It is reported that China State Construction Engineering Corporation and Siemens have recently signed a contract with the Iraqi Ministry of Electricity to repair and rebuild the Baiji 1.6GW dual fuel power station.

Baiji is located about 200 kilometers from Baghdad and is an industrial hub in Iraq. It not only has the largest oil refinery but also a series of industrial facilities such as a fertilizer plant. Therefore, on the one hand, it has high requirements for electricity, and on the other hand, it is also one of the engines driving Iraq's development.

This project was initially won by Siemens and Orascom from Egypt, with a reported repair and reconstruction cost of approximately 1.3 billion US dollars at the time; However, due to various reasons, the project was unable to be implemented. China State Construction Engineering Corporation (CSCEC) established an institution in Iraq as early as 1979. In 1984, it rose to the 21st place in ENR250 with two dam projects in Iraq, becoming the earliest Chinese contractor to conduct business in Iraq and enjoying a piece of cake. It also formed a cooperative relationship with German companies at that time, extending to domestic cooperation in China. Now, its cooperation with Siemens in Germany can be considered as a continuation of the front line - this is also one aspect of the dividend effect brought by the internationalization of Guofu Analysis Enterprises.

At the beginning of 2023, the consortium of China State Construction Engineering Corporation and Dongfang Electric won the bid for the single conversion project of the 125MW Zubayr gas power station in Iraq, marking the official entry of China State Construction Engineering Corporation into the Iraqi power industry. And this Baiji project is more than 10 times the scale of last year's project.

In this project, in addition to civil engineering, conventional electromechanical and control systems, and substations, China State Construction is likely to be responsible for financing; From the past overseas project models of China Construction, financing is actually a weakness compared to other companies such as Electric Power Construction, China Communications Construction, and CITIC. If a breakthrough can be made this time, it can drive China Construction's overall business model. Keywords: the Belt and Road news, the Belt and Road project, overseas project.

In recent years, Iraq's economy has developed rapidly and its foreign exchange reserves have been steadily increasing. It is a market that is perceived as dangerous, but in reality, the risks are relatively controllable and there are numerous opportunities with good profit margins; Guofu Consulting believes that compared to a market like Saudi Arabia, which appears lively on the surface but is actually volatile and carries hidden risks in execution, Iraq is actually a country with lower attention, more down-to-earth, and more manageable opportunities. (This article is from the official website of Jian Dao: www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website mechanical column editor/Zhou Yingwen