India's BGR Energy Systems Cancels $246US million Contract for Power Plant in Iraq

The mounting political instability in Iraq meant the company was not able to properly execute the project.

A carryover contract with a value of $246US million has been canceled by India's BGR Energy Systems. The contract was awarded in 2013 and was awarded to build a 500-megawatt gas turbine plant. The mounting political instability in Iraq meant the company was not able to properly execute the project. 

Iraq’s Ministry of Electricity provided a letter of credit for 50 percent of the contract value in favour of the company and the latter issued a performance bond.

BGR Energy Systems Limited is listed at the Bombay Stock Exchange and National Stock Exchange. The Company was originally incorporated in 1985, as a joint venture between GEA Energietechnik GmbH, Germany and B. G. Raghupathy (pictured).

Categories

Read more news like this

Categories
Power News
We have been working with some of our key customers to improve the service by using the latest software and technology, taking business intelligence in Iraq onto the next level.Mason Johnson, Rebuilding Iraq Project Information Manager