Siemens and Orascom Construction have signed an agreement with Iraq’s Ministry of Electricity to rebuild Baiji 1 and Baiji 2 power plants in northern Iraq. The plants will have a combined generation capacity of 1.6GW when completed.
The project represents a major step in Siemens’ roadmap for rebuilding Iraq's power sector that has already added more than 700 megawatts to Iraq’s grid. 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. The projects are expected to be completed within 28 months after the financial closing.
Orascom Construction was previously the EPC contractor on the Baiji 2 power plant. Both 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.
Siemens will supply four new SGT5-2000E gas turbines and will inspect and revamp six existing ones. The company will also provide two 400kV and one 132kV substations, along with generators, auxiliaries, automation and control systems, and related electrical equipment.
“Iraq’s economic transformation is picking up pace, and this project demonstrates Siemens’ commitment to help Iraq’s Ministry of Electricity provide efficient and reliable power to all its people,” said Dietmar Siersdorfer, CEO Siemens Middle East and UAE. “We are proud to begin this project to help Iraqis in liberated areas recover and prosper.”
Karim Amin, CEO of Power Generation at Siemens AG, commented: “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. It will create hundreds of jobs, which is a further demonstration of Siemens’ commitment to support knowledge transfer to the Iraqi people.”
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. Earlier this month, Siemens 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.
Osama Bishai, CEO of Orascom Construction, added: “We are pleased to return to Baiji to work on an important project that will help rebuild Iraq’s power sector and economy. This award is testament to our ability to capitalize on our strong expertise as an EPC contractor in the power sector along with our ability to raise attractive financing packages on behalf of our clients. Our partnership with Siemens is a continuation of a successful relationship following the remarkable achievements on the mega power projects in Egypt.”