...

Iraq annuls contract with General Electric in favor of Iran's electrical equipment

Business Materials 15 December 2018 09:26 (UTC +04:00)
Iran and Iraq are finalizing one of the biggest electricity contracts, to meet the needs of Iraq to turbines and electrical equipment in Iraqi power plants.
Iraq annuls contract with General Electric in favor of Iran's electrical equipment

Tehran, Iran, Dec.15

Trend:

Iran and Iraq are finalizing one of the biggest electricity contracts, to meet the needs of Iraq for turbines and electrical equipment at its power plants.

"The quality of Iranian electrical equipment is so high, that the Iraqi government has canceled its contract with the American General Electric company, to import Iranian equipment,” vice president of Iran-Iraq Chamber of Commerce Alireza Kolahi said, Trend reports citing ILNA.

"Unfortunately, previous Iraqi Energy Minister did not cooperate with Iran in expanding bilateral trades. The minister prevented work of Iranian companies but the new Energy Minister is keen to cooperate, until now several agreements have been signed in the fields of energy which would be a positive step if they turn them into contracts," he added.

"Iranian companies have been popular among Iraqi Shiites and Kurds, after the defeat of IS in Iraq, the positive role of Iran in supporting Iraqi people created interest even among Sunnis and only those with Ba'athi affiliations have problem with Iranians," he said.

Kolahi noted the trade volume between two countries during past eight months has been effected by lack of private sector trust in government and the foreign currency revenue return declaration between customs and Iran exporters.

"According to statistics, during past eight months Iran exported items to Iraq worth $64 billion. Oil and petrochemical products and steel were the major exports, while small part of it belonged to the country's private sector. However the pressure of foreign currency rate effected Iran private sector, “he said.

"The government needs to control the public companies, according to reports the allocated foreign currency of these companies did not return to Integrated System for Hard Currency Transactions (NIMA), from $27 billion exports only $7 billion of revenues returned to the NIMA system. The public factories produce most of raw materials and their share in non-oil exports were $60 billion, while private goods share was $7 billion," he added.

Tags:
Latest

Latest