German engineering company Siemens said on Sunday that its chief executive, Joe Kaeser, has sat down with Iraq's Prime Minister Haider al-Abadi, to discuss a proposal that could expand the Islamic nation's power output and improve its electrical infrastructure.
According to CNBC, the Deutsch firm is now working on a deal for an infrastructure project that is estimated to cost around USD$10 billion or 9 billion euros.
The aim of the project is to develop the energy supply generation technology of Iraq and help secure its need for electrical power, further boosting its capacity to nearly 50 percent in the next four years.
The proposed plan from Kaeser, who reportedly traveled personally to Baghdad, will see the addition of 11 gigawatts (GW) capacity in the new energy infrastructure which would also involve the implementation of the latest power transmission technology throughout the country.
Citing the statement given by Siemens, the news outlet said that the Siemens proposed infrastructure project will not only create thousands of jobs for Iraqis as it can also bring skills development and education opportunities for the citizens of the Middle East nation.
Baghdad is yet to confirm if it has already accepted Siemens' offer, which apparently has the support by German Chancellor Angela Merkel.
Last year, Abadi met with Merkel in Germany for a state visit along with representatives from companies such as Siemens.
The purpose of the meeting, according to this report published in August, was to discuss possible solutions to Iraq's struggling electricity sector.
One of the flagship programs of the Abadi administration is to improve the efficiency as well as the availability of the country's power plants to which Siemens will come into play.
According to Power Mag, the contract with the German digital solutions provider will include the overhauling of two power generation units at Al-Sadder Power Plant. The upgrade is set to improve the plant's power output as well as its thermal efficiency through the installation of cutting-edge equipment.
In other parts of the Middle East, Siemens has also taken part in the rehabilitation of power supply in Egypt.
The Reuters report said that Siemens signed close to USD$10 billion deal with Egypt in 2015 to develop the country's gas and wind power plants which expanded its power grid capacity to 16.4 gigawatts.
Kaeser said that they will implement the same strategy they've used in Egypt to successfully develop Iraq's power infrastructure, in a much faster duration but with the highest possible efficiency rate.
