Swedish-Swiss multinational corporation ABB has announced 2024 as the target for completing energy projects in Iraq.
Zurich-headquartered ABB, which reported a slight rise in its profit for the third-quarter, signed a $500m plan to implement energy projects with the Iraqi government last year, The National reported.
“For the first $500 million it is three years starting from quarter one this year, and the second phase, we have prepared a list of projects and for the $500m - it takes three years [after] execution,” said Mostafa Al Guezeri.
“Tentatively for the $1bn, it will take roughly six years,” he said.
ABB, which makes industrial robots and power transmission systems, said net income rose to $603m, beating the average estimate of $592m of 22 analysts polled by Reuters.
Revenue increased 3 per cent on a comparable basis to $9.26bn, missing estimates of $9.34bn.
The Middle East, which forms part of the EMEA segment of the company’s portfolio, accounts for 30 to 34 per cent of global business, with ABB having approximately 10 per cent of market share for all the major industrial projects in the region.
Mr Al Guezeri said the company was committed to spending more on Iraq by helping the country access finance.
“Iraq is one of the most important countries for us and we work hand in hand with the ministry of electricity and whenever support is required,” he said.
“[Our team] has already provided $500m funds for energy projects and this is already under execution and … also another $500m in another fund from Sweden. In addition [we have provided] another $200m. [We have provided] for Iraq $1.2bn worth of funds to be used in energy,” he added.
Iraq, which is estimated to have $150bn worth of reconstruction work following decades of war, is prioritizing the revamp of its utilities network as frequent electricity outages, particularly during the warm summer months, have been the cause of protests across the country.