Bloomberg News

Iraq to Award $3 Billion in Power-Plant Projects This Month

February 07, 2012

Feb. 7 (Bloomberg) -- Iraq will award seven contracts this month with a combined value of $3 billion to build 7,000 megawatts of electricity generation, part of a three-year plan to expand power capacity, an Electricity Ministry official said.

Companies from Iran, Europe, Egypt and South Korea are bidding for the orders, said Kosay Sattar, the ministry’s director general of planning.

“Within two weeks, we anticipate we will hand over the sites to the winners,” he said today in an interview in Doha, Qatar, where he was attending a conference. The ministry has signed contracts with General Electric Co. and Siemens AG for the equipment needed to produce the plants, he said.

Iraq is building power plants after sanctions and war reduced electricity capacity and caused blackouts. The country will invest about $15 billion by 2015 to increase capacity by 20,000 megawatts to about 27,000 megawatts, Sattar said.

Contracts have already been signed for the remainder of the expansion, which includes 13,000 megawatts of gas-fired plants and 7,000 megawatts of thermal power plants, he said. The government is financing the project without borrowing, according to Sattar.

--Editors: John Buckley, Bruce Stanley

To contact the reporter on this story: Robert Tuttle in Doha at rtuttle@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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