Iraq’s Electricity Ministry has signed a contract worth $1bn with China’s Shanghai Electric to expand the Zubaidiya power plant in the south of Baghdad.

The project, which was originally to have a capacity of 1,320MW at completion, will now become a 2,540MW project.

Shanghai Electric started work on phase one of the thermal power plant, which was valued at $924m, a year ago.

The expansion contract was signed on 24 April. The facility will be built out on an engineering, procurement and construction (EPC) basis.

Iraq is tendering several other EPC power deals alongside four independent power projects in an effort to meet the country’s power needs. Power shortages in Iraq have held back the development of industry, the economy and adversely affected the lives of Iraqis.