GE wins Iraq power contracts

27 January 2016

US firm will install equipment at 10 sites around the country

The US’ GE has been awarded contracts worth a total of $1bn to boost electricity capacity in Iraq.

Under the agreement with the Electricity Ministry, GE will provide equipment and maintenance for 10 power plants across Iraq, Musab al-Mudaris, spokesman for the ministry, was quoted in US-based newswire Reuters. According to sources in Iraq’s electricity sector, the capacity will be installed on a fast-track basis.

The total value of the contracts signed are worth more than $1bn, with financing already in place for the first stage of projects, which are worth $328.8m. The projects will add an additional 700MW capacity to the grid.

The Electricity Ministry will pay GE in instalments over a three-year period, beginning in 2017. Al-Mudaris was quoted as saying the reason for this was because the ministry’s budget for 2016 has been cut by more than half, to $1bn, for 2016.

The GE deal is part of the ministry’s efforts to close the supply-demand gap that has continued to leave residents and businesses without power for significant periods.

In August 2015, Iraq’s Electricity Minister Qassem al-Fahdawi said peak demand in the summer had reached 21,000MW, while peak output was only 13,400MW.


A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications