EGFI Guarantees MAPNA’s Iraq Investments

Rumaila, a natural gas combined cycle power plant with 12 gas and 6 steam turbines, is to be implemented at a cost of $2.5 billion by the Iranian MAPNA Group in Basra, southern Iraq.

The project, which is one of the biggest in the region, aims to add 3,000 MW of electricity to Iraq’s national grid. The total work is planned to be completed in five years, with the first phase expected to be completed within 19 months, a press release by EGFI said.

The execution of the project followed two years of close negotiations with the international consultants and the host government.

Rumaila is a long-term investment project that will be be financed jointly by MAPNA and a Jordanian private company. The Iraqi government guarantees the power purchase agreement.

EGFI has played a pivotal role in the project by providing MAPNA with a $300 million political risk insurance policy that covers the project against political risks such as outbreak of war, expropriation, confiscation and nationalization, foreign exchange transfer and breach of contract by the host government.