Iraq, US firm sign $400 million power infrastructure deal

Iraq, US firm sign $400 million power infrastructure deal
Iraq and American conglomerate General Electric have signed a deal to develop Iraq's power infrastructure and bring electricity to areas facing significant shortages across the country.
2 min read
23 November, 2017
Many Iraqi cities and towns experience severe power cuts and rolling blackouts. [Getty]

Iraq and American conglomerate General Electric have signed a deal to develop Iraq's power infrastructure and bring electricity to areas facing significant shortages across the country.

The more than $400 million contract will build 14 electric substations and supply crucial equipment such as transformers, circuit breakers and other outdoor equipment to revamp existing substations, GE said in a statement.

The substations will hook up power plants in the provinces of Ninevah, Salahuddin, Anbar, Baghdad, Karbala, Qadissiyah and Basra to the national grid.

GE will also aid Iraq's Ministry of Electricity in securing funding through various financial institutions.

Many Iraqi cities and towns experience severe power cuts and rolling blackouts despite billions of dollars spent since the 2003 US-led invasion of the country.

This leaves many Iraqis with just a few hours of government-provided power per day, giving them the choice of supplementing it with generators or going without electricity in a country where temperatures can top 50 degrees Celsius (120 Fahrenheit) in summer.

Abysmal services, widespread corruption and government posts being distributed along political and sectarian lines were the main factors that sparked anti-government protests starting in the summer of 2015.

In January, Iraq signed a billion-dollar deal with GE for the construction of two power plants aimed at easing the country's long-running electricity woes.