Signed by Qasim Al-Fahdawi, Minister of Electricity, and Joe Kaeser, president and CEO of Siemens AG, the Memorandum of Understanding (MoU) will examine a series of short, medium and long-term plans to meet the reconstruction goals of Iraq and support the country’s economic development.
Kaeser said: “Our commitment to the Iraqi people stands strong. We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs. Education, training and developing local skills and talent are key elements for us to contribute to building the New Iraq. Today’s agreement on the Siemens roadmap is a significant step towards fulfilling that promise. We are ready to start and look forward to working closely with the Iraqi government to immediately produce noticeable improvements for the Iraqi people.”
Under the “Roadmap for the Electrification of the New Iraq”, Siemens is ready to add 11 GW of power generation capacity over four years to ensure 23 million Iraqis across the country have reliable and sustainable electricity 24/7. This would boost current generation capacity by almost 50%. The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector, supporting the development of the future Iraq. The company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap emphasizes people at its core – and is the result of a 12-month study to develop a comprehensive and tailored redevelopment plan. It focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq.
Siemens’ Iraq Roadmap outlines eight objectives to benefit the people of Iraq, the country’s national security and its economic development. These include reducing energy losses, introducing smart grids, strengthening the transmission grid, modernizing existing power plants, adding new generation capacities in deprived areas, connecting Iraq to the Arab Gulf region, putting Iraq’s national resources to work, and investing in its people.
Modernizing the country’s energy infrastructure is intended to be completed in stages, from immediate improvement for up to 300,000 people, which can be operational within three months, to medium and long-term projects that require between 10 and 24 months’ completion time and beyond. The company will also assist Iraq’s government in securing appropriate finance packages provided by international commercial banks, Export Credit Agencies and supported by the German Government.