KAR Electrical Power Plant Production Trading FZE (KEPPT) has engaged J.P. Morgan to arrange development financing for a landmark US$1.6 billion urea plant in Basra, Iraq.
The agreement marks a milestone for KEPPT and Iraq’s industrial and economic development. KEPPT has planned to work with the bank to progress financing for the project in conjunction with several leading export credit agencies.
The proposed KEPPT urea plant will be the second operating facility of its kind in Iraq, with a planned production capacity of 1.15 million tpy. Once operational, the plant is expected to reduce Iraq’s reliance on imported urea, ease price pressures in the domestic market, and support the country’s agricultural sector. Construction is scheduled to begin in 2027, with operations expected to commence in 2030. US Engineering group KBR Inc. has conducted the front-end engineering design (FEED) study for the project.
The plant will use advanced equipment and technology to reduce environmental impact while producing a strategically critical infrastructure asset for Iraq. Beyond strengthening food security and agricultural productivity, the project aims to contribute significantly to local employment and stimulate economic growth in Basra.
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 US$10 billion worth of investment in Iraq over five years.
Chairman Sheikh Mahmood Barznji commented: “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.”
Laura Galvin, Global Head of Export and Agency Finance at J.P. Morgan, said: “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.”