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Iraq has approved a financial settlement with China Machinery Engineering Corporation (CMEC) on outstanding dues related to the Salah al-Din thermal power plant in Samarra, the prime minister’s office said.
The decision endorses recommendations by a central government review committee to approve outstanding contractual procedures, including a letter of credit issued by the Ministry of Electricity for the project.
Under the settlement, Iraq will pay CMEC outstanding dues for operation and maintenance (O&M) and electricity generated at the plant for the years 2021, 2022 and 2023 as detailed in the Ministry of Electricity document dated 27 November 2025.
The payments will be netted against delay penalties and contractual observations recorded against the Chinese firm, the statement said.
Operationalised in 2023, the 1,260 megawatts (MW) Salah al-Din power plant - two units of 630 MW each – is the largest single-unit capacity power generation facility in Iraq.
(Writing by Majda Muhsen; Editing by Anoop Menon)
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