GE has received a $400m contract from the Iraqi Ministry of Electricity (MoE) to build 14 electric substations to help address power shortages in the country.

Under the terms of the deal, GE will build the substations on a turnkey basis and also supply critical equipment such as transformers, circuit breakers and other outdoor equipment to rehabilitate existing substations.

Iraqi Ministry of Electricity spokesperson Mussab al-Mudaris said: “The agreement represents a major milestone in our efforts to strengthen Iraq’s power transmission sector, through a comprehensive grid project across the nation.”

The new substations will be built and connected to power plants located in the governorates of Ninawa, Salah Al Din, Al Anbar, Karbala, Baghdad, Qadisiyyah and Basra.

GE said it will also support the Iraqi MoE to secure funding for the project through financial institutions, including export credit agencies and commercial banks.

GE Power’s Grid Solutions business in the Middle East, North Africa and Turkey president and CEO Mohammed Mohaisen said: “A holistic approach to national infrastructure building is vital, from the provision of technical expertise to working with partners, such as Export Credit Agencies, in securing long-term financial solutions.

“This agreement is a continuation of our firm commitment to driving industry and infrastructure forward in Iraq, working with the Ministry of Electricity in finding sustainable and effective solutions to some of the country’s most pressing issues.”

GE said that the agreement also includes supplying equipment for four substations, which are said to be critical to distributing power from the power plant.

Additionally, this power plant will be installed with eight of GE’s 9FA gas turbines, four GE C7 steam turbines and GE’s digital industrial applications, the firm noted.