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Iraqi officials sign energy deal with Siemens

German Chancellor Olaf Scholz and Iraqi Prime Minister Mohammed Shia al Sudani during a news conference at the Federal Chancellery in Berlin. - Reuters
 
German Chancellor Olaf Scholz and Iraqi Prime Minister Mohammed Shia al Sudani during a news conference at the Federal Chancellery in Berlin. - Reuters
BERLIN: Iraqi officials signed a major deal to improve Iraq's energy infrastructure with German firm Siemens during new Prime Minister Mohammed Shia al Sudani's visit to Berlin. Al Sudani, who took office in October following a year of political deadlock, is in Berlin to meet with German Chancellor Olaf Scholz. His government is under pressure at home to solve a severe political and economic crisis following years of war against the IS group, which at one point controlled large swathes of Iraq and neighbouring Syria. The deal with Siemens, worth billions of dollars, is aimed at building and expanding power plants to produce 6 gigawatts of electricity as well as building power lines and performing maintenance. A spokesperson for the Munich-based engineering and manufacturing giant confirmed the deal but declined to disclose financial terms. A smaller, similar project in Iraq is already under way. Iraq has suffered from a notoriously poor power supply with frequent outages. The constant power cuts along with the difficult economic situation and corruption have sparked several mass protests in Iraq since 2019. 'A reliable power supply is the foundation for a stable society,' said Siemens Energy CEO Christian Bruch, who signed the declaration of intent on Friday along with Iraqi Electricity MinisterAli Sadhil. 'Electrification of large parts of an entire country is therefore one of the most important tasks of our business.' Iraq's insufficient electricity supply was expected to be top of the agenda for Al Sudani's meeting with the German chancellor. The Iraqi leader was also scheduled to meet with German President Frank-Walter Steinmeier during his visit to Berlin. Before Al Sudani's government took office in October, rival political forces in Iraq had failed to form a government since early parliamentary elections were conducted in October 2021. Last August, followers of influential cleric Moqtada al Sadr occupied the government palace including the prime minister's office as well as the parliamentary building. Dozens were killed and hundreds injured during clashes which erupted in the wake of the storming in Baghdad's Green Zone. When Al Sudani took office, the German Foreign Ministry pressed for urgent reforms, saying the challenges facing Iraq were 'enormous.'Germany would be a 'reliable partner' and continue to support the country, it said. In October, the German parliament voted in favour of extending the deployment of German soldiers in Iraq for another year. The Bundeswehr, as Germany's army is known, is involved in the international mission against IS in Iraq. The mandate specifies that no more than 500 soldiers can take part in the Iraq mission. - dpa