Siemens may have to share a large electricity contract in Iraq with General Electric

Siemens may have to share a large electricity contract in Iraq with General Electric

2018/10/17 17:40

Siemens may have to share a large electricity contract in Iraq with General Electric[Follow – up – where]
Vinnachal Times reported on Wednesday that Siemens may have to share a multibillion – dollar contract with US rival General Electric to develop a power supply system in Iraq after the intervention of US President Donald Trump ‘s management.

The newspaper said, quoting informed sources that the US government intervened in favor of General Electric and put pressure on the Iraqi government.
Although no decision has been made so far, Siemens has been the favorite candidate to win a power supply contract for 11 gigawatts in Iraq in a deal worth about $ 15 billion.
GE, which is facing a severe slowdown in its electricity sector, is now expected to receive a large part of the deal that may be included in its statements when it reports its third-quarter profit on Oct. 30.
Siemens did not give up hope of winning part of the contract.
“Our talks with the government are continuing and we look forward to entering into a formal agreement to provide reliable electricity at an affordable and sustainable price for Iraq,” a Siemens spokesman said.
Joe Kaiser, chief executive of Siemens, flew to Iraq in September and spoke to outgoing Prime Minister Haider al-Abadi about the contract.
Adel Abdul Mahdi was then prime minister in Iraq.
The report said US pressure for General Electric had increased.
In February, Siemens offered to build new power plants in Iraq over a four-year period of 11 gigawatts. This increase in production will increase the number of Iraqis with reliable electricity by 50 percent to 23 million.
The Siemens contract could be worth around 11 billion euros ($ 12.70 billion) and would support its energy sector, which saw profits fall 60 percent in the first three quarters of this year.
“The road map of Iraq is one of Siemens’ top priorities and we are fully committed to it,” a Siemens spokesman said.
“We presented our document of the Iraq Electricity Production Roadmap to the Iraqi government in February. Since then we have held a series of meetings and received a positive response from the government to develop the country’s electricity infrastructure. ”

alliraqnews.com