The Ukrainian Construction Association (UCA) has signed a memorandum of understanding (MoU) with the Ukrainian-Iraqi Chamber of Commerce (UICC) on further cooperation between the two countries in construction and in the supply of construction materials from Ukraine to Iraq.
Within the framework of the MoU, Iraq is commencing purchases of rebar from Ukrainian steel producers. Accordingly, a 10,000 mt order is currently being processed; however, the identities of the suppliers in question have not been disclosed.
"Taking into account that orders for construction have declined considerably in Ukraine today, contracts for the restoration of infrastructure in Iraq will become a good opportunity for earning money for Ukrainian companies. This will make it possible for them to retain professionals and meet their debt liabilities," a UCA press release quotes UCA chairman Lev Partskhaladze.
As stipulated in MoU, the UICC is a leading representative in the development of commercial and economic cooperation between Iraq and Ukraine, while the UCA is the leading supplier via the UICC of Ukrainian companies' developing and construction services in Iraq. In March 2009, the UCA signed a MoU on collaboration in the construction sector with the Kurdistan Constructors Union/Erbil Branch (KCU).
The Iraqi side has offered to the Ukrainian delegation a list of construction projects, amounting to a total of $1.172 billion. According to the UCA press release, the Ukrainian companies are currently mulling the possibilities of building a hospital and town hall in the city of Erbil, northern Iraq. Moreover, the UICC has already started signing exclusive dealer contracts for the supply of Ukrainian-produced construction materials to Iraq.