ERBIL, Kurdistan Region — Projects underway by companies and contractors have stalled in Kirkuk under pilling local administration debt as the province is complaining that the federal government hasn’t sent its share of the Iraqi budget or petrodollar for four years.
"There are no projects [underway]. We don't see anything. It isn't only the Kurdish areas. There are no projects anywhere. We had the petrodollar in this city. Things were done," shop owner Walid Mohammed told Rudaw.
Mohammed added streets were laid with concrete, and many things were done, but since October 16, things have stopped.
"Before, 8 percent [of provincial revenue] was paid [to contractors], then it was increased to 13 percent. We were paid a good amount of money monthly. All contractors were satisfied. From October 16 onwards, no one has been paid," contractor Ramadhan Haji Rashid told Rudaw.
The province received $10 million monthly when the KRG exported the province's oil. The Iraqi government, however, hasn't sent Kirkuk's budget since 2014 and continues to omit the petrodollar share.
During KRG administration from 2014 to 2017, Kirkuk's administration offered 3,500 employment opportunities through the petrodollar.
"The Iraqi government takes Kirkuk's oil, which means it doesn't go through the Kurdistan Region. As a result, the petrodollar funds are cut from Kirkuk. Some old debts of companies and contractors have piled up on Kirkuk. Some projects are stalled due to lack of budget coming from Baghdad," Jwan Hassan, a Kirkuk provincial council member, told Rudaw.
The KRG had been exporting Kirkuk’s oil through the Ceyhan pipeline, but that stopped after the October events.
Baghdad has welcomed the idea to reopen the pipeline and has said that it will work to implement it.
The fate of the province is one of the main demands of Kurdistani parties for forming alliances with Iraqi parties in order to form a new coalition government in Baghdad.
"There are no projects [underway]. We don't see anything. It isn't only the Kurdish areas. There are no projects anywhere. We had the petrodollar in this city. Things were done," shop owner Walid Mohammed told Rudaw.
Kirkuk has produced more than 300,000 bpd, and according to Iraqi law, for each sold barrel, Kirkuk should get $5.
Mohammed added streets were laid with concrete, and many things were done, but since October 16, things have stopped.
Eighty-three strategic projects and 427 service projects have been left unfinished due to a lack of funds. Kirkuk's administration owes money to 211 contractors. They have filed a lawsuit against the acting governor of Kirkuk Rakan Saeed al-Jabouri.
"Before, 8 percent [of provincial revenue] was paid [to contractors], then it was increased to 13 percent. We were paid a good amount of money monthly. All contractors were satisfied. From October 16 onwards, no one has been paid," contractor Ramadhan Haji Rashid told Rudaw.
The province received $10 million monthly when the KRG exported the province's oil. The Iraqi government, however, hasn't sent Kirkuk's budget since 2014 and continues to omit the petrodollar share.
During KRG administration from 2014 to 2017, Kirkuk's administration offered 3,500 employment opportunities through the petrodollar.
"The Iraqi government takes Kirkuk's oil, which means it doesn't go through the Kurdistan Region. As a result, the petrodollar funds are cut from Kirkuk. Some old debts of companies and contractors have piled up on Kirkuk. Some projects are stalled due to lack of budget coming from Baghdad," Jwan Hassan, a Kirkuk provincial council member, told Rudaw.
The KRG had been exporting Kirkuk’s oil through the Ceyhan pipeline, but that stopped after the October events.
Baghdad has welcomed the idea to reopen the pipeline and has said that it will work to implement it.
The fate of the province is one of the main demands of Kurdistani parties for forming alliances with Iraqi parties in order to form a new coalition government in Baghdad.
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