Renewables

Union Fenosa consortium wins Iraq hydro contract

4 March 2004 – A US-Spanish consortium, including a unit of power utility Union Fenosa, has won a $12.75m contract to rebuild a hydroelectric plant in Iraq.

The contract awarded by the US Army Corps of Engineers is for repairing the Haditha Dam in northeastern Iraq. The consortium is a partnership between US engineering firm CH2M Hill and Spanish professional services company Soluziona, a subsidiary of Union Fenosa.

Industry sources said Soluziona has a 24 percent stake in the consortium and that this was its first contract in Iraq. The deal is one of the first Iraqi reconstruction contracts to go to a European firm.

The US has opened up $6bn in prime contracts in Iraq to all countries but US-funded construction deals are still limited to nations that supported the US war effort. A US government website (www.rebuilding-iraq.net) said companies from all countries were invited to apply for new non-construction contracts, with the exception of a $327m contract for the Iraqi Army. Bidding closed last week for $5bn worth of prime construction contracts in Iraq funded by the $18.6bn appropriated by Congress for Iraq’s reconstruction.