbines and is indeed used in a number of Iraqi power plants. However, Iraq’s three ageng refineries cannot produce sufficient refined fuel products to meet (b) Major Long-Term Constraints: Time-to-Build domestic demand, requiring imports that are both hugely expensive and logistically difficult. For these reasons, Iraq’s large thermal power stations, which provide the bulk dependence of electrical power generation on diesel should of the country’s generating capacity, have generally high be reduced, not increased. Diesel is not really an option. output, greater reliability than other plant types, and lower running costs. They are thus particularly suited for 'base- Natural gas, on the other hand, is difficult to export and load' generating capacity. Immediately after the war, therefore does not have the same export value as crude oil. approximately 56% of national grid power was generated An additional benefit of using natural gas for electrical by these stations. They are capable of burning most fuel power generation is the low emissions of pollutants. The types but generally use crude or residual fuel oil, even if ideal fuel, even for thermal stations, is clearly natural gas. designed to run principally for natural gas. Iraq has huge quantities of this product. An estimated 1.2 to 1.8 billion standard cubic feet of natural gas are However, in normal circumstances, construction of thermal produced daily as a by-product of crude oil production. power stations takes three to four years. In Iraq, this has However, most of this is being flared – burnt into the historically taken much longer. In essence, new thermal atmosphere in the oilfields or at refineries - without any power stations are not a short-term solution to Iraq's benefit. Only a small quantity of natural gas in the south is urgent requirement for additional generating capacity. collected and used for power generation. There has been no investment in natural gas infrastructure for many years and such infrastructure that does exist has fallen into (c) Medium-Term Solutions: Combustion Turbines disrepair.

The second major class power plant in Iraq are the Combustion Turbines (CT’s), also known as gas turbines. (e) Future Direction and Challenges Unlike thermal stations, these may be installed in between four months and one year, depending on size. For this Investment in the natural gas infrastructure with the reason, short to medium term alleviation of the supply- intention of using the gas in power stations is obviously demand gap relies on the installation of such plants. Most sensible. However, the funding required runs into the new generation projects started over the past year use billions and projects will take several years to implement. CT’s, except for some smaller diesel-burning engines. The strategy of the CPA, when it controlled Iraq, was that However, the generating capacity of CT’s is typically much crude oil should be exported and that the fuel of choice for less than that of thermal power stations. In effect, CT’s are electrical power generation should be natural gas. It was an expensive long-term solution for a short-term problem. decided that no new power stations requiring liquid fuels would be built with US Supplemental funds, and that such Like thermal plants, combustion turbines may burn funds appropriated to the electricity sector would be used different fuel types although they are designed primarily for to develop the natural gas infrastructure. The Ministry of natural gas. Diesel and other higher-level distillates may Electricity and Interim Iraqi Government is not bound by also be used for similar performance. CT’s may also burn this decision and may very well continue ordering new gen- crude and residual fuel oil, provided that it is treated first. eration capacity requiring liquid fuel. Whether the Ministry This process requires expensive and complex equipment of Oil will then be able to - and indeed choose to - provide with trained operators and the resultant power output is that fuel remains to be seen. significantly lower than for natural gas. CT’s burning crude or residual fuel oil need to be completely stopped on a There may well be a delay, therefore, in increasing the regular basis – often weekly – for thorough cleaning. This levels of generation even after the projects that are reduces the overall levels of generation available nationally currently ongoing are completed, while the natural gas with several units offline concurrently for cleaning. infrastructure is being improved. BULLETIN ENDS