Three Qatari companies and Iraq’s National Investment Commission have agreed to develop $9.5 billion worth of projects in Iraq, including the construction of a pair of power plants that will generate a total of 2,400 megawatts.
UCC Holding and the investment commission signed a 25-year, public-private partnership linked to the two power plants, which will cost $2.5 billion to build, according to a statement issued by UCC Holding.
The power plants will help reduce Iraq’s reliance on neighboring Iran for its energy needs.
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Iraq imports electricity and gas from Iran, which in total makes up between a third and 40 percent of its power supply, especially crucial in the sweltering summer months when temperatures can top 50 Celsius (122 Fahrenheit) and power consumption peaks.
Iraq’s investment commission and Doha-based Estithmar Holding also signed deals worth $7 billion to manage hospitals, develop two “new comprehensive cities” and build a series of new five-star hotels totaling 10,000 rooms, a statement issued by Estithmar said.
“The cities … will include residential complexes, villas, schools, commercial complexes, entertainment centers, and other facilities and services, in addition to all the infrastructure needed to build these cities,” said Estithmar Vice Chairman Ramez Al-Khayyat in the statement.
The agreements were signed during a visit to Baghdad by Qatar’s Emir Sheikh Tamim bin Hamad Al Thani on June 15, when he pledged to make a $5 billion investment in Iraq.
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