Iraq signs two agreements with General Electric for $1.2 bn

The US General Electric Co (GE) has signed two agreements with Iraq, worth more than $1.2 billion, to carry out maintenance on electric power stations, improve the power transmission network and link it with Jordan.

The two agreements were concluded during an official visit by Iraqi Prime Minister Mustafa Al-Kadhimi, who headed a high-level government delegation to the US.

The company said in a statement: “The first agreement with Iraq, worth $500 million, to implement modernisation, maintenance and vital service for a number of electric power plants, would enhance efficiency levels and preserve more than 6,000 megawatts of electric power.”

GE added that “the second agreement, worth $727 million, aims to reinforce the electric power transportation network in Iraq, improve its stability and link it with the energy network in Jordan.”

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The company pointed out that it “is cooperating with a number of export credit agencies to secure more than $1 billion to finance projects in the country.”

Iraqi Electricity Minister Majid Mahdi Al-Emara said: “Our main focus is ensuring the continuity of the electricity supply without interruption, especially in the summer months that witness peak demand.”

The Iraqi minister stated that “the new agreements signed with GE are an ideal option to meet our requirements, and are based on the close partnership that brings us together to generate more electric power in the country.”

Iraq has suffered from a decades-long crisis of chronic electricity shortages caused by the blockade and successive wars. For many years, the population has been protesting frequent power outages, especially in the summer, when temperatures can hit 50 degrees.

Iraq imports 1,200 megawatts from Iran, and it plans to import electricity from Turkey and the Arab Gulf states, to fill the shortage.

Iraq’s electricity production, according to the Ministry of Electricity, is 13,500 megawatts, and there are plans to add 3,500 megawatts this year, through the introduction of new generating units to the service. However, estimates indicate that the country needs more than 20,000 megawatts to reach self-sufficiency.