GE signs Principles of Cooperation to support the government’s vision in building Iraq’s energy sector and revitalizing the economy

GE’s action plan expected to add up to 14 GW of power, create up to 65,000 jobs, realize annual savings of up to $3 billion, establish a local technology center and support water and healthcare access

Baghdad, Iraq; October 21, 2018: GE (NYSE: GE) signed Principles of Cooperation (POC) with the Iraqi Ministry of Electricity to develop the country’s power sector. The plan is expected to generate up to 14 gigawatts (GW) of power, create up to 65,000 direct and indirect jobs, support the government to realize savings and recoverable losses of up to $3 billion per year, establish a local technology center and support water and healthcare access.

The POC was signed by Minister Qasim Al Fahdawi, Iraq’s Minister of Electricity, and Joseph Anis, President & CEO of GE’s Power Services in Africa, South Asia and the Middle East. The comprehensive plan builds on GE’s legacy of continuous presence and commitment to bring progress to the people of Iraq over the past 50 years, and comprises the following key tenets:

1. Supporting the path to energy security with 14 GW. As an immediate priority, GE will deploy proven fast power technologies and undertake upgrades at existing power plant sites to bring approximately 1.5 GW of additional power online by 2019 – the equivalent electricity needed to supply up to 1.5 million Iraqi homes, as well as undertake maintenance and rehabilitation services to secure the availability of another 7 GW that are currently operating. In addition, the agreement includes upgrades and services for existing power plants; the conversion of simple cycle power plants to combined cycle, which can help bring new power online without consuming additional fuel or releasing further emissions; as well as the establishment of new power plants with efficient, reliable power generation technology. Furthermore, GE will develop substations and overhead lines across the country, and a centralized energy management system covering generation, transmission and distribution. These initiatives will add up to 14 GW of power and strengthen grid connectivity.

2. Realizing $3 billion in savings and recoverable losses annually. Overall, GE’s activities will help the Government realize savings and recover losses of up to $3 billion per year. Repairs, maintenance, upgrades and other services will help to reduce the operating costs of existing power plants. To further improve the transmission and distribution of power, GE will undertake comprehensive decongestion network studies, as well as advisory services to reduce collection recoverable losses. In addition, GE is offering its unique solution for integrating the capture of flared gas and power generation using GE’s advanced Gas to Power technologies. In July, Baker Hughes, a GE company signed a contract with the Iraqi Ministry of Oil for a modular natural gas plant solution for flared gas recovery in the Nassiriya and Al Gharraf oilfields.

GE will assist the Government of Iraq to unlock financing for these projects through its extensive relationships with Global Export Credit Agencies and financial institutions.

As part of the proposals included in the POC, as well as GE’s commitment to a shared future and the progress of the Iraqi people, the company also expects to:

1. Build local capabilities. GE plans to establish a local Technology Center consisting of a Repairs Center, a Monitoring & Diagnostics Center and a Training Center.

2. Contribute towards providing critical services to local communities. GE intends to supply three trailer-mounted mobile water treatment units to help deliver drinking water to contribute to the everyday needs of the people of Basra. The company also plans to provide neonatal intensive care equipment and advanced medical care training for nursing staff at a neonatal intensive care center to meet the need for specialized healthcare services.

Mussab Almudaris, official spokesperson of the Iraqi Ministry of Electricity, said, “Our focus is on rebuilding Iraq to provide stable, sustainable development for our people, and developing the electricity sector is a critical component of these efforts. GE’s action plan is an ideal fit for our needs, offering a holistic package that brings industry-leading technologies, financing and social services to meet our most critical immediate and long-term needs.”

Russell Stokes, President & CEO of GE Power said, “Our presence in Iraq is based on a history of trust, partnership and success that spans over 50 years. We are honored to support the government’s focus on rebuilding Iraq, and we are proud of our legacy of delivering power where needed in the country. We understand how important it is to deliver power immediately and our holistic action plan brings together advanced solutions, financing, local investments, trainings and social services that are expected to benefit families, businesses and industries across Iraq.”

GE employs up to 300 people in Iraq and has three offices in the country – in Baghdad, Basra and Erbil. Today, GE and its partner CFMI power more than 90 percent of the aircrafts operated by Iraqi Airways, the company’s technologies contribute up to 55 percent of the current electricity production in Iraq and nearly 4,000 GE Healthcare products are deployed in hospitals and clinics across the country.