The Iraq Development Fund announces the launch of a project to establish schools
PM10:26 24/1/2024
The Iraq Development Fund has launched the Eduba program, the first program to be launched in Iraq with the participation of the private sector. It aims to partially meet Iraq's urgent need for schools by involving the private sector in building government schools.
The program aims, as a first phase, to build four hundred (400) schools, which will be offered as investment opportunities through a lease and ownership system. This approach is modern for Iraq but has been globally tested and implemented in many countries worldwide.
The investor finances and establishes the schools, as well as their setup and maintenance. Meanwhile, the Iraq Development Fund ensures the provision of a secure and stable mechanism to secure a rental fee for the school from the investor for a period of no less than ten years. After the lease contract expires, the experience is evaluated, and a decision is then made whether to transfer the school to the Ministry of Education or any other entity, or to continue the maintenance contract signed between the investor and the fund.
This model ensures the sustainability of the project and achieves positive outcomes for the Iraqi society and economy in the long term. The investor invests in the educational infrastructure, while the Iraq Development Fund ensures the necessary financial support for operating the schools and providing a suitable learning environment for students and the community.
The CEO of the fund, Mohammed Al-Najjar, said, "The initial allocation of the Iraq Development Fund with the budget amounts to one trillion dinars annually, and three trillion dinars over the three-year budget period. The main goal is to change the philosophy of managing Iraq's economy to create economic diversification and introduce the latest technological developments and utilize managerial expertise through private investment."
Al-Najjar added that "the fund supports private investment exclusively and consists of six funds: the Environment Fund, the Digital Transformation Fund, the Housing Fund, the Industry Fund, the Agriculture Fund, and the Education Fund." He pointed out that "an executive director has been appointed, and now the fund is about to launch its first project, which involves the establishment of schools within the next two or three weeks."
He further emphasized that "the fund has a developmental and investment objective and operates on three types of projects: those with social returns, break-even projects with no profit or loss, as well as profitable projects. The expected breakthrough lies in activating the role of the private sector in strategic and developmental projects, which has not happened before. The government is using the available funds to help transform and create success stories for the rest of the state sectors."
Al-Najjar also mentioned that "the fund has a board of directors and governance mechanisms, with the Prime Minister serving as the chairman of the board, along with three ministers from the Ministries of Finance, Planning, and Reconstruction. Mechanisms have been established, including best practices utilized by other funds around the world."