South Korea's Hyundai Engineering & Construction has reportedly won a contract worth $219 million to build a 500 megawatt power station near Baghdad, as part of the Iraqi government's efforts to address power shortages, a government spokesman said Wednesday.
Ali al-Dabbagh, who is also a minister of state, told Dow Jones Newswires after a weekly cabinet meeting: "The cabinet has approved a request by the electricity ministry to build the gas-fired al-Quds [al-Qudus] power station".
Dabbagh said the project is awarded on a turn-key basis, and will be completed within 18 months of the start of work.
Turbines for the project have already been bought by the Iraqi government from General Electric (GE).
Iraq, which suffers from an acute power shortage, hopes to at least double its power generation capacity, which stands at only 6,500 MW, less than half of the country's actual electricity needs.
The ministry has recently opened bids to build seven large power plants across the country that could boost its power generating capacity by 4,000 MW.
(Sources: Dow Jones, Trade Arabia)