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Twilight News publishes the terms of the contract between Iraq and the German company Siemens
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(Reuters) - Siemens and the Iraqi Ministry of Electricity announced on Tuesday the signing of an agreement to start the actual implementation of a road map to rebuild the energy sector in Iraq.
"The agreement is based on the exclusive memorandum of understanding signed between the ministry and Siemens in October last year, specifying the specific projects and their associated budgets and timetables for the implementation phase, which covers all the essential elements of electrification of Iraq," the company said in a statement.
The contract was signed by Joe Kaiser, President and CEO of Siemens AG, and Luai Khatib, the Iraqi Minister of Electricity, in Berlin in the presence of Adel Abdul Mahdi, Prime Minister of Iraq, and Angela Merkel, Chancellor of the Federal Republic of Germany.
The two sides also agreed to award contracts worth about 700 million euros for the first phase of the road map.
These include the construction of an EPC for a 500 MW gas-powered power plant in Zubeidi; upgrading of 40 gas turbines with upstream cooling systems. Installation of 13 out of 132 kV and 34 transformers throughout Iraq.
The Siemens Roadmap for Electrification of New Iraq is a series of short, medium and long-term plans designed to achieve reconstruction goals in Iraq and support economic development in the country. In addition to electricity, Siemens also committed to donate a smart health clinic, a US $ 60 million software grant to Iraqi universities and training of more than 1,000 Iraqis on vocational education.
The clinic will be equipped with the company's medical equipment to make health care easier for Iraqis and will support the rehabilitation of the population in the liberated areas of the country, with the capacity to treat up to 10,000 patients annually. As for the grant, local university students will be able to provide basic digital skills for the future.
The economic feasibility of the plan is secured by billions of dollars in potential fuel savings and revenue generation for the electricity sector. The company also envisages the creation of tens of thousands of jobs throughout the projects.