Iraqi Envoy Positive About Renewing Power Export Deal

EghtesadOnline: Iraq's senior envoy in Tehran on Thursday expressed confidence that the two countries will soon sign an agreement to resume the export of Iranian electricity to the Arab state after supplies were halted last month.

News ID: ۷۷۳۶۸۷

04 February 2017

"Negotiations are underway on Iraq's electricity import from Iran. The spirit of fraternity between the two sides will help settle the issue in the near future," Rajeh al-Moussawi was quoted as saying by IRNA. Iran suspended power supply to Iraq from the beginning of the year after a contract with the Arab neighbor ran out at the end of last year.

Iraqi media reported that Tehran "abruptly" cut power supply due to Iraq's unpaid debts that is now said to be $1 billion.

Officials in Tehran say they are waiting for the government in Bagdad to renew the contract, according to Financial Tribune.

According to reports, an Iranian delegation visited Iraq last week to discuss terms for a new contract. Iraq imported 800-1,000 MW of electricity per day from Iran under the previous contract.

"Iran and Iraq are willing to resolve their political, economic and trade differences through constructive dialogue," the diplomat was quoted as saying.

According to reports, Iran is looking to incorporate terms in its new power deal with Iraq to ensure timely payments by the Arab neighbor which has been grappling with a chronic shortage of electricity for years.

Iran's Energy Ministry said last year that Iraqi authorities had agreed to clear the debt by paying $100 million a month. However, after three installments they started to procrastinate.