Iraq seeks private electricity network provider

17 August 2015

Baghdad seeking private company to operate and maintain distribution network

  • Programme is part of Electricity Ministry’s efforts to introduce private players into electricity sector
  • Iraq recently signed contracts for independent power project in Basra area

Iraq’s Electricity Ministry has invited companies to express interest in the contract to maintain and operate the power distribution network in the Zayouna area of Baghdad.

The project is part of the ministry’s plans to introduce the private sector into the distribution sector of Iraq’s electricity industry.

The Zayouna district, located in east-central Baghdad, contains three separate neighbourhoods that house more than 5,000 consumers in total.

The Electricity Ministry says this is the first stage of involving the private sector in the distribution and collection of electricity in Iraq, but plans to introduce further stages in the next three years.

Iraq has recently made progress with integrating the private sector into developing its generation sector.

MEED recently reported that Iranian contractor Mapna Group had been awarded an estimated $2.5bn deal to build a 3,000MW power plant in southern Iraq, which is being developed as an independent power project (IPP). This is the first IPP in Iraq, outside of the Kurdistan region.

The Rumaila IPP, which will be located near Basra city, is being developed by Jordanian developer Shamara Group.

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 IPP as part of the country’s efforts to reduce the supply-demand deficit, which results in some areas receiving less than six hours a day of electricity.

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

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