By John Lee.
In its latest session, the Iraqi Cabinet has approved several measures to address the electricity needs during peak summer periods and to develop the country's power infrastructure.
The key decisions include:
- Contract with Mass Holding Company:
The Ministry of Electricity has been authorized to contract with Mass Holding Company to supply electricity specifically to the northern region and the national grid. This contract is crucial due to the peak summer demand and the need for a stable electricity supply. The contract duration is three months, based on financial viability.
- Contract with Kar Group:
The Ministry of Electricity has also been approved to contract with Kar Company for the supply of electricity from Turkey. This agreement follows a reduced price formula approved by the Ministry of Electricity and is also for a duration of three months, addressing the peak summer demand and the financial capabilities of the ministry.
- Financial and Developmental Approvals:
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- Authority for Loan Agreement: The Cabinet has empowered the Minister of Finance, or an authorized delegate, to sign the loan agreement for funding the project to supply and install five 132 KV substations. These substations will be located in South Khalidiya, Al-Suwaira, Al-Rumaitha, North Kirkuk, and Al-Rifai, benefiting the Ministry of Electricity. This approval is in line with the Federal Budget Law for the fiscal years 2023-2025.
- Approval of Financing Terms: The Cabinet has agreed to the financing terms outlined in the Ministry of Finance's letter dated June 23, 2024.
According to a press release from the Prime Minister's office, these measures are part of the government's broader strategy to ensure a reliable power supply, particularly during high-demand periods, and to advance the country's electrical infrastructure to support economic growth and stability.
(Source: PMO)
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