GCCIA Signs Contracts for Iraq Interconnection Project

The Gulf Cooperation Council Interconnection Authority (GCCIA) signs contract in Dammam to provide Iraq with electricity (Asharq Al-Awsat)
The Gulf Cooperation Council Interconnection Authority (GCCIA) signs contract in Dammam to provide Iraq with electricity (Asharq Al-Awsat)
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GCCIA Signs Contracts for Iraq Interconnection Project

The Gulf Cooperation Council Interconnection Authority (GCCIA) signs contract in Dammam to provide Iraq with electricity (Asharq Al-Awsat)
The Gulf Cooperation Council Interconnection Authority (GCCIA) signs contract in Dammam to provide Iraq with electricity (Asharq Al-Awsat)

The Gulf Cooperation Council Interconnection Authority (GCCIA) signed five contracts worth $220 million with the companies implementing the electricity interconnection project between the Gulf states and Iraq.

The Authority will construct lines of 295 km from the al-Wafra station in Kuwait to the al-Faw station in southern Iraq to transfer 500 megawatts in the first phase, with a total of 1,800 megawatts, according to the Authority.

The project includes supplying and installing circuit breakers, electrical reactors, and measurement and control systems for the construction and expansion of substations in al-Wafra and al-Faw.

It also includes consulting services for preparing environmental and social studies and supervision of implementation.

The project would contribute to the supply of electricity to the Southern Region Electricity Network and support the demand for electricity in Basra.

It also lays the foundations for the future exchange and trade of electric energy between the Gulf state and Iraq under the umbrella of a regional and Arab electricity market to ensure the sustainability of electric power.

The contracts were signed by the CEO of the Authority, Ahmed al-Ibrahim, with representatives of companies approved to implement the project at the GCCIA in Dammam.

Ibrahim confirmed that the project would boost the electricity cooperation with Iraq and that the Authority would adopt expansion projects for the interconnection network aimed at increasing energy reliability in the Gulf network.

The project represents outstanding opportunities for energy exchange with Iraq, especially in light of the increase in the capacity of the electrical connection to achieve economical operation, especially in the summer, said Ibrahim.

He also explained that it would increase the network's security and stability, reduce interruptions, and contribute to meeting part of the demand.

Iraq signed an agreement to connect its power grid to the GCC interconnection grid in July 2022, on the sidelines of the Jeddah Security and Development Summit, under the directives of Gulf leaders to consolidate cooperation and partnership between the countries of the Cooperation Council and the Republic of Iraq.

The project will be funded by the Kuwait Fund for Arab Economic Development (KFAED) and the Qatar Fund for Development (QFFD), which also signed a financing agreement with GCCIA.



Gold Gains on Softer Dollar as Investors Weigh Trump Tariff Impact

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Gains on Softer Dollar as Investors Weigh Trump Tariff Impact

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices rose on Tuesday, helped by a softer US dollar and inflationary risks posed by President-elect Donald Trump's potential tariff policies, which could influence the pace of Federal Reserve monetary policy easing this year.

Spot gold was up 0.3% to $2,668.79 per ounce as of 1200 GMT. US gold futures gained 0.1% to $2,682.30.

"Gold prices are benefiting from reports that the incoming Trump administration is considering a gradual implementation of tariff increases to mitigate their impact on inflation," said Ricardo Evangelista, senior analyst at ActivTrades, referring to a Bloomberg report.

"This news led to a slight decline in US Treasury yields and a weakening of the dollar."

The dollar index fell 0.3% from a more than two-year high hit in the last session as traders scaled back US rate cut bets for 2025 after a strong jobs report. A softer dollar makes gold more affordable for buyers using other currencies, Reuters reported.

Investors are looking out for US Producer Price Index (PPI) data at 1330 GMT and Consumer Price Index (CPI) numbers due on Wednesday. A Reuters poll of economists gives a median forecast for an annual rise in CPI of 2.9%, up from November's 2.7%.

Also due is US retail sales on Thursday for further insights into the economy and the Fed's 2025 policy trajectory.

"If inflation increases again based on Trump´s spending policy, we may even see no cuts at all in the mid-term," said Henrik Marx, head of precious metals trading at Heraeus Precious Metals Germany.

Bullion is used as a hedge against inflation, although higher interest rates reduce the non-yielding asset's appeal.

Elsewhere, spot platinum was down 0.4% to $949.80.

"We look for platinum to be under-supplied by 500,000 ounces, or 6.4% of demand, in 2025," UBS said in a note.

Spot silver firmed 0.5% to $29.75 per ounce and palladium climbed 0.5% to $943.70.