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Iraq's cabinet has approved projects to build two power stations in southern Iraq with investments of more than US$656mn.
The project is to build the 1,500 MW Rumaila power station was awarded to South Korean Hyundai Engineering Co for US$308mn and the 1,250 MW power plant in Basra was awarded to Greek power plant builder Metka for US$348mn, reported Reuters.
The two companies will be obliged to complete work on the two gas-fired stations within two years.
The two power plants will be funded by the Japanese International Cooperation Authority, as part of the US$5 billion aid package that Japan pledged to Iraq in 2003.
Iraq is still struggling to deal with shortages in electricity and the government has signed several large power plant deals recently. The national grid supplies only a few hours of power each day.