In this photo Abbas Ahmed navigates a network of generator wires during a power outage in Baghdad, Iraq on June 25, 2010. Private power providers in Baghdad are selling electricity at almost four times the maximum legal price, exploiting shortages and stifling summer heat while crime bosses pilfer dwindling public supplies. AP Photo / Hadi Mizban

By Saman Dazaee
05 Feb 2011 Baghdad – A spokesman for the Iraqi Ministry of Electricity said on Saturday that resolving the energy crisis that has plagued the country in recent years will cost an estimated $6bn. Musab al-Mudaris told AKnews that the ministry has asked parliament to provide appropriate funds in the 2011 budget to resolve the shortcomings that will prevent electricity provisions in the coming season. “The ministry has legal obligations with a number of international companies,” he said. One such obligation is a $250m contract with the South Korean firm Hyundai to install gas turbines in Iraq’s Qudus power station. On top of the $6bn demanded, Mudaris said that in order to strengthen Iraq’s generating capacity; an investment of between $3bn and $4bn a year is needed. Last year, several civilians were killed in clashes with the police when angry protestors took to the streets to demonstrate against the government as national electricity supplies left them with just four hours of power a day, in temperatures that exceeded 50 degrees centigrade. Former Electricity Minister Karim Washid was forced to resign due to public pressure at the time. According to government figures, the energy available to Iraq is around 9 thousand megawatts of energy, while demand is estimated at up to 14 thousand megawatts during the summer months “The Ministry of Finance under $5bn which is not enough to complete projects to cover Iraq’s electricity needs for the next season,” he complained. The Iraqi government has submitted the 2011 federal budget to parliament which stands at $79.6bn, Approval has not yet been granted as many objections have been raised and disputes between the ministries and government institutions continue. It is expected that the budgetary deficit will reach about $12bn.

Iraqi Electricity Ministry demands $6bn to resolve energy crisis

By Khalid al-Ansary; editing by Serena Chaudhry and Jon Hemming
Fri Feb 11, 2011 10:39am EST BAGHDAD (Reuters) – Hundreds of Iraqis took to the streets Friday to demonstrate against a lack of basic services, the latest in a series of protests that have swept the country as turmoil rocks other parts of the Arab world. Iraq has been slow to get back on its feet almost eight years after the U.S.-led invasion and is trying to tackle severe water shortages and a sporadic electricity supply. Infrastructure remains badly damaged. “This is like an alarm for the government. They have to listen to the people. They have to cut the growing corruption in government offices. They have to meet the basic needs,” said Ahmed Abdul-Hussein, deputy editor-in-chief at state-run newspaper al-Sabah and a protest organizer. In the capital Baghdad, hundreds of protestors marched peacefully under the watchful eye of the Iraqi army to the heavily-fortified Green Zone of government buildings and embassies, calling for an improvement in basic services. “Where are your electoral promises, food rations and basic services?” one banner read. Another had “Tahrir Square Two” written on it, referring to the square in Cairo which has been the epicenter of protests calling for the resignation of Egyptian President Hosni Mubarak. Hundreds of people also demonstrated around the Sadr City slum, while smaller protests were held in Mosul and Kerbala. In the southern oil hub of Basra, a small group from the Communist Party demonstrated in support of protests in Egypt. … Iraq is one of the world’s biggest importers of wheat and rice, much of which goes to a food ration program that supplies 60 percent of Iraqis. Iraqis often complain of short monthly food rations. Another chief complaint is intermittent electricity. The national grid only meets 60 percent of demand and shortages last year led to protests in southern cities. “Our demands are clear. We want improved services, food rations, jobs for the unemployed. There will be more demonstrations, not only this one. We will continue protesting,” Baghdad resident Hamad al-Muni’m said.

Hundreds of Iraqis protest lack of basic services