meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10822122/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Consultants submit bids for Saudi Arabia’s GCC rail link

    20 July 2026

     

    Consultants submitted proposals on 14 July for a contract to provide design consultancy services for the Saudi Arabian section of the GCC railway network, which is intended to link all six member states.

    Saudi Arabia Railways (SAR) issued the tender on 7 May, MEED previously reported.

    The tender covers the concept, preliminary and issued for construction design stages. SAR requires the selected consultant to review, update and complete the existing preliminary design.

    The consultants who submitted bids include: 

    • Atkins with Khatib & Alami
    • DeutscheBahn with ARX
    • Egis with Sener
    • Idom with Dal al-Handasah
    • Systra

    Saudi Arabia’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, on Saudi Arabia’s border with the UAE. The route length in Saudi Arabia will be about 672 kilometres (km).

    The railway will interface with the Kuwait National Rail Road (KNRR) project on the Kuwaiti side. Last year, MEED exclusively reported that the KNRR design contract was awarded to Turkiye’s Proyapi Muhendislik ve Musavirlik Anonim Sirketi.

    The KNRR forms part of the wider GCC rail network. GCC railway projects have gained renewed momentum since the six member states signed the Al-Ula Declaration in January 2021.

    In October last year, Qatar’s cabinet approved a draft agreement paving the way for a railway link between Qatar and Saudi Arabia as part of the GCC railway network.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to span about 2,186km in total.

    The route length within each member state is as follows: 684km in the UAE, 672km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.

    The railway is designed for passenger trains travelling at 220km/h and freight trains operating at 80-120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705320/main.gif
    Yasir Iqbal
  • Chinese firm wins Dubai drainage contract

    20 July 2026

    China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.

    The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai. 

    MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.

    The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.

    It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.

    In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

    These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.

    Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.

    According to a source, a consultant has yet to be appointed.

    TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.

    Bids are currently under evaluation for the EPC contracts for both projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17705058/main.jpg
    Mark Dowdall
  • Dubai receives eight bids for Hassyan SWRO pipeline contract

    20 July 2026

    Register for MEED’s 14-day trial access 

    Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.

    The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).

    Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.

    The other bids were:

    • Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
    • Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
    • Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
    • RMB Contracting (UAE) – AED437.96m ($119.3m) 
    • Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
    • Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
    • Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)

    RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received. 

    In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.

    Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.

    Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704940/main.jpg
    Mark Dowdall
  • Abu Dhabi launches E20 highway expansion project

    20 July 2026

    Abu Dhabi’s Department of Municipalities and Transport (DMT) has announced the E20 highway expansion project.

    The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.

    Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.

    The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.

    The E20 expansion is one of the major infrastructure schemes being overseen by DMT in Abu Dhabi.

    Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.

    The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.

    Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704696/main.jpg
    Yasir Iqbal
  • Firms given more time for Mid Island Parkway prequalifications

    20 July 2026

     

    Abu Dhabi’s Modon Infrastructure has extended the deadline to 31 July for firms to submit expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership (PPP).

    The previous deadline was 15 July. MEED understands the prequalification notice was issued in June, following Modon Infrastructure’s invitation in May for firms to register their interest.

    Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.

    Phase two of the MIPP involves the construction of about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.

    The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.

    Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.

    Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.

    It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17704765/main.jpg
    Yasir Iqbal