Iraq to spend $4.7bn to expand power capacity
Country has approved contracts worth $1.7 billion with Samsung Engineering Co Ltd and Hyundai Heavy Industries
Four power plants had completed construction in Iraq last year
RELATED ARTICLES: Iraqi projects market third-largest after KSA and UAE | Arabtec expands into Iraqi market | 25-storey hotel, shopping mall to be constructed in Basra
Iraq’s government has recently allocated $4.7 billion in its annual budget to finance its existing and future power projects.
“As part of its 2014 plan, the Ministry of Electricity requested a budget of $12 billion to complete existing projects and to sign new contracts to compensate for the fluctuating shortage (of power), but the government only approved $4.7 billion,” said ministry spokesperson Masaab Al-Mudarris.
Additionally, the country has approved contracts worth $1.7 billion with Samsung Engineering Co Ltd and Hyundai Heavy Industries to build two power plants in Mosul and another location south of Baghdad.
“Samsung Engineering Co. Ltd won a $894.5 million contract to build a 330-megawatt power plant in northern city of Mosul,” Al-Mudarris informed.
“Samsung should complete the plant within 30 months.” Hyundai’s $818 million-worth contract involves the construction of a 230MW power plant in Yousifiya, a region south of Baghdad, said a Reuters report.
Current production capacity in the country is 12,100MW, whereas actual demand in the country is 16,500MW.
The Ministry aims to produce an additional 7,500MW by the end of this year, and another 7,500MW by the end of 2015, as per a report by Zawya.
Gas shortages have currently withheld operations on four power plants which were completed in the country last year.
