UAE's Etihad Credit Insurance backs Iraq power sector upgrade

Power Up Plan 4 reaches financial close

  
Image used for illustrative purpose. Electricity pylons stand near a wind turbine park on September 19, 2019 near Krebitz, Germany.

Image used for illustrative purpose. Electricity pylons stand near a wind turbine park on September 19, 2019 near Krebitz, Germany.

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A UAE's Etihad Credit Insurance-backed power infrastructure overhaul in Iraq, undertaken by the country’s finance ministry, GE and other partners has reached financial close.

Under the Power Up Plan 4 (PUP4), the US company will provide capital, 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.

As part of these efforts, 20 gas turbines that are currently not operational at these sites will also be repaired.

The power infrastructure upgrade will be supported by GE's operations in the UAE while Etihad Credit Insurance (ECI) is one of the debt reinsurers for PUP4, providing insurance coverage to the lender, JP Morgan.

“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,” said Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and deputy chairman of ECI's board of directors.

The Power Up Plan 4 follows Iraqi premier Mustafa Al Kadhimi's visit to the UAE, when the emirates pledged to spend $3 billion in Iraq on investment and reconstruction projects.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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