Siemens negotiating $10.6bn deal to supply energy generation technology to Iraq

The Germany-based automation company, Siemens, is negotiating a deal believed to be worth $10.6bn with the aim of supplying energy generation technology to Iraq, CNBC reports citing Handelsblatt as its source.

It has been revealed that Siemens Chief Executive, Joe Kaeser, has travelled to Iraq to finalise a memorandum of understanding with the deal also thought to involve power transmission technology.

German Chancellor, Angela Merkel, has supported Siemens’ offer but it is understood that the Iraqi government has yet to decide whether to accept the bid, according to Handelsblatt.

In an email, a Siemens spokesman said: “We had submitted our roadmap document for repowering Iraq to Prime Minister Haider Jawad Al-Abadi in February.”

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“Through our proposal, we aim to add 11 gigawatts of power generation capacity in four years, create thousands of jobs in the country, and support anti-corruption, skills development and education among Iraqis.”

Siemens has previously demonstrated its commitment to supply gas and wind power plants in Egypt when it signed a $9.4bn deal to add 16.4 gigawatts of capacity to the country’s power grid in 2015.

It is anticipated that the deal would help reduce Iraq’s energy losses, implement smart grids, increase transmission grids, enhance existing plants and create new capacity.