Iran is building a natural gas combined cycle power plant in Iraq's Basra at a cost of $2.5 billion in the Persian country¡¯s biggest engineering services deal yet.
The project, being carried out by Iran¡¯s MAPNA Group, aims to add 3,000 megawatts of electric power to Iraq¡¯s national grid which is saddled with acute shortfalls at its current 8,500-megawatt capacity.
The deal, signed with the Iraqi-Jordanian Shamara Group, follows MAPNA¡¯s successful implementation of Najaf and Baghdad power plants which will imminently receive the Iranian gas through a pipeline to begin operation.
MAPNA Managing Director Abbas Aliabadi said Monday his company had started execution of the Rumaila power plant near Basra after 1.5 years of negotiations with the Iraqi side.
The facility will be completed in four years, with the first unit expected to join the national grid in early 2017.
The deal includes the Iraqi government¡¯s guaranteed purchase of the electricity produced at the power plant for 15-17 years, Shamara CEO Ali Shamara said, adding his country will finance the entire project.
MAPNA will supply equipment, including gas and steam turbines and boilers besides engineering and supervising the project.
According to Shamara, security issues have been taken into account in deciding to build the facility in Rumaila in the relatively stable southern Basra which is only 60 km from the Iranian city of Ahvaz.
By Eris in Press Center of Lord Steel Industry Company Limited
