Al-Khairat Power Station – Cursor international

By John Lee.

Iraq was the largest beneficiary from China’s Belt and Road Initiative (BRI) in 2021, according to a study by the Green Finance & Development Center, at Shanghai’s Fudan University.

It says the country with the highest construction volume was Iraq, with about $10.5 billion, followed by Serbia (about $6.8 billion) and Indonesia (about $2.4 billion).

In the energy sector, Iraq received by far the most investment from China in 2021.

Iraq and China cooperate on oil (e.g., construction of the Al Khairat heavy oil power plant with a total value of about $5 billion), gas (e.g., development of the Mansuriya gas field by Sinopec together with Iraq’s Midland Oil Company), as well as solar (e.g., a 2 GW power PV project, currently in permission stage developed and owned by Power Construction Corporation of China valued at $3.7 billion).

The report suggests that the price for the solar power project seems unusually high if no energy storage facility is included, with a comparable 2.2GW solar plant completed in China’s Qinghai, with 202 MWh storage, at a cost of $2.2 billion.

A Chinese company, the China State Construction Engineering Corporation (CSCEC), will also rehabilitate Nassiryiah International Airport.

The full report can be read here.

(Source: Green Finance & Development Center)

The post Iraq was Largest Beneficiary of China’s Belt & Road in 2021 first appeared on Iraq Business News.

By John Lee.

China’s CITIC Construction has won the bid for the first and second phases of AI Khairat heavy oil power plant in Iraq.

Yang Jianqiang, Deputy President of CITIC Construction, held talks with Mazin Wajih, Chairman of Harlow International, in Dubai representative office, and received the letter of acceptance issued by Mazin Wajih.

It is estimated that the contract value of each phase of the project is about $2.85 billion.

The AI Khairat heavy oil power plant is located in Karbala Province in south-central Iraq, about 100km away from Baghdad, next to the Karbala refinery, which provides its by-product heavy oil for the power plant as fuel.

The total installed capacity of the project consists of 8 power generating units of 400MW each, of which 4 units will be constructed in each phase and put into operation in batches.

As the EPC general contractor of the project, CITIC Construction will be responsible for designing, procurement, construction, installation, commissioning and operation and maintenance of the project for a period of ten years, and assist in financing on the premise that the owner is guaranteed by the Iraqi government.

Wining the bid has made CITIC Construction see another major breakthrough in electric energy market of Iraq following the project of Maisan combined cycle power plant. After the completion of the project, it will become an energy hub around the capital, which will provide power for the reconstruction of Iraq’s post-war industry, help ease the power shortage of residents in central and southern Iraq, improve people’s livelihood and safeguard social stability.

(Source: CITIC)

The post CITIC Construction Wins $3.7bn Iraq Power Deal first appeared on Iraq Business News.