Iraq Power Plants = $6.25 Billion

[George Hayduke]

"Iraq plans to sign contracts with Caterpillar Inc., German-owned MAN SE and at least one South Korean company to build 50 new power plants, Bloomberg reported March 23, citing Iraqi Electricity Minister Raad Shallal. The contracts are expected to be signed the week of March 27 and are valued at $6.25 billion. The plants should each be capable of generating 100 megawatts and are projected to be operational in the summer of 2012." Stratfor Global Intelligence.

50 new 100 megawatt power plants projected to be on line by summer of 2012 - they are serious about turning the lights back on in Iraq!

George

[DinarChiTown]

"Iraq plans to sign contracts with Caterpillar Inc., German-owned MAN SE and at least one South Korean company to build 50 new power plants, Bloomberg reported March 23, citing Iraqi Electricity Minister Raad Shallal. The contracts are expected to be signed the week of March 27 and are valued at $6.25 billion. The plants should each be capable of generating 100 megawatts and are projected to be operational in the summer of 2012." Stratfor Global Intelligence.

50 new 100 megawatt power plants projected to be on line by summer of 2012 - they are serious about turning the lights back on in Iraq!

George

As I recall, they only have roughly 40-50% of the country requirement at 6000MW, so that should probably do it and then some. Can you say, "Las Baghdad"?

[George Hayduke]

Viva...Viva Las Baghdad!

Gotta power up all those new refineries - gonna take a lot of juice to push the product all the way to Doha.

George

[FuzzyUzzy]

I wonder how they will pay for it, using only coloured toilet paper and all.

[George Hayduke]

LOL! Too easy. They take the two zeros from the lop, stand them on top of each other to make an 8. 8 = 여덟 Korean Won = .00709629 US! Plenty worthless money to go arouund without effecting the RV.

George.

Edited March 24, 2011 by George Hayduke

[Maynard57]

"Iraq plans to sign contracts with Caterpillar Inc., German-owned MAN SE and at least one South Korean company to build 50 new power plants, Bloomberg reported March 23, citing Iraqi Electricity Minister Raad Shallal. The contracts are expected to be signed the week of March 27 and are valued at $6.25 billion. The plants should each be capable of generating 100 megawatts and are projected to be operational in the summer of 2012." Stratfor Global Intelligence.

50 new 100 megawatt power plants projected to be on line by summer of 2012 - they are serious about turning the lights back on in Iraq!

George

George:

Do you have a link for this article. I've seen it posted elsewhere without the reference to March 27, so I want to see where it originated.

Maynard

[Ore]

George:

Do you have a link for this article. I've seen it posted elsewhere without the reference to March 27, so I want to see where it originated.

Maynard

Here: http://www.bloomberg.com/news/2011-03-23/iraq-to-sign-6-25-billion-in-contracts-for-50-power-plants-1-.html?cmpid=yhoo

And here: http://www.arabianbusiness.com/iraq-set-sign-6-25bn-deal-boost-power-output-389696.html

[zaborniake]

How are they planning on paying all these contractors? I know that it's been posted as "rumor" that all contracts are going to be paid in dinar, but unless it RV's how is that possible?

[George Hayduke]

How are they planning on paying all these contractors? I know that it's been posted as "rumor" that all contracts are going to be paid in dinar, but unless it RV's how is that possible?

I don't know the specifics but I understand the basic fundementals of 'borrowing' equity to finance expansion. Much like a homeowner or businessman seeking capital to remodel or expand, a lending institution is sought out that will agree to the current value in relationship to the future value.

Because electricity is needed to build the infrastructure of the 'new' Iraq which is petro-based, the GOI does not have to pay for the expansion up front. With out effecting the RV, the GOI can 'take a second out' for lack of a better term, on the estimated oil in the ground. The financial institution backing the construction project will be paid over an unknown period of time after the power plants come on line and the oil starts flowing.

Of course all Iraq contracts are going to be paid in Dinar but the RV has nothing to do with the value of those contracts; it's the current value of the oil in the ground in relationship to its future value. In other words; 'petro dollars'. $6.25 billion is still $6.25 billion whether it is converted to Won or Dinar.

This is a very positive sign that world economic powers are supporting the stablization and success of Iraq.

George