AID Policies & Procedures

Kurdistan Region of Iraq, like other developing countries, relies on external aid for emergency and development support as well as capital projects. Over the last two decades, external aid has constituted an important source of financing for Kurdistan Region and will continue to play a vital role in the medium to long term horizon.

Many public sectors of KRG are strongly influenced by government policies. Government provides financial support, assistance or material aid to each individual public sector. Aid in its variety, like regulations, may be either beneficial or harmful, either promoting welfare or distorting competition, depending on the circumstances.

This thorough guide provides a concise review of the current aid policy of the Kurdistan Region. Certain kinds of aid are no longer allowed, some other kinds are now possible, while certain types and amounts of aid are now subject to more detailed and careful assessment. Increasingly, General Directorate for Development Coordination and Cooperation (DCC) tends to shift emphasis from supporting to developing public and private sectors, towards pursuing horizontal and vertical policy objectives.

In order to effectively manage aid flow, KRG needed to have specific policy and procedures to handle it. To that end, Ministry of Planning as the concerned KRG department has empowered General Directorate for Development Coordination and Cooperation to outline management of aid policy and procedures.

In DCC, the External Resources Management Unit, a directorate recently established to promote public sectors as part of its mandate, is responsible to describe Aid Policy and Procedures for aid flow to Kurdistan Region. This will be done by identifying eight priority sectors consistence with the guidelines in National Development Strategy (NDS), International Compact with Iraq (ICI) and the Strategic Development Plan (SDP). The work flow at the External Resources Management Unit (ERMU) determines the levels through which the aid will be processed for approval.

Notably there are different forms of aid each need certain policies and procedures to deal with; types of aid include:

• International Aid
• Bilateral Aid
• Soft Loan

For more information, please visit DCC website at : http://www.krgmopdcc.com/