Iraq faces billions in losses over push to revive privatization deal, official warns

 Shafaq News/ Iraq's Ministry of Electricity is facing pressure to reinstate a privatization contract that could result in tens of billions of dinars in losses, a senior ministry official said.

The official, who spoke on condition of anonymity, told Shafaq News agency that influential figures are lobbying to revive the deal with the Sanafee UAE Company for Basrah's electricity distribution. 

The contract was terminated due to the company's failure to meet performance targets and was subsequently fined 30 billion dinars by Iraqi courts.

"If the contract is reinstated, the company would likely delay paying the fine and could seek additional compensation exceeding 70 billion dinars," the official said, urging Prime Minister Mohammed Shia al-Sudani to take action.

The ministry launched the privatization scheme in 2016 to collect electricity bills and improve maintenance, but the company in charge faced accusations of corruption and underperformance, leading to its suspension, according to officials and lawmakers.