Iraq PM confident about Japanese investments

TOKYO (Reuters) - Iraqi Prime Minister Nuri al-Maliki said on Tuesday that he was confident that major Japanese companies would return and make investments in the war-torn country soon.

Maliki was in Tokyo on a four-day visit for talks with Japanese government and business leaders.

"We have seen a great desire and will for the Japanese side to enter Iraq to have projects. The negotiations are still ongoing," Maliki told reporters through a translator.

He was speaking a day after he received firm assurances from the Japanese leaders that Tokyo would continue to help his country to rebuild.

"We have also met representatives from major Japanese companies and they are willing to work in Iraq in the area of oil and other fields," he said. "We are very optimistic about the prospect of cooperation on that field."

Japan and Iraq signed a contract on Monday for Japan to extend 102.8 billion yen for four projects as part of the total loan aid.

Tokyo also said it was ready to provide Iraq with another $510 million in loans, part of the overall pledge, to help finance the restoration of water and sewage treatment, power supply and other facilities.

Iraq, which sits on the world's third-largest proven crude oil reserves, is struggling to rebuild its shattered economy after four years of war following the U.S.-led invasion in 2003. Japan depends on the Middle East for nearly all its crude oil.

Maliki stressed that the Iraqi government had struggled to improve security in the Middle East country.