From Peace to prosperity:

The Conference to find out what’s happening for Iraq business.

The Iraq Britain Business Council (IBBC) Autumn Conference in Dubai on December 8th is set against a backdrop of relative peace and security in Iraq, and the prospect of oil revenues surging through the economy is driving a wider range of business opportunities and a prospective 8% increase in GDP.

Peace is enabling the economy to diversify through the revenues that pay for a range of infrastructure projects. So this Autumn we are focusing on a range of sectors set to benefit from a stable Iraq: namely, Water, Transport and Logistics, Energy and Tech.

The recent protests have also spurred on Government reforms and incentives to drive employment, entrepreneurship and service diversity, and increase the volume of opportunity that lies ahead and the prospects for not just business-to-business but also a burgeoning consumer market.

The Iraqi Electricity Minister will likely be speaking about his reforms to open up the market to SME’s, training and new players. Other ministers including those from Construction and Transport are attending.

The recent announcement of a 10year tax-free period for SMEs in Iraq will also stimulate the Tech entrepreneur market and drive the uptake of engineering skills.

At this conference, we will discuss big-picture economics with Professor Frank Gunter (Lehigh University), Ahmed Tabaqchali (AFC Iraq Fund), and Simon Penny (UK Trade & Investment), who will address the economic backdrop in the Middle East, and the context for Iraq in particular.

The World Bank and Wood Plc will cover the water sector, while Rolls Royce, Basra Gateway Terminal (BGT), and Menzies will look at transport and logistics, and Iraq’s Electricity Minister, GE, Siemens and Enka will focus on energy.

Alongside the conference our Tech Forum brings experts on HealthTech and Educational Tech, including speakers from GE, Siemens Healthcare, KPMG, EY, Google and the British Council, among others.

While key opportunities will be outlined, the real opportunity for business is to meet the people directly involved in contracts and supply-chain opportunities. This is the place to do business, to network and to find out what’s happening in the Middle East’s most potentially dynamic market that is Iraq.

For further information and to find the latest updates on speakers – more are expected – please contact  london@webuildiraq.org or visit the website to register for tickets.

https://iraqbritainbusiness.org/event/autumn-conference-at-the-address-hotel-dubai

The year it’s all on the up…

UK International Trade Secretary Dr Liam Fox MP has visited Baghdad for a three-day visit (Sunday, 14 April to Tuesday, 16 April 2019) where he met with the Iraqi Prime Minister and announced that UK Export Finance (UKEF) will make an additional £1 billion of support available for British firms operating in Iraq, providing jobs and promoting stability in the region.

In the first visit to Iraq by a cabinet minister for more than a year, Dr Fox will be meeting with senior Iraqis including the Prime Minister and President to discuss the bilateral trading relationship.

Alongside the Iraqi Prime Minister Adil Abdul Mehdi, the Trade Secretary announced that UK Export Finance is making an additional £1 billion available to support UK exports to Iraq, bringing its total support for the country to £2 billion.

The measure is designed to promote Iraq’s economic development and nation-building, ensuring that UKEF can continue to help the Government of Iraq deliver critical infrastructure.

To date, UKEF has deployed its existing capacity for Iraq, providing around £1 billion in support for projects including:

  • A US$35 million (£26 million) loan for the scoping phase of a water and wastewater treatment project in the Kurdistan Region of Iraq provided by UK company Biwater
  • US$1.02 billion (£770 million) to support Enka UK and GE to build 2 new gas-fired power stations in the Basra region and UK-based GE Grid Solutions to build and refurbish 14 electricity sub-stations across Iraq
  • support for a €30.2 million (£26 million) Siemens UK contract to refurbish the 320-megawatt Al Mussaib power station in southern Iraq
  • a loan to support a US$220 million (£169 million) contract being undertaken by a UK subsidiary of GE to refurbish gas-fired power stations

This support is available to UK companies selling to Iraq or investing in the country and will help the Government of Iraq access finance for projects that source goods and services from the UK.

The International Trade Secretary Dr Liam Fox MP said:

The atmosphere in Baghdad is one of optimism – it is a country which is having an increasingly stable period at a time of significant unrest in the wider region. The British government, working closely with the UK private sector and our Iraqi partners, have a key role to play in the country’s long-term prosperity. The £1 billion we have announced today will significantly strengthen our ability to do just that.

“Iraq’s future is bright, and my international economic department will continue to work tirelessly to ensure it maintains this stability, allowing the hard work of its talented citizens to flourish for the benefit of all.

“Trade is about more than economic self-interest, it is the means through which we deliver the mutual prosperity that underpins our collective security. That is the true prize of trade policy and promotion done right.

During the visit, the Trade Secretary will speak to young Iraqi entrepreneurs who are working to create a more vibrant private sector to support the long-term stabilisation and prosperity of Iraq. He will also meet British firms operating in-country whose investments are vital in the country’s rebuilding efforts.

Siemens UK is improving the electricity supply in Iraq using UKEF finance. Steve Scrimshaw, Country Lead, Gas and Power UK and Ireland, Siemens UK, said:

We are delighted this additional funding has been made available for ongoing regeneration in Iraq and look forward to working with UKEF and the Iraqi government on future opportunities.

“Siemens has already benefited from UKEF support for work on the refurbishment of the Al Mussaib power plant. This will be vital for the people of Iraq who will benefit from both the power and the jobs it will create. With work being delivered from our Newcastle business, it is also helping to secure jobs in the UK.

(Source: UK FCO)

UK Export Finance (UKEF) has announced it will support UK firms with US $1.02 billion to build two new power stations in Iraq and support the restoration of a number of electricity substations in the country.

  • US $1.02 billion in support for UK firms to build two new power stations
  • Agreement will help build and refurbish numerous electricity substations across Iraq
  • Announcement reaffirms the UK’s commitment to Iraq’s continued economic development

US $620 million financing will go to support two contracts between GE and Iraq’s Ministry of Electricity to build two power stations in Samawa and Dhi Qar, located northwest of Basra, in southern Iraq.

UKEF had already provided initial support for the project; this additional financing supports the main construction phase of the project involving further procurement from UK suppliers through GE sub-contractor ENKA UK.

UKEF will also provide US $400 million to support a project by GE’s Grid Solutions, business to develop 14 sub-stations across Iraq. GE will build new substations on a turnkey basis and supply equipment such as transformers and other parts to rehabilitate existing substations, helping to bring power to areas with significant power shortages from the north to the south of the country.

This announcement follows the agreement between the governments of the UK and Iraq signed in March 2017, which re-affirmed the UK’s commitment to Iraq’s continued economic development.

This project will play a key role in bolstering the capacity of the Iraqi electricity grid, the two new power stations, located in the Basra region, will give citizens the access they need to critical infrastructure.

Baroness Fairhead (pictured), Minister of State for Trade and Export Promotion, said:

The scale of these contracts illustrates the demand for British expertise in the utilities sector and the level of support the government can give to British businesses looking to make the most of similar opportunities across the globe.

“The UK Government continues to be committed to Iraq’s economic development and I am delighted that UK Export Finance is supporting projects that will have such a direct impact on improving the country’s critical infrastructure and the lives of the Iraqi people.

Guto Davies, GE Energy Financial Services’ Global Capital Advisory Managing Director, said:

“The announcement of these new facilities further strengthens GE’s collaborations in Iraq to support the country’s power infrastructure and meet the growing need for electricity. GE recognises the importance of UKEF in supporting critical infrastructure projects in Iraq and the UK supply-chain. We are delighted they continue to fund major projects in the country’s power energy sector.”

Yavuz Akturk, Director at ENKA UK, said:

Power shortages continue to halt Iraq’s reconstruction and addressing this scarcity is crucial to the country’s future. As ENKA, we have taken a significant role in rebuilding the country’s infrastructure, and with these projects we will help the people in the country which are in urgent need for electricity.

“It would not be possible without the continuous support of the UK Government and the highly dedicated UKEF team; and we as ENKA, are grateful for the high-level support for these projects which will also provide great opportunities for the UK exporters.”

(Source: UK Govt)

By John Lee.

UK Export Finance (UKEF) has published its annual report and accounts for 2017 to 2018, in which it lists three export projects supported in Iraq:

  • Enka UK Construction Ltd received letter of credit guarantees and supplier credit totalling £87,910,650 for the construction of a gas-fired power plant for Iraq’s Ministry of Electricity;
  • GE Global Services GMBH received buyer credit and direct lending totalling £87,211,216 for the construction of a gas-fired power plant for Iraq’s Ministry of Electricity;
  • Fortress Diagnostics Ltd received export working capital of £112,258 to supply healthcare equipment to Iraq’s Ministry of Health.

(Source: UK Govt)

Basra Multi-purpose Terminal (BMT), the largest multi-purpose port facility in Iraq, announces a major development in the Port of Umm Qasr.

Marking a significant expansion to their existing facilities, BMT will be increasing their total investment in Umm Qasr Port to over USD 200 million, aimed to further advance the port in the international trade and transport sector.

In addition to BMT’s current 4 berths and 650,000 m2 of terminal space in the port of Umm Qasr, the development entails a further construction of 3 new berths, as well as a new roro berth.

The quay wall that will be constructed at this facility will be based on a block wall construction, a technique that is unique to Iraq. It has a high seismic resistance and a life span of approximately 100 years, without any need for maintenance.

BMT has awarded the quay wall construction contract to the Turkish company Enka.

The design of this new facility was done in cooperation with the Dutch-based engineering consultancy Royal Haskoning DHV.

Once completed, BMT will offer 7 berths in the Port of Umm Qasr, with over 1 million square meters of terminal space. The new terminal will include an area especially designed for receiving heavy lifts cargoes, able to easily withstand cargoes of over 1.000 tons, while the quay wall will be able to receive vessels with a capacity of 14.000 TEUs.

In addition, BMT will furnish their new facility with all new equipment, benchmarking this project on an international scale. All together this investment will further strengthen the position of Iraq as international trade partner in the region.

ENKA‘s Sulaymaniyah 1,500 MW Combined Cycle Power Plant in Iraq has been recognized as the Global Best Project of 2017 by Engineering News-Record (ENR) under the Power/Industrial category.

Constructed between 2013 and 2016, the plant is designed to work on two types of fuel – natural gas as the primary and diesel as the secondary source, and will utilize the exhaust heat produced by the existing Sulaymaniyah Gas Power Station. Each block consists of four HRSGs, a GE steam turbine generator set, and a 40-cell Air Cooled Condenser (ACC) System.

Engineering News-Record (widely known as ENR) is an American weekly magazine that provides news, analysis, data and opinion for the construction industry worldwide.

The ENR Global Best Projects Awards focus on the challenges, risks and rewards of designing and constructing in other countries.

ENR judges look at projects in many markets and examine safety performance, innovations, challenges, and design and construction quality, with a special emphasis on the diversity of global project teams and their collaboration.

They also consider how the project benefits the local community and/or the construction industry.

(Source: ENKA)

UK Export Finance (UKEF) has announced that it is supporting the Enka UK and General Electric (GE) consortium with US$117 million in financing to deliver two critical power projects in Iraq.

Rt Hon. Greg Hands MP (pictured), UK Minister for International Trade, welcomed the news, saying:

The Department for International Trade through UK Export Finance is delighted to be supporting these power projects, which will significantly enhance the energy sector in Iraq.

“Construction of the projects also presents huge – and hugely exciting – opportunities for UK exporters, and clearly demonstrates the UK’s leadership in the energy sector.”

UKEF has provided a guarantee to support the government of Iraq in its contract with the GE-led consortium.

This support will finance the early stages of construction of two GE-powered 750-megawatt gas-fired power plants at Dhi Qar and Samawa in southern Iraq. Once complete, the power plants will help to alleviate severe energy shortages in Iraq, supporting the country’s infrastructure development and energy security. Further financing may follow to support additional UK procurement.

UKEF and the Department for International Trade teams in Iraq and Turkey are working closely with Enka UK and GE to source at least US$250 million worth of goods and services from the UK to deliver the projects in coming months.

A supplier fair was held in March, in partnership with energy sector bodies NOF Energy and the Energy Industry Council, to connect companies in the UK supply chain with the projects.

The move demonstrates GE’s commitment to developing its UK supply chain following the agreement between GE and UKEF signed in 2015. GE is the engineering, procurement and construction (EPC) contractor for the projects, which were announced in January, and Enka UK is the main subcontractor.

This support follows an agreement between the governments of the UK and Iraq, signed in March, reaffirming the UK’s commitment to supporting Iraq’s continued economic development.

Yavuz Akturk, Director at Enka UK, said:

We are very pleased to see UK Export Finance, the leading ECA active in Iraq, supporting these projects. It would not have been possible for us to enter into these projects with GE without their support.

“These projects will help the people in the country by increasing the electrification rate while providing great opportunities for UK exporters of goods and services to participate in these transformational projects in Iraq.”

Guto Davies, Head of ECA Financing, Global Capital Advisory, GE Energy Financial Services, said:

“The closing of this facility supports the construction of these two new power plants and GE’s commitment in Iraq. UK Export Finance and the Department for International Trade in Iraq have been instrumental in helping us achieve this critical milestone.”

(Source: UK)

Further building on its partnerships to support Iraq’s power sector, GE (NYSE: GE) has received an order from Mass Global Investment Company to provide advanced gas turbines for a new 3-gigawatt (GW) power plant in Bismayah, only 30 kilometers away from Baghdad within a massive housing development project.

The Bismayah plant will support Baghdad and Bismayah and be able to generate the equivalent power needed to supply more than 5 million Iraqi households.

A landmark project that will add to the power generation capabilities of the country, Bismayah marks the first-of-its-kind independent power producer (IPP) deal between Iraq’s Ministry of Electricity and Mass Global Investment Company. It also is the first IPP project by Mass Global Investment Company outside Kurdistan, underlining the close collaborations among power sector stakeholders in Iraq to help meet the country’s growing needs for power.

According to the Iraq Energy Outlook by International Energy Agency, Iraq needs to boost its power generation capacity by nearly 70 percent to meet its needs, while over 70 GW of additional installed capacity is needed by 2035, with a focus on moving away from the traditional oil-fired power mix to more efficient gas-fired generation.

The gas-fired Bismayah plant helps meets the larger development goals of the country with GE to supply eight units of its advanced 9F.03 gas turbines. The project will be developed in two phases, each consisting of two blocks of 1,500 megawatts each. Mass Global Investment Company has signed the EPC contract for the project with ENKA and is currently finalizing the plans for the second phase.

Adel Hamid, Minister’s Deputy for Projects Department, Iraqi Ministry of Electricity, said:

The Bismayah plant marks our continued focus to strengthen the power infrastructure through IPP partnerships that will help meet the needs of the people.

“Through our partnership with Mass Global Investment Company, which has proven expertise in power generation, we are also bringing advanced technologies in power generation through global companies such as GE for greater operational efficiency. We are committed to developing the power project that will support Bismayah, the largest city development in the country which will energize the economy.”

By John Lee.

Reuters reports that Mass Global will partly finance a $3-billion power plant in Bismaya.

The gas-fired, 3,000-megawatt plant is being built by Turkey’s Enka Insaat, whose chairman Sinan Tara said it would be financed partly from Mass Global’s equity and partly from Iraqi lenders.

The project will be built in two phases of 1,500 MW each.

The companies have already worked together on power plants in Erbil and Sulaymaniyah.

(Source: Reuters)

(Picture: new housing project at Bismaya).

GE (NYSE: GE) has signed a contract with ENKA to supply power generation equipment for a new 750-megawatt (MW) combined-cycle plant being developed by Qaiwan Group in Iraq.

GE will provide four 9E gas turbines and one steam turbine for a new power plant in Sulaimaniyah to support the government’s goal of strengthening the electricity infrastructure in the Kurdistan region.

GE has played a key role in supporting the region’s focus on providing uninterrupted power for its people and driving industrial growth. Through its regional partnerships, GE’s turbines support more than 90 percent of the electricity generated in the Kurdistan region, supplying nearly 20 hours of electricity a day.

The new power plant in Bazyan marks the fourth power project that GE is supporting with its heavy-duty gas turbine technologies in the region.

The Erbil, Sulaiymaniyah and Dohuk plants, powered by 24 GE 9E gas turbines, produce more than 3,000 MW, the equivalent to the required annual energy needs of approximately 3 million households in Iraq. The Bazyan plant will help deliver power to an additional 750,000 households.

Saad Hassan, CEO of Qaiwan Company, said:

“The Bazyan power plant is expected to address the growing demand for power in the Kurdistan region. Our objective is to enhance its operations through a combined-cycle plant with reliable and advanced technologies that contribute to greater efficiency in the long run. GE’s gas and steam turbines are an ideal fit to our requirements.”

Fehmi Bayramoglu, member of the executive committee, ENKA said:

“The Bazyan project is one of our key contracts in the region, which we are committed to developing as per an aggressive project schedule. Having worked with GE on three earlier projects in the region, we are confident of the additional value that the company’s technologies bring to the project.”

Mohammed Mohaisen, CEO, GE Power Generation Products and Services Sales, Middle East and North Africa said:

“With over 40 years of presence in Iraq, GE is committed to supporting its developmental goals to build a strong electricity infrastructure. Our contract for the Bazyan power plant is the fourth with ENKA in this region, highlighting the trust of our partners in delivering advanced technologies that strengthen the efficiency of power projects. GE’s gas and steam turbines will assist in enhancing plant operations that support the rapidly growing industrial area of Bazyan.”

(Source: GE)