Germany's Siemens has a won a $785m (EUR700m) agreement from Iraq’s Ministry of Electricity to upgrade the power-strapped nation’s electricity infrastructure.
The agreement is a part of the so-called 'Siemens Roadmap for the Electrification of the New Iraq' — a series of short-, medium-, and long-term plans designed to support Iraq’s economic development and rebuild its utilities sector.
In February 2018, Siemens presented the roadmap to the government during the Iraq Reconstruction Conference in Kuwait, according to data published on the company’s website.
According to a statement on Siemens’ website, in a joint press conference attended by Prime Minister of Iraq, Adil Abdul-Mahdai and German Chancellor Angela Merkel, chief executive officer of Siemens, Joe Kaeser and Iraq’s Minister of Electricity inked the agreement.
Siemens beat US rival General Electric (GE) to the contract. Both companies were courting to rebuild the power-strapped nation’s damaged utilities network, which, over the years, resulted in billions of dollars of losses for the country.
As part of the agreement, Siemens will undertake engineering, procurement and construction (EPC) of a 500MW gas-fired power plant in Zubaidiya; upgrade 40 gas turbines with upstream cooling systems; and install 13 of 132 kv substations in addition to 30 transformers across the country.
Last year, Siemens submitted a proposal to add 11GW of capacity, as part a $15bn (AED55.08bn) deal to renovate Iraq’s power infrastructure.
Commenting on the agreement, chief executive officer of Siemens, Joe Kaeser said: “Our mission is to secure reliable and affordable electricity for the Iraqi people and help them rebuild their country.”
In addition to the electrification agreement, Siemens will donate a smart health clinic equipped with the company’s medical devices, with a capacity to treat up to 10,000 patients per year.
The German firm will also donate a $60m software grant for universities, and provide vocational training to more than 1,000 Iraqis.