US power giant General Electric Company has won a $3 billion contract from Iraqi Ministry of Electricity for supply of power generation equipment and provide much-needed electricity to support Iraq's future economic development.

Announcing this at a ceremony in Baghdad, the ministry said the deal was a significant milestone as the country seeks to rapidly develop its energy infrastructure and increase its electricity production.

Under the agreement signed by GE with Iraqi Ministry of Electricity, the company will supply 56 heavy-duty frame 9E multi-fuel gas turbines that are capable of providing 7,000 megawatts of electricity to the war-torn country.

The first of the turbines will be shipped in 2009, and the order will be complete by 2010,  the company said. About 120 GE power turbines currently operate in the country.

Under the deal, GE will also provide technical and management training for the equipment.

The government of Iraq plans to install the units at key sites around the country to provide needed support for the electricity grid, said a top company official.

GE's 9E gas turbine technology has proven reliability and performance in more than 400 applications worldwide.

"We are honored that the Government of Iraq has chosen GE to support its efforts to expand the country's energy infrastructure," said John Krenicki, GE vice chairman and president and CEO of GE Energy.

"Electricity is the backbone for quality of life and economic growth. We can bring the strength and dependability of GE's advanced power generating technology and services to Iraq's mission to address long-term electricity demand," he added.

As the world's leading supplier of gas turbines, GE Energy is well positioned to help Iraq meet its future needs for reliable and stable power generation.

More than 6,000 GE gas turbines are installed worldwide and have accumulated more than 200 million hours of operating experience at unparalleled reliability levels.

Currently, Iraq's daily power generation output averages less than 6,000 MW, while the demand is typically more than 10,000 MW.

The GE turbines can provide a platform for power stability thus helping address electricity shortages and position Iraq for future economic growth.

The agreement follows the Government of Iraq's previous order with GE in May 2008 for eight gas turbines capable of generating 600 MW to meet short-term power requirements in Iraq.-TradeArabia News Service