French firms Areva and Schneider Electric have signed deals worth approximately $52m to build 15 power distribution stations in the Iraqi province of Basra.

Areva has secured a contract worth $23m to build seven substations, while Schneider Electric has won a $29 contract for eight power substations.

The new projects will be financed from the oil revenue that the province receives from its crude oil exports.

The power substations are expected to enable the province’s power grid to handle nearly 2,000MW of electricity, from the current 700MW, Dow Jones Newswires reported citing Abdul Amir, head of the electricity committee in Basra.