Iraq inks power deal with Iranian company

Iraq signed a $72 million contract with Iran's Sunir power company to expand an electricity plant in the north, an Iraqi power ministry spokesman said. Iraq signed a $72 million electricity deal with Iranian power development firm Sunir to expand a plant in northern Iraq by 320 megawatts to help feed the power-starved nation, an electricity ministry official said on Monday. The Iranian company will install two gas units, each with a production capacity of 160 megawatts, at Dibis power plant in northern Kirkuk province, Musab al-Mudarres, a spokesman at the Iraqi electricity ministry, said. He said the units, which were purchased from Siemens in 2008, would be installed in just over 14 months. Dibis currently produces 150 MW. Iraq is trying to ramp up electricity production as it rebuilds after years of war and international sanctions. The electricity ministry signed a series of power deals this year to boost the national grid. It plans to add 22,000 megawatts of production capacity across Iraq over the next three years, Deputy Electricity Minister Salam Qazaz said in November. The deal with Sunir is the second contract awarded to the company. It has already built a $150 million gas power plant in Baghdad, consisting of two units with a total capacity of 320 MW. The first unit became operational this year. Power disruptions are a chief complaint among Iraqis, with demand far exceeding supply estimated at around 7,000 MW.