Patrick Kron, chief executive officer of Alstom, today signed a Memorandum of Understanding (MoU) with the Minister of Oil and Electricity, Hussein Sharestani, in the presence of Iraqi Prime Minister Nouri Al-Maliki, for the development and modernisation of Iraq’s electricity infrastructure. The agreement covers three major projects.

Alstom is spending $300 million in Chattanooga refurbishing the former Combustion Engineering plant.

The first project involves the turnkey supply of a power plant at Bassorah in southern Iraq, which covers engineering, procurement and construction. The power plant will consist of three oil-fired steam units, each with an output of 400 MW. The project also includes the supply of 400 kV and 132 kV gas insulated substations (GIS).

The second project concerns the rehabilitation of the gas-fired power plant at Najaf, consisting of three GT13D gas turbines, with an overall output of 180 MW.

The third project focuses on the supply and supervision of 400 kV GIS substations and 132 kV GIS & AIS (Air Insulated Substations) in various locations in Iraq.

In the coming weeks, Alstom will enter into exclusive discussions with the relevant Iraqi authorities for the practical implementation of these projects, officials said.

Also, Alstom has been awarded two contracts, worth approximately $450 million in total, by Indian private utility GVK Industries to build two units at the new Jegurupadu III combined cycle power plant in East Godavari District, Andhra Pradesh state, India. These contracts consist of an Engineering, Procurement and Construction (EPC) contract and an additional long term service agreement. The part of the EPC contract pertaining to the first unit of the power plant is expected to be booked during the third quarter of the fiscal year 2010/11. The part relating to the second unit will be booked after relevant governmental authorisation is received by the customer.

Under the EPC contract, Alstom will design, manufacture, supply, install, test and commission the two units, each consisting of Alstom’s GT26 gas turbine, steam turbine, generator, heat recovery steam generator (HRSG), associated civil works and balance of plant equipment. The gas turbine, steam turbine, generator and HRSG will be manufactured at Alstom’s facilities in Europe and Asia. Under the additional long term service agreement, Alstom will assist GVK in covering post-commissioning maintenance activities at Jegurupadu III.

The two units, to be commissioned from 2013 onwards, will be based on single-shaft configuration and will have a combined power output of 800 MW, providing much-needed additional generation capacity to India and making Jegurupadu III one of the most efficient combined cycle power plants in the country. They will also optimise the use of natural gas thanks to Alstom’s highly efficient advanced-class GT26 turbines.

“Jegurupadu III is Alstom’s second combined cycle project in India to use our advanced GT26 gas turbines, thus reinforcing our competitive position in this particular sector,” said Philippe Joubert, President of Alstom Power. “We have an excellent relationship with GVK and have built all their existing combined cycle power plants, namely Jegurupadu I, Jegurupadu II and Gautami I. We are proud to have been asked to participate in this fourth important project with GVK and to contribute to the rapid development of the power sector in India.”