AFP reported that the Iraqi cabinet has approved USD 540 million contracts for French firm Alstom to build a 182.4 MW gas power plant in central Iraq.

Mr Ali al Dabbagh government spokesman said that the plant which should be up and running 18 months after the signature of the contract is to be built in Mansuriya in the Diyala province about 50 kilometers northeast of the capital.

The cabinet which met on Tuesday chose Alstom over the Iranian company Mabna because the offer was more attractive and less expensive. Alstom has already been selected to refurbish a gas power plant in the central province of Najaf.

More than 8 years after the US led invasion that toppled Mr Saddam Hussein, Iraq still suffers from a severe shortage of electricity. Iraqis are left with the choice of having only a few hours of electricity per day in a country where temperatures top 50 degrees in the summer or getting extra power from private generators.

(Sourced from AFP)