Siemens closing in on RM62b power plant deal in Iraq

By BLOOMBERG

FRANKFURT • Siemens AG is closing in on what could shape up to be its biggest contract ever — worth an estimated €13 billion (RM61.95 billion) —to build and refurbish power stations in Iraq that would increase the country’s generating capacity by about half in the next four years.

CEO Joe Kaeser met with Iraqi Prime Minister Haider Al-Abadi in Baghdad on Sunday to discuss a plan to instal 11GW of power generation capacity and create thousands of jobs, the company said yesterday in a statement. A person familiar with the deliberations, who asked not to be named, confirmed the potential value of the contract, which was first reported by German newspaper Handelsblatt.

“Repowering Iraq is a core element in the road map but it extends far beyond that,” Siemens said Siemens’s chances for winning the order are “high”, Adel Jeryan, Iraq’s deputy electricity minister, said in an interview, adding that the government hasn’t set a price tag yet on the order. General Electric Co (GE) is also competing for the project, he said.

The contract would come as a welcome boost for either Siemens or GE’s struggling power and gas divisions triggered by a global shift to renewable energy sources.

For Siemens, the Iraqi project would be bigger than one completed earlier this year in Egypt for power plants and wind farms generating a combined 16.4GW.

Siemens shares rose 1.1% to €111.48 at 11:09am in Frankfurt yesterday, paring losses since the start of the year to 4.1%.