By John Lee.

General Electric (GE) is reportedly expected to win a large share of the multibillion-dollar contracts to rebuild Iraq’s electricity system.

According to a report from Reuters, “under U.S. prodding, Iraq is asking both Siemens and GE to bid on contracts and expects to make awards to each of the companies“.

Following a hotly-contested competition last year, it was agreed that Siemens and GE would share the work to upgrade they system, with GE supplying 14 gigawatts (GW), and Siemens 11 GW.

The Financial Times subsequently reported that the deals were not certain to be approved.

(Source: Reuters)

By John Lee.

Prime Minister Adil Abd Al-Mahdi has met with German Foreign Minister Heiko Maas and his accompanying delegation during a visit to Baghdad.

The Prime Minister expressed his desire to deepen relations with Germany, and cited in particular the signing of a road map for the electricity sector with Siemens.

Minister Maas expressed German concern for stability in the region, and said he will visit Iran in the coming days to discuss this issue.

(Source: Office of the Prime Minister)

Germany’s Siemens and the Iraqi Ministry of Electricity have agreed on the award of contracts valued at approximately EUR 700 million for Phase 1 of their “Iraq Roadmap“, covering short-, mid- and long-term addition of new highly-efficient power generation capacity, rehabilitation and upgrade of existing plants, and the expansion of transmission and distribution networks.

The agreement builds on the exclusive Memorandum of Understanding signed between the ministry and Siemens in October last year, and outlines the specific projects, associated budgets and timelines for the execution phase, covering all essential elements of the electrification of Iraq.

The document was signed by Joe Kaeser (pictured), President and CEO of Siemens AG, and Luay al-Khatteeb, Iraq’s Minister of Electricity, in Berlin in the presence of Adil Abdul-Mahdi, Prime Minister of Iraq and Angela Merkel, Chancellor of the Federal Republic of Germany.

Projects include the EPC construction of a 500 megawatt gas-fired power plant in Zubaidiya; the upgrade of 40 gas turbines with upstream cooling systems; and the installation of 13 of 132 kilovolt substations along with 34 transformers across Iraq.

The ‘Siemens Roadmap for the Electrification of the New Iraq’ is a series of short, medium and long-term plans designed to meet the reconstruction goals of Iraq and support the country’s economic development. Along with the electrification scope, Siemens had also committed to the donation of a smart health clinic, a 60 million US-dollar software grant for universities of Iraq, and the training of more than 1,000 Iraqis in vocational education.

The clinic will be equipped with the company’s medical devices to make healthcare more accessible to Iraqis and will support the rehabilitation of populations in liberated areas of the country, with the capacity to treat up to 10,000 patients per year. As for the grant, it will empower local university students with the digital skills essential for the future.

The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector. The company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq. Siemens initially presented the Roadmap to the Government of Iraq during the Iraq Reconstruction Conference in Kuwait, in February 2018.

Kaeser commented:

Our mission is to secure reliable and affordable electricity for the Iraqi people and help them rebuild their country. This binding agreement addresses the various aspects of the roadmap. We are also committed to supporting Iraq in arranging financing for the projects, creating attractive jobs and opportunities for small and medium enterprises.

“Investing in the country’s future workforce through education and training is close to our heart. Contributing to social and economic development is at the core of what we do and forms a significant part of this agreement.

(Source: Siemens)

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) will support a €30.2 million contract for the refurbishment of Al Mussaib power station in southern Iraq, the UK government has announced.

The support will enable the rehabilitation of a 320 megawatt (MW) turbine, that will help improve the overall efficiency and output at the power station.

Al Mussaib power station, located close to Baghdad, is one of the main providers of electricity for the city. Increasing its output will help secure the supply of basic electricity to Baghdad residents.

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

I am delighted that UK Export Finance is supporting the first phase of the refurbishment, which will have such a significant impact on the supply and security of electricity in southern Iraq.

“The demand for UK expertise on complex projects like this highlights the UK’s leadership in this sector and I am delighted that UK Export Finance is supporting projects that will have such a direct impact on improving the country’s infrastructure and the lives of the Iraqi people.

“I encourage likeminded businesses to get in touch with UKEF to learn more about the kind of financial support we can provide.”

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.

Darren Davidson, Managing Director – Power Generation Services, Power & Gas, Siemens UK said:

“The refurbishment of the Al Mussaib power plant will be hugely important both for the citizens of Baghdad and for our international business. UKEF’s support demonstrates the UK government’s commitment to improving Iraq’s infrastructure and the UK’s energy sector.”

(Source: UKEF)

By John Lee.

The Financial Times has reported that the recently-agreed electricity deals with Siemens and General Electric (GE) are not certain to be approved.

It quotes Minister for Electricity Luay Al-Khatteeb (pictured) as saying:

“I don’t have financial allocations or the processes available at hand, it doesn’t allow me to cherry-pick the right consultancies to deal with these multibillion-dollar deals. The bureaucracy that I inherited is . . . illogical. … certainly it’s going to be quite challenging to blindly accept such proposals.”

Al-Khatteeb took his post after the non-binding deals, or “principles of co-operation” were agreed with his predecessor, Qasim Al Fahdawi.

He said he that “volunteer experts” are helping “read in between the lines of these sophisticated legal contractual documents.

Last month, Lisa Davis, CEO of the Siemens Gas and Power Operating Company, and member of the corporation’s managing board, told The National last week that “discussions are ongoing.

More here.

(Source: Financial Times)

By John Lee.

Talks are reported to be continuing between Germany’s Siemens and the Iraqi Ministry of Electricity regarding a major investment in the country’s electricity infrastructure.

Lisa Davis (pictured), CEO of the Siemens Gas and Power Operating Company, and member of the corporation’s managing board, told The National last week that “discussions are ongoing”, adding, “we’re working on their timeline and within their structure to getting there as effectively as they can to bringing the projects to reality as they need.

Following a hotly-contested competition last year, it was agreed that Siemens and GE would share the work to upgrade they system, with GE supplying 14 gigawatts (GW), and Siemens 11 GW.

(Source: The National)

By John Lee.

Both Germany’s Siemens and US-based GE have signed deals with the Iraqi government on Sunday to provide major additional power generating capacity to Iraq.

Following a hotly-contested competition, the two rivals are to share the work, with GE supplying 14 Gigawatts (GW), and Siemens 11 GW.

(Sources: GE, Siemens)

Siemens in landmark MoU to repower Iraq, support economic prosperity

Siemens and the Ministry of Electricity of the Republic of Iraq have entered a milestone agreement to seek the implementation of the company’s roadmap for repowering Iraq. Signed by Qasim Al-Fahdawi, Minister of Electricity, and Joe Kaeser, President and CEO of Siemens AG, the Memorandum of Understanding (MoU) will examine a series of short, medium and long-term plans to meet the reconstruction goals of Iraq and support the country’s economic development.

“Our commitment to the Iraqi people stands strong. We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs. Education, training and developing local skills and talent are key elements for us to contribute to building the New Iraq. Today’s agreement on the Siemens roadmap is a significant step towards fulfilling that promise,” said Joe Kaeser. “We are ready to start and look forward to working closely with the Iraqi government to immediately produce noticeable improvements for the Iraqi people.”

In September, Siemens announced the donation of a smart health clinic that would be powered by solar energy and equipped with Siemens medical devices. The clinic would have the capacity to treat up to 10,000 patients per year. This was in addition to pledging to fund the first modular “School of the Future” in Iraq, provide a USD 60 million software grant for universities in the country, and train more than 1,000 Iraqis in vocational education.

Under the “Roadmap for the Electrification of the New Iraq”, Siemens is ready to add 11 gigawatts (GW) of power generation capacity over four years to ensure 23 million Iraqis across the country have reliable and sustainable electricity 24/7. This would boost current generation capacity by almost 50 percent. The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector, supporting the development of the future Iraq. The company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap emphasizes people at its core – and is the result of a 12-month study to develop a comprehensive and tailored redevelopment plan. It focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq.

Siemens’ Iraq Roadmap outlines eight objectives to benefit the people of Iraq, the country’s national security and its economic development. These include reducing energy losses, introducing smart grids, strengthening the transmission grid, modernizing existing power plants, adding new generation capacities in deprived areas, connecting Iraq to the Arab Gulf region, putting Iraq’s national resources to work, and investing in its people.

Modernizing the country’s energy infrastructure is intended to be completed in stages, from immediate improvement for up to 300,000 people, which can be operational within three months, to medium and long-term projects that require between 10 and 24 months’ completion time and beyond. The company will also assist Iraq’s government in securing appropriate finance packages provided by international commercial banks, Export Credit Agencies and supported by the German Government.

The roadmap lays out plans to use Iraq’s valuable natural resources more efficiently by utilizing flare gas capture and treatment technologies to deliver a domestic source of fuel to Iraq’s power generation sector, as well as create a long-term source of revenue for the government to finance power generation, transmission, and distribution projects.

As part of its commitment to driving sustainable growth, Siemens intends to support social development in Iraq with a series of training and education programs. This includes technical and vocational training as well as transparency and anti-corruption education, in order to build a pool of highly skilled, local talent with a culture of compliance. Under the patronage of the German Federal Ministry for Economic Cooperation and Development (BMZ), Siemens aims to provide vocational training, starting with 1,000 young Iraqis.

Siemens initially presented the Roadmap to the Government of Iraq during the Iraq Reconstruction Conference in Kuwait, in February 2018. At the same time, the company signed a declaration of intent with BMZ with both parties agreeing to jointly contribute to the reconstruction and development of Iraq in areas including technical and vocational training, as well as transparency and anti-corruption.

(Source: Siemens)

By John Lee.

German business newspaper Handelsblatt reports that Chancellor Angela Merkel has personally intervened with Prime Minister Haider al-Abadi to persuade the Iraq Government to sign a major contract with Siemens to upgrade the country’s electricity infrastructure.

It is understood that the State Secretary for Economic Affairs, Thomas Bareiß, accompanied Siemens Chief Executive Joe Kaeser (pictured) on a visit to Baghdad on Sunday in the hope of agreeing a multi-billion euro deal.

The German export credit guarantee company Hermes would be expected to underwrite any contract.

US-based General Electric (GE) is believed to be also in the running.

(Source: Handelsblatt)