The company will carry out a fast-track rehabilitation at Unit-1 of the power station, based at the city of Najaf, 160km south of Baghdad.
The scope of this contract includes the delivery of a new compressor, noble parts for the gas turbine and combustion chamber, a new control system, major electrical components, and an Alstom step-up transformer.
Alstom is also responsible for erection and commissioning of the unit, which has been out of operation for five years.
The rehabilitated unit will be reconnected to the Iraqi electricity network in 2011.