Meed | Iraq power projects make headway

Iraq power projects make headway

9 May 2023

The inefficiency of Iraq’s electricity generation and transmission and distribution (T&D) infrastructure is well documented and ironic, given that the country is the second-largest Opec crude oil producer and home to the world’s largest crude oil reserves.

Decades-long protracted armed conflicts have routinely targeted Iraq’s substations, while economic and political upheavals have deterred further investments within the sector.

Over the past few months, however, there have been positive indications that the tide could be turning in favour of Iraq’s plans to improve the sector’s performance and output and reduce its carbon intensity.

In February, US-headquartered GE and Iraq’s Ministry of Electricity (MoE) agreed to pursue new projects to boost the country’s electricity infrastructure.

The parties signed principles of cooperation (PoC) to explore several projects, including establishing new power plants, expanding capacity at existing facilities, and building new substations to relieve grid congestion across a range of directorates.

This is on top of the power generation and T&D projects that the US firm has delivered in Iraq since 2011.

MOE also signed five-year service agreements with Germany’s Siemens Energy for three power plants with a combined total capacity of 1GW in March. Further cooperation is expected to be finalised for conventional and renewable generation capacity of up to 11GW.

In addition, Iraq has an estimated $10bn-worth of greenfield and brownfield thermal power generation projects in various planning and procurement stages, along with some $5bn of solar photovoltaic (PV) power plants, data from regional projects tracker MEED Projects reveals.

France’s TotalEnergies is in advanced talks to develop a 1GW solar power project catering to the southern Basra region as part of its $27bn Iraq energy programme.

“Talks are … progressing positively with the government. There are discussions about contracts and doing development activities,” a source close to the project tells MEED.

Power links

Similarly, plans to link Iraq to the regional GCC, Saudi Arabia and Jordan electricity grids have made good progress in recent months.

In February, the GCC Interconnection Authority (GCCIA) confirmed the award of five contracts worth $220m for the construction of infrastructure linking the region’s electricity grid with Iraq’s.

The project involves the construction of a double circuit 400-kilovolt (kV) transmission line from the Wafra station in Kuwait to the Al-Faw station in south Iraq with a total transmission capacity of 1,800MW and a length of 295 kilometres.

To be completed within 24 months, the project’s first stage is expected to supply Iraq with 500MW of electricity.

Work on the first 150MW phase of the Iraq-Jordan power link is also understood to start this month, following the award of the contract to GE.

A third power transmission link is planned by Saudi Electricity Company and Iraq’s MoE, between Arar in northern Saudi Arabia and Yousifiyah, a township in Iraq’s Baghdad Governorate.

These projects will help alleviate Iraq’s worsening power deficit, especially in the summer months when its existing infrastructure cannot cope with demand spikes.

It could also reduce dependence on Iran, from which Iraq imports an average of 1,200MW of electricity annually to augment supply.

It is understood Baghdad accrued a debt of $1.6bn for its Iranian gas and electricity purchases between 2019 and 2021, although most of the debt, if not all, was reportedly settled in October 2022.

Setbacks

As expected in Iraq, there have been some setbacks despite the encouraging developments.

Norwegian utility developer and investor Scatec has exited the deals it signed in 2021 to develop two solar independent power projects (IPPs) with a total combined capacity of 525MW in Karbala and Iskandariya.

Reports cite that difficulties and delays in negotiations led to the firm’s decision to exit the projects, for which power-purchase agreements (PPAs) are understood to have not yet been signed.

Scatec’s partners for the project, Egypt’s Orascom and the local firm Iraqi al-Bilal, may go ahead with implementing the projects, according to an industry source.

The start of construction work has also been delayed for the first phase of a planned 1,400MW thermal power plant in Karbala due to the lack of a financial agreement between the developer and the Iraqi government.

Baghdad-based Harlow International was selected to develop the project in February 2021. During the intervening period, it acquired land, signed a power-purchase agreement and appointed China’s Citic Construction to build the first and second phases of the planned power plant.

Citic has agreed to co-finance the project along with Harlow International.

Decarbonisation route

In addition to an estimated 5.5GW of solar PV projects in various stages of negotiations, other plans are under way to reduce the carbon intensity of Iraq’s energy sector.

For example, the recent PoC that the Electricity Ministry signed with GE includes a proposed 10-point strategy to accelerate Iraq’s energy transition.

The plan includes a flare gas-to-power project so that Iraq can utilise gas that is currently flared to produce electricity. Maintenance, upgrades and rehabilitation of the traditional fuel fleet are also planned.

It additionally includes a combined-cycle conversion programme, which is expected to “enhance efficiency, leading to significant fuel savings and decreasing greenhouse gas (GHG) emissions intensity”.

Notably, Iraq has tendered and awarded several plant conversion projects in recent years. In February, MOE awarded a team of China’s Dongfang Electric and China State Construction Engineering Corporation a contract to convert a simple-cycle power generation plant in Al-Zubair into a combined-cycle gas turbine (CCGT) facility.

Similar projects are in the procurement and execution stages. These include converting three power plants in Baghdad and two in Quds.

In 2021, MOE prequalified companies to bid for the contracts to convert two simple-cycle power plants in Diwaniya and Haidariya into CCGT facilities. Other similar projects include an existing power plant in Karbala, which has 10 units of GE’s F9E gas turbines, and another power plant in Najaf, which runs on two GE F9E units.

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Jennifer Aguinaldo

Exclusive from Meed

Tender issued for Libyan gas project
17 September 2026
Nakheel awards $218m Dubai Islands buildings deal
17 September 2026
Aldar and Mubadala acquire Masdar City Square
17 September 2026
Dubai announces new 80km highway corridor
16 September 2026
Contractors submit Expo 2030 convention centre interest
16 September 2026

Tender issued for Libyan gas project
17 September 2026
An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

The bid submission deadline is 2pm today (17 September) Libyan time.

The scope of the project includes provision of:
- An environmental baseline study (EBS)
- An environmental impact assessment (EIA)
- An environmental management plan (EMP)
The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

The joint venture owns and operates six major oil and gas fields across the North African country.

According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:
- Libyan environmental legislation
- Ministry of Environment requirements
- NOC environmental guidelines
- Applicable international environmental standards and best practices
The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

It has six main packages:
- Onshore package
- Offshore Structure A
- Offshore Structure E
- Subsea pipeline package
- Site preparation work
- Carbon capture and storage facility
Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

The existing onshore complex includes housing, processing units, storage facilities and export facilities.

It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

The planned expansion of the complex will involve:
- Construction of a new fourth gas processing train
- Construction of a third condensate train
- Construction of a third natural gas liquids fractionation train
- Construction of a fourth sulphur recovery unit train
- Installation of a hydrogen sulphide enrichment unit
- Installation of a sulphur recovery unit
- Construction of other associated facilities
The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.
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Wil Crisp

Nakheel awards $218m Dubai Islands buildings deal

17 September 2026

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Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.

The contract was awarded to the local firm Metac General Contracting Company.

It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.

Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

The works are scheduled for completion in late 2028.

Bay Grove Residences will ultimately comprise 1,154 homes across 15 buildings. Planning is under way for the remaining 617 homes in phases two and four, with further contract awards expected.

In August last year, Nakheel awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes constructing 636 villas.

In April this year, another AED527m ($143m) contract was awarded to local firm Al-Nasr Contracting Company to construct the primary infrastructure and utilities works on Island B at the development.

The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

To see previous issues of MEED Business Review, please click here

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Yasir Iqbal

Aldar and Mubadala acquire Masdar City Square
17 September 2026

Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and local developer Aldar have completed the acquisition of Masdar City Square at Masdar City, in a transaction valued at AED918m ($250m).

The deal was executed through their joint venture established in 2024.

Masdar City Square comprises more than 47,000 square metres (sq m) of net leasable area across seven office buildings.

Completed in Q1 2026, the development is 99% occupied. Tenants include Taqa, the Department of Energy, Emirates College and the Mohamed Bin Zayed University of Artificial Intelligence.

The transaction expands the joint venture’s real estate portfolio in Masdar City, which is now valued at AED4.7bn ($1.3bn).

Masdar City is one of the region’s leading hubs for clean energy, artificial intelligence, advanced research and sustainable urban development.

The joint venture acquired The Link project at Masdar City for AED654m ($178m) in April.

Comprising about 32,000 sq m of net leasable area across five buildings, The Link is fully leased to a portfolio of major tenants, including Abu Dhabi Future Energy Company (Masdar) and the Mohamed Bin Zayed University of Artificial Intelligence.

The asset includes Grade A, Leed Platinum office space, a net-zero-energy headquarters building, a multi-use hall and residential accommodation, supporting its position as a high-performing, integrated component of Masdar City.

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Yasir Iqbal
Dubai announces new 80km highway corridor
16 September 2026

Dubai has approved the construction of the new fourth corridor, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

The corridor will extend 80 kilometres, from Al-Faya Road in Abu Dhabi to Al-Shanouf Road in Sharjah.

It will include 12 lanes, 72 bridges and 17 tunnels.

The project is expected to reduce travel times by up to 60% and serve more than 3.1 million people, while providing links to Al-Maktoum International airport and Etihad Rail.

It will have the capacity to accommodate 24,000 vehicles per hour in each direction.

The project will be delivered in two phases. The first phase, running from Al-Shanouf Road to Dubai-Al Ain Road, will be delivered at a cost of AED3.5bn ($953m).

The second phase will stretch from Dubai-Al Ain Road to Al-Faya Road in Abu Dhabi.

Hamdan bin Mohammed: In line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to boost investment in infrastructure, I approved the New Fourth Corridor to strengthen Dubai’s road network and enhance connectivity with the UAE’s federal road network.… pic.twitter.com/zlIyY2yKBN

— Dubai Media Office (@DXBMediaOffice) September 16, 2026

The scheme adds a fourth spine to a network that has long relied on three main corridors: the E11 (Sheikh Zayed Road/Al-Ittihad Road); the E311 (Sheikh Mohamed Bin Zayed Road) and the E611 (Emirates Road), which together carry more than 850,000 vehicles commuting between Dubai and the northern emirates daily.

That concentration has made the route one of the country’s most congested, with peak-hour bottlenecks a persistent problem for residents. The new corridor is designed to divert a significant share of that traffic onto a higher-capacity route, rather than add pressure to the existing network.

The project also aligns with the Dubai 2040 Urban Master Plan, which anticipates population growth to 5.8 million by 2040 and calls for the expansion of roads, railways, airports and ports to support that growth and reinforce Dubai’s position as a global trading hub. This is reflected in the corridor’s direct links to Al-Maktoum International airport and Etihad Rail.

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Yasir Iqbal

Contractors submit Expo 2030 convention centre interest

16 September 2026

Register for MEED’s 14-day trial access

Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, received contractor interest on 14 September for a contract to design and build a convention centre in the site's Collaboration District.

Construction is slated to begin in January 2027 and take 29 months. The development will cover a total gross external area of more than 28,000 square metres (sq m). The total programme area will be about 22,000 sq m and the gross floor area will be 17,000 sq m. The maximum height of the building will be 41.5 metres.

The venue will be laid out across two levels, with a mezzanine, roof terraces and a 4,030 sq m basement, in addition to mechanical, electrical and plumbing and back-of-house spaces.

Two flexible exhibition halls are planned, covering a combined 7,280 sq m, as well as 3,800 sq m of pre-function space, 650 sq m dedicated to meeting rooms and 2,200 sq m of outdoor exhibition space in the north and south plazas.

The appointed main contractor will assume responsibility for packages including the early works substructure and the lead design consultant's deliverables, while carrying out the full scope of superstructure, above-ground waterproofing, external facades, masonry, base build and specialised fit-outs for VVIP, VIP and visitor areas.

Further scope includes delivering comprehensive MEP services; vertical transportation; final infrastructure tie-points; public-realm hard and soft landscaping; testing, commissioning, handover documentation; and management of the defects liability period.

The expression of interest notice was floated on 13 September.

The unusually brief expression of interest deadline of just one day underscores a compressed procurement timeline.

This accelerated tender and evaluation schedule signals that project organisers are operating under time pressure to secure contractors and maintain the tight schedule required ahead of the event's opening.

ERC expects to award the formal contract by the end of this year and begin construction in January next year.

The project is due for completion in early 2030, in time for the main event in October of that year.

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, MEED exclusively reported that ERC has tendered a contract to deliver the Souq areas within the expo site.

These areas are divided into five precincts, with a total development area of about 300,000 sq m.

In September, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.

In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.

The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle (EV) 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 EV charging stations.

The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated 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.