Siemens signs lucrative agreement on supplying electricity to Iraq

German industrial giant Siemens has signed a memorandum of understanding (MoU) on plans to supply electricity to Iraq, winning out over US rival General Electric (GE).

Representatives from the Munich-based company and the Iraqi Electricity Ministry signed the deal to expand Iraq's energy capacities, the government in Baghdad and Siemens said on Sunday.

The deal signed foresees an expansion of Iraq's power capacity by 11 gigawatts over the next four years, equivalent to half of the country's current capacity, according to Siemens.

The "roadmap proposes cost savings in billions of US dollars and generating additional electricity 24/7 for 23 million people," a statement from Siemens said.

The deal had been in jeopardy until only recently, after US President Donald Trump exerted pressure on the Iraqis to give the deal to GE.

"Our commitment to the Iraqi people stands strong. We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs," said Joe Kaeser, president and CEO of Siemens AG.

These pledges helped to clinch the deal for the Germans, Kaeser said.

Although Iraq has one of the largest supplies of oil in the world, its population suffers from poor power supplies, which has led to at times lethal protests in recent weeks and months.