KEPPT taps J.P. Morgan to finance $1.6 billion Iraq urea project

KAR Electrical Power Plant Production Trading (KEPPT) has appointed J.P. Morgan to arrange financing for a planned $1.6 billion urea plant in Basra. This marks a significant step toward developing Iraq’s second operating urea production facility. The financing package will be structured with several export credit agencies. The project is expected to enhance domestic fertilizer production and support Iraq’s agricultural sector.

The plant will produce 1.15 million tonnes of urea annually, reducing Iraq’s reliance on imports and helping stabilize domestic fertilizer prices. Construction is set to begin in 2027, with commercial operations expected by 2030. U.S. engineering firm KBR completed the front-end engineering design. The project will use technologies that minimize environmental impact and support food security, employment, and economic growth in Basra.

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