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Siemens in landmark MoU to repower Iraq, support economic prosperity

Siemens and the Ministry of Electricity of the Republic of Iraq have entered a milestone agreement to seek the implementation of the company’s roadmap for repowering Iraq. Signed by Qasim Al-Fahdawi, Minister of Electricity, and Joe Kaeser, President and CEO of Siemens AG, the Memorandum of Understanding (MoU) will examine a series of short, medium and long-term plans to meet the reconstruction goals of Iraq and support the country’s economic development.

“Our commitment to the Iraqi people stands strong. We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs. Education, training and developing local skills and talent are key elements for us to contribute to building the New Iraq. Today’s agreement on the Siemens roadmap is a significant step towards fulfilling that promise,” said Joe Kaeser. “We are ready to start and look forward to working closely with the Iraqi government to immediately produce noticeable improvements for the Iraqi people.”

In September, Siemens announced the donation of a smart health clinic that would be powered by solar energy and equipped with Siemens medical devices. The clinic would have the capacity to treat up to 10,000 patients per year. This was in addition to pledging to fund the first modular “School of the Future” in Iraq, provide a USD 60 million software grant for universities in the country, and train more than 1,000 Iraqis in vocational education.

Under the “Roadmap for the Electrification of the New Iraq”, Siemens is ready to add 11 gigawatts (GW) of power generation capacity over four years to ensure 23 million Iraqis across the country have reliable and sustainable electricity 24/7. This would boost current generation capacity by almost 50 percent. The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector, supporting the development of the future Iraq. The company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap emphasizes people at its core – and is the result of a 12-month study to develop a comprehensive and tailored redevelopment plan. It focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq.

Siemens’ Iraq Roadmap outlines eight objectives to benefit the people of Iraq, the country’s national security and its economic development. These include reducing energy losses, introducing smart grids, strengthening the transmission grid, modernizing existing power plants, adding new generation capacities in deprived areas, connecting Iraq to the Arab Gulf region, putting Iraq’s national resources to work, and investing in its people.

Modernizing the country’s energy infrastructure is intended to be completed in stages, from immediate improvement for up to 300,000 people, which can be operational within three months, to medium and long-term projects that require between 10 and 24 months’ completion time and beyond. The company will also assist Iraq’s government in securing appropriate finance packages provided by international commercial banks, Export Credit Agencies and supported by the German Government.

The roadmap lays out plans to use Iraq’s valuable natural resources more efficiently by utilizing flare gas capture and treatment technologies to deliver a domestic source of fuel to Iraq’s power generation sector, as well as create a long-term source of revenue for the government to finance power generation, transmission, and distribution projects.

As part of its commitment to driving sustainable growth, Siemens intends to support social development in Iraq with a series of training and education programs. This includes technical and vocational training as well as transparency and anti-corruption education, in order to build a pool of highly skilled, local talent with a culture of compliance. Under the patronage of the German Federal Ministry for Economic Cooperation and Development (BMZ), Siemens aims to provide vocational training, starting with 1,000 young Iraqis.

Siemens initially presented the Roadmap to the Government of Iraq during the Iraq Reconstruction Conference in Kuwait, in February 2018. At the same time, the company signed a declaration of intent with BMZ with both parties agreeing to jointly contribute to the reconstruction and development of Iraq in areas including technical and vocational training, as well as transparency and anti-corruption.

(Source: Siemens)

By John Lee.

Germany's Siemens may have to share a $15-billion contract to supply power-generation equipment to Iraq with US rival General Electric (GE).

The Financial Times reports that although it appeared that Siemens would win the deal, the Trump administration successfully intervened on behalf of GE.

Last month German business newspaper Handelsblatt reported that Chancellor Angela Merkel had personally intervened with Prime Minister Haider al-Abadi to persuade the Iraqi Government to award the contract to Siemens.

(Source: Financial Times)

The Al-Bayan Center for Planning and Studies has just published a new report by Hayder al-Khafaji on electricity generation in Iraq:

Meeting energy needs in a manner that achieves security for Iraq has become a major source of concern for the electricity sector in the country; with the industry claiming that it lacks the capacity to meet current peak demand, especially with production running at about 50% of the country’s requirements.

There is little doubt that over the coming years peak demand for electricity will greatly exceed the capacity of existing power stations. In view of the aforementioned, the need for the construction of new power stations has never been more pressing, however, it will not be without certain obstacles, most significantly the availability of fuel and other unforeseen technical problems, such as breaches of the contracts for the construction of new power stations.

Iraq’s electricity generation problems are not new. Historically, the country has suffered from severe power shortages since 1990, which were further compounded after 2003 by the unworthiness of the old power generation plants and the acts of sabotage during the intervening years.

All this culminated in prolonged power cuts lasting anything between 14-20 hours a day; forcing ordinary people to rely on private neighbourhood generators and/or small household generators, both of which have added a considerable financial burden on people.

Please click here to download the full report.

(Source: Al-Bayan Center)

The Federal Republic of Germany, UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP), along with the administrative authorities of Halabja and Sulaimaniyah Governorates and Garmiyan and Raparin Administrations today initiated 12 projects to improve essential services for an estimated 680,000 people.

The projects target critical needs in the electricity, water, roads, and sewerage sectors and provide jobs for 819 people - including host community members, Syrian refugees and IDPs.

At the ceremony to launch the projects, the Deputy Governor of Sulaimaniyah, H.E Mr. Ahmed Ali Ahmed, said:

“Today we are signing agreements with UNDP to launch infrastructure projects with a total budget of close to US $2.5 million across Sulaimaniyah Governorate and Garmiyan and Raparin Administrations. This generous support from the Federal Republic of Germany, and collaboration with UNDP, comes as the KR-I continues to suffer from a severe economic crisis that began in 2013.

"Many challenges and increased pressure due to the large number of IDPs and refugees who are settling in the Kurdistan Region will be addressed through these fundamental basic-services projects, including improved electricity, water, roads, and sewerage systems.”

The Deputy Governor of Halabja, H.E Mr. Kawa  Ali Kareem, added:

“On behalf of the inhabitants of Halabja Governorate, including the IDPs, refugees and host communities, the office of Governor of Halabja expresses sincere gratitude and appreciation to the Federal Republic of Germany and UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP) for supporting implementation of four important basic services projects that will improve internal roads and sewerage systems.

"Implementation of these infrastructure projects will benefit close to 107,000 community members and create over 255 temporary job opportunities in Halabja alone.”

The construction of effective wastewater and sewerage networks across Sulaimaniyah City, Qaladiza, Hajiawa and Khurmal Sub-Districts, and Hawari-New Neighbourhood in Kifri City, will reduce environmental pollution and the spread of diseases amongst vulnerable populations during periods of high rainfall. In Sulaimaniyah City, the construction of an electricity distribution network will provide regular electricity supply to hospitals, schools, and water supply stations – benefitting the whole community.

In 2018, with continuous funding from the Federal Republic of Germany, ICRRP and governorate authorities in the Kurdistan Region or Iraq have supported 28 projects benefiting over 1,240,121 host community members, IDPs and refugees and providing livelihood opportunities for 1,273 individuals.

UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP) promotes the recovery and resilience of communities vulnerable to multi-dimensional shocks associated with large-scale returns and protracted displacement of Iraqis and Syrian refugees.  This is achieved through a medium-term, programming integrating crisis management capacity building, rehabilitating basic service infrastructure, livelihood recovery and social cohesion.

(Source: UNDP)

By John Lee.

The Gulf Cooperation Council (GCC) is reportedly in discussions with Iraq to connect electricity grids.

An official at the UAE's Ministry of Energy and Industry told Reuters that the GCC could export its surplus electricity to Iraq.

(Source: Reuters)

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

This week, German conglomerate Siemens announced that it's in discussions to help rebuild and boost Iraq's power generation infrastructure.

So, what are the challenges facing the new Iraqi government? Why can't one of the world's top oil producers keep the power on? Are Siemens power stations the solution to Iraq's electricity crisis? And what will it take to rebuild Iraq's power grid?

Iraq is negotiating with the U.S. for exemptions from the impending snap-back of sanctions against Iran, arguing that it could not cut consumption of Iranian electricity and natural gas immediately without suffering serious economic harm and social instability.

An Iraqi delegation was in Washington last week seeking a waiver for its cross-border trade, meeting with senior officials in the State Department, Treasury Department, and National Security Council, according to multiple officials familiar with the talks.

More details here from Iraq Oil Report (subscription required)

(Source: Iraq Oil Report)

By John Lee.

German business newspaper Handelsblatt reports that Chancellor Angela Merkel has personally intervened with Prime Minister Haider al-Abadi to persuade the Iraq Government to sign a major contract with Siemens to upgrade the country's electricity infrastructure.

It is understood that the State Secretary for Economic Affairs, Thomas Bareiß, accompanied Siemens Chief Executive Joe Kaeser (pictured) on a visit to Baghdad on Sunday in the hope of agreeing a multi-billion euro deal.

The German export credit guarantee company Hermes would be expected to underwrite any contract.

US-based General Electric (GE) is believed to be also in the running.

(Source: Handelsblatt)

Republic of Korea supports UNHCR’s humanitarian activities in Iraq

The Government of the Republic of Korea continues its support to UNHCR’s humanitarian activities in Iraq with a new donation of US$ 1.2 million.

Despite promising signs of recovery in parts of the country, millions of Iraqis still need comprehensive humanitarian and protection assistance. Some 1.9 million people are displaced; hundreds of thousands are in camps. Many will not be able to return home any time soon.

Rebuilding Iraq is no small task. As the country gets back on its feet, it is vital that the people who need emergency assistance continue to receive it for as long as they need it.

Communities affected by the recent conflict are beset by hardships. Thousands of vulnerable people arrive in UNHCR-managed camps every month because they cannot find work or pay rent in their home areas, because progress in clearing explosive hazards is slow, or because services like water and electricity are not functioning.

In July alone, 1,700 families - over 10,000 people - arrived in camps across Iraq. The majority of the new arrivals were displaced at least once before. With each displacement, people become more vulnerable.

H.E. the Korean Ambassador to Iraq, Mr. Song Woong-Yeob (pictured), said,

“The Republic of Korea is deeply committed to supporting humanitarian activities in Iraq and will continue to stand by Iraqi people who are in need of humanitarian assistance. I firmly believe that Korea’s continuing support for the activities through the Iraqi Government and international organizations like UNHCR will further help the endangered Iraqi people to recover and rebuild their communities by imbuing them with hope for a new future.”

Mr. Bruno Geddo, UNHCR’s Representative in Iraq.

““There is no quick fix for Iraq. For people to see tangible improvements in their lives we must continue to respond to the situation, and stand beside the Iraqi people until they can return home safely. Sustainable return is a cornerstone of long-term peace and stability, and thanks to donors like the Republic of Korea, UNHCR is able to backstop Iraq’s journey to recovery. We will support the country’s most vulnerable people for as long as they need us.”

(Source: UN)

The Statistics Office, IOM, and UNFPA launch the Demographic Survey of the Kurdistan Region of Iraq

The Kurdistan Region Statistics Office (KRSO), UNFPA, and IOM have launched the demographic survey of the Kurdistan Region of Iraq (KRI), one of the largest statistical exercises conducted in the region since 1987.

The survey provides a comprehensive profile of the current population demographics, employment and income, housing, household possessions, literacy and education levels. This socio-demographic study gathered information from 12,699 households, including long term residents and displaced families in the three KRI governorates of Duhok, Erbil and Sulaymaniyah.

This research is timely as it comes at a time where the country is emerging from the conflict and economic hardship; while a significant portion of displaced families have returned or are considering to go back home.

The 2014-2017 war against the Islamic State of Iraq and the Levant (ISIL) has had a severe impact on the Kurdistan Region: from the start of the crisis, KRI has provided refuge to more than one million displaced Iraqis and continues to host more than 800,000 internally displaced persons.

Dr Ali Sindi, Minister of Planning for the Kurdistan Regional Government (KRG), said:

“The information in this survey establishes a reference base for future statistical studies, and will assist the Kurdistan Regional Government with better planning and allocation of resources.”

Mr Gerard Waite, IOM Chief of Mission said:

“This survey is a true collaborative effort with the KRG and UNFPA and hopefully will contribute to addressing the needs of the most vulnerable households, in this critical post-crisis period.”

Mr Ramanathan Balakrishnan, UNFPA Representative to Iraq added:

“This demographic survey fulfils the need for updated population and socio-economic statistics and will serve as a roadmap for future, policy development and planning with KRG and partners.”

The survey was made possible through the collaboration of the Kurdistan Region Statistics Office (KRSO) within the Kurdistan’s Regional Government’s Ministry of Planning; IOM – the UN Migration Agency - and the United Nations Population Fund (UNPFA). Data was collected from October to November 2017.

Support for the publication of the report is provided by the U.S. Department of State, Bureau of Population, Refugees and Migration, and by UNFPA.

Key Finding & Statistics:

• 87 per cent of households have a monthly income of less than 1,000,000 Iraqi Dinar (approximately 850 United States dollars).
• More than 20 per cent of youth (18-34 ages) out of workforce are reported to have lost hope in finding a job.
• In 27 per cent of households the head of household had not worked in the week preceding the survey. Over 40 per cent of the KRI population aged between 15 and 64 years is an active part of the labour force with the public sector employing0 nearly half of the working population.
• Overall data indicates that the average household size in KRI is 5.1 members.
• 35 per cent of the population is younger than 15 years, 61 per cent belongs to the active labour force age group of 15-65 years and 4 per cent is 65 or above.
• KRI families currently enjoy an adequate standard of living: nearly all possess most common household appliances (television, stove or refrigerator). Three quarters of all families own the house they live in connected to the public water (90 per cent) and electricity networks and equipped with sanitation facilities.

(Source: UN)