General Electric seals $400m Iraq power deal

GE-built technologies are today generating up to 50 percent of Iraq’s power. (Reuters)

LONDON: General Electric has signed a $400 million deal to develop Iraq’s power infrastructure as companies around the world continue to pitch for reconstruction work in the war-torn Middle Eastern nation.
The transaction aims to bring electricity to areas facing significant power outages, a legacy of years of conflict that has hobbled supplies in large swathes of the country.
GE said on Wednesday that the contract will help build 14 electric substations and supply critical equipment such as transformers, circuit breakers and other outdoor equipment to revamp existing substations.
The substations will hook up power plants in the provinces of Nineveh, Salahuddin, Anbar, Baghdad, Karbala, Al-Qadisiyah and Basra to the national grid.
Many areas in Iraq experience severe power cuts, despite billions of dollars spent since the 2003 US-led invasion.
Mussab Al-Mudaris, spokesperson of the Iraqi Ministry of Electricity said, “The agreement represents a major milestone in our efforts to strengthen Iraq’s power transmission sector, through a comprehensive grid project across the nation.
“Our focus remains on providing our people with the most reliable and advanced technology to meet their daily needs, and to accomplish this we need strong partners in this journey of development and reconstruction. GE has the technology, global capabilities and local presence to ensure the successful and sustainable execution of the project.”
Several of the locations, in conflict-affected areas, are in immediate need of reliable power infrastructure, according to GE.
GE said in a statement it has previously provided power generation equipment for some of the power plants that the substations will be connected to, including the three-gigawatt Besmaya Power complex.
Also included in the deal are the sale of nine 9FA gas turbines, four C7 steam turbines and a number of digital industrial applications — all GE products.
Mohammed Mohaisen, CEO of GE Power’s Grid Solutions business in the Middle East, North Africa and Turkey said, “A holistic approach to national infrastructure building is vital, from the provision of technical expertise to working with partners, such as export credit agencies, in securing long-term financial solutions.
“This agreement is a continuation of our firm commitment to driving industry and infrastructure forward in Iraq, working with the ministry of electricity in finding sustainable and effective solutions to some of the country’s most pressing issues.”
The current agreement builds on GE contributions toward strengthening Iraq’s power sector in years gone by. These include establishing captive power plants to provide power for industrial use, converting power plants from simple cycle to combined cycle configuration and the provision of services to improve the reliability and efficiency of operations generally.
The American company said GE-built technologies are today generating up to 50 percent of Iraq’s power, employing 300, more than 95 percent of whom are said to be Iraqi nationals.
Last month, the World Bank approved a $410 million aid package to bankroll the reconstruction of essential Iraqi infrastructure in areas liberated from Daesh. Iraq has estimated that the cost of reconstruction in the country, damaged by 14 years of war and civil strife could exceed $100 billion.