Private entrepreneurs invest in power sector

 

By Abdulatif al-Mausawi

 

Azzaman, 2004-09-29

 

Iraq has approved plans to partially privatize its state-controlled power sector, according to Electricity Minister Ayham Samaraai.

 

“The private sector is (currently) involved in the construction three giant power plants,” the minister said.

 

It is the first time the country allows private entrepreneurs to set up electricity generating stations.

 

The minister said one such plant was being built in the autonomous region of Kurdistan with a capacity of 600 megawatts.

 

A private firm will soon begin collecting electricity bills in at least three Iraqi provinces, he said.

 

“This a first step to allow the private sector collect power bills across the country,” he added.

 

Iraq’s power sector, devastated by wars and crippling UN trade sanctions, is in need of investments worth billions of dollars.

 

Besides the current rickety power plants, the country faces a deficit of at least 2,500 megawatts.

 

Samaraai said private investors were also engaged in the installation of several 150-megawatt stations in major Iraqi cities to alleviate power outages.

 

Power plants and pylons are target of attacks and sabotage and the ministry has raised a 10,000-strong force to protect them.

 

However, the minister said, an additional 3,000 guards will be needed to secure the installations.

 

Iraq is currently importing power from Iran and the annual bill is expected to cost $47 million.

 

Iran has extended a 60-kilomter long power line from its major Serbeel power station to the Iraqi power generating plant at Himrin in the north.

 

It took the Iranians four months to construct the pylons, towers and lines necessary for the project.

 

The linkup with Iranian national grid is good news for the border province of Diyala which has been suffering from chronic power outages.

 

The project is supposed to make available an additional 1,000 megawatts