Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Siemens CEO pushes plans to boost Iraqi power infrastructure

Published 23/09/2018, 16:59
Updated 23/09/2018, 16:59
© Reuters. Siemens CEO Kaeser addresses a news conference in Munich

© Reuters. Siemens CEO Kaeser addresses a news conference in Munich

FRANKFURT (Reuters) - Siemens (DE:SIEGn) said its boss Joe Kaeser met Iraq's prime minister on Sunday to discuss a proposal by the German company to expand the Middle East nation's power production.

The German engineering group said it was proposing a deal to add 11 gigawatt (GW) of capacity over four years, saying this would boost the country's capacity by nearly 50 percent.

It did not give a value, but such a contract would be worth several billion euros based on previous comparable deals.

Iraq has a wide gap between electricity consumption and supply. Peak demand in the summer, when people turn on air conditioners due to high temperatures, is about 21 GW, far exceeding the 13 GW the grid is currently provides, experts say.

Kaeser said in a statement after meeting Prime Minister Al-Abadi that they had "discussed the comprehensive Siemens roadmap to build a better future for the Iraqi people".

"In Egypt, we have done the same and successfully built up the power infrastructure in record time with the highest efficiency," he said.

In 2015, Siemens signed an 8 billion euro ($9.4 billion) deal with Egypt to supply gas and wind power plants to add 16.4 gigawatts of capacity to the country's power grid, marking the group's single biggest order.

The proposal for Iraq, first pitched in February, would include cutting Iraq's energy losses, introducing smart grids, expanding transmission grids, upgrading existing plants and adding new capacity.

The group would also help the government secure funding from international commercial banks and export credit agencies with German government support, creating thousands of jobs in Iraq.

© Reuters. Siemens CEO Kaeser addresses a news conference in Munich

Siemens would donate a $60 million grant for software for Iraqi universities, it said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.