Latest Industry News
- US $1.02 billion in support for UK firms to build two new power stations
- Agreement will help build and refurbish numerous electricity substations across Iraq
- Announcement reaffirms the UK’s commitment to Iraq’s continued economic development
US $620 million financing will go to support two contracts between GE and Iraq’s Ministry of Electricity to build two power stations in Samawa and Dhi Qar, located northwest of Basra, in southern Iraq. UKEF had already provided initial support for the project; this additional financing supports the main construction phase of the project involving further procurement from UK suppliers through GE sub-contractor ENKA UK.
UKEF will also provide US $400 million to support a project by GE’s Grid Solutions, business to develop 14 sub-stations across Iraq. GE will build new substations on a turnkey basis and supply equipment such as transformers and other parts to rehabilitate existing substations, helping to bring power to areas with significant power shortages from the north to the south of the country.
This announcement follows the agreement between the governments of the UK and Iraq signed in March 2017, which re-affirmed the UK’s commitment to Iraq’s continued economic development.
This project will play a key role in bolstering the capacity of the Iraqi electricity grid, the two new power stations, located in the Basra region, will give citizens the access they need to critical infrastructure.
Baroness Fairhead, Minister of State for Trade and Export Promotion, said:
The scale of these contracts illustrates the demand for British expertise in the utilities sector and the level of support the government can give to British businesses looking to make the most of similar opportunities across the globe.
The UK Government continues to be committed to Iraq’s economic development and I am delighted that UK Export Finance is supporting projects that will have such a direct impact on improving the country’s critical infrastructure and the lives of the Iraqi people.
Guto Davies, GE Energy Financial Services’ Global Capital Advisory Managing Director, said:
The announcement of these new facilities further strengthens GE’s collaborations in Iraq to support the country’s power infrastructure and meet the growing need for electricity. GE recognises the importance of UKEF in supporting critical infrastructure projects in Iraq and the UK supply-chain. We are delighted they continue to fund major projects in the country’s power energy sector.
Yavuz Akturk, Director at ENKA UK, said:
Power shortages continue to halt Iraq’s reconstruction and addressing this scarcity is crucial to the country’s future. As ENKA, we have taken a significant role in rebuilding the country’s infrastructure, and with these projects we will help the people in the country which are in urgent need for electricity. It would not be possible without the continuous support of the UK Government and the highly dedicated UKEF team; and we as ENKA, are grateful for the high-level support for these projects which will also provide great opportunities for the UK exporters.
UK Export Finance is the UK’s export credit agency and a government department, working alongside the Department for International Trade as an integral part of its strategy and operations.
Our mission is to ensure that no viable UK export should fail for want of finance or insurance from the private market. We provide finance and insurance to help exporters win, fulfil and ensure they get paid for export contracts.
Sectors in which UKEF has supported exports include: aerospace, healthcare, infrastructure, telecommunications and transport.
UKEF has a national regional network of 24 export finance managers supporting export businesses.
Our range of products includes:
- Bond insurance policy
- Bond support scheme
- Buyer & supplier credit financing facility
- Direct lending facility
- Export insurance policy
- Export refinancing facility
- Export working capital scheme
- Letter of credit guarantee scheme
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Contains public sector information licensed under the Open Government Licence v3.0. This article first appeared on the Gov.uk website. View the original article HERE.
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