Toyota Tsushu Corporation, has completed 40% of installation, construction and the operation works of 24 power substations, at a cost of $86 million, an official source told Zawya.
The Japanese firm signed an agreement last June with the Iraqi ministry of electricity to install, construct and operate 24 relay substations in various parts of Iraq, at a capacity of 31.5 x 2 MVA, the project will take from 18 to 24 months to complete," said Musab Al Mudares, a spokesman for the Iraqi ministry of electricity.
The project is funded by a USD 3.5 billion loan from the Japan International Cooperation Agency (JICA) given to the Iraqi government in 2003.
According to data by the Iraqi ministry of electricity, Iraq generates 8,400 MW and is looking to lift capacity to 20,000 MW by 2015, at a cost of USD 1.5 billion.
"It is projected that it will take 18 months for installations and constructions of the first 21 substations and 24 months to operate the three remaining plants," said the official.
"In an attempt to boost power output, the ministry has taken serious steps by contracting global companies with vast expertise in the field of electricity and power to develop Iraq's power stations," said Furat Al Shar'e member of Iraqi parliament's energy committee.
"Iraq has spent around USD 27 billion over nine years without any noticeable tangible improvements in the power sector, which forced the Iraqi parliament to privatize the electricity sector, in a move to curb corruption," said Al-Shar'e.