Reuters reported that French engineering group Alstom has signed EUR 66 million contract with Iraq to build and install a power station in the northern province of Nineveh.

Mr Musab al Mudarres spokesman of Iraq's electricity ministry said that the plant should start production by the end of next year. The deal requires Iraq to pay 10% of the cost to Alstom in advance and 40% a year after the start of construction. There were no details on when the rest of the cost would be paid.

Iraq's power infrastructure has been badly damaged by decades of war and sanctions and 8-1/2 years after the US led invasion, its national grid still only supplies a few hours of power a day. Intermittent electricity is one of the public's top complaints.

Iraqi officials said that Iraq's available power capacity is around 9,000 MW and installed capacity at 11,000 MW to 12,000 MW. Demand during summer when temperatures frequently exceed 50 Celsius is estimated to reach 14,000 MW.

(Sourced from Reuters)