» Home » Business News Iraq Directory Services Plans Subscription Contact us Site Map Help About Iraq Development of power sector in Iraq likely to cost nearly $50b Iraq may need as much as $50 billion in the next five years to update its electricity grid and build new power plants, the Iraqi electricity minister said here yesterday. "According to our estimates, we may need between $30 to $50 billion to upgrade the grid," Aiham Al Samarrai told Gulf News in an interview in Bahrain, where he is leading his country's delegation to the just opened three-day conference on Iraq reconstruction efforts. "Of course, the amount may go up and down depending on the security situation," he said, referring to the frequent sabotage attacks on power and energy lines in the country. Al Samarrai said Iraq's current power capability totalled 5,500 megawatts. "Our target in the next five years is to have around 25,000 megawatts. It is a big challenge," he said. A significant part of the projected power will be provided by private companies, he added. "Three days ago, we began the process of inviting international companies to bid for the building of three new power plants on the basis of BOO (building, operating and ownership)," the minister said. The distribution and sale of the electricity, however, will rest with the government, he said. In a speech at the conference's opening ceremony, Al Samarrai said that the Iraqi interim government "suffers from the lack of sufficient financial resources" because of the instability of oil production and the deteriorating security situation. "Iraq is in urgent need of the necessary resources to achieve the minimum of its reconstruction projects," he said. The Iraq reconstruction conference was opened yesterday by Bahraini Prime Minister Shaikh Khalifa Bin Salman Al Khalifa, in conjunction with Power-Gen Middle East, described as the premier power industry event serving the region, attracting more than 4,000 industry professionals. The Iraq conference is a cross-sector event, highlighting potential investment opportunities in the petroleum, power, water, fire and safety and telecom sectors. It will end tomorrow. Iraq has invited global firms to bid for the construction of three new power plants on a build, operate and own basis. But Baghdad will retain the right to distribute power. Source : www.gulfnews.com © 2002-2004 Iraq Directory - All Rights Reserved