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Iraq selects firm for Baghdad waste-to-energy project

12 February 2025

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Iraq’s Council of Ministers has approved the waste-to-energy (WTE) power generation project in Nahrawan, Baghdad, and the award of the project to Shanghai-based SUS Environment.

According to the Iraqi Prime Minister’s Office, the project covers a two-year construction period and a 25-year investment period.

The cabinet also authorised the National Investment Commission (NIC) to issue the investment licence and sign the contract with SUS Environment.

NIC, in coordination with the Municipality of Baghdad, the Electricity Ministry and the Environment Ministry, received proposals for the contract between August and September last year, as MEED reported.

The Baghdad Municipality will provide 3,000 tonnes a day of municipal solid waste, finalise the land allocation and sign the contract within six months, the Prime Minister’s office said in early February.

The energy purchase fee will be based on committee recommendations, covering landfill costs and environmental and public health requirements.

It added: “Payment will be managed by the ministries of health, electricity and environment and the Baghdad Municipality for a maximum production of 100MW, with further negotiations required if production exceeds this limit.

“Based on Cabinet Decision No. 24305 of 2024, the Ministry of Electricity is obligated to purchase the energy produced from the project. The Ministry of Finance will provide the necessary funding, and the Ministry of Electricity is authorised to sign the power-purchase agreement.”

During the tendering proceedings, NIC specified that power generation “from mixed solid waste must be with high-efficiency and at least fourth-generation grate incineration technology with an electrical power generation efficiency higher than 30% and a landfill rate less than 5%”.

The project will be developed using a design-build-own-operate model.

The NIC invited investors and developers to qualify for the WTE scheme in August 2022.

WTE pipeline

WTE projects worth about $2bn are being planned in the Middle East, according to data from regional projects tracker MEED Projects.

The capacity of the planned facility in Baghdad is comparable to that of the Dhafra WTE project in Abu Dhabi, which can treat 900,000 tonnes of solid waste a year.

In September last year, the $1.2bn WTE project, located in a former landfill site in Warsan in Dubai, reached commercial operations.

Photo credit: Iraqi Prime Minister Media Office

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Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
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