Iranian firm to build Iraqi power plant

10 August 2015

Plant will be developed as an independent power project (IPP)

  • Iranian contractor will build 3,000MW power plant for local/Jordanian developer
  • Independent power project (IPP) is going ahead after 18 months of negotiations

The Iran-based Mapna Group has signed an estimated $2.5bn contract to build a 3,000MW power plant in southern Iraq.

According to reports in the Iranian press, the contractor has signed a contract with the local-Jordanian developer Shamara Group to build the Rumaila power plant, which will be located near Basra city.

MEED reported in March 2014 that Shamara Group was one of the developers in  direct negotiations with Iraq’s Electricity Ministry to develop a major independent power project (IPP) as part of the country’s efforts to reduce the supply-demand deficit, which results in some areas receiving less than 6 hours a day of electricity.

According to local media reports, the Iraqi Electricity Ministry has signed an agreement to purchase power from the Shamara Group for 15 to 17 years.

In addition to the directly negotiated IPPS, Baghdad is also hoping to make progress with the country’s first publicly tendered independent power project (IPP).

MEED reported in April that six groups had submitted prequalification entries for the contract to develop Iraq’s first publicly tendered IPP, located in the Al-Samawa governorate in the south of the country.

The six firms which submitted prequalification entries for the 750MW Samawa IPP were:

  • Farab (Iran)
  • Insistenza Group (US)
  • Mitsui Company (Japan)
  • Ruban al-Safena (local)
  • Uruk Engineering & Contracting (UAE)
  • Wamar International (US)

The duration of the power purchase agreement (PPA) will be for a period of 17.5 years. If successful, the ministry intends to roll out further IPPs as part of a larger programme.

The scheme marks the first publicly tendered IPP since the collapse of the previous IPP programme in 2011. MEED reported earlier in 2014 that the Electricity Ministry was in discussions with developers for four directly negotiated IPPs.

The Al-Samawa plant will use GE turbines, which were purchased as part of the ministry’s mega-deal with the US’ GE and Germany’s Siemens in 2009 for turbines for fast-track power projects. The IPP is scheduled to use four 175MW turbines. As part of the scheme, bidders will be required to purchase the turbines.

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