Iraq Signed A $1.3 Billion Contract with Siemens and Orascom to Rebuild Its Power Plant
- Sep 19, 2019 4:28 pm GMTSep 19, 2019 2:59 pm GMT
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On Saturday Iraq signed a $1.3 billion contract with German industrial conglomerate Siemens and Egypts Orascom Construction to rebuild a significant power plant complex within the ravaged city of Baiji, north of Baghdad.
Earlier this year the brand new deal is a part of a broader energy highway map that Iraq contracted with Siemens in a bid to tap 11 gigawatts into Iraqs vulnerable power sector.
The country currently generates around 15 GW, far wanting estimated demand of about 24 GW.
The Baiji 1 and 2 plants, as well as a vast oil refinery close by, have been destroyed within the three-year struggle towards the Islamic State group after it swept throughout a third of Iraq in 2014.
A lot of Baijis neighborhoods stay gutted, surrounding fields are littered with unexploded ordnance, and a complex web of paramilitary groups controls the realm.
On Saturday, Iraqi electricity minister Luay al-Khateeb signed the deal in Baghdad with Siemens CEO Joe Kaeser and Orascom chief Osama Bishai.
Siemens stated the plant renovation would take about 28 months, beginning once the Iraqi cupboard approves the contracts and a financing settlement is reached.
Iraqs grid has been ravaged by many years of conflict and reduced maintenance, causing chronic power cuts throughout the country.
Iraq tops up its grid with electricity imported from neighboring Iran, in addition to utilizing Iranian natural gas to feed its power plants.
The US has granted Iraq a series of waivers from sanctions against Iran, allowing it to maintain up its importsoffering it works to wean itself off them.