Iraq’s power sector is slated to grow following recent budgetary allotments
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Iraq has recently acquired a soft loan worth $4.5 billion from the Japanese government.
Reports had earlier claimed the Iraqi government was keen on expanding its power capacities, with appropriate allotments made for the same in the country’s annual budget for the year.
The recent loan from Japan, due for 15 years, is expected to be employed in the undertaking of power and port infrastructure projects on which the Ministry of Planning in Iraq will work with its other government entities and the Japanese International Cooperation Agency (JICA).
“The most important of these projects is rehabilitation and development of some Iraqi ports and the construction of power plants in 2014,” said Abdul Zahra Al-Hindawi, a spokesperson for the Iraq ministry of planning.
Al-Hindawi added the first of the 15 projects will be in Basra, involving the construction of the Al Hartha Power Station, and the rebuilding and deepening of berths in Khor Al Zubair port.
Two power plants will be constructed in Akaz, a part of the Al Anbar governorate, added Masaab Al Mudarris, a spokesperson for the Iraqi ministry of electricity. A 120MW plant and a 250MW plant will be built in Akaz, and an additional gas-powered plant in Dhi Qar province, worth capacities of 1,500MW to be built over a 48-month period.
Iraq had recently approved contracts worth $1.7bn with Samsung Engineering Co. and Hyundai Heavy Industries for the construction of two power plants in the country, both of which were considered to be hugely beneficial for the country’s power sector.
JICA has actively been involved in Iraq’s rehabilitation activities since 2003, having 20 soft loans to support infrastructure projects in the country across various industry sectors, added the report.
“This (loan) offer is excellent,” said Haider Al-Abadi, chairman of Iraq’s parliamentary finance committee as per a report by Zawya. “As a long-term loan, it gives Iraq enough time to pay it back and commits Japan to complete the projects while transferring knowledge and building skills in Iraq.”