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Additional $ 2 billion to 2.5 billion for electricity annually
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Translated by IRAQdirecotry.com - [5/4/2007]
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Iraqi Minister of Electricity, Kareem Hassan, said that Iraq must attract between 2 billion and $ 2.5 billion annually from international aid and investments to be able to rebuild the devastating electricity sector.
The Minister is in London to request help from energy companies, including B.B.
The daily shutdowns of electricity in Baghdad have become a usual thing as a result of the damage inflicted on the sector for nearly 30 years due to wars, acts of sabotage and poor maintenance because of the sanctions.
Hassan said, pointing out to sabotage operations, "We build and they destroy every day". He said that he seeks to protect electricity installations in the country through security forces, including the electricity police force which is formed of seven thousand policemen, but he added: "I can not secure the extension of electricity".
He informed journalists: "Many have died because of the lack of electricity. Most hospitals are not working because of this shortage ".
Oil refineries and production have been affected well as by the interruption of electricity supply; Iraq's oil production is currently stable at around two million barrels per day, compared with about three million barrels a day before the invasion of the country led by the United States in March 2003.
In an attempt to improve electricity, it has been agreed to a ten-year plan in 2006 with the assistance of the international community to add about 2000 megawatts to the generating capacity of the current 5000 megawatts.
Hassan said that funding will come from the government budget amounting to 2 billion dollars annually, but the total cost ranges between four billion and $ 4.5 billion, which leave a shortfall of between 2 billion to $ 2.5 billion.
The minister continued, "we urge the donors to implement the commitments they have made in Madrid conference (for rebuilding Iraq) ... We also urge the sectors of electricity to contribute".
He said that he is holding meetings in UK with all major electricity companies and with B.B concerning the gas project in the south of the country. Hassan added: "We discussed with them the main plan of gas as well."
The availability of large energy reserves in Iraq represent a considerable incentive for oil and gas companies regarding investment in Iraq; but analysts say that the financial incentives for electricity companies ready to work in Iraq may not offset the risk.
Sebastian Air from John Hall Associates said "additional security can be requested but most of the workers in the electricity networks seek to avoid risks" since there other places where they can go.
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