ERBIL, Kurdistan Region — General Electric (GE) won a $15 billion deal against competitor Siemens that is meant to reenergize Iraq's suffering electricity grid, according to reports.
Boston-headquartered GE won the contract over Munich-based rival Siemens, the Financial Times reported on Wednesday citing unnamed sources.
“The US government is holding a gun to our head,” FT reported quoting an unnamed adviser to Siemens.
The US government has not commented on the report.
Iraq generates about 15,900 megawatts of electricity; it will require 35,000 by 2030, according to Middle East Utilities. Different provinces receive different amounts of energy. Baghdad reportedly received 20 hours or more of electricity per day this summer.
The news comes just ahead of Washington imposing energy sanctions against Iraq's top trading partner Iran in November.
Oil-rich Iraq was rocked by a series of protests this summer. Electricity supply was a main complaint.
Outgoing Prime Minister Haider al-Abadi said in August that Baghdad was close to inking a contract with Siemens.
Since then, Abadi has lost favor with the political and spiritual elite in Iraq. A second term is unlikely.
Boston-headquartered GE won the contract over Munich-based rival Siemens, the Financial Times reported on Wednesday citing unnamed sources.
The deal involves supplying 11 gigawatts (11,000 megawatts) of power-generation to Iraq and was thought to be in the pocket of Siemens until the administration of US President Donald Trump pressured Baghdad.
“The US government is holding a gun to our head,” FT reported quoting an unnamed adviser to Siemens.
The US government has not commented on the report.
The move could be seen as an attempt by Washington to aid one of the country's legacy industry corporations. GE in the mid-20th century bordered on being a horizontal monopoly as it capitalized on the two world wars and financial boom that ensued.
Yahoo Finance reported GE will be looking to display strength as it nears its next earnings release on October 25, but cautioned that industry insiders rank the company on their long-term sell list because of dwindling annual returns.
GE has sought to diversify in Iraq. It regularly makes sponsored posts on social media, claiming the contributions have improved the situation in the war-torn country whose electrical grid is insufficient.
Iraq generates about 15,900 megawatts of electricity; it will require 35,000 by 2030, according to Middle East Utilities. Different provinces receive different amounts of energy. Baghdad reportedly received 20 hours or more of electricity per day this summer.
The news comes just ahead of Washington imposing energy sanctions against Iraq's top trading partner Iran in November.
Oil-rich Iraq was rocked by a series of protests this summer. Electricity supply was a main complaint.
Outgoing Prime Minister Haider al-Abadi said in August that Baghdad was close to inking a contract with Siemens.
Since then, Abadi has lost favor with the political and spiritual elite in Iraq. A second term is unlikely.
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