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Iraqi Cabinet Approves $363 M Contract with OCI

Iraqi Cabinet Approves US$ 363 million Contract with OCI to Build a 1,000 MW Gas Turbine Power Plant in Baiji, Iraq.

Orascom Construction Industries (OCI) announced today that the Iraqi cabinet has approved a US$ 363 million EPC contract with the company to build a 1,000 MW gas turbine power plant in Baiji, Iraq. Baiji is located 180 km north of Baghdad and is home to the country's largest oil refinery. The project is expected to be completed in 21 months.

In light of the strengthening ties between Egypt and Iraq, OCI has made a strategic decision to target Iraq's infrastructure development program which has now become a key focus for the Group and Sameh Muhtadi, Managing Director of Iraq, Kuwait and the Levant, is spearheading the Group's business development activities in the country. As part of the expansion strategy, OCI has established a permanent branch in Baghdad to facilitate pursuit of other major projects in the country's program specifically in power generation, water, wastewater, hospital and large-scale oil and gas industries.

OCI's long-term presence in Iraq is expected to create significant job creation and training for local Iraqi hires as well as create indirect jobs for Egyptian labor.

OCI Construction Group Chief Operating Officer, Osama Bishai, commented, "we are excited to work closely with the Iraqi Ministry of Electricity on the first major power plant in the country. This project is a testament to our success and track-record in the power generation sector and will pave the way for further opportunities for the Group as the country bridges its power deficit. We will continue to capitalize on our success in Egypt and Algeria and bring the Group's technical know-how and expertise to the Iraqi market."