Utilities

Ministry, GE sign power deal

The Iraqi Ministry of Electricity and GE Energy have inked a contract for power generation equipment and services. Under the US$3 billion contract, GE will supply 56 turbines capable of generating 7,000MW of electricity to help improve Iraq's electricity generation capacity. Iraq is striving to develop its power infrastructure. Although the power sector in Iraq has a generating capacity of 5.5GW, it still falls significantly short of meeting demand estimated at 11GW. The country is initiating both long- and short-term strategies in a bid to solve its power deficit. BMI believes this is a major opportunity for foreign companies entering the market amid a legislative environment which encourages foreign investment.

Saudi cable firm wins US$356 million Qatari order

Saudi Arabia’s Riyadh Cables has won a contract worth QR1.3 billion (US$356 million) to supply high-voltage power cables to the Qatar General Electricity and Water Corporation (Kahramaa). The contract is said to be the largest single cable order placed by Kahramaa since the establishment of the corporation seven years ago. Kahramaa Vice Chairman, Issa Shaheen Al Ghanim, said the order would cater to Kahramaa’s increasing requirement for power cables in view of the ongoing construction activity in the power sector. The new cables, he said, would be used extensively in the new projects that the corporation has undertaken in various parts of Qatar, including Doha. Supplies under the contract have commenced and will continue for three years.

Arab leaders agree to speed up electricity, railway linkage projects

Arab leaders called for speeding up the Arab electrical linkage project and launching the trans-Arab railway line project during a resolution issued at the closing session of the first Arab economic summit this month. The Arab leaders agreed to speed up the electricity linkage project and remove all obstacles facing the project in action.

KSA's Alfanar signs substation contract

Alfanar Construction has signed a new 380kV substation contract worth US$118.5 million (SAR444 million) for Makkah West substation with Saudi Electricity Company (SEC). The project is expected to enhance capacity to meet the growing demand for electricity in Makkah, especially the Holy Al Harram area where the project will distribute electricity to the new facilities located in the area.

US$1 billion water deal for Baghdad

The Mayor of Baghdad has signed a contract worth US$1 billion for the Rasafa water project in the city. Inadequate supply of clean water is a major issue in the city, and therefore the large-scale water project will be eagerly anticipated. The contract was awarded to an Iraqi and a French company. Further details on the companies have not been released, and France's water majors, Veolia Environment and Suez Environment, have not commented. The contract is for the Rasafa water project, the largest of its kind in the country. Specific details on the US$1 billion project have not been released, however the Iraq Development Program has stated that the project will supply 910,000 cubic metres of water initially, and eventually will have an output of 2.28 million cubic metres. The first stage is due to be completed in 2012.