Gulf Construction Online - Siemens, Orascom to rebuild power plants

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A concept of the Baiji power plant.

Siemens, Orascom to rebuild power plants

01 October 2019

Global technology giant Siemens and Orascom Construction have been selected by Iraq’s Ministry of Electricity to rebuild Baiji 1 and Baiji 2 power plants in northern part of the country.

The plants will have a combined generation capacity of 1.6 gigawatts (GW) when completed and are a major step in Siemens’ roadmap for rebuilding Iraq’s power sector that has already added more than 700 megawatts (MW) to the country’s grid.

As per the deal, the Iraqi government is set to award contracts worth €700 million ($775 million) for Phase One of the roadmap.

Work at Baiji, which is about 250 km north of Baghdad, will begin once the contracts are approved by Iraq’s Council of Ministers and a financial agreement is reached with the Ministry of Finance, says Siemens. The projects are expected to be completed within 28 months after the financial closing.

These power plants in Baiji were severely damaged by Islamic State militants. Recovering the lost capacity from the plants will help Iraq power its biggest oil refinery located in the city, a concrete plant, and will provide electricity to thousands of homes in Salahuddin province and other areas.

Iraq’s Electricity Minister Luay Al Khateeb, Siemens’ Joe Kaeser and Osama Bishai, the CEO of Orascom Construction, witnessed the signing of the agreement on the sidelines of the Iraq Energy Forum 2019 in Baghdad.

As per the deal, Siemens will supply four new SGT5-2000E gas turbines and will inspect and revamp six exiting ones. The company will also provide two 400-kV and one 132-kV substations, along with generators, auxiliaries, automation and control systems, and related electrical equipment.

Discussing the deal, Karim Amin, CEO of Power Generation at Siemens, says: “The reconstruction of Baiji 1 and 2 power plants mark the second phase of our roadmap in Iraq and will be the biggest so far in terms of power generating capacity when both plants are completed. The rebuilding of Baiji will secure 1.6 GW and will create hundreds of jobs.”

Siemens’ footprint has been expanding in Iraq and the company is now active at over 20 locations, from Basra to Erbil.

Siemens also has some recent experience in Baiji. Last month, it delivered power equipment to ensure constant electricity for a clinic being built in the city and will also donate Siemens medical equipment for the facility. Al-Tawheed Centre is expected to open this year and will be able to treat 10,000 patients a year.