Alstom wins Iraq power plant deal
Baghdad, September 4, 2011
French engineering group Alstom has signed a 66 million euro ($93.7 million) contract with Iraq to build and install a power station in the northern province of Nineveh, Iraq's electricity ministry said.
The plant should start production by the end of next year, ministry spokesman Musab al-Mudarres said in a statement.
The deal requires Iraq to pay 10 percent of the cost to Alstom in advance and 40 per cent a year after the start of construction. There were no details on when the rest of the cost would be paid.
Iraq's power infrastructure has been badly damaged by decades of war and sanctions, and 8-1/2 years after the U.S.-led invasion, its national grid still only supplies a few hours of power a day. Intermittent electricity is one of the public's top complaints.
Iraq's available power capacity is around 9,000 megawatts, and installed capacity at 11,000 to 12,000 MW, according to Iraqi officials.
Demand during summer, when temperatures frequently exceed 50 Celsius, is estimated to reach 14,000 MW.-Reuters