Iraq will need to spend a total of around 25 bln usd through to 2016 to upgrade its power generation and distribution capacity, said electricity minister Karim Wahid.
Wahid told AFP that the required funding would be provided through the government budget at a rate of around 2 bln usd a year. But he pointed out there would be a shortage of funding during the next four years, which he hoped would be covered through private investment and donations.
He told delegates at an oil conference in Dubai that the total installed generation capacity currently stands at 11,120 megawatts, covering 40 to 50 pct of demand, but this capacity is expected to reach 23,193 megawatts by 2011.
Contracts to build three 150 megawatt power plants have been awarded to Iraqi firms, one for the region of Kurdistan and the others in Najaf and Karbala, but the lack of security in Iraq was keeping away some foreign investors, said Wahid.
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