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Iraq Awards Power Contracts

Posted on September 23, 2009

Canada's SNC-Lavalin Group Inc. and Iraqi-owned URUK Engineering Services have each won US$85 million contracts to install gas turbines in local power stations in Iraq. SNC-Lavalin has received a contract to install turbines in the town of Hilla, 100 km (60 miles) south of Baghdad, with two units that each will have a capacity of 125 MW. URUK won a contract to build a power plant at Taji, on the northern outskirts of Baghdad, with four units capable of generating 40 MW each. The gas turbines being installed were delivered by General Electric under an earlier contract.

Iraq is trying to repair its inadequate generating capacity, ravaged by sanctions and war, which currently fails to provide more than a few hours of electricity per day for its citizens. Baghdad has signed multi-billion dollar deals for gas turbines with GE and Siemens, aiming to add 12,000 MW of capacity over the next few years. Iraq's current electricity capacity is around 7,500 MW, compared with an estimated demand of 12,000 MW. Intermittent power is a chief complaint of Iraqis as violence remains lower than it has been for years.

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