Both GE and Siemens signed $15 billion non-binding declaration deals to rebuild the power grid in Iraq. Only one of the companies will eventually get the deal.
Siemens CEO Joe Kaeser traveled to Baghdad on Sunday, October 21 to sign the declaration with the Iraqi Prime Minister. Meanwhile, the Iraqi government signed the same deal with GE, meaning both companies have the same agreement.
Iraq’s infrastructure has been destroyed by decades of war, and the project calls for a massive addition of between 11 and 14 gigawatts of power. Siemens has made the case that it can rebuild the infrastructure quickly, pointing out that it has recently completed a similar project in Egypt. The German government also backed the Siemens proposal, with Chancellor Angela Merkel personally talking with the Iraqi Prime Minister about how Siemens can accomplish the project.
GE sees its advantages for the project. More than half of Iraq’s power is already supplied by GE, and the Trump Administration is strongly pushing for an American company to do the work. Senior officials with the U.S. government point out that more than 7,000 Americans have died in the region since the 2003 invasion to oust Saddam Hussein.
Tagged with GE, Siemens