A file photo of the Iraqi Doura oil refinery

BAGHDAD, January 25 (IslamOnline.net & News Agencies) – A minister appointed by the U.S.-handpicked Iraqi Interim Governing Council (IGC) said Sunday, January 25, his "country" was ready to sell electricity to Israel.

Interim Electricity Minister Aiham al-Samarrai was quoted by the Qatari news agency as telling reporters "it was necessary to change the old mindset that banned dealing with them (Israel). It is a democratic world."

Ever since the fall of the Iraqi capital to the U.S.-led occupation force on April 9, several media reports surfaced on Israeli penetration of the Iraqi society, all met by outright denials from U.S.-sanctioned officials.

Adnan Pachachi, the current rotating president of the IGC, had ruled out late July forging diplomatic ties with Israel before a peace agreement crowned by the establishment of a Palestinian state was thrashed out.

Similarly, Adel Abdel Mahdi, another council member, had denied any intention by the body to recognize Israel.

Iraq has never recognized Israel and was seen by Tel Aviv as a major threat to its existence.

Although Interim Planning Minister Mahdi El-Hafez shrugged off in September the possibility of opening the Iraqi market to Israeli investment, witnesses said Israeli companies were already exporting commodities to Iraq under the cover of American firms.

Tons of expired Israeli foodstuffs had flooded Iraqi markets since the first days of U.S.-led occupation, Iraqi Health Ministry sources confirmed on September 18.

In an interview with the Israeli daily Yediot Ahoront on Saturday, June 21, U.S. Deputy Treasury Secretary John Taylor invited Israeli companies to join hands in the reconstruction of Iraq.

The American official asserted that the Iraqi market would be always open to Israeli products.

Immediately after the fall of Baghdad, Israeli companies and intelligence elements were reportedly housed in the famous Baghdad Hotel which was rented by the U.S. Central Intelligence Agency (CIA) and some American reconstruction firms.

A hotel employee told IslamOnline.net Tuesday, June 24, on condition of anonymity, there were "increasing whispers that they were here to protect Israeli companies that rented several rooms in the hotel.

"The light guns they were carrying were not U.S.-made but rather appear to be the well-known Iraeli Ouzi machineguns," he said.

A center of the Washington-based and Mossad-linked Middle East Media Research Institute (MEMRI) was opened in Baghdad, in a provocative move seen by Iraqi academics as the beginning of an Israeli scheme to infiltrate the Iraqi society.

International Bid

Samarrai opened the door Sunday for independent power firms to build and operate generating plants to help boost grid capacity and galvanize reconstruction and economic growth, reported Agence France-Presse (AFP).

He told reporters the offer was open to domestic and foreign companies, with the priority on bringing a swift end to the frequent power cuts in the war-battered country.

Using economic methods tried and tested in countries such as Turkey and Egypt, Iraq's electricity sector will be opened up using BOO (build-own-operate) and BOT (build-operate-transfer) models.

Under the plan, the government will buy the electricity from the operator at a pre-agreed price.

"It's an idea to speed things up ... all countries that lack liquidity have adopted it," he said.

Samarrai said his ministry would discuss projects with any company willing to invest in Iraq, and that a tendering process would begin only if there were enough bidders.

"If many (companies) come, I'll choose according to the rate," or the price of electricity to be sold to the government, "and according to the fuel to be used" for electricity generation, he said.

He announced earmarking 5 billion dollars for 201 power projects until end 2005, but he expected those funds to come from donors, including the United States and the BOO and BOT models would run in addition.

Samarrai said Syria and Turkey started earlier this month to supply Iraq with 50 and 200 megawatts respectively, while Iran, Kuwait and Jordan will follow in July, providing 100, 200 and 150 megawatts.