Red-faced Iraq says it signed dodgy power deals

Iraq's government on Monday said it had been duped when it signed power plant contracts worth $1.7 billion with foreign companies that it later discovered were either bogus or had lied about their financial status.

The announcement is a black eye for Prime Minister Nuri al-Maliki's government as it tries to lure foreign investors into Iraq and help rebuild the country's oil-reliant economy after years of war and sanctions.

"These contracts damaged Iraq's reputation," a visibly embarrassed Deputy Prime Minister Hussain al-Shahristani told reporters. "But this does not mean that key projects to build large plants will be affected."

Shahristani made the announcement a day after a source said Maliki had ordered his electricity minister to step down and the government cancelled the two power generation contracts.

He said Iraq planned to sue the two companies for fraud. The Electricity Ministry said Iraq would not lose any money because the contracts were designed to be paid long term.

Iraq needs investment in most industries, but power generation is especially sensitive. Iraq's war-battered grid provides only a few hours of power a day and chronic shortages were at the heart of anti-government protests earlier this year.

The incident may also have fallout for Maliki's delicate coalition among Shi'ite, Sunni and Kurdish blocs. Electricity Minister Raad Shallal belongs to the Sunni-backed Iraqiya bloc that accuses Maliki of reneging on parts of their cross-sectarian power-sharing deal.

Shahristani said Iraq's investigation had found one of the companies involved, Canada's CAPGENT was a "fake" with no offices, manufacturing operations or ability to carry out the work it had been contracted to do for the ministry.

Related News

Drought, lack of rain means BC Hydro must adapt power generation

VANCOUVER - BC Hydro is adjusting its operating plans around power generation as extended heat and little forecast rain continue to impact the province, a report says.

“Unpredictable weather patterns related to climate change are expected to continue in the years ahead and BC Hydro is constantly adapting to these evolving conditions,” said the report, titled “Casting drought: How climate change is contributing to uncertain weather and how BC Hydro’s generation system is adapting.”

The study said there is no concern with BC Hydro being able to continue to deliver power through the drought because there is enough water at its larger…

READ MORE
hydro one logo

Hydro One announces pandemic relief fund for Hydro One customers

READ MORE

connexus solar workers

How ‘Virtual Power Plants’ Will Change The Future Of Electricity

READ MORE

rolls royce nuclear

Rolls-Royce signs MoU with Exelon for compact nuclear power stations

READ MORE

ukrainians-find-new-energy-solutions-to-overcome-winter-blackouts

Ukrainians Find New Energy Solutions to Overcome Winter Blackouts

READ MORE