Orascom, Siemens selected to rebuild 1.6GW power plant in Iraq

WCN Editorial Team 16 Sep 2019 MIDDLE EAST ENERGY & UTILITIES

A consortium of Orascom Construction and Siemens has signed an agreement with Iraq’s Ministry of Electricity to rebuild Baiji 1 and Baiji 2 power plants in northern Iraq.

The recovery of the Baiji 1 and Baiji 2 power plants, which were severely damaged, is expected to help Iraq power its biggest oil refinery located in the city, a concrete plant, and provide electricity to thousands of homes in Salahuddin province and other areas.

The Baiji facility is located about 250km north of Baghdad. The Baiji 1 and Baiji 2 plants have a combined generation capacity of 1.6G.

Work is scheduled to commence at the power plants once the contracts are approved by Iraq’s Council of Ministers and a financial agreement is signed with the Ministry of Finance.

Orascom Construction CEO Osama Bishai said: “We are pleased to return to Baiji, where we constructed one of the original power plants, to work on an important project that will help rebuild Iraq’s power sector and economy.

“This award is testament to our ability to capitalize on our strong expertise as an EPC contractor in the power sector along with our ability to raise attractive financing packages on behalf of our clients.

“Our partnership with Siemens is a continuation of a successful relationship following the remarkable achievements on the mega power projects in Egypt.”

Scheduled to be completed within 28 months after financial close, the projects are planned to be executed on an engineering, procurement, construction plus finance (EPC + Finance) basis.

Siemens Middle East and UAE CEO Dietmar Siersdorfer said: “Iraq’s economic transformation is picking up pace, and this project demonstrates Siemens’ commitment to help Iraq’s Ministry of Electricity provide efficient and reliable power to all its people.”

Siemens power generation CEO Karim Amin said: “The reconstruction of Baiji 1 and 2 power plants mark the second phase of our roadmap in Iraq and will be the biggest so far in terms of power generating capacity when both plants are completed.

“The rebuilding of Baiji will secure 1.6 gigawatts and will create hundreds of jobs, which is a further demonstration of Siemens’ commitment to support knowledge transfer to the Iraqi people.”

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Image: The recovery of the Baiji 1 and Baiji 2 power plants will help Iraq power its biggest oil refinery. Photo: courtesy of Gordon Johnson from Pixabay.

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