LONDON: General Electric has signed a $400 million deal to develop Iraq’s power infrastructure as companies around the world continue to pitch for reconstruction work in the war-torn Middle Eastern nation.
The transaction aims to bring electricity to areas facing significant power outages, a legacy of years of conflict that has hobbled supplies in large swathes of the country.
GE said on Wednesday that the contract will help build 14 electric substations and supply critical equipment such as transformers, circuit breakers and other outdoor equipment to revamp existing substations.
The substations will hook up power plants in the provinces of Nineveh, Salahuddin, Anbar, Baghdad, Karbala, Al-Qadisiyah and Basra to the national grid.
Many areas in Iraq experience severe power cuts, despite billions of dollars spent since the 2003 US-led invasion.
Mussab Al-Mudaris, spokesperson of the Iraqi Ministry of Electricity said, “The agreement represents a major milestone in our efforts to strengthen Iraq’s power transmission sector, through a comprehensive grid project across the nation.
“Our focus remains on providing our people with the most reliable and advanced technology to meet their daily needs, and to accomplish this we need strong partners in this journey of development and reconstruction. GE has the technology, global capabilities and local presence to ensure the successful and sustainable execution of the project.”
Several of the locations, in conflict-affected areas, are in immediate need of reliable power infrastructure, according to GE.
GE said in a statement it has previously provided power generation equipment for some of the power plants that the substations will be connected to, including the three-gigawatt Besmaya Power complex.
Also included in the deal are the sale of nine 9FA gas turbines, four C7 steam turbines and a number of digital industrial applications — all GE products.
Mohammed Mohaisen, CEO of GE Power’s Grid Solutions business in the Middle East, North Africa and Turkey said, “A holistic approach to national infrastructure building is vital, from the provision of technical expertise to working with partners, such as export credit agencies, in securing long-term financial solutions.
“This agreement is a continuation of our firm commitment to driving industry and infrastructure forward in Iraq, working with the ministry of electricity in finding sustainable and effective solutions to some of the country’s most pressing issues.”
The current agreement builds on GE contributions toward strengthening Iraq’s power sector in years gone by. These include establishing captive power plants to provide power for industrial use, converting power plants from simple cycle to combined cycle configuration and the provision of services to improve the reliability and efficiency of operations generally.
The American company said GE-built technologies are today generating up to 50 percent of Iraq’s power, employing 300, more than 95 percent of whom are said to be Iraqi nationals.
Last month, the World Bank approved a $410 million aid package to bankroll the reconstruction of essential Iraqi infrastructure in areas liberated from Daesh. Iraq has estimated that the cost of reconstruction in the country, damaged by 14 years of war and civil strife could exceed $100 billion.
General Electric seals $400m Iraq power deal
General Electric seals $400m Iraq power deal
Kuwait PMI climbs to 54.5; Egypt falls to 48.9 in February: S&P Global
RIYADH: Kuwait’s non-oil private sector continued to expand in February, supported by growth in output and new orders, while business conditions in Egypt weakened, an economy tracker showed.
According to the latest Purchasing Managers’ Index surveys released by S&P Global, Kuwait’s PMI rose to 54.5 in February from 53 in January, extending the current run of improving business conditions to a year and a half.
The expansion in Kuwait’s non-oil sector aligns with a broader trend across the Gulf Cooperation Council region, where countries are pursuing diversification strategies to reduce reliance on crude revenues.
The surveys were conducted before regional tensions escalated following US and Israeli strikes on Iran and Tehran’s retaliatory attacks across the Gulf, which have since disrupted markets and energy trade.
Commenting on the February survey, Andrew Harker, economics director at S&P Global Market Intelligence, said: “Growth momentum strengthened in Kuwait’s non-oil private sector in February as companies were again successful in securing new business.”
According to the report, key factors supporting expansions in new orders and business activity included the provision of good-quality products at competitive prices and successful marketing efforts.
The rate of job creation was modest in February and unchanged from January.
Firms continued hiring staff for advertising and project-related work, resulting in a twelfth consecutive monthly increase in employment.
“The main issue facing firms at present is being able to grow workforce numbers quickly enough to keep up with workloads,” said Harker.
He added: “With backlogs rising at a fresh record pace for three months in a row now, fulfilling customer requirements in a timely manner is becoming more difficult, although companies did expand their purchasing activity at a near-record pace in February to help make sure the necessary materials are available going forward.”
Overall input cost inflation hit a nine-month high in February, with both purchase prices and staff costs rising at faster rates compared to January.
The report added that some companies increased their selling prices in response to higher input costs.
Regarding the outlook, companies expressed optimism, with sentiment reaching a 26-month high in February, driven by product variety, competitive pricing and good-quality customer service.
Egypt’s non-oil sector contracts
Egypt’s non-oil private sector contracted in February, driven by rising costs and softer demand, according to S&P Global.
The country’s PMI fell to 48.9 in February from 49.8 in January.
Although the reading remained below the 50 neutral threshold, it was still above its long-run average of 48.3, the report said.
Output declined for the first time in four months in February, and all five sub-components of the PMI indicated weaker business conditions compared to January.
“The February PMI data pointed to a slowdown in the Egyptian non-oil private sector as activity curtailed and new order volumes weakened,” said David Owen, senior economist at S&P Global Market Intelligence.
That said, he added that the dip followed an unusually strong run in business performance, and that the latest figures are consistent with annual GDP growth of approximately 4.5 percent.
Egyptian non-oil companies also reported a decline in order book volumes during the month.
Sales fell across manufacturing, wholesale and retail, and services, while construction was the only monitored sector where new orders improved.
Employment fell for the third consecutive month in February, though at a slower rate, as companies continued active job cuttings and hiring freezes.
The report revealed that cost pressures accelerated across the month, driven by rising global commodity prices, particularly oil and metals.
Selling prices, however, were up only fractionally, with just a small proportion of firms choosing to pass cost increases onto their customers.
“Egyptian non-oil companies were notably exposed to the uplift in global commodity prices, with firms emphasising the impact of higher prices for oil and metals, resulting in the sharpest increase in business costs for nine months and hitting margins at a time when firms are reluctant to raise their selling prices,” said Owen.
He concluded: “Firms will therefore be keen to see commodity markets settle, especially as recent periods of high input cost inflation have typically constrained business output.”
