- US$500 million agreement by GE Gas Power to undertake critical upgrade, maintenance and service of several power plants that will strengthen efficiency and help maintain over 6,000 MW of electricity
- US$727 million agreement by GE Renewable Energy’s Grid Solutions business to reinforce Iraq’s transmission network, enhancing grid stability and interconnection with the electricity grid of Jordan
- GE to work with multiple export credit agencies to facilitate over US$1 billion of financing for the projects
Baghdad, Iraq/Washington DC, USA; August 19, 2020: With growing demand for electricity, especially to meet the requirements during peak summer, the Government of Iraq is accelerating its focus on strengthening the nation’s power infrastructure through two new agreements signed with GE.
A long-term partner committed to meeting the future electricity needs of the nation, GE signed the agreements, valued at over US$1.2 billion, with the Iraqi Ministry of Electricity to execute the power sector projects that will secure reliable power supply across the country.
Accordingly, GE Gas Power will undertake contracts valued at US$500 million for the upgrade and maintenance of key power plants in the country, which are mission-critical to sustain power supply of over 6,000 MW and scale up operational efficiency. Further, GE’s Grid Solutions, in a landmark agreement, will reinforce Iraq’s transmission network and interconnection with the electricity grid of Jordan, having secured a contract valued at US$727 million.
In addition to delivering the scope of services, GE will also work with multiple export credit agencies to facilitate the discussion of financing over US$1 billion for the projects.
In the presence of HE Mustafa Al Khadimi, Prime Minister of Iraq, senior officials of the Iraqi and US governments, the agreements were signed by HE Majid Al-Emara, Iraq’s Minister of Electricity and Michael Eshoo, Vice President & CFO, GE Gas Power.
A clear action plan for successful power generation
HE Majid Al-Emara, Iraq’s Minister of Electricity, said: “Our primary focus is to deliver uninterrupted electricity, especially during summer months, to meet the needs of our people and industry. To achieve this, we have already rolled out a clear action plan. Bringing world-class technology, especially to upgrade our power plants, and to ensure their seamless operation is a critical part of this strategy. The new agreements with GE, a leader in power technology, is an ideal fit for our requirements, and builds on the strong partnership we have with the company to deliver more power for the nation.”
Scott Strazik, CEO for GE Gas Power, said: “GE has a long history of presence in Iraq, and we deliver on our promise to the nation and its people. In recent years, we have further accelerated our project execution to scale up and rebuild the country’s electricity infrastructure. As demand for power increases in tune with a growing population and to support industries and developmental projects, identifying gaps and addressing them is our focal area. We are thankful to the Iraqi government for their confidence in our capabilities to deliver power where and when needed. The new agreements will contribute to a more reliable and stronger power infrastructure, which is the top priority of the government.”
Heiner Markhoff, Vice President and CEO of Grid Solutions at GE Renewable Energy, said: “This agreement is about more than electricity generation. It is about putting in place the necessary grid infrastructure and a sustainable approach to progress that will allow Iraq to truly drive forward positive change throughout the nation. We are incredibly proud to be able to continue to support the growth of a reliable and sustainable electricity infrastructure in Iraq. This partnership will be able to bring power to millions of people and enable economic development in the country.”
Upgrades, maintenance and service
The service agreement is a mission-critical Maintenance & Upgrade Program between the Ministry of Electricity and GE Gas Power to execute the maintenance program across multiple sites in Iraq. GE will deploy its latest technology at the sites to be identified by the Ministry such as parts, repairs and services for power plants in Basra, Mosul, Baghdad and Karbala among others, which will maintain the supply of over 6,000 MW of power. This builds on 1.575 GW of new capacity that GE added since December 2019, and the sustained delivery of 4.325 GW to meet peak summer demand.
The agreement signed by GE’s Grid Solutions with the Ministry of Electricity will reinforce Iraq’s transmission network and interconnection with the electricity grid of Jordan, which will contribute significantly to decongesting the grid and securing reliable power supply. GE will execute the design, supply, installation testing and commissioning of high voltage substations and specific overhead transmission lines. This is a key initiative that will reinforce the smooth operations and delivery of uninterrupted power of the national grid across Iraq, including the liberated areas, which were adversely impacted during the strife supporting their reconstruction.
Committed partner in the progress of Iraq
GE is a committed partner in further strengthening the country’s energy infrastructure to meet the needs of the future. Building on its presence in the country for over 50 years, GE not only partners on short-term power generation to meet the peak summer demand but also on large-scale projects that will generate substantial power to meet residential and industrial needs. GE has also helped secure over US$2.4 billion in financing for energy sector projects in collaboration with export credit agencies, commercial banks and other organizations. With more than 300 employees, including FieldCore, a GE company, in Iraq currently, nearly 95 percent of them Iraqi professionals, GE’s teams are deployed in the toughest locations, bringing power where it is needed most.
GE (NYSE:GE) drives the world forward by tackling its biggest challenges. By combining world-class engineering with software and analytics, GE helps the world work more efficiently, reliably, and safely. For more than 125 years, GE has invented the future of industry, and today it leads new paradigms in additive manufacturing, materials science, and data analytics. GE people are global, diverse, and dedicated, operating with the highest integrity and passion to fulfill GE’s mission and deliver for our customers. www.ge.com
About GE Gas Power:
GE Gas Power is a world leader in natural gas power technology, services and solutions. Through relentless innovation and continuous partnership with our customers, we are providing more advanced, cleaner and efficient power that people depend on today and building the energy technologies of the future. With the world’s largest installed base of gas turbines and more than 200 million operating hours across GE’s installed fleet, we offer advanced technology and a level of experience that’s unmatched in the industry to build, operate and maintain leading gas power plants. For more information, please visit www.ge.com/power/gas and follow GE’s gas power businesses on Twitter and LinkedIn.
About GE’s Grid Solutions:
Grid Solutions, a GE Renewable Energy business, serves customers globally with over 15,000 employees in approximately 80 countries. Grid Solutions helps enable utilities and industry to effectively manage electricity from the point of generation to the point of consumption, helping to maximize the reliability, efficiency and resilience of the grid. www.gegridsolutions.com