ERBIL, Kurdistan Region — The Trade Bank of Iraq (TBI) and UK-headquartered Standard Chartered signed a deal worth more than half a billion US dollars that will fund a General Electric (GE) project to sustain and boost electricity supply in Iraq.
The project has two phases, the Dubai-based MENA Herald announced on Monday.
The first is part of the Iraqi government's plan to ensure the continuity of 6.7 gigawatts (GW) of electricity through maintenance and modernization. The second is to add 2 GW to the grid.
“Iraq is currently undergoing a period of significant redevelopment as it moves towards a more stable and secure future. GE is committed to continue working with its partners and customers across the region to be at the forefront of plans that will bring progress to the people of Iraq," said Yoshito Murakami, the CFO of GE's Power Services businesses in the Middle East.
The project is being described as the largest bespoke Letter of Credit in the region. TBI was established in July 2003 following the US invasion.
"The financing supported as part of this latest round with our partners at General Electric and Standard Chartered Bank will play a major role in creating a brighter future for the Iraqi people," Faisal al-Haimus, the chairman and president of TBI said.
The assistance of Standard Chartered was needed as Iraq faces massive debt following cycles of violence and corruption in previous governments.
“This pioneering partnership will be key to facilitating and improving the power and electricity across the country. We are very proud and delighted to have structured and delivered such a trade financing solution in one of our network locations," said Rola Abu Manneh, the CEO of Standard Chartered Bank UAE.
Khatteeb then directed his ministry's general inspector to follow up.
Electricity availability in Iraq varies by province. Its south is heavily dependent on Iranian electricity to meet domestic shortages, an issue that has been complicated by US sanctions on Iran.
Currently, Baghdad has a waiver until the end of December to purchase electricity from Tehran.
The project has two phases, the Dubai-based MENA Herald announced on Monday.
The first is part of the Iraqi government's plan to ensure the continuity of 6.7 gigawatts (GW) of electricity through maintenance and modernization. The second is to add 2 GW to the grid.
GE uses proprietary systems and Iraq needs upgrades to its electrical grid.
“Iraq is currently undergoing a period of significant redevelopment as it moves towards a more stable and secure future. GE is committed to continue working with its partners and customers across the region to be at the forefront of plans that will bring progress to the people of Iraq," said Yoshito Murakami, the CFO of GE's Power Services businesses in the Middle East.
The project is being described as the largest bespoke Letter of Credit in the region. TBI was established in July 2003 following the US invasion.
"The financing supported as part of this latest round with our partners at General Electric and Standard Chartered Bank will play a major role in creating a brighter future for the Iraqi people," Faisal al-Haimus, the chairman and president of TBI said.
The assistance of Standard Chartered was needed as Iraq faces massive debt following cycles of violence and corruption in previous governments.
“This pioneering partnership will be key to facilitating and improving the power and electricity across the country. We are very proud and delighted to have structured and delivered such a trade financing solution in one of our network locations," said Rola Abu Manneh, the CEO of Standard Chartered Bank UAE.
US-based GE and Germany's Siemens have been competing for electricity deals in Iraq worth between $12-15 billion.
General Electric seemingly had secured most of the work; however last week Iraq's new Electricity Minister Luay al-Khatteeb met with representatives from both countries amid reports of bribes.
Khatteeb then directed his ministry's general inspector to follow up.
Electricity availability in Iraq varies by province. Its south is heavily dependent on Iranian electricity to meet domestic shortages, an issue that has been complicated by US sanctions on Iran.
Currently, Baghdad has a waiver until the end of December to purchase electricity from Tehran.
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