The Export Guarantee Fund of Iran (EGFI) has announced that it is to provide political risk insurance (PRI) to Iran's MAPNA Group for its Rumaila power plant project in Iraq.
Rumaila, a natural gas combined cycle power plant with 12 gas and 6 steam turbines, is to be implemented at a cost of $2.5 billion by MAPNA Group in Basra, southern Iraq.
The project, which is one of the biggest in the region, aims to add 3000 MW of electricity to Iraq's national grid.
The work is planned to be finished within 5 years, with the first phase expected to be completed within 19 months. The execution of the project started following two years of close negotiations with the international consultants and the host government.
Rumaila is a long term investment project which is to be financed jointly by MAPNA and a Jordanian private company. The Iraqi government guarantees the PPA (Power Purchase Agreement).
EGFI says it has played a pivotal role in the project by providing MAPNA with a USD 300 million PRI policy which covers the project against political risks such outbreak of war, expropriation, confiscation and nationalization, foreign exchange transfer and breach of contract by the host government.