en.Wedoany.com Reported - KAR Electric Power Production Trading Company (KEPPT) plans to build a urea plant with an annual capacity of 1.15 million tons in Basra, Iraq, with a total investment of $1.6 billion, and has appointed J.P. Morgan as the financing arranger for the project. This development marks a critical phase in the construction of Iraq's second operational urea production facility.

Once operational, the urea plant will boost domestic fertilizer production, reduce Iraq's reliance on imports, and help stabilize domestic fertilizer prices, supporting Iraq's agricultural sector. The financing package will include multiple export credit agencies. Construction is scheduled to begin in 2027, with commercial operations expected in 2030. U.S. engineering firm KBR has completed the front-end engineering design for the plant. The project will adopt technologies with minimal environmental impact to support food security, employment, and economic growth in the Basra region.

Founded in 2015, KEPPT is one of Iraq's largest private industrial investors and developers, currently operating two power plants in Basra and managing over 10 projects in the energy, agriculture, transportation, banking, and healthcare sectors, representing planned investments of more than $10 billion in Iraq over the next five years. KEPPT Chairman Sheikh Mahmood Barznji stated that J.P. Morgan's involvement is a vote of confidence in Iraq's long-term economic potential and the project itself. Laura Galvin, Head of Global Export and Agency Finance at J.P. Morgan, noted that the project will expand domestic production capacity, enhance food security, and attract institutional investment in critical infrastructure.