GE secures $1.2bn of power contracts from Iraq power ministry

20 August 2020 (Last Updated August 20th, 2020 12:59)

The Government of Iraq has awarded two power generation and transmission contracts, valued at more than $1.2bn, to General Electric.

GE secures $1.2bn of power contracts from Iraq power ministry
General Electric will use its companies for several projects across Iraq. Credit: Photo by Charlotte Venema on Unsplash.

The Government of Iraq has awarded two power generation and transmission contracts, valued at more than $1.2bn, to General Electric.

As part of the agreement, GE Gas Power will undertake contracts valued at $500m. These will see the upgrade and maintenance of power plants with a total capacity of more than 6GW. The company will also hold responsibility for increasing the operational efficiency of the plants.

The new contracts are part of the Iraqi Ministry of Electricity’s initiatives to meet the growing demand for electricity during the peak of summer.

The other agreement given by the ministry, valued at $727m, was signed with GE’s Grid Solutions. This aims to strengthen Iraq’s transmission network and interconnection with the electricity grid of Jordan.

Under this deal, GE’s Grid Solutions will design, supply, install, test and commission high-voltage substations and specific overhead transmission lines.

Iraq Minister of Electricity Majid Al-Emara said: “Bringing world-class technology, especially to upgrade our power plants, and to ensure their seamless operation is a critical part of this strategy.

“The new agreements with GE, a leader in power technology, is an ideal fit for our requirements, and builds on the strong partnership we have with the company to deliver more power for the nation.”

Additionally, GE has also agreed to work with various export credit agencies to facilitate the financing of more than $1bn for the projects.

GE Gas Power CEO Scott Strazik said: “GE has a long history in Iraq, and we continue to deliver on our promise to the nation and its people. In recent years, we have further accelerated our project execution to scale up and rebuild the country’s electricity infrastructure.

“As demand for power increases in tune with a growing population and to support industries and developmental projects, identifying gaps and addressing them is our focal area.”

Last month, Iraq Electricity Ministry awarded an $80m contract to Sweden’s Linxon for the construction of four 132/33kV substations in central Iraq.