Legal Guide to Investing in Power Generation in Iraq

As outlined below, this Legal Guide is intended to provide a general introduction and up-to-date overview of certain aspects of the structuring and legal regime for invest- ment in power generation in Iraq. Of special note, the specific nature and location of a project, as well as changes to the Iraqi legal regime, may affect the information included herein. In particular, there may be different regulations and requirements in the Kurdistan region of Iraq which are not covered by this Legal Guide.

Chapter I outlines how both the private sector and the government should approach power projects together. In addition, this chapter lists the factors that create an investor friendly environment and provides case studies of how other countries in the region have approached investment in the power sector.

Chapter II delves into Iraq power sector’s and legal landscape. It describes the power sectors’ supply and demand, as well as relevant government agencies, financial institutions that are active in the country , legislation ranging from land rights to tax laws and dispute resolution mechanisms.

Chapter III introduces power project financing and describes typical project finance structures, as well as various ways to structure these types of transactions given the Iraq context.

Chapter IV describes what elements of a power project influence its bankability, as well as considerations for both the seller and the buyer in the negotiation of a Power Purchase Agreement (PPA).

Chapter V continues to build on PPA bankability by outlining common risks in financing a power project and providing mitigation measures both generally and specifically in Iraq.