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[size=35][size=35]The full story, in numbers.. The secrets of the failure of previous General Electric and Siemens projects in Iraq[/size]
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2023-03-11 | 04:52
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Alsumaria News - Local
The memos with the two companies raised questions about the political dimension to them, especially in light of the not-so-disguised competition in which the US governments sometimes intervened in favor of GE, and Germany in favor of[You must be registered and logged in to see this link.]And part of those questions revolved around what these notes could change in the reality of electricity in[You must be registered and logged in to see this link.], given that the two companies dominate the electricity sector, in light of the continuing structural problems that caused the electricity crisis in the country.
And he suffers[You must be registered and logged in to see this link.]As it has become known, from a crisis that has been going on for decades in the electric power sector, a crisis that casts a shadow over most other sectors, impedes the development of infrastructure and industries, and upsets the lives of the citizens of this country and arouses their anger, so that dealing with this crisis has become one of the main indicators in Evaluate the performance of successive governments, as in the outbreak of popular protests.
* The "long" electricity crisis in[You must be registered and logged in to see this link.]
He suffers[You must be registered and logged in to see this link.]Since 1991, a crisis in the electricity sector has led to continuous power outages, sometimes up to two-thirds of the hours of the day during peak summer times. Until the year 1990 it was[You must be registered and logged in to see this link.]It produces enough electric power, but the air strikes of the coalition forces - led by the United States in 1991 during the second Gulf War - of many electric power stations led to great destruction in the Iraqi electricity sector.
After the war and in light of the continued international sanctions on[You must be registered and logged in to see this link.], The Iraqi government resorted to rebuilding what could be built from the electrical network, with a focus on restoring electricity to the capital, Baghdad, while other Iraqi provinces were generally neglected. However, the capital was also subject to limited shutdown hours of up to 5 hours per day during the 1990s.
After the fall of Saddam Hussein's regime and the end of international sanctions on[You must be registered and logged in to see this link.]In 2003, successive Iraqi governments spent no less than $80 billion on the electricity sector, about half of which went in the form of investments in the construction of new power plants, while the other half went to finance operating expenses such as salaries and others, in addition to purchasing fuel and electricity from neighboring countries. .
A large part - perhaps half or more - of what was spent investing in the electricity sector was wasted. It could have been produced up[You must be registered and logged in to see this link.]of electricity to at least 40 gigawatts, which meets the country's growing need in light of population growth (the population has increased[You must be registered and logged in to see this link.]from about 25 million in 2003 to 42 million in 2023), and electricity consumption has increased. However, Iraqi electricity production reached its maximum level of about 23 gigawatts, compared to about 3 megawatts in 2003, and it has recently decreased to less than 20 gigawatts due to the decline in Iranian gas supplies used in Iraqi gas stations. This production covers only slightly more than half of the Iraqi need, which is estimated at about 35 gigawatts, which leads to continued power outages for long hours a day that may exceed 12 hours at the height of the summer temperatures.
Corruption, mismanagement, political interference, instability, war operations and terrorism, encroachment on the electric grid, and the lack of an effective electric pricing system played a role in the loss of the bulk of what was spent on investment in the electricity sector.
*"[You must be registered and logged in to see this link.]" And[You must be registered and logged in to see this link.]
Company presence returns[You must be registered and logged in to see this link.]in[You must be registered and logged in to see this link.]to the 1930's when it began[You must be registered and logged in to see this link.]Importing the machines of this German company to generate electric power. The company also built bridges over the Tigris River in the 1950s, and developed the electricity infrastructure in the 1980s. And in December 2008, I signed[You must be registered and logged in to see this link.]With the Iraqi government a contract worth one billion and 900 million dollars to supply[You must be registered and logged in to see this link.]With 16 gas turbines to generate electricity, to be installed in five new power stations, with a total capacity of 3.19 gigawatts. It was hoped that this contract - in addition to another contract with the American company "GE" worth two billion and 800 million dollars signed in the same month - would contribute to resolving the electricity crisis in[You must be registered and logged in to see this link.]. However, these two contracts failed to achieve this, according to the BAI's report on a company contract[You must be registered and logged in to see this link.]with[You must be registered and logged in to see this link.]2016.
However, more than 14 years have passed since the signing of the contract[You must be registered and logged in to see this link.]big in[You must be registered and logged in to see this link.]This project produced no more than half, if not less, of what was promised. This is due to a number of administrative, technical and logistical reasons that mainly reveal the failure of the Iraqi state, the absence of strategic thinking among many government officials, the high improvisation in formulating public policies, as well as the effects of political and security instability.
For example, the Iraqi government has contracted with companies from Iran, Egypt and South Korea to install turbines[You must be registered and logged in to see this link.]At Rumaila, Baiji, Debs, Taza and Sadr City stations, at a value of $900 million. And he made a decision[You must be registered and logged in to see this link.]Contracting with Iranian companies in the Sadr City and Debs power stations led to a delay in sending the turbines for a whole year due to a company’s refusal[You must be registered and logged in to see this link.]Dealing with Iranian companies during the European sanctions against Iran at the time. It also resulted in the failure of the Iraqi government to exempt a company[You must be registered and logged in to see this link.]From taxes - as stipulated in the contract - to the delay in the arrival of the turbines for another year and 4 months. As a result, the turbines arrived in full in 2013 instead of 2011 as stipulated in the contract.
Turbines were[You must be registered and logged in to see this link.]Originally designed to operate on gas, while the contract stipulated that it could operate using crude and heavy fuel. In practice, this led to an increase in cleaning and maintenance hours, which reduced the productivity of the turbines. The stations also used the simple cycle instead of the combined one, which allowed the exploitation of the exhaust gas resulting from the station's work to generate electricity, which increased its productivity.
Although the Iraqi government agreed to extend the contract for erecting the Sadr City station to two Iranian companies for a period of two and a half years, in addition to granting them other facilities, work at the Sadr City station stopped for quite a while after it was exposed to an explosion in one of its components and a large fire that consumed parts of the station. Even before the fire, the station was consuming the equivalent of $40 million per month of gas oil, which turned it into a practically losing project. These quantities were transported by 3,500 tanks per month, which led to environmental damage in the Baghdadi suburb, which includes the largest population center in the city.[You must be registered and logged in to see this link.].
The Baiji station - which was not completed at all - suffered great damage due to the battles between the Iraqi government forces and the terrorist organization "ISIS" after 2014. It was awarded[You must be registered and logged in to see this link.]Another $750 million contract for the reconstruction of the destroyed station. The Dibs station was also not completed, as this organization took control of the area after 2014, causing it to stop working. A number of Iraqi and Iranian technicians were killed in an ISIS terrorist attack on the station in October 2016. The station is still incomplete to this day. The training of the Iraqi staff also faltered for bureaucratic reasons, as employees who had nothing to do with the management and operation of the stations were often sent to these courses, which were organized outside the country.[You must be registered and logged in to see this link.].
These facts raise the question of the secret of success[You must be registered and logged in to see this link.]In Egypt, failing to[You must be registered and logged in to see this link.]. Luay Al-Khatib, the former Iraqi Minister of Electricity and former expert in energy affairs, says that the conditions[You must be registered and logged in to see this link.]So different from Egypt that a comparison between them is neither scientific nor useful. Al-Khatib also believes that the most important factor that he lacked[You must be registered and logged in to see this link.]And still, it is the existence of an agreed-upon energy policy, and the implementation of this policy according to a reasonable timetable without the interference of the various political parties in it, including imposing a new price for electricity commensurate with the cost of its production.
Although draft[You must be registered and logged in to see this link.]in[You must be registered and logged in to see this link.]I may fail, but with the impetus of success[You must be registered and logged in to see this link.]In its huge contract with Egypt, the Iraqi government signed a non-binding memorandum with the same company to implement the 2018 roadmap, according to which the company pledged to add 11 gigawatts to the Iraqi production capacity for $14 billion. The government also signed an agreement to finance operations[You must be registered and logged in to see this link.]in[You must be registered and logged in to see this link.]With the American Standard Chartered Bank.
In 2019, the Iraqi government signed an agreement with[You must be registered and logged in to see this link.]To implement the roadmap proposed by the company. And she says[You must be registered and logged in to see this link.]Its equipment provides electric power to about 5 million Iraqis now, and half of the Iraqi distribution network uses technologies[You must be registered and logged in to see this link.]. According to the roadmap, the company pledges to provide electricity to 40 million Iraqis at affordable prices. This includes the construction of a power plant in Wasit - to be added to the stations of Sadr, Rumaila, Amarah and Khurmal - and 13 transformer stations, and the modernization of 40 gas turbines.
*GE is moving to ensure it is not excluded from[You must be registered and logged in to see this link.]
After the signing of the roadmap implementation agreement in Berlin, the American General Electric (GE) company used its political influence in the US Departments of State and Commerce and the White House to pressure the Iraqi government to ensure that it would not be excluded from[You must be registered and logged in to see this link.]. It seems that these pressures played a role in not uniqueness[You must be registered and logged in to see this link.]in the Iraqi arena, according to Iraqi officials.
GE won the largest electricity contract in history[You must be registered and logged in to see this link.]In December 2008, with a value of two billion and 800 million dollars. The contract was then called the Mega deal. The contract was also the largest in the history of the company (its energy part). The contract stipulated that GE would supply[You must be registered and logged in to see this link.]With 56 gas turbines with a total capacity of 7 gigawatts. The company completed dispatch of the turbines in 2012 after delays caused in part by incapacity[You must be registered and logged in to see this link.]to pay the contract value after the drop in oil prices in the aftermath of the global financial crisis in 2008. In the meantime,[You must be registered and logged in to see this link.]With companies from Greece, Turkey, India, Jordan, South Korea, Egypt, UAE and[You must be registered and logged in to see this link.], in addition to GE itself to install GE turbines in 11 power stations in[You must be registered and logged in to see this link.]. The total value of these contracts amounted to 4 billion and 100 million dollars, which raised the value of the Mega Deal project to 7 billion and 250 million dollars, according to reports issued by the Office of Financial Supervision on the Mega Deal project.
As was the case with the turbines[You must be registered and logged in to see this link.]GE appliances were designed to run on gas that didn't have gas[You must be registered and logged in to see this link.]Technologies that allow it to produce enough of it by exploiting the gas burned in its oil wells or its large reserves to generate electricity. The result was the use of crude and heavy fuels that increased maintenance and cleaning times, and reduced turbine productivity. The simple cycle was repeated, not the compound as well. The turbines of the Diwaniya station, which were sent by GE, were left in the open, and they are exposed to various weather conditions in the port of Umm Qasr for a whole year! These turbines were stopped after their operation due to their inability to withstand the temperatures in[You must be registered and logged in to see this link.].
There were also other problems beyond what happened with[You must be registered and logged in to see this link.]. In Karbala, where the largest mega-del power stations were installed, it became clear that 6 out of 10 GE turbines suffered from cracks in their hulls, indicating defects in manufacturing or metal selection. Perhaps the reason for this was that the company delivered[You must be registered and logged in to see this link.]Equipment manufactured in the United States - as stipulated in the contract - and other equipment manufactured in China, France and Hungary in violation of the contract. Although GE repaired the cracks, an Iraqi government oversight report recommended that the company be sued, which did not happen.
And it was an experience[You must be registered and logged in to see this link.]With the companies that installed the GE turbines and the stations, it is even worse. Out of 11 stations, 4 of them were delayed by more than ten years, either due to negligence, corruption, mismanagement, or war operations between the Iraqi security forces and the terrorist organization "ISIS" after 2014, or all of these factors combined. The Nasiriyah station was transferred between two companies that failed to build it and ended up with GE itself in an additional $700 million contract. In the end, the first unit of the station did not start operating until 2020. While the Iraqi government did not contract with any company to establish the Samawah station in the first place. After 9 years, it was transferred to the “GE” company as well, and it entered service in 2019. At both stations, the company’s turbines had reached[You must be registered and logged in to see this link.]7 years before it was activated.
In Al-Qayyarah and Akkaz, the two stations were incomplete or partially operational when ISIS took over the area in 2014. The two stations were damaged due to the military operations there. The Qayyarah station partially returned to operation in 2016, while GE was awarded a contract for the reconstruction of the Akkas station, which opened in October 2022. In the other seven stations, 5 of them stopped or threatened to stop for various reasons. Four of the companies I established ended up being blacklisted by the Iraqi government, recommending that the company be sued, or being refused by the Iraqi government because of the company's non-compliance with the terms of the contract.
These violations endangered the lives of station workers, and generally harmed the environment in the station area. The Najibiyah station in Basra dumped fuel burning waste directly into the Shatt al-Arab, which led to the formation of an oil slick that polluted the area. In Amarah, the station used acid gas, which threatened the health of its workers and negatively affected its equipment. In Najaf, the station being built there lacked a control system, and Iraqi engineers had to manage it manually. An Iraqi government oversight report recommended stopping its work in order to preserve the lives of its workers.
After more than 10 years have passed since the signing of the contract, and the loss of more than 7 billion and 250 million dollars - in addition to other billions spent on fuel - nothing happened.[You must be registered and logged in to see this link.]More than a third of the electrical energy stipulated in the contract. Thus, the Mega Deal contract became one of the most failed major energy projects in history. One of the main reasons for the failure was the manipulation of the original contracts that he usually agreed to[url=https://www.alsumaria.tv/Entity/1122135457/%D9%85%D8%AC%D9%84%D8%B3 %D8%A7%D9%84%D9%88%D8%B2%D8%B1%D8%A7%D8%A1/ar/]Council of Ministers[/url]By adding appendices that give the contractors additional periods without activating the penal conditions, which fundamentally changes the wording of the contracts against the Iraqi interest.
The other important factor was everyone's disavowal of responsibility. GE made the turbines and sent them, but...[You must be registered and logged in to see this link.]Contract with other companies to install turbines. On the other hand, the Ministry of Electricity is not responsible for supplying fuel or its quality. Thus, GE can blame the companies that installed its turbines or the wrong fuel. And the Ministry of Electricity can blame "GE" or other companies or[url=https://www.alsumaria.tv/Entity/1956186754/%D9%88%D8%B2%D8%A7%D8%B1%D8%A9 %D8%A7%D9%84%D9%86%D9%81%D8%B7/ar/]Oil Ministry[/url]. And you can[url=https://www.alsumaria.tv/Entity/1956186754/%D9%88%D8%B2%D8%A7%D8%B1%D8%A9 %D8%A7%D9%84%D9%86%D9%81%D8%B7/ar/]Oil Ministry[/url]Blame the Ministry of Electricity, because it imported gas stations, and former Prime Minister Nuri al-Maliki can blame the technicians, and he did this in 2013. Iraqis can blame the United States and foreigners in general. And so it ended with a chain of mutual blame between everyone without specifying who was responsible for this disaster.
GE says that 60 percent of Iraq's electricity production, or about 11 gigawatts, uses its various turbines.
* Gas knot
as it resolves[You must be registered and logged in to see this link.]Ranked 12th in the world in terms of the volume of gas reserves available to it, its production is still modest, as it ranks almost 40th, with about 9 billion cubic meters of gas in 2021. Part of this gas comes out in the form of by-products during oil extraction, and it is called With "associated gas", the greater part of which is burned due to inability[You must be registered and logged in to see this link.]on his investment.
From 2009 to 2018, the Iraqi government conducted 5 licensing rounds to increase oil and gas production, with the participation of companies from around the world. Despite the Iraqi government's promises to increase the proportion of invested gas, all that has been achieved in 10 years - since 2013 - has been a modest reduction in the proportion of flared gas to 50%. The Iraqi government has signed contracts with GE, Total, Crescent and a number of Chinese companies to treat associated gas. But these contracts need years before results appear.
On the other hand, it imports[You must be registered and logged in to see this link.]Iran receives about $3.5 billion worth of gas annually for use in power plants. If all the gas currently burned were invested in[You must be registered and logged in to see this link.]It will amount to twice what it imports from Iran. And since the latter is subject to stifling US sanctions, the[You must be registered and logged in to see this link.]He is periodically exempted from these sanctions, but he is nevertheless unable to pay the price of Iranian gas in dollars and resorts to alternative methods.
In conclusion, there is no chance for Iraq to solve the problem of flared gas within a few years, and thus its dependence on Iranian gas will likely continue.
* Conclusions and expectations
signed by the Sudanese government with a company[You must be registered and logged in to see this link.]A new memorandum of understanding in January 2023 aims to add 6 gigawatts to the electric grid, using associated gas, and maintaining turbines.[You must be registered and logged in to see this link.]working in[You must be registered and logged in to see this link.]And the implementation of solar and wind energy projects, and the establishment of transfer stations, in addition to training Iraqi cadres.
It is clear that the Sudanese government will continue to cooperate with the "GE" company as well, which means that the two companies will continue to coexist in this field[You must be registered and logged in to see this link.]Without either of them monopolizing the Iraqi electricity sector, especially since each of them has large Iraqi partners who have become billionaires.
Despite the repeated promises made by Iraqi officials to improve the reality of electricity, and with a different coming summer, all the circumstances and factors that led to the failure of the "GE" and[You must be registered and logged in to see this link.]previous in[You must be registered and logged in to see this link.]Still going. Neither the two companies nor any Iraqi or international party have magical solutions to the electricity dilemma in Iraq[You must be registered and logged in to see this link.]. The truth is that the Iraqi electricity sector was, and still is, a goldmine whose blessings overflowed[You must be registered and logged in to see this link.]And "GE", and other companies and the ruling Iraqi parties, businessmen associated with them, and other government agencies.
In addition to the country's deep-rooted corruption, this sector suffers from mismanagement and the absence of a clear, effective and unified energy strategy that brings together the electricity, oil and gas sectors. In addition, there is the absence of reasonable pricing for electricity, the weakness of the collection system in a way that deprives the government of revenues that can cover part of the cost of electric energy, and the predominance of the socialist-populist perspective in dealing with this issue. And when we take into account the high population increase that adds more than a million Iraqis almost every year, and the uncontrolled consumer expansion, we understand why he added[You must be registered and logged in to see this link.]About 20 gigawatts since 2003 without achieving stability in supply.
In the short term, it appears that the relative stability enjoyed by Mohammed al-Sudani's government may not last long. The Sadrist movement may return to the fore and lead a new wave of protests. The forces that participated in the October uprising will also express themselves with tangible opposition. All this would mean that political instability prevented any permanent public policy from forming[You must be registered and logged in to see this link.]Since 2003, it could cast a new shadow over the Iraqi electricity sector.
Quoted from: Emirates Center for Policies
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Sweeteners
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2023-03-11 | 04:52
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Alsumaria News - Local
During the visit of the Prime Minister, Muhammad Shayaa Al-Sudani, to the German capital, Berlin, in January 2023, the Minister of Electricity, Ziyad Ali Fadel, signed a new memorandum of understanding with the German company Siemens, aimed at continuing cooperation with the company in the field of electricity reform in Iraq and developing This cooperation, as the company has become a major player in this sector since 2008. In February 2023, the Sudanese government signed new memorandums of understanding with the American General Electric Company (GE) for the purpose of developing and maintaining power stations.
The memos with the two companies raised questions about the political dimension to them, especially in light of the not-so-disguised competition in which the US governments sometimes intervened in favor of GE, and Germany in favor of[You must be registered and logged in to see this link.]And part of those questions revolved around what these notes could change in the reality of electricity in[You must be registered and logged in to see this link.], given that the two companies dominate the electricity sector, in light of the continuing structural problems that caused the electricity crisis in the country.
And he suffers[You must be registered and logged in to see this link.]As it has become known, from a crisis that has been going on for decades in the electric power sector, a crisis that casts a shadow over most other sectors, impedes the development of infrastructure and industries, and upsets the lives of the citizens of this country and arouses their anger, so that dealing with this crisis has become one of the main indicators in Evaluate the performance of successive governments, as in the outbreak of popular protests.
* The "long" electricity crisis in[You must be registered and logged in to see this link.]
He suffers[You must be registered and logged in to see this link.]Since 1991, a crisis in the electricity sector has led to continuous power outages, sometimes up to two-thirds of the hours of the day during peak summer times. Until the year 1990 it was[You must be registered and logged in to see this link.]It produces enough electric power, but the air strikes of the coalition forces - led by the United States in 1991 during the second Gulf War - of many electric power stations led to great destruction in the Iraqi electricity sector.
After the war and in light of the continued international sanctions on[You must be registered and logged in to see this link.], The Iraqi government resorted to rebuilding what could be built from the electrical network, with a focus on restoring electricity to the capital, Baghdad, while other Iraqi provinces were generally neglected. However, the capital was also subject to limited shutdown hours of up to 5 hours per day during the 1990s.
After the fall of Saddam Hussein's regime and the end of international sanctions on[You must be registered and logged in to see this link.]In 2003, successive Iraqi governments spent no less than $80 billion on the electricity sector, about half of which went in the form of investments in the construction of new power plants, while the other half went to finance operating expenses such as salaries and others, in addition to purchasing fuel and electricity from neighboring countries. .
A large part - perhaps half or more - of what was spent investing in the electricity sector was wasted. It could have been produced up[You must be registered and logged in to see this link.]of electricity to at least 40 gigawatts, which meets the country's growing need in light of population growth (the population has increased[You must be registered and logged in to see this link.]from about 25 million in 2003 to 42 million in 2023), and electricity consumption has increased. However, Iraqi electricity production reached its maximum level of about 23 gigawatts, compared to about 3 megawatts in 2003, and it has recently decreased to less than 20 gigawatts due to the decline in Iranian gas supplies used in Iraqi gas stations. This production covers only slightly more than half of the Iraqi need, which is estimated at about 35 gigawatts, which leads to continued power outages for long hours a day that may exceed 12 hours at the height of the summer temperatures.
Corruption, mismanagement, political interference, instability, war operations and terrorism, encroachment on the electric grid, and the lack of an effective electric pricing system played a role in the loss of the bulk of what was spent on investment in the electricity sector.
*"[You must be registered and logged in to see this link.]" And[You must be registered and logged in to see this link.]
Company presence returns[You must be registered and logged in to see this link.]in[You must be registered and logged in to see this link.]to the 1930's when it began[You must be registered and logged in to see this link.]Importing the machines of this German company to generate electric power. The company also built bridges over the Tigris River in the 1950s, and developed the electricity infrastructure in the 1980s. And in December 2008, I signed[You must be registered and logged in to see this link.]With the Iraqi government a contract worth one billion and 900 million dollars to supply[You must be registered and logged in to see this link.]With 16 gas turbines to generate electricity, to be installed in five new power stations, with a total capacity of 3.19 gigawatts. It was hoped that this contract - in addition to another contract with the American company "GE" worth two billion and 800 million dollars signed in the same month - would contribute to resolving the electricity crisis in[You must be registered and logged in to see this link.]. However, these two contracts failed to achieve this, according to the BAI's report on a company contract[You must be registered and logged in to see this link.]with[You must be registered and logged in to see this link.]2016.
However, more than 14 years have passed since the signing of the contract[You must be registered and logged in to see this link.]big in[You must be registered and logged in to see this link.]This project produced no more than half, if not less, of what was promised. This is due to a number of administrative, technical and logistical reasons that mainly reveal the failure of the Iraqi state, the absence of strategic thinking among many government officials, the high improvisation in formulating public policies, as well as the effects of political and security instability.
For example, the Iraqi government has contracted with companies from Iran, Egypt and South Korea to install turbines[You must be registered and logged in to see this link.]At Rumaila, Baiji, Debs, Taza and Sadr City stations, at a value of $900 million. And he made a decision[You must be registered and logged in to see this link.]Contracting with Iranian companies in the Sadr City and Debs power stations led to a delay in sending the turbines for a whole year due to a company’s refusal[You must be registered and logged in to see this link.]Dealing with Iranian companies during the European sanctions against Iran at the time. It also resulted in the failure of the Iraqi government to exempt a company[You must be registered and logged in to see this link.]From taxes - as stipulated in the contract - to the delay in the arrival of the turbines for another year and 4 months. As a result, the turbines arrived in full in 2013 instead of 2011 as stipulated in the contract.
Turbines were[You must be registered and logged in to see this link.]Originally designed to operate on gas, while the contract stipulated that it could operate using crude and heavy fuel. In practice, this led to an increase in cleaning and maintenance hours, which reduced the productivity of the turbines. The stations also used the simple cycle instead of the combined one, which allowed the exploitation of the exhaust gas resulting from the station's work to generate electricity, which increased its productivity.
Although the Iraqi government agreed to extend the contract for erecting the Sadr City station to two Iranian companies for a period of two and a half years, in addition to granting them other facilities, work at the Sadr City station stopped for quite a while after it was exposed to an explosion in one of its components and a large fire that consumed parts of the station. Even before the fire, the station was consuming the equivalent of $40 million per month of gas oil, which turned it into a practically losing project. These quantities were transported by 3,500 tanks per month, which led to environmental damage in the Baghdadi suburb, which includes the largest population center in the city.[You must be registered and logged in to see this link.].
The Baiji station - which was not completed at all - suffered great damage due to the battles between the Iraqi government forces and the terrorist organization "ISIS" after 2014. It was awarded[You must be registered and logged in to see this link.]Another $750 million contract for the reconstruction of the destroyed station. The Dibs station was also not completed, as this organization took control of the area after 2014, causing it to stop working. A number of Iraqi and Iranian technicians were killed in an ISIS terrorist attack on the station in October 2016. The station is still incomplete to this day. The training of the Iraqi staff also faltered for bureaucratic reasons, as employees who had nothing to do with the management and operation of the stations were often sent to these courses, which were organized outside the country.[You must be registered and logged in to see this link.].
These facts raise the question of the secret of success[You must be registered and logged in to see this link.]In Egypt, failing to[You must be registered and logged in to see this link.]. Luay Al-Khatib, the former Iraqi Minister of Electricity and former expert in energy affairs, says that the conditions[You must be registered and logged in to see this link.]So different from Egypt that a comparison between them is neither scientific nor useful. Al-Khatib also believes that the most important factor that he lacked[You must be registered and logged in to see this link.]And still, it is the existence of an agreed-upon energy policy, and the implementation of this policy according to a reasonable timetable without the interference of the various political parties in it, including imposing a new price for electricity commensurate with the cost of its production.
Although draft[You must be registered and logged in to see this link.]in[You must be registered and logged in to see this link.]I may fail, but with the impetus of success[You must be registered and logged in to see this link.]In its huge contract with Egypt, the Iraqi government signed a non-binding memorandum with the same company to implement the 2018 roadmap, according to which the company pledged to add 11 gigawatts to the Iraqi production capacity for $14 billion. The government also signed an agreement to finance operations[You must be registered and logged in to see this link.]in[You must be registered and logged in to see this link.]With the American Standard Chartered Bank.
In 2019, the Iraqi government signed an agreement with[You must be registered and logged in to see this link.]To implement the roadmap proposed by the company. And she says[You must be registered and logged in to see this link.]Its equipment provides electric power to about 5 million Iraqis now, and half of the Iraqi distribution network uses technologies[You must be registered and logged in to see this link.]. According to the roadmap, the company pledges to provide electricity to 40 million Iraqis at affordable prices. This includes the construction of a power plant in Wasit - to be added to the stations of Sadr, Rumaila, Amarah and Khurmal - and 13 transformer stations, and the modernization of 40 gas turbines.
*GE is moving to ensure it is not excluded from[You must be registered and logged in to see this link.]
After the signing of the roadmap implementation agreement in Berlin, the American General Electric (GE) company used its political influence in the US Departments of State and Commerce and the White House to pressure the Iraqi government to ensure that it would not be excluded from[You must be registered and logged in to see this link.]. It seems that these pressures played a role in not uniqueness[You must be registered and logged in to see this link.]in the Iraqi arena, according to Iraqi officials.
GE won the largest electricity contract in history[You must be registered and logged in to see this link.]In December 2008, with a value of two billion and 800 million dollars. The contract was then called the Mega deal. The contract was also the largest in the history of the company (its energy part). The contract stipulated that GE would supply[You must be registered and logged in to see this link.]With 56 gas turbines with a total capacity of 7 gigawatts. The company completed dispatch of the turbines in 2012 after delays caused in part by incapacity[You must be registered and logged in to see this link.]to pay the contract value after the drop in oil prices in the aftermath of the global financial crisis in 2008. In the meantime,[You must be registered and logged in to see this link.]With companies from Greece, Turkey, India, Jordan, South Korea, Egypt, UAE and[You must be registered and logged in to see this link.], in addition to GE itself to install GE turbines in 11 power stations in[You must be registered and logged in to see this link.]. The total value of these contracts amounted to 4 billion and 100 million dollars, which raised the value of the Mega Deal project to 7 billion and 250 million dollars, according to reports issued by the Office of Financial Supervision on the Mega Deal project.
As was the case with the turbines[You must be registered and logged in to see this link.]GE appliances were designed to run on gas that didn't have gas[You must be registered and logged in to see this link.]Technologies that allow it to produce enough of it by exploiting the gas burned in its oil wells or its large reserves to generate electricity. The result was the use of crude and heavy fuels that increased maintenance and cleaning times, and reduced turbine productivity. The simple cycle was repeated, not the compound as well. The turbines of the Diwaniya station, which were sent by GE, were left in the open, and they are exposed to various weather conditions in the port of Umm Qasr for a whole year! These turbines were stopped after their operation due to their inability to withstand the temperatures in[You must be registered and logged in to see this link.].
There were also other problems beyond what happened with[You must be registered and logged in to see this link.]. In Karbala, where the largest mega-del power stations were installed, it became clear that 6 out of 10 GE turbines suffered from cracks in their hulls, indicating defects in manufacturing or metal selection. Perhaps the reason for this was that the company delivered[You must be registered and logged in to see this link.]Equipment manufactured in the United States - as stipulated in the contract - and other equipment manufactured in China, France and Hungary in violation of the contract. Although GE repaired the cracks, an Iraqi government oversight report recommended that the company be sued, which did not happen.
And it was an experience[You must be registered and logged in to see this link.]With the companies that installed the GE turbines and the stations, it is even worse. Out of 11 stations, 4 of them were delayed by more than ten years, either due to negligence, corruption, mismanagement, or war operations between the Iraqi security forces and the terrorist organization "ISIS" after 2014, or all of these factors combined. The Nasiriyah station was transferred between two companies that failed to build it and ended up with GE itself in an additional $700 million contract. In the end, the first unit of the station did not start operating until 2020. While the Iraqi government did not contract with any company to establish the Samawah station in the first place. After 9 years, it was transferred to the “GE” company as well, and it entered service in 2019. At both stations, the company’s turbines had reached[You must be registered and logged in to see this link.]7 years before it was activated.
In Al-Qayyarah and Akkaz, the two stations were incomplete or partially operational when ISIS took over the area in 2014. The two stations were damaged due to the military operations there. The Qayyarah station partially returned to operation in 2016, while GE was awarded a contract for the reconstruction of the Akkas station, which opened in October 2022. In the other seven stations, 5 of them stopped or threatened to stop for various reasons. Four of the companies I established ended up being blacklisted by the Iraqi government, recommending that the company be sued, or being refused by the Iraqi government because of the company's non-compliance with the terms of the contract.
These violations endangered the lives of station workers, and generally harmed the environment in the station area. The Najibiyah station in Basra dumped fuel burning waste directly into the Shatt al-Arab, which led to the formation of an oil slick that polluted the area. In Amarah, the station used acid gas, which threatened the health of its workers and negatively affected its equipment. In Najaf, the station being built there lacked a control system, and Iraqi engineers had to manage it manually. An Iraqi government oversight report recommended stopping its work in order to preserve the lives of its workers.
After more than 10 years have passed since the signing of the contract, and the loss of more than 7 billion and 250 million dollars - in addition to other billions spent on fuel - nothing happened.[You must be registered and logged in to see this link.]More than a third of the electrical energy stipulated in the contract. Thus, the Mega Deal contract became one of the most failed major energy projects in history. One of the main reasons for the failure was the manipulation of the original contracts that he usually agreed to[url=https://www.alsumaria.tv/Entity/1122135457/%D9%85%D8%AC%D9%84%D8%B3 %D8%A7%D9%84%D9%88%D8%B2%D8%B1%D8%A7%D8%A1/ar/]Council of Ministers[/url]By adding appendices that give the contractors additional periods without activating the penal conditions, which fundamentally changes the wording of the contracts against the Iraqi interest.
The other important factor was everyone's disavowal of responsibility. GE made the turbines and sent them, but...[You must be registered and logged in to see this link.]Contract with other companies to install turbines. On the other hand, the Ministry of Electricity is not responsible for supplying fuel or its quality. Thus, GE can blame the companies that installed its turbines or the wrong fuel. And the Ministry of Electricity can blame "GE" or other companies or[url=https://www.alsumaria.tv/Entity/1956186754/%D9%88%D8%B2%D8%A7%D8%B1%D8%A9 %D8%A7%D9%84%D9%86%D9%81%D8%B7/ar/]Oil Ministry[/url]. And you can[url=https://www.alsumaria.tv/Entity/1956186754/%D9%88%D8%B2%D8%A7%D8%B1%D8%A9 %D8%A7%D9%84%D9%86%D9%81%D8%B7/ar/]Oil Ministry[/url]Blame the Ministry of Electricity, because it imported gas stations, and former Prime Minister Nuri al-Maliki can blame the technicians, and he did this in 2013. Iraqis can blame the United States and foreigners in general. And so it ended with a chain of mutual blame between everyone without specifying who was responsible for this disaster.
GE says that 60 percent of Iraq's electricity production, or about 11 gigawatts, uses its various turbines.
* Gas knot
as it resolves[You must be registered and logged in to see this link.]Ranked 12th in the world in terms of the volume of gas reserves available to it, its production is still modest, as it ranks almost 40th, with about 9 billion cubic meters of gas in 2021. Part of this gas comes out in the form of by-products during oil extraction, and it is called With "associated gas", the greater part of which is burned due to inability[You must be registered and logged in to see this link.]on his investment.
From 2009 to 2018, the Iraqi government conducted 5 licensing rounds to increase oil and gas production, with the participation of companies from around the world. Despite the Iraqi government's promises to increase the proportion of invested gas, all that has been achieved in 10 years - since 2013 - has been a modest reduction in the proportion of flared gas to 50%. The Iraqi government has signed contracts with GE, Total, Crescent and a number of Chinese companies to treat associated gas. But these contracts need years before results appear.
On the other hand, it imports[You must be registered and logged in to see this link.]Iran receives about $3.5 billion worth of gas annually for use in power plants. If all the gas currently burned were invested in[You must be registered and logged in to see this link.]It will amount to twice what it imports from Iran. And since the latter is subject to stifling US sanctions, the[You must be registered and logged in to see this link.]He is periodically exempted from these sanctions, but he is nevertheless unable to pay the price of Iranian gas in dollars and resorts to alternative methods.
In conclusion, there is no chance for Iraq to solve the problem of flared gas within a few years, and thus its dependence on Iranian gas will likely continue.
* Conclusions and expectations
signed by the Sudanese government with a company[You must be registered and logged in to see this link.]A new memorandum of understanding in January 2023 aims to add 6 gigawatts to the electric grid, using associated gas, and maintaining turbines.[You must be registered and logged in to see this link.]working in[You must be registered and logged in to see this link.]And the implementation of solar and wind energy projects, and the establishment of transfer stations, in addition to training Iraqi cadres.
It is clear that the Sudanese government will continue to cooperate with the "GE" company as well, which means that the two companies will continue to coexist in this field[You must be registered and logged in to see this link.]Without either of them monopolizing the Iraqi electricity sector, especially since each of them has large Iraqi partners who have become billionaires.
Despite the repeated promises made by Iraqi officials to improve the reality of electricity, and with a different coming summer, all the circumstances and factors that led to the failure of the "GE" and[You must be registered and logged in to see this link.]previous in[You must be registered and logged in to see this link.]Still going. Neither the two companies nor any Iraqi or international party have magical solutions to the electricity dilemma in Iraq[You must be registered and logged in to see this link.]. The truth is that the Iraqi electricity sector was, and still is, a goldmine whose blessings overflowed[You must be registered and logged in to see this link.]And "GE", and other companies and the ruling Iraqi parties, businessmen associated with them, and other government agencies.
In addition to the country's deep-rooted corruption, this sector suffers from mismanagement and the absence of a clear, effective and unified energy strategy that brings together the electricity, oil and gas sectors. In addition, there is the absence of reasonable pricing for electricity, the weakness of the collection system in a way that deprives the government of revenues that can cover part of the cost of electric energy, and the predominance of the socialist-populist perspective in dealing with this issue. And when we take into account the high population increase that adds more than a million Iraqis almost every year, and the uncontrolled consumer expansion, we understand why he added[You must be registered and logged in to see this link.]About 20 gigawatts since 2003 without achieving stability in supply.
In the short term, it appears that the relative stability enjoyed by Mohammed al-Sudani's government may not last long. The Sadrist movement may return to the fore and lead a new wave of protests. The forces that participated in the October uprising will also express themselves with tangible opposition. All this would mean that political instability prevented any permanent public policy from forming[You must be registered and logged in to see this link.]Since 2003, it could cast a new shadow over the Iraqi electricity sector.
Quoted from: Emirates Center for Policies
]
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