Siemens signs $784mn roadmap with Iraq
The roadmap focuses on energy, education, compliance and financing, and aims to advance sustainable economic development for the people of Iraq
The Iraqi Ministry of Electricity has awarded three contracts worth $784.9 million to Siemens under phase one of the Roadmap Implementation Agreement. The agreement covers short, mid- and long-term addition of a highly efficient power generation capacity.
According to a statement from Siemens, the agreement builds on the exclusive MoU signed between the Iraqi Ministry and Siemens from last year. It outlines specific objectives, associated budgets and timelines for the execution phase, which covers all the essential elements of the electrification of Iraq.
Siemens stated that, in addition to the power generation capacity, it will rehabilitate and upgrade existing plants and expand transmission and distribution networks.
The agreement was signed by Joe Kaeser, President and CEO of Siemens AG, and Luay al-Khatteeb, Iraq’s Minister of Electricity, in Berlin in the presence of Adil Abdul-Mahdi, Prime Minister of Iraq and Angela Merkel, Chancellor of the Federal Republic of Germany.
According to phase one of the roadmap agreement, Siemens will be responsible for the EPC construction of a 500 MW gas-fired power plant in Zubaidiya; upgradation of 40 gas turbines with upstream cooling systems; and the installation of 13 to 132 kV substations along with 34 transformers across Iraq.
As part of the electrification scope, Siemens will donate a smart health clinic, a $60 million software grant for the Iraqi universities, and train more than 1000 Iraqi’s in vocational education.
The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector. The company also envisions the creation of tens of thousands of jobs over the course of the projects, stated the technology giant.
Commenting on the win, 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 financing 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,” he concluded.
