Orascom Construction PLC announced that its consortium with Siemens signed an agreement with Iraq's Ministry of Electricity to rebuild Baiji 1 and Baiji 2 power plants in northern Iraq. The power plants will have a combined generation capacity of 1.6 GW. Work at Baiji, which is about 250 km north of Baghdad, will begin once the contracts are approved by Iraq's Council of Ministers and a financial agreement is reached with the Ministry of Finance.

The projects, which will be executed on an Engineering, Procurement, Construction plus Finance (EPC + Finance) basis, are expected to be completed within 28 months after financial close. Orascom Construction was previously the EPC contractor on Baiji 2 power plant. Both Baiji 1 and Baiji 2 power plants were severely damaged, and recovering the lost capacity from the plants will help Iraq power its biggest oil refinery located in the city, a concrete plant, and will provide electricity to thousands of homes in Salahuddin province and other areas.