After US pressure .. General Electric is going to win contracts for electricity in Iraq

After US pressure .. General Electric is going to win contracts for electricity in Iraq


After US pressure .. General Electric is going to win contracts for electricity in IraqWASHINGTON (Reuters) – US general Electric Corp. is set to win a large share of billions of dollars in contracts to rebuild Iraq’s electricity grid, reflecting a change in the way Baghdad plans to award contracts after the United States put pressure on the company, informed sources said.

In October, Iraq signed five-year “road map” agreements with Germany’s General Electric and Siemens, under which Baghdad plans to pump about $ 14 billion to build new electricity and power lines, repair and repair, and then buy equipment to collect and exploit natural gas Of the Iraqi oil fields instead of burning it as is happening now.

When Iraq awarded Siemens a contract in April, Prime Minister Adel Abdul Mahdi said the company was in a position to win most futures contracts.

But sources in contact with the three parties said Iraq had asked – under US pressure – from General Electric and Siemens to enter bids on contracts, and is expected to give Baghdad contracts to the two companies.

“The political pressure on the Iraqi government … has pushed the government (former Prime Minister Haider al-Abadi) to change its plans and allow General Electric to join the process,” an Iraqi electricity ministry official said.

“It was clear to us that Washington was not happy that Siemens would take over this huge deal alone without any opportunity for General Electric … and discussions are under way to decide on medium and long-term contracts, which we expect to divide,” the official said.

The Iraqi Electricity Ministry did not respond to requests for comment.

A State Department official confirmed that his country had pressed Iraq for General Electric. “Utilizing the innovative capabilities of US companies such as General Electric is a key element of our strategy to expand economic ties and increase foreign investment, and thus help rebuild Iraq,” the official said.

The sources, who spoke on condition of anonymity, that Iraq will grant contracts in three stages over the next four years.

“It’s not a winner that takes everything,” one source said. “It’s a continuous process and you have to work at all levels.”

For decades, General Electric and Siemens have supplied Iraq with power plants and other electrical equipment. Many of these facilities need to be reformed and developed after years of war, which provides plenty of room for the two companies to work in Iraq.

Since October, General Electric has signed agreements to develop, maintain and rebuild facilities to increase power generation capacity by 5,000 megawatts, according to informed sources.

The Boston-based company was also involved as part of a road map to build two 750-megawatt power plants, the sources said.

For his part, a spokesman for General Electric “Iraq and General Electric in positive discussions to strengthen the electricity sector in the country.” Last month, General Electric said a 125-megawatt turbine of the company’s manufacture was being operated at the Jerusalem power plant in Iraq.

In turn, Siemens said it had taken “a major first step towards the actual implementation of the road map” when it signed an agreement with Iraq on April 30 that sets out projects, budgets and timeframes.

The agreement includes three contracts worth about 700 million euros for the construction of a new 500 megawatt power plant, the development of 40 gas turbines and the construction of new substations.

Source: Reuters