Siemens, Orascom to rebuild major power plants in Iraq

Siemens and Egyptian contractor Orascom Construction have signed an agreement with Iraq’s Ministry of Electricity to rebuild two power plants in the industrial city of Baiji in northern Iraq, which were severely damaged by Islamic State militants.

The Baiji 1 and 2 plants will have a combined generation capacity of 1.6 GW when completed, and will power Iraq’s biggest oil refinery, located in the city, as well as a concrete plant, and will provide electricity for thousands of homes in the vicinity.

Work at Baiji, which is about 250km north of Baghdad, will begin once the contracts are approved by Iraq’s Council of Ministers and a financial agreement is reached with the Ministry of Finance, Siemens said.

The projects are expected to be completed within 28 months after the financial closing.

Iraq’s Electricity Minister Luay al-Khateeb, Siemens AG’s Joe Kaeser and Osama Bishai, the CEO of Orascom Construction, witnessed the signing of the agreement on the sidelines of the Iraq Energy Forum 2019 in Baghdad.

Siemens will supply four new SGT5-2000E gas turbines and will inspect and revamp six exiting ones. The company will also provide two 400kV and one 132kV substations, along with generators, auxiliaries, automation and control systems, and related electrical equipment.

"Iraq’s economic transformation is picking up pace, and this project demonstrates Siemens’ commitment to help Iraq’s Ministry of Electricity provide efficient and reliable power to all its people," said Dietmar Siersdorfer, CEO Siemens Middle East and UAE. "We are proud to begin this project to help Iraqis in liberated areas recover and prosper."

Image: Baiji Fertiliser Plant, Iraq, in 2008, being inspected by Paul Brinkley, the United States’ Deputy Under Secretary of Defense for Business Transformation (Sgt. 1st Class Robert C Brogan/US Army/Public Domain)

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