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By John Lee.

China Energy Engineering Corporation (Energy China, CEEC) and France's TotalEnergies have signed an EPC contract for a 1-GW solar power project at the Ratawi [Artawi] field in Basra.

According to a statement from Energy China:

"This project is the first large-scale project in the Iraqi government's PV construction plan, and serves as a significant milestone in CEEC's commitment to international capacity cooperation and its collaboration with multinational companies to tap into overseas renewable energy markets and drive global energy transformation.

"The project is situated in the Basra Province in southern Iraq, approximately 70 kilometers away from the city of Basra. The EPC service encompasses the design, procurement, construction, and commissioning of the PV power plant site and a 132 kV booster station, with an AC side capacity of 1 GW.

"Once completed, it is projected to generate 2.9 billion kilowatt-hours of electricity annually and reduce carbon dioxide emissions by 2.385 million tons.

"The project will meet Iraq's growing electricity demands, facilitate the optimization of its power structure, and accelerate its economic reconstruction.

"The project will be jointly promoted and implemented by China Energy International Group Co., Ltd., Tianjin Electric Power Construction Co., Ltd., and CPECC Southwest Electric Power Design Institute, Co., Ltd.

"It is expected to officially start construction by the end of this year and be completed in early 2027. The project will adhere to a high degree of localization, creating ample employment opportunities and stimulating regional economic development.

"CEEC has been involved in numerous high-quality projects in Iraq since entering the Iraqi market in 2011. These projects include the 650 MW Combined Cycle Power Plant Expansion Project in Al-Basra, the 2X610 MW Power Plant in Wasit, the 2X47 MW Gas Power Plant in Maysan, the 2X125 MW Combined Cycle Power Plant in Amarah, Maysan, the 2X630 MW Power Plant in Salahaddin, and the Sewage Treatment Plant (STP) project in Suwaira.

"Moving forward, China Energy International Group Co., Ltd. will take the signing of the project to actively take a leading and coordinating role, collaborate with member companies, innovate development strategies, leverage its strong professional capabilities and extensive experience in project delivery, and promote the alignment between the Belt and Road cooperation and Iraq's reconstruction plan."

(Source: CEEC)

By John Lee.

The Iraqi Ministry of Oil announced that North Gas Company (NGC) has increased its gas supply to power stations by 50 million standard cubic feet per day (MMSCFD).

This increase is set to enhance electricity production at several gas power plants, including Dibis [Dibs, Debes] (60-80 MW), Kirkuk (60 MW), and Mosul (40 MW) in northern Iraq.

The effort, supported by North Oil Company and Oil Pipeline Company, aims to boost the national power grid. The additional gas investment has raised power generation by 170 MW, contributing to the country's overall energy supply.

(Source: Ministry of Oil)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani has said that Iraq will launch a massive project to produce 10,000 MW of electricity.

The project, based on what he described as a "new economic model", is set to be unveiled to the private sector, "after it has been studied by a team of consultants and specialists in electricity."

The Prime Minister made the announcement at the launch of three new power projects in Karbala.

(Source: PMO)

The United Nations Development Programme (UNDP) has released the Trial Monitoring Report on grand corruption cases across the Kurdistan Region of Iraq, marking a significant milestone in curbing corruption in Iraq.

The report highlights substantial progress by the Kurdistan Regional Government (KRG) in combating corruption and offers deep insights into the region's judicial proceedings through comprehensive analysis, while setting forth a number of recommendations to bolster the efforts in achieving transparency and integrity within the judicial system.

Key Findings Reveal Corruption-Prone Sectors and Judicial Improvements

The report, which covers court hearings in Erbil, Sulaymaniyah, and Duhok, is based on the monitoring of over 100 cases from November 2022 to December 2023, along with 50 verdicts issued between 2016 and 2022. The focus of the report is on major corruption cases, including those involving high monetary thresholds, high-ranking officials, and cases of public interest or those against informants and Anti-Corruption advocates.

Key findings of the report indicate that the Ministry of Finance (25%), the Ministry of Electricity (18%), and the Municipal Councils (17%) are among the most affected government sectors by grand corruption. The analysis reveals an increase in convictions compared to acquittals, though the rate of high-level defendants remains low, with few senior government officials being charged.

A significant progress is reported with the exclusion of corruption-related cases from the general amnesty regime. It also notes a notable reduction in trials conducted in absentia and a rise in felonies related to intentional damage through abuse of public office, reflecting the judiciary's progress in anti-corruption efforts. However, it highlights a concerning lack of civil society organizations (CSOs) attending trials as third parties, despite legal provisions allowing their presence.

A cornerstone to bolster the progress

Being a corner stone of UNDP`s Anti-Corruption and Arbitration Initiatives financed by the European Union; the report was published in collaboration with the Judicial Council of the Kurdistan Region of Iraq Human Rights Office of the United Nations Assistance Mission for Iraq (UNAMI).

Speaking at the launching event Auke Lootsma, Representative of UNDP, emphasized the importance of the report for the unified efforts for curbing corruption, `This critical report, the culmination of our joint efforts, represents a significant milestone in our collective quest for enhanced transparency and justice. We stand ready to collaborate to address the recommendations of the report` he said.

Sending a video message, Thomas Seiler, the European Union Ambassador to Iraq has stated, `The Trial Monitoring report offers a very deep insight into how investigations are led and how trials are conducted. Its recommendations will guide us in refining our strategies and enhancing anti-corruption measures.'

Judge Abdel Gabar Aziz Hassan, the head of Judicial Council of the Kurdistan Region of Iraq stated the important role of the report for the judiciary reforms in the region, `While proving our dedication against corruption, the report also provides us with an opportunity to advance our committed practices towards a more transparent and accountable judiciary system,' he said.

Reforms Recommended

The report urges the Government of the Kurdistan Region, the Judicial Council, the Bar Association, and Civil Society and International Community to implement proposed anti-corruption reforms. These include the establishment of specialized courts for major corruption cases, the modernization of the penal code to address current issues such as private sector bribery, and the enactment of legislation to protect whistleblowers and victims. The report also calls for limiting institutional discretion in withdrawing damage claims and strengthening oversight in corruption-affected sectors.

Further recommendations include reforms to criminal procedures to enhance investigative capabilities, the implementation of an electronic case management system, and the standardization of sentencing. Additionally, the report highlights the importance of reinforcing the financial independence of the Public Prosecutor's Office and supporting civil society in anti-corruption initiatives.

Click here to download the report in English

Click here to download the report in Arabic

Click here to download the report in Kurdish

To browse our comprehensive library of reports on Iraq, click here.

For information on Iraqi law, see our Legal Services page.

(Source: UNDP)

By John Lee.

Iraqi Prime Minister Mohammed Shia Al-Sudani has initiated the construction of three major power projects in Karbala:

• a 132 MW combined cycle gas power plant;
• a 300 MW solar power project; and
• the 400 kV Karbala transmission substation with a capacity of 1500 MVA.

According to a statement from the Prime Minister's office, these projects are part of Iraq's broader efforts to alleviate bottlenecks in its electricity transmission and enhance power generation capacity.

(Source: PMO)

By John Lee.

The Ambassador of the Republic of Iraq in Beijing, Mr. Shorsh Khalid Saeed, met with the Chairman of China Council for the Promotion of International Trade (CCPIT), Mr. Chen Xiaofeng and his accompanying delegation, at the Embassy headquarters.

According to a statement from Iraq's Ministry of Foreign Affairs, Ambassador Saeed commended the efforts of the Council in facilitating the procedures for authenticating commercial documents and enhancing cooperation with the embassy in this field, stressing the serious work between the Iraqi and Chinese sides to facilitate trade exchange between the two countries. The Ambassador indicated that the volume of trade exchange between Iraq and China reached 50 billion dollars during 2023, with expectations that this number will increase to about 60 billion dollars in 2024, reflecting China's position as Iraq's first trading partner.

The Ambassador stressed that the initiatives presented by the Chinese side are of great importance to Iraq, noting that Iraq joined the Chinese Belt and Road Initiative since 2015, in addition to Iraq's launch of the Development Road project. These initiatives are of importance to both parties and to the international community as a whole. The Ambassador indicated that many Chinese companies operate in Iraq in the fields of oil, electricity generation, infrastructure and communications, expressing the Iraqi side's willingness to expand cooperation to include other fields.

On his part the Chairman of the Council Mr. Xiaofeng, explained that the China Council for the Promotion of International Trade was established in 1952 as a national body for promoting foreign trade and foreign investment. He pointed out that the Council includes 1,182 local branches in various Chinese provinces, includes about 70,000 member companies across China, and has 33 international branches around the world. The Chairman of the Council confirmed his desire to open a new branch of the Council in Iraq. He added that the Council organizes many Fairs in China to promote international trade, welcoming the participation of Iraqi companies in these Fairs, and urging Chinese companies to participate in exhibitions held in Iraq. He also extended an invitation to the Ambassador to attend the opening session of the upcoming Fair, which will be held in Beijing from November 26 to 30, 2024.

(Source: MOFA)

By John Lee.

Iraq's Ministry of Oil, led by Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani, has signed 13 initial contracts with companies to develop oil fields and exploration blocks as part of the supplementary fifth and sixth licensing rounds.

The deals are expected to add 750,000 barrels per day of oil production and 850 million cubic feet of gas per day, enhancing Iraq's energy sector and supporting electricity generation.

The contracts, which include fields in Basra, Maysan, Nineveh, and other regions, will undergo final approval by the Ministerial Council for Energy before full implementation.

Click here to view the results of the recent licensing rounds.

(Source: Ministry of Oil)

By Umud Shokri for The Middle East Institute. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Powering up: Turkey-Iraq transmission line is part of a broader strategic shift

On July 21, 2024, Baghdad inaugurated a new power line connecting Turkey and Iraq to handle Turkish electricity imports.

This 115-kilometer (71-mile) transmission line is expected to deliver 300 megawatts of energy to a power station west of Mosul with the aim of supplying northern Iraq, including the regions of Nineveh, Salahuddin, and Kirkuk.

Click here to read the full article.

By John Lee.

Prime Minister Mohammed Shia' Al Sudani inaugurated the Debes [Dibs] Gas Power Plant in Kirkuk via video link, marking the completion of a 320 MW facility that had been stalled since 2004.

Restarted in late 2022, the project overcame significant legal, administrative, and logistical challenges, according to a statement from the Prime Minister's office.

The Prime Minister highlighted the importance of completing delayed infrastructure projects, especially in the electricity sector, to address urgent energy needs amid high temperatures.

The plant, managed by the Northern Region Electricity Production Company, is crucial for Iraq's energy grid and operates on multiple fuel types.

Al Sudani also announced ongoing efforts to develop a new economic model for large-scale energy production projects, set to be unveiled soon.

(Source: PMO)

By John Lee.

The Kuwait Fund for Arab Economic Development (KFAED) has said it will provide two KWD 35 million (USD 224 million) loans to support the Gulf Electricity Interconnection System Project, which will export electricity from Saudi Arabia to Kuwait and Iraq.

According to a press release from the Fund, the financing constitutes 40 percent of the total cost.

These loans have a 12-year term with a 3-year grace period, repaid in 18 semi-annual installments at a 15.5 percent annual interest rate.

It adds:

"Kuwait stands to gain immensely from this project, with its network capacity boosted by approximately 3,000 megawatts (MW), optimizing operational efficiency. Additionally, the GCCIA will be able to supply 500 MW of electricity to southern Iraq."

The project involves constructing a 300-kilometer 400-kV double-circuit overhead transmission line connecting Saudi Arabia's Al-Fadhili converter station to Kuwait's Al-Wafrah station. It also includes converting an existing double-circuit line between Al-Fadhili and the Al-Zour of Kuwait into a new 25-kilometer 400-kV double-circuit line connecting Al-Fadhili and Al-Wafrah.

Furthermore, the project entails expanding the Al-Fadhili station with electrical circuit breakers to link it to Al-Wafrah, as well as extending overhead lines from Al-Wafrah to Sabah 3 and Sabah 4 stations to integrate with Kuwait's national electrical network.

(Source: Kuwait Fund for Arab Economic Development)