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By John Lee.

Iraq's Council of Ministers has authorized the Ministry of Electricity to contract with the Swiss company Loxstone Energy for the supply of gas from Turkmenistan to Iraq via Iran under a swap agreement.

Due to the importance and urgency of this contract in maintaining the operation of power plants, the deal is exempt from the Government Contracting Instructions, the Federal Budget Law, and the Budget Implementation Guidelines.

The gas supplier is the Turkmen state-owned gas company [Turkmengaz], with whom a memorandum of understanding was previously signed based on Council of Ministers' Decision No. 23519 of 2023.

Cabinet approved adoption of a prepayment mechanism required by the Turkmen gas company, with the Ministry of Finance ensuring the necessary financial allocations are available on time. The government entity will cover taxes and fees.

It also approved exemption from the performance bond, "similar to the Iranian gas contract", with payments made through transfers to the Turkmen gas company and Loxstone Energy, according to the mechanism recommended by the Trade Bank of Iraq (TBI).

The contract will not be subject to the Public Debt Collection Law; it will be governed by Swiss law, and the contract draft will be based on the sole bid received.

(Source: PMO)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani inaugurated the second phase of renovations at Baghdad's Central Teaching Hospital of Paediatrics, marking what his office described as a significant step in the government's healthcare modernization efforts.

The upgraded facilities include revamped surgery and hematology departments, four new operating rooms, advanced radiology and CT/MRI units, and improved pharmacy and administrative sections.

The renovation also covered over 90 rooms and critical infrastructure systems like water, sewage, and electricity, along with modern monitoring and fire suppression systems.

Al-Sudani emphasized the government's commitment to improving healthcare services, with the third phase of renovations set to begin soon.

(Source: PMO)

By John Lee.

The Export-Import Bank of the United States (EXIM) has approved a $297 million final commitment in support of an energy efficiency project in Iraq.

The project will increase the availability and reliability of electricity in Iraq by generating power through waste heat.

Florida-based Stellar Energy Americas, Inc. will provide engineering, procurement, construction and other services in support of this project.

This transaction is estimated to support 600 U.S. jobs across more than half a dozen states.

(Source: EXIM)

By John Lee.

Prime Minister Mohammed Shia' Al-Sudani inaugurated several electricity projects in the provinces of Nineveh and Salahuddin aimed at reducing bottlenecks in the transmission and distribution sectors.

The projects include:

• the Mosul Dam station with two transformers (2x 250 MVA);
• the Yarmja South station (KVA 132);
• transmission lines from Yarmja to Qayara station (3x 63 MVA); and,
• the expansion of the Baiji conversion station (2x 250 MVA), alongside the construction of transmission lines from Baiji to South Tikrit.

In his speech, Al-Sudani praised the efforts of the Ministry of Electricity staff for completing these delayed projects, which had suffered damage during the ISIS conflict. He highlighted the use of new global technologies, particularly at the Mosul station, and emphasized the importance of these projects in resolving transmission and distribution issues, which are as critical as increasing electricity production.

Al-Sudani reaffirmed the government's commitment to upgrading Iraq's energy infrastructure, enabling better energy transfers, reducing loads, and stabilizing power supply, which will, in turn, support development across other sectors.

(Source: PMO)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani has launched the construction of three projects related to additional combined-cycle units for electricity generation.

• South Baghdad Gas Fired Power Plant, with a design capacity of 125 MW. Implemented by China's Dongfang Electric;
• Mansuriyah Gas Fired Power Station in Diyala Province, with a design capacity of 362 MW; and
• Akkas Gas Fired Power Station in Anbar Province, with a design capacity of 125 MW.

The Prime Minister emphasized that these combined-cycle projects will provide additional electricity without the need for additional fuel. This will reduce natural gas imports and help in addressing the needs of areas with higher energy demand, with a target production of 4,000 MW from combined cycle operations.

The Prime Minister also highlighted the government's approach to adopting an economic model that ensures fairness between the state and investors and regulates consumption. Final agreements have been reached on this economic model, which will be announced to the private sector and both local and international companies. This model will be applied to the 10,000 MW electricity generation project, with the Ministry of Electricity having already submitted its final vision on transmission and distribution projects.

The Prime Minister also highlighted the move towards renewable and environmentally friendly energy projects. A specialized team is working to shift government buildings to rely on solar energy, with reputable global companies offering proposals to implement solar energy projects at the provincial level, based on an economic model that will be adopted.

(Source: PMO)

By John Lee.

Prime Minister Mohammed S. Al-Sudani chaired a meeting this week to follow up on the progress of Al-Faw Grand Port, attended by representatives from Daewoo, the Korean company, and the Italian consultancy firm, Technital.

The Prime Minister's Office said he reviewed the details of the ongoing work on the key projects within the port and their alignment with the planned timeline for completion, adding, "this strategic project is expected to create a major shift for Iraq due to the many projects linked to it."

Al-Sudani directed the formation of a committee chaired by the Head of the Advisory Commission in the Prime Minister's Office, along with the Prime Minister's technical advisor, his transportation advisor, the directors of ports and railways, and representatives from the Ministries of Electricity, Defense, Trade, Construction and Housing, Oil, and Industry. This committee is tasked with providing the final vision for the institutions that will be included within Al-Faw Grand Port within a month.

He emphasized that the vision should focus on enhancing investment opportunities in this strategic project, driving positive economic returns for Iraq and strengthening its economic ties with the region.

(Source: PMO)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani has chaired a meeting of the High Committee for the Development Road Project.

The session focused on reviewing the latest developments and progress in this strategic project, which includes key components such as energy, gas, electricity, and internet infrastructure. Updates included the completion of preliminary designs for the railway, now at 100 percent, and the road designs, which are 75 percent complete.

Al-Sudani directed the design team to create a detailed plan for land acquisitions along the project route, estimating costs for both public and private acquisitions, and setting a tentative timeline for these stages. He also instructed coordination between the military and police to ensure security along the project's route.

The meeting set November 1, 2024, as the date for the second meeting of the quadrilateral committee on the Development Road, comprising Iraq, Qatar, the UAE, and Turkey.

Additionally, a committee was formed to develop a long-term vision for each ministry involved, and another to conduct a comprehensive study on energy investment along the project's route, involving the ministries of electricity, oil, communications, transport, and labor. The World Bank welcomed the Iraqi government's initiative to include the project in the Ministry of Planning.

(Source: PMO)

By John Lee.

UK-based Hydro-C has won a contract to design and supply a solar power plant for Basra Oil Company (BOC) at Iraq's Majnoon oil field.

The plant will be supplied from the UK and installed in Iraq.

According to a statement from the Iraq Britain Business Council (IBBC), of which Hydro-C is a member, the project is scalable and can be replicated into major oil and gas fields across the country.

Hassan Heshmat, Managing Director of Hydro-C, said:

'This is great news for many people, including our stakeholders, and especially the people of Iraq, as we start the green energy transition in the country and provide a much-needed source of electricity. This will enable UK companies to develop local skills in Iraq and help the country to build sustainable green energy projects".

Christophe Michels, Managing Director of IBBC, commented:

"The IBBC is delighted to see Hydro-C prevail in this innovative and important new power sector. Following many months work and thorough preparation by Mr Hashmat, this project is an exemplar of what is possible for the future and will benefit everyone associated with the green transition. It is also a win for the UK, IBBC, Iraq and especially Hydro-C".

(Source: IBBC)

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)