Siemens AG wins power plant deal in Iraq
German industrial giant Siemens AG has been awarded a US$95 million deal to develop a gas turbine power station in Iraq, according to an industry source.
German industrial giant Siemens AG has been awarded a US$95 million deal to develop a gas turbine power station in Iraq, according to an industry source. Reuters quoted a source who confirmed a remark made by Britain’s trade, investment and foreign affairs minister, Mike O’Brien. He had told reporters at a London conference that Siemens had just been awarded a “substantial contract for a power station”.
“Siemens won a contract to build a gas turbine...,” the industry source said, adding the work was being sub-contracted by US engineering and construction giant Bechtel. The turbine has a generation capacity of 266 MW, the source said. The industry source also said Siemens had already won subcontracts worth about US$50 million in Iraq.
Bechtel is lead contractor for the US Agency for International Development and is currently overseeing US$1 billion-worth of work to rebuild the country’s schools, bridges, and power and water infrastructure. A spokeswoman for Siemens told Reuters in London that the company was in talks with Bechtel but added: “As yet there is no formal contract in place.” She gave no more details.
The contract win for Siemens will go some way to dispelling rumours that the British and Americans would gobble up all lucrative reconstruction contracts in Iraq. Up to 25 new Iraq contracts worth up to US$18.7 billion are thought to be on the table at the moment, and the United States says that bidding is open to firms from the United States, Iraq and from countries that participated in the war effort.
After much behind-the-scenes lobbying from British government officials, the US Agency for International Development (USAID) bent its own rules and said foreign companies would get as much as half of the reconstruction work in subcontracts.