Baku, Azerbaijan, Feb. 19
By Fatih Karimov – Trend:
Tehran and Baghdad have signed a new contract for export of electricity from Iran to Iraq in 2017, the Islamic Republic’s deputy energy minister, Houshang Falahatian said, IRNA news agency reported Feb. 19.
However, Iran has not yet resumed electricity export, Falahatian said, adding that once Iraq opens LC (letter of credit) to settle its debts the Islamic Republic will start export of electricity.
He further said that Iraqis paid $200 million of the debts in recent days and will pay another $150 million in coming days as well.
The remaining debt is agreed to be settled in three instalments in nine months, Falahatian said.
Tehran suspended electricity export to Iraq since January 1, due to expiration of the related contract, according to the energy ministry officials.
However, Iran’s Energy Minister Hamid Chitchian has recently said Tehran had stopped supplying power to Iraq because the neighboring country owed Iran $1.2 billion for electricity it had previously received.
The two parties held several meetings in recent weeks to sign a new contract and discuss resuming electricity trade.
Iraq is a heavily oil-dependent country. The Iraqi government’s revenues severely declined after oil prices dropped about two years ago.
Iran was exporting 700-1,000 MW of electricity to Iraq under the previous contract.
The country exported 9.88 billion kWh of electricity last fiscal year (ended March 2016), of which 69.1 percent went to Iraq.
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