By John Lee.
Iraq's Minister of Electricity, Ziad Ali Fadhil, has signed a cooperation agreement and memorandum of understanding with U.S.-based Stellar Energy to implement strategic projects aimed at advancing Iraq's electricity sector.
The first phase of the agreement will be financed through the Export-Import Bank of the United States (EXIM Bank). This will include construction of an integrated network of substations:
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- 5 substations with a voltage of 400 kV.
- 25 substations with a voltage of 132 kV.
- 100 substations with a voltage of 33/11 kV.
Phase Two focuses on boosting Iraq's energy production capacity, and involves the construction of new power plants to increase the national grid's output.
In a separate statement, the Prime Minister's Office said that the agreement will be exempted from government contracting procedures, "to ensure timely completion and achieve the desired objectives. The contract will take effect upon the availability of financial allocations."
It added:
"The Council of Ministers also directed the Ministries of Finance and Planning to allocate $2 billion in the 2025 budget for the first phase of the cooperation agreement, with funding for the second phase to be included in the 2026 budget. The Minister of Electricity was granted the authority to approve and sign the cooperation agreement with Stellar Energy, exempt from government contracting instructions."
Last week, the company's Chairman, Peter Gibson, met with Prime Minister Mohammed S. Al-Sudani during his official visit to London.
(Sources: Ministry of Electricity, PMO)
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