Siemens seeks to sign one of the biggest contracts in its history

Sep 24, 2018
Companies
Posted by Patrick Haddad

Siemens CEO Joe Kaeser has traveled to Baghdad to sign a letter of intent to help rebuild Iraq’s energy infrastructure.

According to some sources within the industry, the contract deals with power generation capacities of 11 gigawatts as well as power transmission technology. The value of the contract could be up to €13 billion.

The Siemens boss took to Twitter this week to declare his desire to meet with the Iraqi government, as well as describing the potential benefits of a Siemens deal.

Initially, it seemed as though General Electric, a major rival for Siemens and a company with strong support from the US government, would also be competing for the contract. However German Chancellor Angela Merkel called on Iraqi Prime Minister Haider al-Abadi to consider Seimens and has sent State Secretary Thomas Bareiß to Baghdad to support the negotiations.

As part of the reconstruction of Iraq, the entire country is to be reliably electrified. The potential deal would be modeled on Siemens’ deal with Egypt, which Kaeser has personally negotiated. In the case of Egypt, President al-Sisi ordered three gas and steam turbine power plants and wind turbines. The new power plants in Beni Suef, Burullus, and New Capital, which were completed in record time, will increase Egypt’s electricity generation capacity by 14.4 gigawatts and can supply power to 40 million people.

 

Source: Handelsblatt

Photo (for illustrative purposes): Joe Kaeser CEO of Siemens/ kremlin.ru/ Wikimedia/ CC BY 4.0

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