Iraq’s Minister of Electricity Ziad Ali Fadel attends the signing ceremony of the Faw Gas Power Plant contract with representatives from General Electric and the project’s investing company in Basra.
Iraq, GE sign deal to build 3,000-megawatt power plant in Basra
BASRA — Iraq’s Minister of Electricity Ziad Ali Fadel on Thursday oversaw the signing of a contract with General Electric to build the Faw Gas Power Plant, an investment project expected to generate around 3,000 megawatts using a combined-cycle system.
In a statement, the Ministry of Electricity said the ceremony took place in Basra Governorate in what it described as the largest project of its kind in southern Iraq’s energy sector. The plant will include four gas units and two steam units, and will use advanced seawater desalination technology to meet operational needs.
The contract was signed between the General Company for Electricity Production – Southern Region and Advanced Technology Systems Company, the project’s investor, under a “take and pay” model that ensures payment only for power actually received. The investor will also be responsible for supplying the gas needed to operate the plant, marking a change from previous contracts that placed the full fuel burden on the government.
During the signing ceremony, Minister Fadel praised Prime Minister Mohammed Shia Al-Sudani’s support for the energy sector and his commitment to removing obstacles to power projects. “The choice of Faw carries symbolic and strategic importance, especially with the nearing completion of the Grand Faw Port and the electrical connection between Basra and Kuwait through the Wafra–Faw line,” he said. “This will strengthen Basra’s position as a key energy hub in Iraq and the region.”
Fadel said Basra is witnessing a major expansion in electricity generation, with 15 operating power stations producing about 7,000 megawatts, compared to the governorate’s actual need of around 5,000 megawatts. The surplus, he added, is exported to neighboring governorates through newly launched 400-kilovolt transmission lines.
The minister also revealed new projects under development, including the “Basra Sun” solar power project with a capacity of 1,000 megawatts, rehabilitation works at the Hartha Power Plant, and additional investment initiatives aimed at strengthening Iraq’s national power grid.