New base energy news 11 june 2020 issue no. 1346 senior editor eng. kha...
MEGA PROJECT PLANS FOR DEVELOPING THE POWER AND
1. IRAQ CONTRACTORS FORUM March 24, 2014 Dubai-UAE
MEGA - PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR
IN IRAQ AND KURDISTAN REGION OF IRAQ
Basil Issa – CCC Country Manager
2. Electricity Sector steps up Power Surge
Introduction
In adequate electricity supply is a major
concern for Iraq’s government. This impacts on
daily life and constrains economic growth,
especially in key areas such as oilfield and
industrial development.
A huge effort is being made to improve the
supply but a deteriorating network that had
insufficient investment for many years
exacerbates the current situation. This neglect
has left all three components of the system
generation, transmission and distribution
significantly downgraded.
As a result, multibillion dollar spending on
improvements is not an option but an economic
and political necessity, particularly since
demand has been growing six times faster than
capacity is being installed.
While the Electricity Ministry plans a huge
increase in capacity and conversion of plants
to combined-cycle technology, growing
demand may force it to rely on power imports
in the short term.
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REGION OF IRAQ
3. Iraqi Federal Ministry Of Electricity
The Ministry of Electricity is stepping up efforts to implement the development of new generation
capacity. The Actual Production capacity is currently 12,100 MW, with demand at 16,500 MW.The
Ministry of Electricity aims to produce an additional 7,500 MW by the end of 2014 and another
7,500 MW by the end of 2015.
The Iraqi government has allocated $4.7 billion to build power plants and finance existing electricity
projects for this year 2014.
In terms of projected spending over the next five years, Iraq is the only country in the region whose
power sector can compete with that of Saudi Arabia. Between 2012 and 2017, Iraq’s Electricity
Ministry plans to spend about US$ 27 Billion on new power generation, transmission and
distribution projects.
According to the energy master plan, about 24,400MW of new capacity will be added between
2012 and 2017.
The main push is to activate turbines bought from the General Electric and Germany’s Siemens in
December 2009. The deals were valued at US$3 billion and US$2.1 billion respectively and were
designed to provide the targeted 10,000MW of power capacity.
The generating capacity is due to be installed at a number of existing or new power stations at
various locations including Bayji, Taza, Rumaila, Dibis, Nineveh, Al Khayrat, Najaf, Al Hillah, Akkas
and Najibiya.
Also Ministry of Electricity has decided to issue EPC Contracts with an estimated amount of US$
925 million will be spent on the planned power plants at Diwaniya, Samawah, Amarah and Shatt Al
Basrah .
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
REGION OF IRAQ
4. Power and Hydrocarbon Sector
It is recognized that the power and hydrocarbon sectors need to improve coordination in areas
such as investment planning and policy making, in order to optimize long term development of
all these sectors.
The agreement by the Ministry of Oil to provide feedstock to new capacity coming online after
2015 will help in this task. A shortage of feedstock guarantee in the past has been given as a
reason for a lack of investment in generating capacity.
A study shows that the Iraq’s total energy feedstock mix comes as per below:
32.7% of heavy fuel oil,
27.8 % from crude oil
13.3% from gas oil.
26.6% from Natural gas fires
Parsons Brinckerhoff’s study expects around 67% of Iraq’s total power generation capacity to
be gas fired by 2020, with heavy fuel oil plants phased out. By 2030, the figure is expected to
stand at nearer 90%. Dependency on crude and heavy fuel oil for power generation in gas
turbine power stations decreases efficiency and increases maintenance requirements and
production costs.
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5. Iraqi ministry Of Electricity Master Plan Construction Goals 2012-2017
As outlined by the country’s energy Master Plan, about 24,400MW of new capacity will be
commissioned between 2012 and 2017. This includes 13,000MW of gas-fired capacity that will
come online before 2015, and 7,000MW of thermal power capacity and 400MW of renewable
energy by 2015.
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
REGION OF IRAQ
Gas Power Plants,
13000
Thermal Power
Plants, 7000
Renewable
Energy, 400
Conversion to
Combined Cycle,
4000
6. Power Plants Investment Program
As of February 2014, Iraq’s cabinet has approved several opportunities for investment and as
below:
• 6,000MW of new power capacity.
• 21,000MW of new power capacity was planned in order to meet forecasted
capacity in the coming years, with about 6,000MW of new capacity in the
contract negotiation phase while an additional 15,000MW project was under
study.
• Opportunities in converting about 8,000MW of existing power plants from
simple open-cycle to the more energy efficient combined-cycle technology.
• Improving transmission and distribution networks.
• Plans to introduce legalization to reduce wastage in the sector and promote
investment.
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
REGION OF IRAQ
Powering the Kurdistan Region Of Iraq
By 2016, the Kurdistan Regional Government aims to produce enough electricity to satisfy the
Region’s energy needs and allow for the export of power to neighboring countries.
339
471 489 482 484
809
1047
1435
1835
1985
925
1171
1457
1739
1889
2096
2302
2806
3279
3750
4215
4698
5051
0
1000
2000
3000
4000
5000
6000
7000
8000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Max. Demand Of
Power Electricity
Average Distributed
Load
In 2007, the Region
only produced 482 MW
of electricity; as of
November 2013, that
number had increased
to 2,800 MW. This
constitutes a 480%
increase in only six
years.
Moreover, since 2006,
energy consumption
within the Region has
increased by
approximately 140%,
with current rates
around 3,750
Megawatts per year.
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
REGION OF IRAQ
Much of the growth in generation is due to the construction of three major gas power plants
located in Erbil, Slemani, and Dohuk, built and operated by Mass Group Holding. The targeted
capacity of these three stations alone is 3,500 MW, with room for additional growth.
ELECTRICITY DEMAND BE SECTOR
Households
54%
Industrial
9%
Commercial
12%
Governmental
12%
Agriculture
13%
IPP Building Program
The most successful policy
adapted by KRG has been
achieved through bilateral
negotiations with Jordan-
based Mass Global, which
has developed more than
90 per cent of the region’s
power generation capacity
using Independent Power
Projects (IPP).
9. • Generation
• Hydro
• 3 Plants
• 650 MW Total Output
• Internal Combustion
• Numerous Plants
• 189 MW Total Output
• IPP
• 3 Plants (SGT)
• 2500 MW Total Output
• 4 Plant (ICE)
• 150 MW Total Out Put
• Grand Total: 3239
• Distribution
• 33 KV Network
• 11 KN Network
• 415 V Network
• 240 V Network
• Transmissions
• Substations
• 34X132KV AIS & GIS
• 115X 33KV/11KV
• Transmission Lines
• 1980 KM 132 KV
• 2370 KM 33 KV
• Regional Interconnections
• 132 KV to Kirkuk
• 33 KV to Iran
• 400 KV (Future)
• Power Generation Investment
• US$ 5 Billion by 2013
• Total Subscribers
• 1.1 Million
• Targeted Annual Growth Rate
• 15%
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MOE Existing Facilities
10. • Generation
• Plant for KRG Base Load (Thermal)
• Khabat Phase 1
• 300 MW Total Output
• 6000 MW IPP to include:
• Hydro – Approximately 1100 MW:
• Taq Taq, Rashawa, Mendawa, Deralok
• ICE - 850 MW:
• Harir-Soran, Koya, Saidsadik, Ranya
• CCGT – 4000 MW:
• Kalar, Khormala, Shekan, Zakho
• Transmissions
• Substations
• 5X 400KV
• 19X132KV
• 10X 33KV/11KV
• Transmission Lines
• 550 KM 400 KV
• 1860 KM 132 KV
• 650 KM 33 KV
• Regional Interconnections
• 400 KV, 132 KV to Turkey, Mosul and
Kirkuk
• Power Generation Investment
• US$ 7 Billion by 2016
• Targeted Power Generation Capacity
• 8000 MW by 2020
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MOE Under Construction and Future Projects
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12. Water in Iraq Fact Sheet
Introduction
The combination of climate change, population
growth, and limited environmental awareness
effectively limits water resource management
in Iraq. In addition, the destruction of vital
infrastructure, as a consequence of conflict, and
a lack of capital investments have resulted in
the deprivation of many Iraqis from access to
potable water and basic sanitation facilities.
According to a 2012 UNICEF report, 91 percent
of the population has access to potable water
with significant differences among governorates
and between urban and rural areas. For
example, in rural areas, only 77 percent of the
population has access to improved drinking
water sources compared to 98 percent in urban
areas. Furthermore, 6.2 percent of the
population does not use an improved sanitation
facility. Poor drinking water and sanitation has
increased the risk of waterborne diseases
especially among vulnerable groups such as
children and women.
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
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Agriculture,
40.50%
Marshland
Maintenanc
e, 11.00%
Evaporation
and Other
Losses,
8.40%
Civil Use,
3.78%
Industry,
2.77%
Power
Generation,
0.40%
2015 FORECAST FOR WATER REQUIRMENTS
BY SECTOR
13. Iraq Federal Government plans 50 Water and Sewage Projects
Iraq is to spend billions of dollars over the next two to three years on 50 water and sewage projects
that would be open to work by foreign contractors.
Iraqi government took steps, including facilitating the issue of visas to businessmen, to encourage
foreign contractors to set up shop in the violence-torn country.
Iraqi Ministry of Municipality and Public Works announced that the budget allocated to projects
that will be awarded in 2014 is $1.5 billion annually for two to three years.
New projects, which was numbered at 50, were related to building sewage infrastructure and
securing portable water from the Tigris-Euphrates river system.
Iraqi Government took steps to reduce bureaucratic procedures, including speeding up the process
of awarding contracts and making it easier for foreign investors to obtain entry visas into the
country.
Also the Iraqi government has already authorized heads of diplomatic missions to issue visas for
businessmen and investors within 48 hours.
In its attempt to bring in reluctant contractors, the Iraqi government is also offering letters of credit
that could be used by contractors who need to import equipment and other supplies.
Ministry of Municipality and Public Works oversees at least 50 infrastructure projects, most of
them involving companies from Asia and the Middle East, which are more willing than their
Western counterparts to take on risk.
Recently a consortium comprising Hitachi, Veolia Environment subsidiary OTV and The
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MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
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14. Arab Contractors, a nationalized Egyptian construction company has received an order from
the Iraqi ministry of Municipalities & Public Works for the Engineering, Procurement, and
Construction of a large desalination plant in Basrah, in the south of Iraq.
This US$ 242.8 million will incorporate maintenance and operations for the period of five
years. Hitachi will oversee the project as the leader of consortium.
Construction of the 199,000 m³/d reverse-osmosis plant is scheduled to begin in February
2014, with completion scheduled for July 2016.
Existing water purification facilities in Basrah, with a total capacity of 400,000 m³/d, are
unable to keep up with the city's huge demand for fresh water - estimated at up to 900,000
m³/d - and are deteriorating.
The new plant will purify the river water, which is to be drawn from close to the river mouth,
where sanity is relatively high as per the experts’ views. After the successful completion of
the project, the project will be regarded as the highest capacity single water-purification
plant, capable of supplying 400,000 people.
For the first time, since the end of war within Iraq, a Japanese company has received an
order for a large-scale water infrastructure project based on internal funds from the Iraqi
government, rather than Japanese government yen loans.
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REGION OF IRAQ
15. Water for everybody in Kurdistan Region Of Iraq
Iraqi Kurdistan may be blessed with a varied geography that includes mountains, rivers and lakes,
but as the population grows and the cities expand through massive new residential and
commercial projects, enormous strain is being put on the region’s water and sewerage
capabilities.
The KRG has taken measures in recent years to move the issue to the top of its agenda and today
the Ministry of Municipalities and Tourism enjoys the largest slice of the government budget of
any ministry, with around US$865 million provided for 2013. Seventy-three percent of the
ministry’s budget is focused on developing water and sewerage projects.
Under the previous Iraqi regime there were no strategic water projects carried out in the
Kurdistan region and 80-90 percent of urban residents received water from wells. However with
the rapid growth and urbanization of the previous decade, water levels have dropped
dramatically and the threat of pollution has increased. The KRG has embarked on a policy of
closing the wells while launching a series of massive new water and wastewater projects around
its towns and cities.
The General Directorate of Water and Sewerage is the ministry’s department entrusted with
overseeing the development of the region’s major water and wastewater projects.
The directorate has established a potable water master plan which outlines and locates priorities.
Included in the master plan there are currently some US$750 million of active projects under
construction which are covered by KRG funding along with a US$350 million soft loan from the
Japanese government.
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16. In 2013 the KRG inaugurated a US$200 million water treatment plant in Halabja, while multi-
million dollar projects are being developed in Akre, Chamchamal, Erbil, Zakho, Duhok, Shaqlawa,
Salahaddin and Barzan. In Amedi district, a US$96 million water project is nearing completion.
However with the Erbil heavy sewerage project alone needing US$1 billion of investment, and
many major projects on hold, the government has been pushing through legislation that will
allow for greater involvement of foreign companies to make up the budget shortfall.
The Ministry are currently looking at a new way of doing the projects, such as through
investment or long-term loans from reliable international companies and are in negotiations
with some large foreign companies to bring them on board for some projects.
But it is not just a case of creating a modern and efficient water and sewerage infrastructure
with the Kurdistan region’s massive water consumption coming under the spotlight. According to
international standards, each person needs 200 liters per day but the consumption rate
currently used is 400-600 liters per day per capita, which is a huge figure.
In response, the government has launched a program to install smart meters, which will
measure and regulate the water and electricity consumption of households and businesses
across the region.
Major challenges remain as the KRG continues to develop this vital cog of its infrastructure, but
as it opens investment opportunities to the private sector it is moving closer to achieving its
motto ‘water is for everybody’.
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17. Visions for Future
Water Treatment Projects Priorities for Kurdistan Region
1- Erbil Water Project No. 4 (known as IFRAZ-4)
Estimated Cost of US$ 600 Million with a capacity of 25000 Cum/hr. on Design, Build, Operate
Basis (DBO).
2- Sulaimani Water Project No. 4
Estimated Cost of US$ 300 Million with a capacity of 10000 Cum/hr. on Design, Build, Operate
Basis (DBO).
3- Khanaqin Water Project
Estimated Cost of US$ 195 Million with a capacity of 6000 Cum/hr. on Design, Build, Operate
Basis (DBO).
4- Harir Water Project
Estimated Cost of US$ 110 Million with a capacity of 3000 Cum/hr. on Design, Build, Operate
Basis (DBO).
5- Kushaf-Makhmoor Water Project.
Estimated Cost of US$ 150 Million with a capacity of 2800 Cum/hr. on Design, Build, Operate
Basis (DBO).
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18. 6- Darbandi-Khan Water Project..
Estimated Cost of US$ 40 Million with a capacity of 2000 Cum/hr. on Design, Build, Operate
Basis (DBO).
7- Barda Rash Water Project..
Estimated Cost of US$ 80 Million with a capacity of 2000 Cum/hr. on Design, Build, Operate
Basis (DBO).
8- Khabat Water Project..
Estimated Cost of US$ 80 Million with a capacity of 3000 Cum/hr. on Design, Build, Operate
Basis (DBO).
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19. CCC Presence in Iraq
Consolidated Contractors Company (CCC) was originally formed in 1952 in Lebanon. CCC, with it’s
managing office based in Athens - Greece, currently employs approximately 130,000 people in its
worldwide operations. CCC is predominately a construction company, providing project
management, engineering, procurement and construction services to the industry.
CCC opened its first branch in Baghdad in 1965 and now has the below offices and facilities:
- An office in Baghdad established in 1965.
- In Basrah CCC established, in 2010, 7 fully equipped Fabrication Shops, with bridge cranes,
skilled Iraqi work-force, stock steel materials, industrial coating, and testing protocols for many
mechanical and piping components necessary for the Oil & Gas field developments needs in
Rumaila Yard.
- CCC has a office and a PMV Yard in Erbil, Kurdistan Region Of Iraq, since 2006.
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20. Resources:
- ZAWYA, February 27, 2014 by Haider Ibrahim.
- Power Generation a top priority in Iraq, MEED 2012, by Verity Ratcliffer.
- Investment Overview of Iraq, by National Investment Commission.
- The New Iraq, 2012 Discovering Business by National Investment Commission in association
with UK Trade and Investment.
- Business Intelligence Middle East, February 27 2014.
- Kurdistan Review Special Edition, January 2014, by Invest in Group.
- The Review Kurdistan Region Of Iraq, March 2013 by Invest in Group.
- Kurdistan Regional Government, Ministry Of Electricity Overview, 3-5 December 2012, by
Hama Hawrami.
- Water in Iraq Factsheet, March 2013, by UN Iraq.
- Iraq plans 50 Water and Sewage Projects. Reuters, September 17 2013, by Mahmoud
Habboush.
- Iraq Directory, December 20 2013.
- The . Report Company, Kurdistan Region, Water for everybody, September 19 2013, by Oliver
Moss.
- Visions for Future-KRG, Ministry of Municipality and Tourism, Potable Water and Waste
Water Strategic Projects, 2014.
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21. IRAQ CONTRACTORS FORUM MONDAY 24 MARCH 2014 Dubai, UAE 21
Thank You
MEGA-PROJECT PLANS FOR DEVELOPING THE POWER AND WATER SECTOR IN IRAQ AND KURDISTAN
REGION OF IRAQ