Iraq's Ministry of Electricity and Siemens Energy AG have signed a Principles of Cooperation Agreement on Energy covering the fourth phase of their collaboration in the country's power sector, it announced in a press release.

Prime Minister Ali Faleh al-Zaidi and German Chancellor Friedrich Merz oversaw the signing ceremony in Berlin on September 15, with the Iraqi press releasing details two days later.

The latest agreement covers new power-generation projects, including combined-cycle and thermal plants using high-efficiency technologies and fuel sources available in Iraq.

It also includes new transmission substations, upgrades to existing facilities, measures to ease grid bottlenecks and continued maintenance contracts for operating generation plants.

The cooperation also includes discussions on project financing and programmes to train and develop Ministry of Electricity staff.

Al-Zaidi separately met Siemens Energy President and CEO Christian Bruch in Berlin to discuss expanding cooperation in the energy sector.

The prime minister pointed out opportunities to rehabilitate and develop Iraq's electricity distribution and transmission networks and to diversify power-generation sources beyond gas to include other available fuels.

Siemens Energy has worked with Iraq's Ministry of Electricity on modernising the country's power sector for several years. The company signed a memorandum of understanding with the ministry in 2018 for a five-year Iraq Roadmap covering the expansion of transmission and distribution networks, followed by an implementation agreement with the Iraqi government in 2019.

More recently, Siemens Energy said it installed its Upstream Cooling system on 40 gas turbine units across nine Iraqi power plants, adding up to 700MW of additional power.

Earlier on September 16,  the European Bank for Reconstruction and Development (EBRD) is providing a trade finance facility of up to $25mn (€21.3mn) to Bank of Baghdad (ISX:BBOB), the lender said, as Iraq continues to tap into international financing for upgrades.