US-based General Electric (GE) and German conglomerate Siemens have reportedly signed agreements for power generation in Iraq.
The contract was announced in favour of GE due to pressure from the Trump administration on the Iraqi Government, according to sources familiar with the matter cited by the Financial Times.
Siemens has said that it signed a memorandum of understanding with the Iraqi Government to supply 11GW of power generation equipment for a period of four years.
In another development, GE has signed principles of cooperation (POC) with the Iraqi Ministry of Electricity to create an infrastructure that could generate 14GW of power. It will also create 65,000 direct and indirect employment opportunities in the region.
Under the deal, GE has agreed to deploy power technologies and upgrade existing power plant sites in order to bring 1.5GW of additional power online by next year, which will be sufficient to power 1.5 million Iraqi homes.
GE Power president and CEO Russell Stokes said: “Our presence in Iraq is based on a history of trust, partnership and success that spans over 50 years. We are honoured to support the government’s focus on rebuilding Iraq, and we are proud of our legacy of delivering power where needed in the country.
“We understand how important it is to deliver power immediately and our holistic action plan brings together advanced solutions, financing, local investments, training and social services that are expected to benefit families, businesses and industries across Iraq.”
The agreements signed by both the companies are non-binding.