Key Takeaways
- KAR Electrical Power Plant Production Trading FZE (KEPPT) has engaged J.P. Morgan to arrange development financing for a $1.6 billion urea plant in Basra, Iraq.
- The plant will be the second operating facility of its kind in Iraq, with planned annual production capacity of 1.15 million tonnes.
- Construction is scheduled to begin in 2027, with operations expected to start in 2030; US engineering group KBR Inc. has completed the front-end engineering design study.
- KEPPT will work with J.P. Morgan alongside several Export Credit Agencies to progress financing for the project.
- Founded in 2015 and led by CEO and Chairman Sheikh Mahmood Barznji, KEPPT currently has more than 10 projects under development in Iraq worth over $10 billion over the next five years.
KEPPT Engages J.P. Morgan for $1.6 Billion Iraq Urea Plant
KAR Electrical Power Plant Production Trading FZE (KEPPT) has engaged J.P. Morgan to arrange development financing for a $1.6 billion urea plant in Basra, Iraq. The agreement marks a milestone for KEPPT and for Iraq's industrial and economic development. KEPPT will work with the bank to progress financing for the project alongside several Export Credit Agencies.
Details of the Basra Urea Plant
The proposed KEPPT urea plant will be the second operating facility of its kind in Iraq, with planned annual production capacity of 1.15 million tonnes. Construction is scheduled to begin in 2027, with operations expected to start in 2030. US engineering group KBR Inc. has completed the front-end engineering design study for the project. The plant is designed to use advanced equipment and technology to reduce its environmental footprint while serving as a strategically important infrastructure asset for Iraq.
Expected Impact on Iraq's Agricultural Sector
Once operational, the plant is expected to reduce Iraq's reliance on imported urea, ease price pressure in the domestic market, and support the country's agricultural sector. Beyond food security and agricultural productivity, the project is also expected to contribute to local employment and stimulate economic growth in Basra.
“We are delighted to welcome J.P. Morgan's involvement in this landmark project, which represents an important vote of confidence in Iraq, in Basra, and in KEPPT's long-term vision for the country. This urea plant has the potential to make a major contribution to Iraq's future by strengthening our agricultural sector, reducing dependence on imports, creating local employment, and supporting broader economic diversification. We believe this project can become a model for major private-sector-led investment in Iraq and a catalyst for further international financing into strategically important national infrastructure,” said Sheikh Mahmood Barznji, Chairman of KEPPT.
About KEPPT and Its Iraq Investment Pipeline
Established in 2015, KEPPT is one of Iraq's largest private investors, project developers, and industrial operators. Led by CEO and Chairman Sheikh Mahmood Barznji, the company operates two major power plants in Basra and currently has more than 10 projects under development across agri-industrial, energy, power generation, transportation, banking, and healthcare sectors. These projects represent more than $10 billion of investment in Iraq over the next five years.
Reaction from Project Leaders
“We are pleased to be supporting KEPPT with what is one of the leading landmark infrastructure projects in Iraq. The KEPPT urea plant represents a significant opportunity to deliver long-term value for Iraq by developing new domestic production capacity, supporting food security and enabling greater institutional investor-led participation in critical infrastructure,” said Laura Galvin, Global Head of Export and Agency Finance at J.P. Morgan.
