Iranian and Iraqi officials yesterday signed a two-year deal which will see Tehran supply its Gulf neighbour electricity, Iranian media reported.
This came during a meeting between Iranian Energy Minister Reza Ardakanian and Iraqi President Barham Salih and Prime Minister Mustafa Al-Kadhimi in Baghdad.
Though Iran is under “unprecedented” US sanctions, Washington has previously extended a waiver for Baghdad to import gas and electricity from its neighbour.
“We are ready to expand cooperation with the brother and friend country Iraq,” Ardakanian said in a statement
“We signed a contract with Iraq for exporting electricity in 2020 and 2021,” said Ardakanian, who travelled to Iraq yesterday.
“With coordination of the Iranian embassy in Iraq, half of the disbursement worth $400 million was received during the trip.”
Meanwhile, Saleh stressed the need to expand the scope of cooperation between the two countries in the electricity and water sectors.
“Last year, despite problems with the gas supply for power plants, we made a lot of efforts to cover Iraq’s electricity needs and did our best to fulfil our duties to serve the Iraqi people,” Ardakanian said.
However, Ardakanian said: “This year, our situation is very different. Early heat and coronavirus conditions have increased Iran’s electricity consumption.”
“Iranian technical and expert delegations will visit Iraq next week to sign two important contracts on reducing power grid losses and repairing electricity equipment,” Ardakanian said.