Iraq-Germany sign $625 million power contract

Iraq signed a $625 million contract on Wednesday for Germany's MBH to build five power stations with a total 500 megawatts capacity, electricity ministry spokesman Musab al-Mudaris said. The plants, in the northern province of Niniveh, are to be built in 11 months, Mudaris said, with payment beginning one year after commissioning and spread over two years. On Saturday, Canadian firm Capgent signed a $1.66 billion contract with the ministry to build 10 power plants of 100 megawatts each. A ministry spokesman told AFP the plants were to be constructed within 12 months in the Sunni provinces of Anbar, western Iraq, and in Salaheddin in the centre of the country. In May, South Korea's STX Heavy Industries signed a three trillion won ($2.76 billion) deal to build 25 diesel power plants in Iraq. "Before the summer of 2012, we will be able to produce an addition 2,500 megawatts," Mudaris said. The government has adopted an emergency plan to try to end chronic power cuts that have infuriated residents for years. Iraq suffers a acute power shortage, with production and imports totalling 7,000 megawatts, and demand twice as high.