By John Lee.

Under the guidance of the Iraqi Prime Minister, H.E. Dr. Adel Abdul Mahdi, the patronage of the Iraqi Minister of Electricity, H.E. Dr. Luay al-Khatteeb and in continuation of their dedicated efforts to strengthen Iraq’s power sector, Mass Energy Group Holding (MGH) and GE Power signed a new agreement that will help establish Phase 3 of the Besmaya [Bismaya] Power Plant, taking the total capacity of the facility up to 4.5 gigawatts (GW).

Under the scope of the agreement, GE will supply MGH with four 9F gas turbines and four generators to equip Besmaya Phase 3. The project has already been approved by Iraq’s Council of Ministers and MGH will supply electricity from the new extension of the plant to the Iraqi Ministry of Electricity under a 20-year power purchase agreement (PPA).

The agreement was signed in the presence of H.E. Dr. Luay Al-Khatteeb and John Rice, Chairman of GE Gas Power by Ahmad Ismail, Chairman of MGH and Joseph Anis, President and CEO of GE’s Gas Power Systems and Power Services businesses in the Middle East, North Africa and South Asia.

H.E. Dr. Luay Al-Khatteeb said:

As the first independent power project in Central Iraq, Besmaya set benchmarks in public-private sector partnerships and contributions to Iraq’s electricity network.

“It has not only shown that Iraq can be an attractive destination for private sector investments in the energy sector but more importantly, it has played a critical role in helping the government to increase supplies of reliable, efficient, and affordable power to meet the needs of our citizens. We look forward to continuing our collaboration with MGH and GE through the further expansion of Besmaya Power Plant.”

Besmaya Phase 3 is the largest new power plant by output to be added to Iraq’s national grid since 2014. The project is anticipated to bring another 1.5 GW of power online by 2021, with the first 500 megawatts (MW) scheduled to be added to the grid as early as next year. Up to 1,200 people are expected to be employed in the construction of Besmaya Phase 3.

Ahmad Ismail said:

At Mass Energy Group Holding, our mission is to make investments in the interests of the public by being an active contributor to the construction and development of Iraq’s power sector. In GE, we have found a reliable partner that is not only committed to the same values but also able to provide industry-leading technology, as well as world-class execution and service expertise on the ground in Iraq.

“We are excited to start working on the next phase of Besmaya today and remain committed to partnering with the government and people of Iraq to keep addressing the country’s power generation needs in the future as well.

The agreement builds on a proven track record of successful power generation projects executed in collaboration between MGH and GE in Iraq. Besmaya is already the largest power plant in Iraq in terms of output and among the largest across the Middle East and North Africa.

Phase 1 of Besmaya Power Plant is capable of generating up to 1.5 GW of power, while Phase 2 can already produce up to 1 GW and is expected to add up to another 500 MW as it starts combined cycle operations during the end of 2019 / early 2020. GE has provided eight 9F gas turbines and 4 steam turbines for the first two phases of Besmaya. Moreover, MGH and GE have earlier brought up to 4 GW of power online in the Kurdistan Region of Iraq through the Erbil, Duhuk, and Sulaymania projects.

Joseph Anis said:

On behalf of GE, I would like to thank MGH and the Ministry of Electricity for their continued trust in us. GE has been honored to collaborate with various organizations to support the development of Iraq’s electricity sector for over 50 years.

“From being among the first to help rebuild power infrastructure in conflict-affected areas such as Diyala and Mosul, to providing equipment and services for Iraq’s first independent power plant, we have not just promised but continuously delivered on our commitment to help power progress for the people of Iraq.

(Source: GE)

By John Lee.

Under the guidance of the Iraqi Prime Minister, H.E. Dr. Adel Abdul Mahdi, the patronage of the Iraqi Minister of Electricity, H.E. Dr. Luay al-Khatteeb and in continuation of their dedicated efforts to strengthen Iraq’s power sector, Mass Energy Group Holding (MGH) and GE Power signed a new agreement that will help establish Phase 3 of the Besmaya [Bismaya] Power Plant, taking the total capacity of the facility up to 4.5 gigawatts (GW).

Under the scope of the agreement, GE will supply MGH with four 9F gas turbines and four generators to equip Besmaya Phase 3. The project has already been approved by Iraq’s Council of Ministers and MGH will supply electricity from the new extension of the plant to the Iraqi Ministry of Electricity under a 20-year power purchase agreement (PPA).

The agreement was signed in the presence of H.E. Dr. Luay Al-Khatteeb and John Rice, Chairman of GE Gas Power by Ahmad Ismail, Chairman of MGH and Joseph Anis, President and CEO of GE’s Gas Power Systems and Power Services businesses in the Middle East, North Africa and South Asia.

H.E. Dr. Luay Al-Khatteeb said:

As the first independent power project in Central Iraq, Besmaya set benchmarks in public-private sector partnerships and contributions to Iraq’s electricity network.

“It has not only shown that Iraq can be an attractive destination for private sector investments in the energy sector but more importantly, it has played a critical role in helping the government to increase supplies of reliable, efficient, and affordable power to meet the needs of our citizens. We look forward to continuing our collaboration with MGH and GE through the further expansion of Besmaya Power Plant.”

Besmaya Phase 3 is the largest new power plant by output to be added to Iraq’s national grid since 2014. The project is anticipated to bring another 1.5 GW of power online by 2021, with the first 500 megawatts (MW) scheduled to be added to the grid as early as next year. Up to 1,200 people are expected to be employed in the construction of Besmaya Phase 3.

Ahmad Ismail said:

At Mass Energy Group Holding, our mission is to make investments in the interests of the public by being an active contributor to the construction and development of Iraq’s power sector. In GE, we have found a reliable partner that is not only committed to the same values but also able to provide industry-leading technology, as well as world-class execution and service expertise on the ground in Iraq.

“We are excited to start working on the next phase of Besmaya today and remain committed to partnering with the government and people of Iraq to keep addressing the country’s power generation needs in the future as well.

The agreement builds on a proven track record of successful power generation projects executed in collaboration between MGH and GE in Iraq. Besmaya is already the largest power plant in Iraq in terms of output and among the largest across the Middle East and North Africa.

Phase 1 of Besmaya Power Plant is capable of generating up to 1.5 GW of power, while Phase 2 can already produce up to 1 GW and is expected to add up to another 500 MW as it starts combined cycle operations during the end of 2019 / early 2020. GE has provided eight 9F gas turbines and 4 steam turbines for the first two phases of Besmaya. Moreover, MGH and GE have earlier brought up to 4 GW of power online in the Kurdistan Region of Iraq through the Erbil, Duhuk, and Sulaymania projects.

Joseph Anis said:

On behalf of GE, I would like to thank MGH and the Ministry of Electricity for their continued trust in us. GE has been honored to collaborate with various organizations to support the development of Iraq’s electricity sector for over 50 years.

“From being among the first to help rebuild power infrastructure in conflict-affected areas such as Diyala and Mosul, to providing equipment and services for Iraq’s first independent power plant, we have not just promised but continuously delivered on our commitment to help power progress for the people of Iraq.

(Source: GE)

By John Lee.

Iraq’s Cabinet of Ministers has approved a loan agreement between the Federal Ministry of Finance, Standard Chartered Bank and the German Deutsche Bank for the purpose of financing the construction of 13 secondary substations (132) kV, and the supply of 35 high voltage transformers with the German company, Siemens, for the Ministry of Electricity.

The Cabinet also approved the recommendation of the Ministerial Council on Energy to expand Bismayah power plant.

(Source: Government of Iraq)

By John Lee.

The National Investment Commission (NIC) has announced a new investment opportunity in Iraq:

(Source: National Investment Commission)

(Picture: Business opportunity word cloud, from ibreakstock/Shutterstock)

By John Lee.

South Korea’s Hanwha Engineering and Construction (E&C) has said it haws received an additional payment of $230 million from the Iraqi government for work carried out in the first half of this year on the Bismayah New City project in Baghdad.

According to the report from Business Korea, the total contract is valued at $10.1 billion, of which Hanwha has so far received a total of $3.47 billion.

The project will see around 100,000 homes built near the capital.

(Source: Business Korea)

NATO Secretary General visits Iraq, praises Allied trainers and Iraqi forces

Secretary General Jens Stoltenberg began an official visit to Iraq on Monday (5 March 2018), paying a visit to NATO’s training facilities in Besmaya.

For over a year, NATO has conducted training and capacity building activities for hundreds of Iraqi security forces, helping them to develop their own capabilities in the fight against terrorism.

In Besmaya, the Secretary General met with Spanish, Canadian and Slovakian trainers, as well as Iraqi forces who have benefited from NATO’s training activities.

Accompanied by the Base Commander, Spanish Brigadier General Luis Cepeda Lucas, Mr. Stoltenberg observed training in counter-improvised explosive devices, explosive ordnance disposal and de-mining. He praised the professionalism of the troops, noting that this training helps to save lives.

In Baghdad, the Secretary General met with Prime Minister Haider al-Abadi to discuss the security situation and strengthening cooperation between NATO and Iraq. He paid tribute to the bravery of the Iraqi forces, saying: “Supported by the Global Coalition, they have broken the grip of Daesh terrorists on this country.” He stressed that it is important to secure these gains.

At the request of the Iraqi government, NATO is planning to scale up its support with a new training mission in Iraq. “We will continue to train the trainers, and help the Iraqi Government to establish specialist military academies and schools,” he said.

During his visit, the Secretary General also met with Commanding General, Combined Joint Task Force – Operation Inherent Resolve, Lt. Gen. Paul E. Funk II, and senior Global Coalition commanders, as well as representatives from the United Nations, European Union, and Allied nations.

(Source: NATO)

By John Lee.

Prime Minister Haider Al-Abadi has received a delegation from Korean company Hanwha, headed by its President and CEO, Choi Kwang-ho.

During the meeting, they discussed the progress at the Basmaya housing complex near Baghdad, with the Prime Minister stressing the importance of securing the road link between the residential complex and the center of Baghdad.

He heard a detailed explanation by company representatives about the completion plan for the coming years, emphasizing the quality of housing units and the necessary services, including maintaining the cleanliness of the environment and spaces within the complex.

He also has called for a meeting between the company and Iraqi banks to reach suitable formulas to secure the marketing of the units under appropriate lending conditions.

Hanwha is currently building 100,000 homes at the project, which are due for completion by 2019.

(Source:  Office of the Prime Minister)

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

On July 21, farmers complained about a gas pipeline dredging their farmlands. The pipeline carries gas from Iran to Baghdad through Bismayah, which is located in southeast Baghdad.

Meanwhile, reports on May 22 revealed that the pipeline caused damage to an archaeological site under which it passes.

On March 17, 2016, Iran announced the completion of a 100-kilometer (62-mile) Iranian gas pipeline. It starts at the South Pars gas field and continues to Baghdad to provide fuel for the electricity stations. As part of the project, the Oil and Energy Committee of the Iraq Council of Ministers decided to extend the pipeline through Bismayah to provide gas for electricity stations there.

Many residents in Bismayah were happy at first. However, their happiness did not last as they were forced to vacate parts of their land for the project. According to testimonies documented in a video report broadcast by an Iraqi channel on May 22, a farmer said that a military force stormed onto his land and forced him to accept the extension of the pipeline into his land without providing any documents, which he considered a violation of his rights and of applicable laws.

On July 12, Al-Monitor contacted the Nahrawan police directorate, which said, “The security force securing the site has orders to protect the project of extending the Bismayah gas pipeline and remove any constraints that may hinder its accomplishment.”

By John Lee.

GE and Mass Group Holding (MGH) have successfully commenced simple cycle commercial operations of four advanced GE 9F gas turbines under phase I of the Ministry of Electricity’s (MOE) Baghdad Power Plant in Besmaya [Bismaya].

Located about 40 kilometers from Baghdad, the facility is the first one in the country outside the Kurdistan region to be developed by an independent power producer on a build-own-operate (BOO) basis for the Iraqi MOE.

The new project is being constructed by and will also be operated by MGH and will add 3,000 MW of power to the grid when fully operational. The second phase of the project is expected to start commercial operations in 2018.

Musab al Mudarres, an Electricity Ministry spokesman, said:

“The commercial operations of Baghdad Power Plant by Mass Group Holding using GE’s advanced equipment comes at a significant time, as we focus on strengthening Iraq’s electricity infrastructure to meet the growing needs of residents and various industries. We have set a new model in power generation with the Baghdad project. By accelerating public private partnerships, we aim to ensure the seamless supply of electricity to our people.”

Once complete, the Baghdad Power Plant will take the total power produced by MGH in Iraq to 7,000 MW. GE has already delivered advanced equipment for MGH’s power plants in Erbil, Sulaymaniyah and Dohuk, which together have an installed capacity of 4,000 MW.

With a successful track-record of commissioning three power projects equipped with GE technologies already, we are committed to partnering with the government in building a strong efficient power infrastructure,” said Ahmad Ismail, Chairman of MGH. “The Baghdad Power Plant in Besmaya is truly path-breaking as it is the first of its kind by the private sector in central and south Iraq. By adding power to the national grid, we are contributing to the growth of the economy, and meeting the aspirations of the people.

Korean firm Hanwha Engineering and Construction received about $560 million in construction fees last week from the Iraqi government for its ongoing new city project, the company said on Monday.

The company has been building the 1,830-hectare new city Bismayah, 10 kilometers southeast of Baghdad, an $8-billion contract signed in 2012. The two parties agreed an additional deal to build social infrastructure for $2.1 billion in April 2015, bringing the total accumulated contract to $10.1 billion.

According to a report from the Korea Herald, the latest payment enables the company to cover all accounts receivable, “alleviating its liquidity status and improving the financial health of the company“.

The Iraqi government made the payment through loans from the state-run bank after taking over the completed houses of the new city.

Korea’s Export-Import Bank and Korea Trade Insurance Corporation also provided support for the payment process, the company said.

With construction about 30 percent completed, the company aims to build 100,000 houses and about 300 institutions, including schools, hospitals and public facilities.

The new city will consist of eight towns. So far, about 5,000 households have moved into the first town.

(Source: Korea Herald)