Gain a global perspective on the US and go beyond with curated news and analysis from 600 journalists in 50+ countries covering politics, business, innovation, trends and more.<doc-sep>Siemens and the Iraqi government said on Sunday that they had signed a memorandum of understanding on plans to supply electricity to the country. The deal would see an expansion of Iraq's capacity to produce power by 11 gigawatts — roughly equal to half the amount the country produces at present — over the next four years. The "roadmap proposes cost savings in billions of US dollars and generating additional electricity 24/7 for 23 million people," said a statement from Siemens. The deal includes the upgrading of existing electricity generating plants, and the building of new ones, especially in deprived areas. It also includes donations for hospitals, schools, university funding and vocational training. "Our commitment to the Iraqi people stands strong. We promised to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs," said the president of the Munich-based firm, Joe Kaeser. While Iraq has some of the world's biggest oil supplies, its population has suffered from crippling power shortages, leading to protests that have often turned deadly. Basra protests spark nationwide anger in Iraq as clampdown starts Temperatures on the rise Protesters burned tires during a demonstration in Basra, some 340 miles (550 kilometers) southeast of Baghdad on Friday, July 13. They were demanding services and jobs in the oil-rich province. Officially, 10.8 percent of Iraqis are jobless, while youth unemployment is double that. For many, politicians' pledges of Iraqi oil for Iraqis ring hollow. Basra protests spark nationwide anger in Iraq as clampdown starts With a rush and a push Protesters in front of the provincial council building in Basra on Sunday. Protests boiled over last week when security forces opened fire. Such demonstrations in the provincial capital are not unusual in the scorching summer weather but this year rallies have spread to other provinces. Basra protests spark nationwide anger in Iraq as clampdown starts Protests spread to Baghdad The protests soon spread from Basra to other parts of the country including the capital, Baghdad. Iraqis with national flags demonstrate here in Baghdad's Tahrir Square on July 14 after two demonstrators were killed in southern Iraq. In the city's northwestern Shula neighborhood, people chanted "Iran, out out! Baghdad is free!" and "The people want to overthrow the regime." Basra protests spark nationwide anger in Iraq as clampdown starts Battle lines drawn Iraqi riot police stop protesters storming the provincial council building during a demonstration in Basra on Sunday, July 15. Authorities have put security forces on high alert. At least 30 people were reported wounded on Saturday night in the central holy city of Karbala, where police fired into the air as demonstrators threw stones at them. Basra protests spark nationwide anger in Iraq as clampdown starts Burning bridges Riot police prevented protesters from storming the provincial council building during a demonstration in Basra on Sunday. Police were reported chasing protesters down main roads and alleys following demonstrations in the city and near the local oil fields. The oil sector accounts for 89 percent of the state budget and 99 percent of export revenues, but only one percent of jobs. The slice of Iraq's energy market is reported to be worth some $15 billion (€13 billion). Read more: Siemens aims for active role in rebuilding war-torn Iraq A memorandum of understanding is a statement of intent by two parties that is not legally binding. Soon after the Siemens deal was announced, General Electric announced a similar agreement with the Iraqi government. The southern city of Basra was the flashpoint for protests against electricity shortages "Future contracts will be prepared based on this memorandum to help solve the electricity crisis in the country," said a statement from the Iraqi Electricity Ministry, confirming the news. There had been speculation that the Boston-based firm would lose out to entirely to Siemens. On Wednesday, the Financial Times newspaper reported that Washington had intervened. Read more: Siemens turns its back on Iran US President Donald Trump's administration was reported to have reminded Baghdad that some 7,000 US military personnel had died since the 2003 invasion that overthrew Saddam Hussain. A representative of the Iraqi Ministry of Electricity said on Sunday that pressure from the US government had influenced the two deals. "The pressure from the Americans was fierce," said the official. rc/sms (dpa, AFP) Each evening at 1830 UTC, DW's editors send out a selection of the day's hard news and quality feature journalism. You can sign up to receive it directly here.<doc-sep>GE beats out rival Siemens for a contract to supply 11 gigawatts of power-generation equipment to Iraq, a deal worth about $15 billion, says a report in the Financial Times. General Electric Co. (GE) - Get Report rose on Wednesday, Oct. 17, after reportedly beating out rival Siemens AG (SIEGY) for a multi-billion-dollar deal to supply power to Iraq. Munich-based Siemens had been close to securing a contract to supply 11 gigawatts of power-generation equipment to Iraq, a deal worth about $15 billion, but then the Trump administration intervened on behalf of GE, the Financial Times reported, citing unnamed people familiar with the matter. The Trump administration reportedly pressured the Iraqi government, and now "GE is expected to take a substantial share of the sale," the Financial Times said. GE declined to comment. Shares of GE rose 1.6% to $12.29 at 9:30 a.m. New York time. The stock has fallen about 32% year to date as the beleaguered industrial conglomerate has struggled with challenges to its power business. The contract with Iraq would mark a significant victory for GE's troubled power unit, which has experienced declining profit over the past couple of years and recently disclosed that the power business will take a goodwill charge of nearly $23 billion, although it noted the final amount was "not yet finalized and remains subject to review." Earlier this month, credit ratings giant Moody's Investors Service put its A2 credit rating for GE on review for possible downgrade. "Among the range of issues that Moody's will consider is the impact on GE's earnings and cash flow prospects of the continuing deterioration in its Power business, which is likely to persist for some time," Moody's said. "The dimmer prospects for GE Power take on heightened importance given the loss of free cash flow from GE's planned divestitures, including the highly cash generative GE Transportation and GE Healthcare." The Boston-based company announced last Friday it would be delaying its third-quarter earnings by five days, and will now report on Oct. 30 to let the newly appointed CEO Larry Culp complete initial business reviews and site visits. Culp is expected to share his initial observations on the third-quarter conference call, "with more detail expected in early 2019," GE said. GE is expected to report earnings of 20 cents a share on revenue of $29.7 billion, according to FactSet.<doc-sep>The Iraqi agreement would be a much-needed win for GE’s beleaguered power equipment business, which has been at the center of the company’s problems amid slumping demand for gas turbines. Just a few weeks ago, GE ousted CEO John Flannery after only 14 months on the job, replacing him with Larry Culp, longtime head of the industrial conglomerate Danaher Corp. GE also said it would take a $23 billion charge related to its power business unit. Iraq signed a memorandum of understanding with Boston-based GE on Monday, after senior US officials warned Iraqi Prime Minister Haider al-Abadi that the future of the US-Iraq relationship would be at risk if his government accepted the deal with Siemens, according to the officials, who asked not to be identified discussing private deliberations. The Financial Times reported the US move earlier Thursday. The Trump administration intervened to quash a $15 billion deal for Siemens Corp. to develop power stations in Iraq, instead persuading Baghdad to sign an agreement with General Electric Co., two administration officials said. The Trump administration’s push supports American efforts to curb Iranian influence in Iraq and the region in the months since President Trump backed out of a 2015 nuclear deal and prepares to reimpose sanctions on Iran next month. The US officials said they want to wean Iraq of its dependence on Iranian natural gas and suspect Iran had spurred Iraqi leaders to pursue the Siemens deal as a way of undercutting ties with the United States. Advertisement ‘‘This is part of very strong campaign of engagement in Iraqi government formation and a very targeted effort to support the Iraqi government and minimize Iranian influence,’’ said Garrett Marquis, a National Security Council spokesman. ‘‘It’s part of our overall effort to evict the Iranians rather than to invite them in.’’ Alongside the GE deal, the United States signed a broader memorandum of understanding with Iraq on Sunday to build out its energy sector and make the country energy-independent, the officials said. That aims to solve what has long been a source of frustration for Washington: Iraq relies on Iran to import natural gas because it doesn’t have the infrastructure to capture its own ample reserves, 60 percent of which are flared off. Advertisement According to the US Institute of Peace, Iran supplies Iraq with about 12 million cubic meters of natural gas a day and accounts for one-fifth of its power generation. The two deals follow a flurry activity by both Germany and the Trump administration on behalf of their companies. The US government learned in early September that Iraq was wrapping up talks with Munich-based Siemens over a contract to revamp the country’s entire power sector and swap out infrastructure that had been built by GE. Siemens chief executive Joe Kaeser had met with Abadi in late September to discuss the plan to install 11 gigawatts of power generation capacity over four years and create thousands of jobs. US officials said they suspect Kaeser was in Iraq to sign the deal but managed to stall the Abadi government. Senior American officials warned Iraq against signing the agreement, then threatened to escalate the dispute unless Iraq relented. GE declined to comment. Iraq’s government didn’t immediately respond to a request for comment sent via its embassy in Washington. Officials at the German Embassy in Washington didn’t immediately respond to an e-mail sent after normal business hours. Advertisement ‘‘We still believe we have put the most beneficial and comprehensive plan for the Iraqi people on the table, extending far beyond power infrastructure,’’ Siemens spokesman Philipp Encz said Thursday by phone. ‘‘We remain committed to our Iraqi road map and supporting the Iraqi people and repowering the country.’’ Around the time of Kaeser’s visit last month, Siemens’s success seemed a sure thing. The company said then in a statement it had received positive feedback from the Iraqi government and was looking forward to entering into an official agreement. Instead, under the deal, GE will expand Iraq’s power-generation capacity by 2 to 3 gigawatts by next summer if work begins soon. As part of the broader memorandum of understanding, US companies will help Iraq build out power generation and transmission lines, and upgrade its existing capacity, according to the officials. The US officials said they hope to have the agreement finalized before Nov. 5, when US sanctions on Iran go back into effect. The administration is also pressing Iraq to complete the deal for the two electricity projects in the south, and has made clear to Iraqi officials that some of its actions — possibly including imports of natural gas from Iran — could face sanctions if it doesn’t come to terms with the United States, according to the officials.<doc-sep>
The Trump administration intervened in a $15 billion dollar agreement between Siemens AG and the Iraqi government, convincing Baghdad to opt for General Electric Co. instead, reports said. Iraq on Monday signed a memorandum of understanding with the American power company, after U.S. officials suggested to Iraqi Prime Minister Haider al-Abadi that the Siemens deal might jeopardize the two countries' bilateral relations, Financial Times and Bloomberg reported, citing two unnamed administration officials. The Financial Times said the Trump administration had reminded the Iraqi government that 7,000 U.S. personnel had died since the 2003 invasion which overthrew Saddam Hussein. The officials said the Trump administration suspected Iran had pushed Iraqi leaders toward the Siemens deal to undercut ties with Washington. The Trump administration has been trying to curb Tehran's influence in Baghdad, including Iraqi dependence on Iranian natural gas, since President Donald Trump pulled out of the 2015 nuclear deal. "This is part of very strong campaign of engagement in Iraqi government formation and a very targeted effort to support the Iraqi government and minimize Iranian influence," Bloomberg quoted Garrett Marquis, a National Security Council spokesman, as saying. "It's part of our overall effort to evict the Iranians rather than to invite them in," he said. GE, which has been battling a severe downturn in its power division, would be considerably helped by the sale, which could be included in its figures when it reports its third-quarter earnings on Oct. 30. The deal with Boston-based GE could see Iraq's power-generation capacity expand by two to three gigawatts by next summer. In addition to the GE deal, the U.S. Sunday signed a wider-reaching memorandum of understanding with Iraq to expand its energy sector and improve its energy independence, officials said. It includes U.S. companies helping Iraq build power generation and transmission lines and upgrading its existing capacity. Iran supplies about 12 million cubic meters of natural gas each day to Iraq, providing one-fifth of its power generation, according to the U.S. Institute for Peace. U.S. officials are pushing to finalize the deal before Nov. 5, when U.S. sanctions on Iran come back into effect. The Trump administration is also pressuring Baghdad to finish a deal for two electricity projects in the south of the country, threatening to impose sanctions on certain energy arrangements – such as the natural gas imports from Iran – if it doesn't come to an agreement with the U.S. Both the U.S. and Germany have been vying for the energy deals. In February, Siemens made an offer to build new power plants in Iraq over four years with an output of 11 gigawatts. Such an increase in energy production would increase the number of Iraqis who have access to reliable electricity by 50 percent to 23 million. The value to Siemens could be worth around 11 billion euros ($12.70 billion), and would support its ailing energy division, whose profit has slumped 60 percent in the first three quarters of this year. Siemens Chief Executive Joe Kaeser had traveled to Iraq in September and spoke with outgoing Iraqi Prime Minister Haider al-Abadi about the contract. The U.S. suspected Kaeser was in Iraq to seal the deal with Baghdad but the Trump administration ramped up pressure and managed to stall Abadi on the issue. Since then Abadi has been replaced by Adel Abdul-Mahdi. "We still believe we have put the most beneficial and comprehensive plan for the Iraqi people on the table, extending far beyond power infrastructure," Siemens spokesman Philipp Encz said Thursday in regard to reports. "We remain committed to our Iraqi road map and supporting the Iraqi people and re-powering the country."