Siemens signs memo with Baghdad to explore power sector overhaul

21-10-2018
Rudaw
Tags: electricity General Electric Siemens Baghdad-Washington relations United States Germany Baghdad-Berlin relations
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BAGHDAD – A German minister and the head of Siemens are in the Iraqi capital on a charm offensive to win a $15 billion contract to reenergize Iraq’s electricity grid. They are facing stiff competition from America’s General Electric (GE). 

The German conglomerate signed a “landmark” memorandum of understanding with the Iraqi government Saturday evening to explore implementing Siemens’ proposal for Iraq’s power sector.

“We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs. Education, training and developing local skills and talent are key elements for us to contribute to building the New Iraq,” said Siemens CEO Joe Kaeser after signing the memorandum with Iraq’s Ministry of Electricity Qasim al-Fahdawi.

Siemens’ roadmap for Iraq includes increasing power generation capacity by nearly 50 percent in order to provide round-the-clock electricity for 23 million Iraqis and creating tens of thousands of jobs. The company also would invest in education with a $60 million software grant for Iraqi universities and vocational training for more than 1,000 people. 

Germany’s Parliamentary State Secretary for Economic Affairs and Energy Thomas Bareiss travelled to Baghdad to help negotiations. 

“Proud to support a sustainable and good development for your country and for the Iraqi people,” he tweeted after meeting with Iraqi Parliament Speaker Mohammed al-Halbousi on Saturday. 

“Working on the best ways for cooperation between Iraq and Germany in the energy, water, and health sectors,” tweeted Halbousi of their meeting, adding that he “appreciated the role Germany has played in supporting Iraq on every level.”

Siemens has more than 80 years of experience in Iraq. The company says that over half of Iraq’s electricity is distributed by Siemens technology. 

They are facing competition from GE, however. 

Reports last week put GE ahead of Siemens in bidding for the $15 billion deal. The administration of US President Donald Trump was reportedly putting pressure on Baghdad to favour the American company over the German one. 

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