The UAE's federal export credit agency Etihad Credit Insurance (ECI) said on Sunday that it has extended insurance coverage to Iraq's Power Up Plan 4 (PUP4) project.
ECI said in a statement that it is one of the debt reinsurers for PUP4, providing insurance coverage to the lender, JP Morgan. It said PUP4 is the first Iraqi project supported by ECI.
Under PUP4, GE will provide capital and spare parts, repairs and services to the Qudus, Khairat, Baghdad South, Hilla, Mussayab, Haidariya and Karbala power plants to help maintain more reliable generation of up to 2.7 gigawatts (GW) of electricity. Additionally, 20 gas turbines that are currently not operational at these sites will also be returned to service.
The US-based power generation equipment company brought the Iraqi Ministries of Finance, Electricity and Planning together with various financial institutions, including export credit agencies like ECI, commercial banks and others, to secure financing for the project, according to the ECI statement.
Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and Deputy Chairman of ECI Board of Directors said: "Open economies, trade and public private partnerships can play a strong role in supporting countries to develop critical infrastructure. This is highlighted by the Power Up Plan 4, for which certain key services will be executed in and exported from GE’s facilities in the UAE, allowing us the opportunity to extend financial support through Etihad Credit Insurance and providing a win-win scenario for all."
Facilitated by ECI, several key repair work for equipment such as gas turbines will be undertaken at GE’s service centre in Jebel Ali Free Zone in Dubai.
Massimo Falcioni, CEO of ECI said the agency will continue evaluating opportunities for future partnerships in Iraq.
Joseph Anis, President & CEO of GE Gas Power Europe, Middle East and Africa said the company has helped secure over $2.4 billion in financing since 2015 for energy sector projects across Iraq.
GE has supported the rehabilitation of Mosul’s Al Qayara Power Plant, operates and maintains Iraq's largest combined cycle power plant - the Besmaya Power Station, and supplied its Advanced Gas Path upgrade solution to improve availability and lower annual maintenance costs at the Najibiya Power Plant, the press statement said.
(Writing by Majda Muhsen; Editing by Anoop Menon)
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