Germany’s Bauer Group is in final negotiations with Iraq’s Water Resources Ministry for an estimated $2.6bn contract to rebuild the Mosul dam in Iraq.

Bauer says in a press release that it expects to sign the contract in the next few months.

The work will involve building a cut-off wall to seal the dam and is scheduled to take six years to complete. Construction of the cut-off wall is necessary due to the tendency of the ground beneath the dam to become increasingly water-permeable.

“A contract on this scale would represent a major challenge for our business, but equally a major opportunity,” said Thomas Bauer, chairman of Bauer’s management board. “It will take great efforts over the coming years to master this technically demanding project.”

The Mosul dam is situated in the north of Iraq, approximately 70 kilometres from the Turkish border. The 3.6 kilometre-long dam is located on the river Tigris and supplies water and electricity to the city of Mosul, as well as to outlying agricultural areas.