Iraq to award $2.2B in gas-fired power plant contracts

 Source: POWER-GEN WorldWide

Iraq will award contracts worth $2.2 billion in early May to build four gas-fired power plants, according to Electricity Minister Raad Shallal.

“There is a big possibility that each project be granted to a different company, which will be better for us and for the company,” he said at a press conference in Baghdad, reports Bloomberg.

The four power plants in Amarah, Samawa, Diwaniyah and Basra in the south will add a total generation capacity of 2,750 megawatts (MW), he said. Iraq currently produces 7 gigawatts (GW) and imports an additional 1 GW, while demand is about 14 GW, Shallal said last month.

Iraq’s Almco Group and Al Bilal Group Construction Co. as well as a Jordanian company bid for the $400 million, 500 MW plant in Amarah, Masaab Serri, an Electricity Ministry spokesman, said earlier today. A joint Iraqi-Malaysian group pulled out of the race, he said. The 25-year contract stipulates that the power station be built over a period of 18 to 24 months, he said.

Dubai-based Uruk Engineering, Almco, Al Bilal, as well as a Jordanian company bid for the plant in Diwaniya, he said, without identifying the Jordanian bidder. Uruk and Al Bilal bid for the plant in Samawa of similar capacity. The plants will each generate 500 MW and cost $400 million each.

MASS Group Holding of Jordan and Kar Group of Iraq were selected as runners-up for a $1 billion contract to build the 1250 MW Shatt al-Basra plant, Shallal said April 5, according to Bloomberg.

In addition to the four plants, ABB and five other companies were selected on April 18, to bid to develop a 250 MW power plant in Al Qaim in western Iraq, Deputy Electricity Minister Salam Qazaz said.

A group of South Korean companies signed contracts on April 7 to build 25 power stations, half of 50 that are planned at a total value of $6.25bn. Caterpillar and Man SE are among companies that have bid for the remaining 25 plants, Electricity Minister Raad Shallal said March 23.

Iraqis get power from the national grid for an average of about one hour in every five. Iraq has offered this year a series of tenders to build about 60 new power plants. Its electricity plants and distribution system have suffered through years of conflict, sanctions and sabotage.



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