Egypt’s Orascom Construction has announced that its consortium with Siemens signed an agreement with Iraq’s Ministry of Electricity to rebuild Baiji 1 and Baiji 2 power plants in northern Iraq, Invest-Gate reports.

To have a combined generation capacity of 1.6 gigawatts (GW), power plants will be executed on the engineering, procurement, construction, and financing (EPCF) basis, with expectations to be completed within 28 months after financial close, according to a press release published by the engineering and construction contractor on September 14.

Work at Baiji, which is about 250 kilometers north of Baghdad, will begin once the contracts are approved by Iraq’s Council of Ministers and a financial agreement is reached with the Ministry of Finance, the statement added.

Orascom Construction was previously the EPC contractor on Baiji 2 power plant. Both Baiji 1 and Baiji 2 power
plants were severely damaged, and recovering the lost capacity from the plants will help Iraq power its biggest oil
refinery located in the city, a concrete plant, and will provide electricity to thousands of homes in Salahuddin
province and other areas.

Osama Bishai, CEO of Orascom Construction, commented, “We are pleased to return to Baiji, where we constructed one of the original power plants, to work on an important project that will help rebuild Iraq’s power sector and economy.”

He added, “This award is a testament to our ability to capitalize on our strong expertise as an EPC contractor in the power sector along with our ability to raise attractive financing packages on behalf of our clients. Our partnership with Siemens is a continuation of a successful relationship following the remarkable achievements on the mega power projects in Egypt.”

In the past four years, Orascom Construction added 12 GW of power capacity as an EPC contractor to Egypt’s national grid.