Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

Siemens, Orascom sign deal to rebuild Iraq power plant

Siemens, Orascom sign deal to rebuild Iraq power plant
The logo of German industrial group Siemens is seen in Zurich, Switzerland, January 30, 2019. REUTERS/Arnd Wiegmann -
Euronews logo
Text size Aa Aa

BERLIN (Reuters) – Siemens <SIEGn.DE> and Orascom Construction <OC.DI> signed an agreement on Saturday with the Iraqi government to rebuild two power plants in the north of the country that will have a combined capacity of 1.6 gigawatts.

Siemens said that work at the Baiji facility, 250 km (155 miles) north of Baghdad, will commence once Iraq’s Council of Ministers approve the deal and a financial agreement is reached with the Finance Ministry.

Iraq signed five-year “roadmap” agreements with GE and Siemens AG <SIEGn.DE> last October under which the country plans to spend about $14 billion (£11.20 billion) on new plants, repairs, power lines and, eventually, equipment to capture for use natural gas that is now being flared off.

In awarding projects to Siemens in April, however, Iraq’s prime minister said the German company was well-placed to win the bulk of future deals.

But under pressure from the United States, Iraq asked both Siemens and GE to bid on contracts, sources told Reuters in June.

Siemens and GE have supplied generation plants and other electrical equipment to Iraq for decades. Many of these assets need to be refurbished and upgraded after years of war, creating substantial scope for work by both companies.

Siemens’ chief executive Joe Kaeser, Iraq’s Electricity Minister Luay al-Khateeb and Orascom Construction’s chief Osama Bishai attended the ceremony in Baghdad where the construction deal for the Baiji plant was signed.

(Reporting by Joseph Nasr, editing by Louise Heavens)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.