Siemens and the Ministry of Electricity of the Republic of Iraq have signed a framework electricity agreement to further strengthen the country’s power sector.
The new agreement includes short, mid and long-term addition of new highly efficient power generation capacity and builds on the exclusive memorandum of understanding (MoU) signed between the ministry and Siemens in October last year.
Under the new agreement, Siemens will also be responsible for the rehabilitation, upgrade of existing plants and the transmission and distribution networks expansion.
The ‘Siemens Roadmap for the Electrification of the New Iraq’ has been designed to meet national reconstruction goals and support the country’s economic development.
Siemens president and CEO Joe Kaeser said: “Our mission is to secure reliable and affordable electricity for the Iraqi people and help them rebuild their country.
“This binding agreement addresses the various aspects of the roadmap. We are also committed to supporting Iraq in arranging to finance for the projects, creating attractive jobs and opportunities for small and medium enterprises.
“Investing in the country’s future workforce through education and training is close to our heart. Contributing to social and economic development is at the core of what we do and forms a significant part of this agreement.”
As part of the implementation agreement, three contracts valued at around €700m were agreed by the parties for the Phase 1 of the Roadmap.
The contracts are for engineering, procurement, construction (EPC) services for a 500MW gas-fired power plant in Zubaidiya, upgrade of 40 gas turbines with upstream cooling systems, and installation of 13 132kV substations, along with 34 transformers across Iraq.