GE gets deal to supply Iraq gas-powered generators

BAGHDAD, May 13 (Reuters) - Iraq has agreed to a 179 million euro ($275 million) contract with General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) to buy eight natural gas-powered generators, an Iraqi government spokesman said on Tuesday.

"The Iraqi cabinet today gave approval to buy the generators from GE at an agreed price of 179 euros. The ministry of electricity can buy them without delay," government spokesman Ali al-Dabbagh told Reuters.

Iraq has endured more than a decade of chronic power shortages. Blackouts are expected to worsen as its sweltering summer approaches, with air conditioners increasing demand for power. Temperatures can reach 50 degrees Celsius (122 Fahrenheit).

The country needs 9,500 megawatts a day, but Iraqis receive around 5,000 MW a day. A 10 year plan by the electricity ministry envisages adding 1,000 to 1,500 MW, but attracting investments for the project is difficult.

Aziz Sultan, a spokesman for the electricity ministry, said four of the generators from GE would have a capacity of 150 MW and four smaller ones would produce 40 MW. The smaller four are expected to arrive within four months and the others soon after that. Sultan was not more specific about delivery times.

Most of the generators will be in Baghdad, but at least one is expected to be installed in the southern town of Najaf and one in the northern town of Taji.

"This 760 extra megawatts will go a long way toward meeting the shortfall in our power needs," Sultan said. (Reporting by Wisam Mohammed, writing by Tim Cocks, editing by Toni Reinhold)