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Iraq Signs MoU with GE to Develop Power Infrastructure

Part of the MoU signing between Iraq and General Electric. Asharq Al-Awsat
Part of the MoU signing between Iraq and General Electric. Asharq Al-Awsat
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Iraq Signs MoU with GE to Develop Power Infrastructure

Part of the MoU signing between Iraq and General Electric. Asharq Al-Awsat
Part of the MoU signing between Iraq and General Electric. Asharq Al-Awsat

Iraq signed a memorandum of understanding (MoU) with General Electric to develop the country’s power infrastructure, the electricity ministry said in a statement on Sunday.

The plan is expected to generate up to 14 gigawatts (GW) of power, create up to 65,000 direct and indirect jobs, support the government to realize savings and recoverable losses of up to $3 billion per year, establish a local technology center and support water and healthcare access.

As an immediate priority, GE will deploy proven fast power technologies and undertake upgrades at existing power plant sites to bring approximately 1.5 GW of additional power online by 2019 – the equivalent electricity needed to supply up to 1.5 million Iraqi homes.

It will also undertake maintenance and rehabilitation services to secure the availability of another seven GW that are currently operating.

In addition to that, the agreement includes upgrades and services for existing power plants, the conversion of simple cycle power plants to combined cycle, which can help bring new power online without consuming additional fuel or releasing further emissions as well as the establishment of new power plants with efficient, reliable power generation technology.

GE will also develop substations and overhead lines across the country and a centralized energy management system covering generation, transmission and distribution.

Its activities will help the government realize savings and recover losses of up to three billion dollars per year.

Repairs, maintenance, upgrades and other services will help to reduce the operating costs of existing power plants.

To further improve the transmission and distribution of power, GE will undertake comprehensive decongestion network studies as well as advisory services to reduce collection recoverable losses.

In July, Baker Hughes, a GE company signed a contract with the Iraqi Ministry of Oil for a modular natural gas plant solution for flared gas recovery in the Nassiriya and al-Gharraf oilfields.

GE will assist the Iraqi government to unlock financing for these projects through its extensive relationships with Global Export Credit Agencies and financial institutions.

The MoU was signed by Iraq’s Minister of Electricity Qasim al-Fahdawi and President & CEO of GE’s Power Services in Africa, South Asia and the Middle East Joseph Anis.

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Türkiye's Recent Political Events Hit Economy, Reserves, Says EBRD 

Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
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Türkiye's Recent Political Events Hit Economy, Reserves, Says EBRD 

Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)

Recent political events in Türkiye stymied the country's path to slowing inflation and the fallout affected the economy as well as foreign exchange reserves, the European Bank for Reconstruction and Development's chief economist said.

The detention of Istanbul mayor and main opposition leader Ekrem Imamoglu on March 19 sent the lira sharply lower and triggered market turmoil that pushed the central bank into a surprise interest rate hike in April, short circuiting an easing cycle that began at the start of the year.

Türkiye had been on a "slow but steady" path towards reducing inflation before the event, EBRD Chief Economist Beata Javorcik told Reuters.

"This path allowed it to cut interest rates, but that process was stopped by the recent political events, which brought turbulence and forced the central bank to reverse the direction," Javorcik said, adding raising interest rates put the brakes on the economy.

"This is costly in terms of economic performance, in terms of reserves ... and in terms of the reputational implications, undermining confidence of investors."

Türkiye has struggled with very high inflation in recent years, which peaked at 75% last May.

The bank downgraded its forecast for Türkiye’s economic growth this year by 0.5 percentage points to 2.8%, due to lower domestic and external demand and tighter-than-expected monetary policy.

Türkiye’s bonds and stock market had become a big draw for global money managers in the months leading up to Imamoglu's detention.

The appointment of Finance Minister Mehmet Simsek in 2023, widely seen as the architect of the government's return to a more orthodox economic policy, helped lure investors.

The EBRD said Türkiye’s central bank sold more than $40 billion in foreign exchange in the weeks following Imamoglu's arrest, pulling net reserves, excluding swaps, from more than $60 billion to less than $20 billion.

The latest reserve numbers, published on Monday, showed that Türkiye’s gross reserves had risen by $6 billion - the first such gain in nearly two months.