Iraq Approves 10,500MW Power Plant Construction: Major Opportunities for International Contractors 2025

The Iraqi Cabinet’s approval in August 2025 of five new power plants totalling 10,500 MW has raised national generation capacity to 28,000 MW, creating unparalleled opportunities for international and local construction firms. These projects form part of a broader plan to add 60,000 MW by 2030, under long-term build-own-operate (BOO) models that promise stable returns and significant contractor involvement.

Executive Summary

• Capacity Increase: Five plants adding 10,500 MW, raising total to 28,000 MW.

• Timeline: Simple-cycle operation in 30 months; combined-cycle output in 48 months.

• Investment Model: 25-year BOO contracts with sovereign guarantees.

• Key Partners: Superior Technology Systems (UAE), Emirate Technology Company (UAE), Pure Energy, GE Vernova.

• Contractor Window: Civil, mechanical, electrical and systems-integration contracts available immediately.

Modern power plant with cooling towers

Project Details

Al-Faw Combined-Cycle Gas Power Plant (3,000 MW)

• Developer: Superior Technology Systems (UAE)

• Model: 25-year BOO

• Fuel: Imported LNG via 17 km pipeline and floating storage regasification unit (FSRU)

• Construction Scope: Civil works for turbine hall, pipeline trenching, FSRU jetty, and electrical balance-of-plant

Abu Ghraib Combined-Cycle Gas Power Plant (3,000 MW)

• Developer: Emirate Technology Company (UAE)

• Model: 25-year BOO

• Fuel: Imported LNG via 130 km pipeline from Al-Faw port

• Construction Scope: Earthworks, pipeline installation, switchyard, control building

Kirkuk Combined-Cycle Gas Power Plant (1,500 MW)

• Developer: Pure Energy

• Model: Long-term PPA with sovereign guarantees

• Fuel: Local natural gas

• Construction Scope: Site clearing, gas compression station, turbine installation, grid interconnection

Najaf Thermal Power Plant (1,500 MW) and Yousifiya Thermal Power Plant (1,800 MW)

• Technology Partner: GE Vernova

• Scope: Boiler erection, flue-gas desulphurisation, turbine foundations, auxiliary systems

Construction Timeline and Contractor Opportunities

• Financial Close to Simple-Cycle: 30 months

• Simple-Cycle to Combined-Cycle: Additional 18 months (48 months total)

• Milestone Windows:

  • Civil and structural contracts at months 1–12

  • Mechanical installation months 12–30

  • Electrical and instrumentation months 24–42

  • Commissioning and performance tests months 42–48

Construction site for a new power plant

Contractors with civil, mechanical, electrical, piping, and control-system capabilities should prepare bids immediately. Supply-chain specialists for LNG equipment and turbines will also find opportunities in procurement and installation phases.

Market Context and Strategic Importance

Iraq’s population has grown by approximately 52% since 2010, reaching nearly 47 million in 2025. Persistent blackouts, exacerbated by record summer heat, have damaged industrial productivity and livelihoods. These new power plants will reduce outages, boost manufacturing, agriculture, and services by up to 20%, and attract foreign investment.

Regulatory and Partnership Requirements

• Local Partnership: Foreign firms must partner with Iraqi-registered companies holding relevant Ministry of Electricity licences.

• Content Localisation: Minimum 30% local content for labour and materials.

• Environmental Compliance: Emission control systems meeting national and IFC standards.

• Procurement Process: Pre-qualification via the Kuwait Authority for Partnership Projects style tender portal; technical proposals due Q1 2026.

Technical Specifications

• Turbine Technology: GE Vernova advanced combined-cycle turbines with 60% thermal efficiency.

• Grid Integration: 400 kV switchyards tying into the national transmission network.

• LNG Infrastructure: FSRU jetties, storage tanks, high-pressure pipelines.

• Control Systems: Distributed control systems (DCS) with cybersecurity measures.

Actionable Recommendations

1. Bid Preparation: Begin consortium formation and submit pre-qualification documents by December 2025.

2. Local Partnerships: Secure agreements with Iraqi EPC or engineering consultancies to meet local content rules.

3. Resource Planning: Line up civil and mechanical crews for early works; secure long-lead turbomachinery orders.

4. Compliance Readiness: Compile environmental impact studies and safety management plans in advance.

5. Engagement Strategy: Establish local offices or representative partnerships to liaise with the Ministry of Electricity and the Ministry of Finance.

Conclusion

Iraq’s newly approved 10,500 MW power expansion represents one of the GCC’s largest BOO infrastructure opportunities in 2025. With clear timelines, robust financing models, and substantial contractor scope, construction professionals specialising in energy, civil works, and systems integration should act swiftly to secure prime positions in project delivery. Success will hinge on early bid readiness, local partnerships, and adherence to stringent technical and environmental standards.

Turbine in a power plant

Summary: Iraq 10,500 MW New Power Projects – Government Approval August 2025

Main generation projects

• Al-Faw Combined Cycle Gas Power Plant (3,000 MW)

  • Developer: Superior Technology Systems (UAE)

  • Model: 25-year build-own-operate

  • LNG Infrastructure: Jetty, floating storage regasification unit (FSRU), 17 km pipeline– Gas Supply: 400 million scfd imported LNG

  • Website: https://superiortechnologysystems.com

• Abu Ghraib Combined Cycle Gas Power Plant (3,000 MW)

  • Developer: Emirate Technology Company (UAE)

  • Model: 25-year build-own-operate

  • LNG Pipeline: 130 km connection to Al-Faw port

  • Gas Supply: 400 million scfd imported LNG

  • Website: https://emiratetech.com

• Kirkuk Combined Cycle Power Plant (1,500 MW)

  • Developer: Pure Energy

  • Model: Long-term PPAs with sovereign guarantees

  • Gas Supply: Natural gas from the Ministry of Oil or the Ministry of Electricity

  • Website: https://pure-energy.com

• Najaf Thermal Power Plant (1,500 MW)

• Yousifiya Thermal Power Plant (1,800 MW)

Technology partner

• GE Vernova – supplying advanced combined-cycle technology and technical support

  • Website: https://www.gevernova.com

Government partners

• Iraq Ministry of Electricity

• Iraq Ministry of Finance

Project highlights

• All three combined-cycle plants in Al-Faw, Abu Ghraib and Kirkuk will use imported LNG and operate under 25-year BOO models (except Kirkuk uses local gas).

• Infrastructure includes LNG reception terminals with jetties, FSRU, and pipelines.

• Phased commissioning: simple-cycle within 30 months of financial close, full combined-cycle output in 48 months.

Where to explore job opportunities

• LinkedIn Jobs – search “Iraq power generation”

  • https://www.linkedin.com/jobs/

• GulfTalent – filter “Power & Utilities”, location = Iraq

  • https://www.gulftalent.com/

• Energy JobSearch – keywords “Power generation Iraq”

  • https://energyjobsearch.com/jobs?title=power+generation