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Iraq's PMF signs MoU with China's CMEC for construction agreement

  • By Al Mayadeen English
  • Source: Agencies
  • 8 Mar 2024 16:10
  • 4 Shares
2 Min Read

The PMF's Al-Muhandis Company releases a statement saying that it expects joint projects in fields including construction, engineering, trade, services and energy projects with China's CMEC.

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  • The flag of China and Iraq side by side (CGTN)
    The flags of China and Iraq. (CGTN)

In a first publicly-announced agreement of its kind with an international company, Iraq's Popular Mobilization Forces (PMF) confirmed that the state-owned group Muhandis signed a memorandum of understanding with Chinese construction giant CMEC.

The PMF released a statement noting that it expects joint projects in fields including construction, engineering, trade, services, and energy projects for Al-Muhandis Company, which was established in 2022.

The Muhandis General Company for Construction, Engineering, and Mechanical, Agricultural, and Industrial Contracting works in many sectors, which differentiates it from other Iraqi state companies.

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Read more: PMF: Ready to carry out orders to preserve Iraq sovereignty

Ties between Iraq and China have been on the rise ever since 2021 when Iraq signed agreements with two Chinese companies to build 1,000 schools in the country in two years. The deals, which were signed in the presence of Iraq’s Prime Minister Mustafa Al-Kadhimi, were made with Power China (which will build 679 schools) and Sinotech (which will build the remaining 321).

Though the country is very rich in oil, it has suffered from a weak infrastructure as a result of Saddam Hussein’s dictatorship and corruption and the US looting of its soil and resources. 

In February last year, Iraq's central bank announced that it would allow commerce with China to be settled directly in yuan for the first time.

The government's Economic Advisor, Mudhir Salih, said, as quoted by Reuters, that "it is the first time imports would be financed from China in yuan, as Iraqi imports from China have been financed in (US) dollars only."

  • Iraq
  • CMEC
  • Al-Muhandis Company
  • PMF
  • China
  • Trade
  • memorandum

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