Investment power plants on take-or-pay terms: about USD 937 million paid for power not received, from 2017 to 2022 (audit and parliamentary findings)
Between 2014 and 2016 the Ministry of Electricity signed power purchase contracts with investment companies on take-or-pay terms, which oblige it to pay for contracted power even when it does not take it. In December 2020 Parliament's committee on the ministry's contracts said the contracts for the Besmaya and Shamara investment plants fixed purchases at 90 percent of capacity, so the ministry paid for power it never received; it referred the contract to the Integrity Commission. It said the contracts with KAR and Qaiwan Global Energy set no fuel consumption rate, that Qaiwan's fuel cost in 2018 reached six times the power price, and that Gulf Power Middle East and Pirkola Energy charged different prices (USD 30 and USD 32 per megawatt hour). According to press accounts of a Board of Supreme Audit report of June 2023, the ministry paid about USD 937 million for power not received in 2017 to 2022, most contracts did not return the plants to the state, and sovereign guarantees reached about USD 33.5 billion. The ministry replied that earlier governments had approved the contracts and that a committee under Minister Ziad Ali Fadel was reviewing them.
- Period
- From 2014 to July 2026
- Sector
- Electricity and energy infrastructureInvestment power purchase contracts
- Kind of case
- Audit finding
- Jurisdiction
- Federal Iraq
How the money moved, according to the sources
Long-term contracts to buy power from investors that oblige the ministry to pay for available capacity whether or not it is used (take-or-pay), backed by sovereign guarantees, without clauses returning the plants to the state and without fixed fuel consumption rates.
What happened
The contracts were referred to the Integrity Commission in December 2020. In 2023 the government formed a committee chaired by the electricity minister to review them; no published result is on record. In February 2025 an unnamed source in Parliament's integrity committee said the minister had admitted paying IQD 2 trillion to some companies without receiving power. In July 2026 the president of the Board of Supreme Audit said one ministry contract, for operating plants, had cost the state IQD 2 trillion. No charge against any company or official is known as of 19 October 2026.
Open questions
- Full text of the June 2023 audit report and the list of contracts and companies it covers.
- Outcome of the Integrity Commission files on the Besmaya, Shamara, KAR and Qaiwan contracts.
- Which contract the audit board president meant by the IQD 2 trillion plant operation contract.
People and companies
| Name | Role in the case | Legal status | Detail | As of |
|---|---|---|---|---|
| Mass Global Investment Company شركة ماس غلوبال للاستثمار | Investor in the Besmaya (Bismayah) power plant under an independent power producer deal with the ministry | Not charged as of the date of writing | Not charged as of the date of writing. The parliamentary committee criticised the take-or-pay terms of the Besmaya contract and referred it to the Integrity Commission (December 2020); no finding against the company is known. | 19 October 2026 |
| KAR شركة كار | Investment power company contracted by the ministry | Not charged as of the date of writing | Not charged as of the date of writing. The committee said its contract did not fix a fuel consumption rate per megawatt hour and relied only on unit meter readings, which it said could allow manipulation of fuel quantities. | 19 October 2026 |
| Qaiwan Global Energy قيوان كلوبل انيرجي | Investment power company contracted by the ministry | Not charged as of the date of writing | Not charged as of the date of writing. The committee said its contract set no fuel consumption rate and named one of the costliest fuels, and that its fuel bill in 2018 reached six times the power price, at USD 164 to 193 per megawatt hour; the contract was referred to the Integrity Commission. | 19 October 2026 |
| Gulf Power Middle East شركة كولف بور ميديل ايست | Power seller to the ministry (from 2018 to 2019) | Not charged as of the date of writing | Not charged as of the date of writing. The committee compared its price of USD 30 per megawatt hour with USD 32 for Pirkola Energy and said the difference cost the ministry extra money. | 19 October 2026 |
| Pirkola Energy (as transliterated) شركة بيركولا انيرجي | Power seller to the ministry (from 2018 to 2019) | Not charged as of the date of writing | Not charged as of the date of writing. The committee said its price was USD 32 per megawatt hour against USD 30 for Gulf Power Middle East. The English spelling could is not on record. | 19 October 2026 |
Sources
- Shafaq News7 December 2020Official statement reported by the mediaTier B
التحقيق بعقود الكهرباء يكشف عن نفقات بأرقام "فلكية" وفساد بمليارات الدولارات
Original addressحجم الإنفاق الفعلي الكلي في وزارة الكهرباء منذ عام 2005 ولغاية عام 2019 بلغ أكثر من 96 تريليوناً و621 ملياراً و901 مليوناً و499 ألف دينار
- Non1418 August 2023Official statement reported by the mediaTier B
ديوان الرقابة المالية :وزارة الكهرباء أهدرت نحو مليار دولار خلال 5 سنوات
Original addressوأشار التقرير إلى أن ما تم إنفاقه على طاقة غير متسلمة فعلياً يقارب 937 مليون دولار للسنوات 2017، 2022
- Attaqa (energy news platform)18 August 2023Official statement reported by the mediaTier B
إهدار مليار دولار على مشروعات الكهرباء في العراق (القصة الكاملة)
Original addressإذ بلغت قيم الكفالات السيادية للشركات الاستثمارية ما يعادل 33 مليارًا و508 ملايين دولار.
- Shafaq News18 August 2023Official statement reported by the mediaTier B
الكهرباء ترد على تقرير لديوان الرقابة المالية بشأن هدر الأموال والعقود الاستثمارية
Original addressوأوضحت الوزارة أن هذه العقود الإستثمارية وقعت في العام ( 2014 والعام 2015 و2016 )، وبقرارات حكومية صادرة من الحكومات السابقة
- 964media18 August 2023Official statement reported by the mediaTier B
الكهرباء ترد على اتهامها بهدر الأموال في عقود شراء الطاقة: وقعت في حكومة العبادي
Original addressإن ما ذكره تقرير الديوان هو إشارة إلى عقود بيع وشراء الطاقة الموقعة مع الشركات الاستثمارية (Tuke or buy).
- 964media23 July 2026Official statement reported by the mediaTier B
أين اختفت 100 ترليون دينار؟ الرقابة المالية تكشف عن سلف لم تسدد منذ 2004
Original addressأحد عقود وزارة الكهرباء كلف الدولة 2 تريليون دينار وهو عقد تشغيل المحطات
- GE (press release)8 October 2015Press reportTier D
GE to Provide Advanced Turbines to Mass Global Investment Company for 3-GW Bismayah Plant in Iraq
Original addressBismayah marks the first-of-its-kind independent power producer (IPP) deal between Iraq’s Ministry of Electricity and Mass Global Investment Company
- Alsumaria News5 February 2025Press reportTier D
وزير الكهرباء يقر أمام النزاهة النيابية بصرف 2 ترليون دينار دون الحصول على الطاقة
Original addressان وزير الكهرباء زياد علي فاضل اقر امام اللجنة بصرف 2 ترليون دينار دون الحصول على الطاقة
Related cases
- Parliament's inquiry into Ministry of Electricity contracts (Parliamentary Order 62): IQD 96.6 trillion spent and 2,654 accused in criminal cases (from 2020 to 2021)
- Board of Supreme Audit 2025 annual report: Ministry of Electricity findings referred for investigation (Iranian payments account, Akkaz fuel system, substation contracts)
- Electricity sector: tens of billions spent since 2003 with chronic shortages