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Iraq has awarded a US$125mn contract to a Saudi Arabian company to build a power plant with a total capacity of 150 MW in the southern city of Basra.
Haider Ali Fadhil, head of the Basra Investment Commission, said the contract had been awarded to the Saudi firm, Dao al-Jomaih Group, to build the plant and install two French-made gas turbines.
It will take six months for the project to be completed, an Iraqi official reportedly said according to Reuters.
Under the deal, the company will operate the plant and sell the electricity to the province for a three year period after finishing the installation of the turbines, Mohammed Oun, a representative of Dao al-Jomaih said.
The ministry of electricity is aiming to add around 1,000 MW to the country's grid this year. Peak demand during the summer, when temperatures frequently hit 50 celsius, is expected to exceed 15,000 MW.
Supply, including both power generated in Iraq and imported from its neighbours, was around 6,700 MW last year.