Private Sector Participation in Iraq Electricity Generation

Iraq has a severe shortage of generation capacity, able to meet only 50% of peak demand. The Ministry of Electricity has estimated that investment of $28 billion will be needed between 2008 and 2012 in order to fill the gap. Private sector funding will make a crucial contribution to this. The Ministry of Electricity in Iraq wishes to explore options for attracting private sector Participation (PSP) in electricity generation. The aim of this project is to develop a strategy that will attract private participation in power generation under terms and conditions attractive to Iraqi government and to complete a tender for Iraq’s first Independent Power Producer (IPP). This tender will provide the template for future IPPs in Iraq.