Iraq allocates billions for electricity ministry
13 June 2023
Iraq’s parliament approved the country’s largest budget in its history on 12 June. The ID198.9tn ($153bn) budget for 2023 was previously described by the country’s electricity ministry as a quantum leap for the sector.
A draft of the budget seen by MEED indicates that the proposed allocation for the electricity ministry is ID17.72tn ($13.5bn). This value is understood to exclude gas imports and payments to independent power producers (IPPs).
MEED understands the country’s Iranian gas imports and outstanding debt between 2019 and 2021 reached ID10.2tn, while Iranian electricity imports reached ID1.1tn. IPP payments in the period totalled about ID2tn.
Iraq needs projects that will generate 10,000MW of electricity to tackle worsening power shortages, according to recent local media reports quoting a senior government official.
Mudhar Saleh, financial and economic adviser to Iraq’s prime minister, said that the country generates about 20,000MW of electricity from existing power plants, which is 10,000MW short of actual domestic demand.
This is despite the country having spent more than $100bn on electricity projects over the past 20 years.
Electricity spending
Iraq has historically relied on electricity imports from Iran, averaging 1,200MW, to plug the gap.
Work is also under way to connect the country to the GCC electricity grid, the first phase of which will be completed in late 2024 and will allow 500MW of electricity to be transmitted to Iraq.
Iraq’s cabinet approved a $520m solar plant project, which PowerChina will develop in Iraq’s southern Muthanna province, MEED reported in May.
This development comes nearly two years after the Iraqi government signed an initial agreement with PowerChina to build solar power plants across the country with an expected capacity of 2,000MW.
Agreements for solar power generation plants with a total combined capacity of over 5,000MW were signed in 2021 and 2022 in Iraq.
These include 2,000MW with UAE-based Masdar, 1,000MW with France’s Total Energies and 525MW with a team led by Norway’s Scatec.
However, Scatec has withdrawn from the consortium that agreed to develop two solar IPPs in Iraq with a total combined capacity of 525MW. The company was to develop the Karbala and Iskandariya solar IPPs with Egypt’s Orascom and local firm Iraqi al-Bilal.
According to data from regional projects tracker MEED Projects, thermal power plant projects with an estimated capacity of 15,000MW are at various stages of execution in Iraq, with a further 12,000MW of capacity being planned.
It is understood that construction work has yet to start of any of the planned solar photovoltaic projects, although solar IPP projects with a total capacity of over 9,000MW are at various stages of negotiation, government approval or procurement.
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Riyadh Expo sets November bid deadline for Souq construction29 October 2026

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The tender was floated on 30 July, with an initial submission deadline of 9 October.
The Souq areas are divided into five distinct precincts, with a total development area of about 300,000 square metres (sq m).
The scope includes the five precincts and their associated vertical elements, infrastructure and public realm works.
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The package will interface with three public parks. It will also tie into the Natural Corridor, including bridges.
The Souq areas will form a mixed-use destination at the centre of Expo 2030 Riyadh, connecting the site’s iconic and thematic assets.
The development will include rented and partnership pavilions, alongside a range of food and beverage, retail and visitor-experience offerings.
Site progress
Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.
Earlier this month, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract to build a new metro station serving the Expo 2030 site.
In April, ERC awarded two contracts to local firm Al-Yamama Company for the next phase of infrastructure works at the site.
The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.
These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.
That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.
The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.
The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.
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Iraq oilfield water scheme to hit milestone next year29 October 2026

China Petroleum Pipeline Engineering (CPP) expects to start laying pipeline for Iraq’s Common Seawater Supply Project (CSSP) in Basra in mid- or late next year, according to industry sources.
The project is behind schedule, partly because importing sections of pipeline is proving challenging due to disruptions to shipping through the Strait of Hormuz.
The project is being managed by state-owned Basra Oil Company (BOC), with Australia’s ILF acting as a project management consultant after completing the front-end engineering design (feed).
Under current plans, the pipelines will be buried, which is expected to make them more secure than if they were installed on the surface.
Phased development
The client for the first phase of the CSSP is France’s TotalEnergies in partnership with QatarEnergy and BOC.
The first phase is split into two packages currently under execution and will ultimately have the capacity to transport 5 million barrels a day (b/d) of water.
The first package focuses on developing pipelines, and the second on developing a water treatment facility.
CPP is executing the pipeline package contract.
It signed a $2.5bn contract with BOC for the package in September last year.
Also in September 2025, South Korea’s Hyundai announced that it had signed a contract worth 4.39tn won ($3.16bn) for the processing plant package.
In September this year, MEED reported that early groundworks had started for both packages of the first phase of the CSSP.
Phase one of the project is scheduled to start up in late 2028 or early 2029.
Earlier this month, US-headquartered Exxon Mobil signed a memorandum of understanding related to the project’s second phase, which is expected to add 2.5 million b/d of water capacity.
The CSSP will inject processed water into several of Iraq’s biggest oil fields. These include Rumaila, Zubair, West Qurna 1, West Qurna 2 and Majnoon. Water from the project will also be used in the Maysan and Dhi Qar fields.
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Dubai tenders Al-Awir sewerage and stormwater works29 October 2026

Dubai Municipality has invited contractors to bid for a contract to build sewerage and stormwater infrastructure in New Al-Awir 1st.
The project (DS317-C1) comprises about 95 kilometres of sewerage gravity network, excluding house connections, and about 105km of stormwater pipelines. The scope also includes house connection pipes, a stormwater pond and oil interceptors.
According to tender documents seen by MEED, the tender was issued on 23 October, with a bid submission deadline of 12 November.
The project comes amid wider residential and infrastructure development in Al-Awir 1. In January 2025, Dubai’s Roads & Transport Authority (RTA) announced plans to build 16.5km of internal roads in the area, including a new entrance from Emirates Road.
In February 2025, MEED exclusively reported that the RTA had selected a local firm to undertake the road construction works.
The Mohammed Bin Rashid Housing Establishment has also reported progress on housing projects in Al-Awir as part of a wider programme to develop residential communities across Dubai.
The sewerage and stormwater project is relatively large compared with recent stormwater tenders, with the total cost estimated at up to AED1bn ($272m).
The works will include approximately 69.2km of house connection pipes and 4,630 inspection chambers. The sewerage network will also include about 1,511 manholes, while the stormwater network will comprise approximately 1,247 manholes.
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Adnoc Onshore selects contractors for well tie-ins project27 October 2026

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Abu Dhabi National Oil Company’s onshore operating arm (Adnoc Onshore) has selected contractors for a major project to tie in wells across the Bab and North East Bab oil field developments in Abu Dhabi.
Located 84 kilometres southwest of Abu Dhabi city, the Bab field has been in production since 1960 and is the emirate’s first oil-producing asset. The North East Bab cluster comprises the Al-Nouf, Rumaitha and Shanayel fields.
The Bab and North East Bab One Tie-In project is central to Adnoc Onshore’s contribution to Adnoc Group’s target of expanding crude oil production capacity to 5 million barrels a day (b/d) by 2027, an initiative known as the Accelerated Integrated Programme 5. The state energy company’s total production capacity currently stands at approximately 4.85 million b/d.
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Adnoc Onshore is understood to have started the tendering process for the Bab and North East Bab One Tie-In project last year, with contractors submitting technical and commercial bids earlier this year.
Following the evaluation of bids, Adnoc Onshore sought best commercial offers from the bidders, which contractors submitted in May, MEED previously reported.
The project budget is estimated at $1.2bn.
Bidders for the contract are understood to have included:
- Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
- Jereh (China)
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- Matrix Construction (UAE)
- Robt Stone Middle East (UAE)
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Adnoc Onshore is Adnoc Group’s largest production subsidiary, accounting for roughly 2 million b/d of crude and about 7 billion cubic feet a day of associated gas from four primary onshore asset clusters: Bab, Bu Hasa, North East Bab and South East.
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Ashghal tenders Al-Udeid air base access road works27 October 2026

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The project is located in Zone 95 of Al-Wakra Municipality, adjacent to Al-Majd Road.
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Participation is restricted to local and international contractors registered under the Ministry of Finance classification system in Grade A or Grade B for road specialisation.
Unclassified foreign firms may submit equivalent certified documentation from their country of origin, attested by Qatari diplomatic missions. They must obtain Ministry of Finance registration before contract award.
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