The National Investment Commission of Iraq and three Qatari businesses have reached an agreement to build projects in Iraq with a total value of $9.5 billion. These projects will include the construction of a pair of power plants that will generate a total of 2,400 megawatts of electricity. According to a statement that was released by UCC Holding on Sunday, the investment commission and UCC Holding signed a 25-year public-private partnership on Thursday related to the construction of the two power plants, which will have a total cost of $2.5 billion to complete.
The power plants will assist in decreasing Iraq’s dependency on its neighbor, Iran, to provide its need for electricity. It is especially important for Iraq to import energy and gas from Iran during the hot summer months, when temperatures may reach as high as 50 degrees Celsius (122 degrees Fahrenheit), and power consumption is at its highest point. Iran provides between a third and a fourth of Iraq’s entire power supply. According to a statement provided by Estithmar, Iraq’s investment commission and Doha-based Estithmar Holding have inked deals totaling $7 billion to operate hospitals, create two “new comprehensive cities,” and build a series of new five-star hotels with a total of 10,000 rooms. “The cities… will include residential complexes, villas, schools, commercial complexes, entertainment centres, and other facilities and services,” Estithmar Vice Chairman Ramez Al-Khayyat stated in the announcement.
This is in addition to all of the infrastructure that is required to establish these towns. It is not clear how much money will be invested in these projects by either the Qatari corporations or Iraq’s investment commission. On Thursday, the agreements were signed during a visit to Baghdad by the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani. During his time in Iraq, he also made a commitment to spend $5 billion in the country.
