Several European companies are working on the completion of a power plant project in the north that has lain dormant since the outbreak of the Gulf war. The project was referred to by Electricity Projects Company head Suleiman Khalaf, in an 18 September statement to the Iraqi News Agency.

Companies from Germany, Italy, Sweden, the UK and Yugoslavia are working on the project, he said.

Industry sources say he appeared to be referring to the four-by-350-MW Al-Shamal power station in the northern province of Nineveh. Italy's Ansaldo Energia began work in September 1999 on one of the boilers and has options to work on the other three subject to UN oil-for-food programme conditions. It is understood that turbine work is being performed by Siemens of Germany.

The original contract to supply the turbines was awarded in 1988 to the UK's NEI Parsons, a company subsequently taken over by Siemens.

Ansaldo Energia is also undertaking the revamping of two of Baiji power station's six 220-MW units damaged during the Gulf war.