In a significant development, three Qatari companies have formed a partnership with Iraq’s National Investment Commission to undertake projects valued at $9.5B within Iraq. One of the key projects includes the construction of two power plants that will jointly produce 2,400 megawatts of electricity.
The agreement, signed on Thursday, involves a 25-year public-private partnership between UCC Holding and the investment commission, with an estimated construction cost of $2.5B for the power plants. The establishment of these power plants aims to decrease Iraq’s dependency on Iran for energy supply.
Currently, Iraq relies on the import of electricity and gas from Iran, which contributes approximately one-third to 40% of its overall power consumption, according to Reuters News.
This dependence becomes particularly critical during the scorching summer months when temperatures soar above 50 degrees Celsius (122°F), leading to a surge in electricity demand. By developing the power plants, Iraq aims to enhance its energy self-sufficiency and reduce its reliance on neighbouring Iran.
Powering Iraq’s Future: Construction of 2,400 MW Joint Power Plants
Iraq’s investment commission and Doha-based Estithmar Holding also signed deals worth $7B to manage hospitals, develop two “new comprehensive cities” and build a series of new 5-star hotels totalling 10,000 rooms, a statement issued by Estithmar said.
“The cities … will include residential complexes, villas, schools, commercial complexes, entertainment centers, and other facilities and services, in addition to all the infrastructure needed to build these cities,” Estithmar vice-chairman Ramez Al-Khayyat said in the statement.
The financial commitments from both the Qatari companies and Iraq’s investment commission for these projects remain undisclosed at the moment, leaving the exact amount of their contributions unclear.
Qatar’s ruling emir finalized these agreements during his visit to Baghdad on Thursday. During the visit, the emir made a significant commitment by pledging a $5B investment in Iraq. This investment is expected to contribute to various projects and initiatives in the country.
