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By Adam Lucente for Al Monitor. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraqis face record-breaking heat, electricity cuts

Iraqis are contending with record-breaking temperatures and a poorly functioning electricity system as a heat wave sweeps across the country.

On Tuesday, the Iraqi capital, Baghdad, recorded an all-time high temperature of 125 degrees Fahrenheit (51.7 Celsius), according to the weather forecasting service AccuWeather.

Click here to read the full story.

By Ali Al-Makhzomy, for The Station. Re-published with permission by Iraq Business News.

Five One Labs recently hosted an online Start-up Showcase to celebrate the graduation of their first-ever Arabic incubator program in c.

Over 90 attendees joined the event from Iraq, Germany, USA and other places.

Ten of the entrepreneurs gave brief overviews of their businesses, and then answered audience questions. At the end of the event, Five One Labs announced that three startups would receive seed funding:

1. Al-Ruaa for CNC, a company providing services, workshops, maintenance, installation and providing spare parts for the CNC machines, came in first place and won $15,000;
2. For second place, EcoLift, a company providing an alternative power system (potential energy recovery system) to power elevators instead of using electricity, was awarded $10,000;
3. And finally, Mosul Solar, a company providing and installing solar cells for houses, was awarded $5000.

The text of the following statement was released by the Governments of the United States of America, the Republic of Iraq and the Gulf Cooperation Council (GCC):

The Government of Iraq, Gulf Cooperation Council, and United States have renewed their full support for the Gulf Cooperation Council Interconnection Authority (GCCIA) project to connect the electricity grids of Iraq and the GCC. The United States is committed to facilitating this project and providing support where needed.

This project will provide much-needed electricity to the people of Iraq and support Iraq's economic development, particularly in the southern provinces.

The Government of Iraq, Gulf Cooperation Council, and United States look forward to increased close economic and energy cooperation between the United States, Iraq, and the GCC countries, as a basis for peace, development, and prosperity in the region.

The Government of Iraq, Gulf Cooperation Council, and United States called for the speedy and full implementation of the pledges made in 2018 by the international community at the Kuwait International Conference for the Reconstruction of Iraq.

(Source: US State Dept)

By John Lee.

Prime Minister Mustafa Al-Kadhimi has held a meeting with the Ministers of Electricity and Oil to discuss electricity supply in Iraq, and directed that all electricity projects, especially those agreed with Siemens, be implemented without delay.

He added that Iraq has spent billions of dollars on the electricity sector in recent years, but because of corruption, waste and mismanagement, it failed to build a modern power grid that meets the needs of its citizens.

the PM said he is determined to address the problems in the electricity sector, implement plans for its development, and tackle corruption in all its forms in this critical sector.

(Source: Govt of Iraq)

By John Lee.

GE Gas Power has reported that it has successfully completed services on four 9F.03 gas turbines, two steam turbines and six generators at Iraq's Besmaya Power Plant safely and on time, while continuing to execute wider operations and maintenance (O&M) works at the site despite the many challenges posed by the COVID-19 pandemic.

These service activities reduced the risk of unplanned downtime of power generation equipment at the site, enabling the plant to reliably supply up to 3 gigawatts (GW) of electricity to the national grid to help meet the peak summer demand for power.

Owned by Mass Group Holding (MGH), Besmaya is Iraq's largest power plant. Phases 1 and 2 of the project can generate up to 3 GW and Phase 3, which is currently under construction, is expected to add up to another 1.5 GW. The facility is the first one in the country outside the Kurdistan region to be developed by an independent power producer on a build-own-operate basis for the Iraqi Ministry of Electricity.

GE has supplied eight gas turbines, four steam turbines and 12 generators that are covered by a 20-year service agreement and is also responsible for O&M services for Phases 1 and 2 of the project to ensure smooth operations at the site. Additionally, GE won a contract to supply four 9F.04 gas turbines and four generators for Phase 3. Much of the electricity generated at Besmaya is fed to the capital Baghdad and surrounding areas and its uninterrupted operations are critical to power local healthcare facilities, homes, businesses and more.

Ahmad Ismail, Chairman of MGH, said:

"At MGH, we are committed to strengthening Iraq's power sector further.

"The logistical and mobility constraints resulting from the COVID-19 outbreak led to several unexpected difficulties in carrying out the required service works at Besmaya including delays in the arrivals of parts and challenges in access to technical experts.

"However, the determination, flexibility and efficiency GE displayed by being able to draw on local teams on the ground, remote support from experts and access to a global supply chain, enabled us to keep the plant operational with high levels of reliability and efficiency and to deliver on our commitments."

Beginning February 2020, over 110 GE and FieldCore (a GE-owned field services execution company) staff members liaised closely with MGH to execute the services safely and as per schedule. The works conducted included the first phase of Hot Gas Path inspection services of the gas turbines, steam turbine minor inspections and generator MAGIC (Miniature Air Gap Inspection Crawler) inspections.

Experts based in the Middle East and Europe liaised with the local site team through digital tools, video conferences and phone calls on a daily basis to remotely support mechanical and commissioning works, identify and transport stocks of parts that needed to be replaced and keep track of overall project progress. To reduce the risk of exposure to COVID-19, additional hygiene, health and safety measures were implemented at the site, including more frequent disinfection and cleaning activities, thermal screenings of everyone entering the site, distribution of additional mandatory personal protective equipment such as gloves and masks, COVID-19 prevention training sessions, accommodation for staff on-site, as well as other precautions.

Joseph Anis, President and CEO of GE Gas Power, Middle East, North Africa and South Asia said:

"As we work through these exceptional times, our resolve to support the Ministry of Electricity and people of Iraq by providing the electricity needed to power everyday life, growth and progress remains unchanged. Our top priority remains the safety of our people, while continuing to deliver results for our customers and the communities we serve.

"I would like to thank the supportive staff at GE and MGH who stayed away from their loved ones for months, working long hours to secure reliable power supplies during this unprecedented period and for the hot summer months ahead. Together, we are honored to make a positive difference to the lives of millions of Iraqi citizens."

GE and FieldCore have up to 300 people across Iraq. The company has supported the development of the country's energy infrastructure for over 50 years and since 2011, helped to bring up to 15 GW of power online across Iraq, including up to 1.4 GW in conflict affected areas such as Diyala and Mosul.

The company has also helped bring over US$2.4 billion in financing for energy sector projects in Iraq in collaboration with export credit agencies, commercial banks and other organizations.

(Source: GE)

By John Lee.

Linxon has won an order of around $80 million to the Ministry of Electricity in Iraq for delivery of four turnkey 132/33 kV GIS substations. The contract forms part of the Electricity Sector Reconstruction Project (Phase 2) financed by Japan International Cooperation Agency (JICA).

The delivery includes all needed equipment (High Voltage 132 kV GIS, 132/33 kV power transformers, 33 kV switchgear, control & protection system, communication system etc) as well as design, civil construction works, installation and commissioning. The delivery time is 18 months and the project will start around July, 2020.

Frédéric Tréfois, CEO of Linxon, said:

"We are honoured to have received this mandate and are grateful for the collaboration and support by JICA in financing this project.

"This type of EPC (Engineering, Procurement and Construction) project truly demonstrates the confidence of our clients in our comprehensive offering and our ability to deliver enhanced value.

"We have a good relationship and long-standing experience working with the Ministry of Electricity in Iraq in helping the country to ramp up it's electricity capacity. I am proud of the Linxon team demonstrating resilience and winning this award during the current situation".

JICA is the agency implementing Japan's Official Development Assistance (ODA). JICA works proactively to address development challenges in Iraq by utilizing Japanese ODA loans. The Electricity Sector Reconstruction Project supports construction of power transmission and distribution facilities in Iraq, where the demand for electricity is especially high.

Linxon is a joint venture company set up in 2018 by SNC-Lavalin and ABB to deliver turnkey electrical AC substation projects.

(Source: Linxon)

Siemens Energy and the Iraqi Ministry of Electricity have signed a contract for the Al Hamudhia substation, which will provide reliable and efficient power supply to the cities of Ramadi, Fallujah, Saqlawyah, Khalediyah and surrounding areas in Al Anbar governorate, North West of Baghdad.

Located about 20 kilometers away from Ramadi city, the turnkey 400- kilovolt (kV) Al Hamudhia substation will support greater grid connectivity and allows for a higher utilization of the Al Anbar power plant's generated power, supporting anticipated energy demand growth of 10% annually.

Ammar Mohammed Kadhim, General Director of Planning and Studies Department, Iraqi Ministry of Electricity and the Head of the Japanese loan team "IQP22" projects at the Ministry, which are being financed by the Japan International Cooperation Agency (JICA), said:

"A top priority for the new government of Iraq is rebuilding the country's power infrastructure. Upgrading and strengthening the Iraqi power grid is crucial to this ambitious plan, which will ultimately support Iraq's economic, industrial and infrastructure development.

"We're already working on comprehensive grid projects across the country in collaboration with international partners, like Siemens, to deploy the most reliable and advanced technologies."

The new substation will connect up to 750 Megavolt Amperes (MVA) to the national grid, helping decrease bottlenecks and transmission losses. Construction of Al Hamudhia station is expected to start in July 2020, and is scheduled for completion in July 2022.

Mahmoud Hanafy, Senior Vice President, Transmission Solutions at Siemens Energy, Middle East, said:

"The new substation will support in providing reliable power to the homes and industries in the governorate of Al Anbar.

"Our grid technology enables more reliable, sustainable, efficient and flexible power systems. From transporting electricity from power plants to the distribution stations, all the way to the citizens, our ability to optimize flexibility and efficiency will contribute to boosting the transmission infrastructure of Iraq."

Part of the JICA's projects in Iraq, the 400-kV Al Hamudhia's scope of work includes the design, construction, equipment supply, erection, testing and commissioning and training of personnel. The project will be completed by Siemens Energy's engineers in collaboration with specialized local Iraqi subcontractors.

The company is currently building 13, 132/33-kilovolt substations as part of the Siemens Roadmap for the Electrification of Iraq. These projects aim to strengthen the country's electricity transmission and distribution network - with a particular focus on the governorate of Basra as well as the other governorates that are located in the middle and south of the country. Siemens is also supplying 35 power transformers to support the Iraqi power grid.

In April 2019, Siemens and the Government of Iraq signed an agreement to implement Phase 1 of the Roadmap, which is designed to meet the country's reconstruction and power sector goals, and includes the addition of new and highly-efficient power generation capacity, rehabilitation and upgrade of existing power plants and the expansion of transmission and distribution networks. Following Siemens Roadmap for the Electrification of Iraq agreement, 791 MW of electricity has already been added to the country's grid.

(Source: Siemens)

The Iraqi Cabinet held its regular meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.

At the start of the meeting, the Prime Minister outlined the challenges facing the country in relation to Covid-19 and the Iraqi government's efforts to combat the pandemic and provide support to health institutions and medical teams.

The Prime Minister called on all Iraqis to follow the directions of the Higher Committee for Health and National Safety, and to follow official health advice for their own safety and that of all Iraqis.

The Cabinet discussed recent protests in relation to grievances to do with the Ministries of Defence, Education and Electricity. The Prime Minister directed ministers to engage in a dialogue with the protesters in order to reach realistic solutions commensurate with their demands and with the difficult challenges facing the country.

The Cabinet discussed current economic and financial challenges, and the necessary measures to encourage and promote investment in Iraq's economy as a key driver of growth and of job-creation.

Following further discussions, the Cabinet decided to:

• Allow students at stage 3 of intermediate education to progress to stage 1 of secondary education based on their half-term exam scores
• Authorise the Minister of Health and Environment to take all necessary measures to combat the coronavirus pandemic
• Consider combatting the pandemic a competency of the federal government, and falls within the general policy of the state
• Provide the necessary support to expedite the completion of hospitals in Dhi Qar and Maysan provinces

(Source: Govt of Iraq)

Prime Minister Masrour Barzani on Wednesday chaired a cabinet meeting via video conference to discuss expenses and the need to adapt to the current budget while protecting public entitlements.

In the meeting attended by Deputy Prime Minister Qubad Talabani, the Council of Ministers stressed continued commitment to reducing salaries of senior officials, including those retired with high pay brackets. These meetings will continue until next Sunday.

During the meeting, the Cabinet extended the deadline to pay public water and electricity bills with 15% discount until September 1, 2020.

The Council of Ministers also debated the ongoing disputes with the federal government and agreed that a delegation will return to Baghdad next week as part of continued efforts to reach an agreement within the framework of the Iraqi constitution.

(Source: KRG)

The Cabinet held its regular meeting in Baghdad on Tuesday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.

At the start of the meeting, the Prime Minister thanked health teams for their sacrifices on the front line during the Covid-19 pandemic.

The Cabinet received a briefing from the Minister of Health on the latest developments and the ongoing national effort to combat the pandemic.

Following discussions, the Cabinet decided to:

• Implement a previous decision by the government to award, free of charge, plots of land for health staff who have direct contact with Covid-19 patients
• Direct the Ministry of Higher Education and Scientific Research to allocate additional places on postgraduate courses, outside its current plan for the 2020-2021 academic year, for health staff wishing to pursue further studies

The Cabinet discussed other items on its agenda, and decided to authorise the Minister of Finance to negotiate and sign loan agreements to ensure funding for several investment projects in the electricity and health sectors, as follows:

• A loan to complete a project for the Ministry of Electricity to install (8) turbine refrigeration units and (32) other refrigeration units at a cost of 70,800,000 euros from Siemens
• A loan for the installation and operation of (9) gas turbines for the Wasit power station for the amount of 36,000,000 euros  from Siemens for the Ministry of Electricity, funded by Standard Chartered Bank and with a guarantee from the Swedish Export Credit Agency (EKN)
• A loan for the rehabilitation of health services infrastructure in the amount of 185,000,000 euros for the Ministry of Health funded by the German Development Bank (KFW)
• A loan for the rehabilitation of electricity infrastructure in the amount of 400,000,000 euros, for the Ministry of Electricity, funded by the German Development Bank, KFW
• A loan for the multi-annual maintenance project - the fourth stage in the amount of US$120,000,000 implemented by GE with funding from an international bank and  guaranteed by UK Export Finance (UKEF)
• A loan for Babylon's 400 KV Power Plant Rehabilitation Project, in the amount of 38,000,000 euros, implemented by Sweden's ABB company, funded by JPMorgan Bank and guaranteed by the Swedish Export Credit Agency,  EKN

The Cabinet also approved a draft law to ratify the agreement on air transport services between the Republic of Iraq and the United Arab Emirates, and to submit it to the Council of Representatives.

(Source: Govt of Iraq)