GE said it has reached a financial close with Iraqi Ministry of Finance (MOF) and its financial partners for the Power Up Plan 4 (PUP4).
The financial close - a critical milestone that marks the final step of a loan agreement becoming effective - will see GE provide capital and spare parts, repairs and services to the Qudus, Khairat, Baghdad South, Hilla, Mussayab, Haidariya and Karbala power plants to help maintain more reliable generation of up to 2.7 gigawatts (GW) of electricity for the Iraqi people.
As part of these efforts, 20 gas turbines that are currently not operational at these sites will also be returned to service.
GE said it had played a key role in bringing the Iraqi ministries of finance, electricity and planning together with various financial institutions, including export credit agencies, commercial banks and others, to secure financing for the project.
The technology major had supported the development of Iraq’s energy infrastructure for over 50 years. In the north, GE’s teams helped power liberated areas with the rehabilitation of Mosul’s Al Qayara Power Plant.
In central Iraq, the company is helping to equip, operate and maintain the country’s largest combined cycle power plant - the Besmaya Power Station.
In the south, GE’s Advanced Gas Path upgrade solution has enabled the Ministry of Electricity to decrease the downtime of gas turbines, improve availability, enhance performance and lower annual maintenance costs at the Najibiya Power Plant.
"Working closely with the Iraqi Ministries of Finance, Electricity and Planning, GE has collaborated with various private and public financial institutions from around the world to help secure over $2.4 billion in financing since 2015 for energy sector projects across the country," said Joseph Anis, President & CEO of GE Gas Power Europe, Middle East and Africa.
"We remain committed to continuing to facilitate investments from various institutions, provide industry-leading technologies and work with our team of local professionals on-the-ground, to deliver results that strengthen Iraq’s power sector further and drive growth and prosperity for everyone, no matter how challenging the circumstances," he added.
GE is bringing the strength of its global network to support the execution of PUP4. Several key repair works for equipment such as gas turbines will be undertaken at GE’s service centre in Jebel Ali Free Zone.
This has been facilitated by ECI, the UAE’s Federal export credit company, which supports projects that promote economic diversification in the UAE and reduce the dependence on oil resources as a source of income.
UAE Minister of State for Foreign Trade and ECI Deputy Chairman Dr Thani bin Ahmed Al Zeyoudi, said: "Open economies, trade and public private partnerships can play a strong role in supporting countries to develop critical infrastructure. This is highlighted by the Power Up Plan 4, for which certain key services will be executed in and exported from GE’s facilities in the UAE, allowing us the opportunity to extend financial support through Etihad Credit Insurance and providing a win-win scenario for all."
"It also reflects the vision of our leadership to broaden regional collaborations that can help enhance the quality of life of people across the Middle East and beyond," he added.
ECI is one of the debt reinsurers for PUP4, providing insurance coverage to the lender, JP Morgan. PUP4 is the first Iraqi project supported by ECI and opens the doors to further collaborations between the UAE and Iraq.
"ECI is committed to delivering the vision of the UAE’s leadership to drive sustainable and diversified economic development. As part of these efforts, we are honored to extend our support to finance a project in Iraq for the first time, a strong statement on the regional partnerships that we continue to build," remarked its CEO Massimo Falcioni.
"We look forward to continue evaluating opportunities for future partnerships in Iraq," he added.
