A project to link Iraq with the joint power grid in nearby Gulf countries has been delayed because of the spread of coronavirus and cash shortages caused by weak oil prices, an Iraqi official was quoted on Wednesday as saying.

The project, which was scheduled to be completed in October, involves the construction of a power station, cables and other facilities to link Iraq's electricity network to the power grid in the six-nation Gulf Cooperation Council (GCC) through Kuwait, Iraqi Electricity Ministry spokesman Ahmed Al-Abadi said.

"We have earlier signed a memorandum of understanding with the GCC Power Interconnection Authority for the supply of 500 megawatts of electricity to Basra via Kuwait....the project was supposed to be completed in October but it has now been delayed because of the pandemic and the difficult financial and economic conditions in Iraq," Abadi told the official Iraqi daily Al-Sabah.

Abadi said there is no plan to link Iraq's power network with the GCC through Saudi Arabia as it will be costly given the presence of a 210-km desert strip between the two countries. The only feasible linkage project is through Kuwait due to its proximity to Iraq, he added.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

#IRAQ #GCC #GCCIA #INTERCONNECTION #KUWAIT #ELECTRICITY #GRID

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© Thomson Reuters Projects News 2020