Iraqi Kurdistan's energy debt hits $9 billion: official

ERBIL,— Iraq’s Kurdistan Regional Government owes more than $9 billion dollars to gas supplier Dana Gas of the United Arab Emirates and to local power companies, a top KRG official said Thursday, noting that electricity income falls short of covering the sector’s costs.

Aziz Ahmad, deputy chief of staff to caretaker Kurdistan Region Prime Minister Masrour Barzani, told Rudaw media that the electricity sector carries a large debt load topping nine billion dollars.

Ahmad said the sector’s costs include gas bought from the Khor Mor field, which Dana Gas runs near Sulaimani city, along with power plant operating costs, grid maintenance and expansion, and the Runaki project.

Runaki is the KRG’s plan to bring round-the-clock power to the region.

He said those four cost areas add up to an average of $220 million each month, while Runaki brings in less than half that amount in revenue.

Ahmad said the government owes money to 15 power stations. He named Erbil-based firms Mass and Kar, along with Sulaimani-based Qaiwan, as suppliers of 97 percent of the region’s electricity. He said those three companies, along with Dana Gas, account for the bulk of the $9 billion debt.

Ahmad said officials need to hold honest talks with the companies about paying back what is owed. He said the firms have asked in writing for their contracts to be reviewed, and the KRG Council of Ministers has approved that request.

In early August, the KRG rolled out a 50 percent discount on electricity debts built up before Runaki began, with the offer first set to end September 10. The region’s electricity ministry said last week that about 800,000 customers had paid off their debts under the program.

Ahmad said the government brought in roughly $278.6 million in August and September combined, counting Runaki fees and old debt payments.

He said the cabinet decided Wednesday to push the discount deadline back to October 18. Ahmad called it the last chance, saying any remaining balances after that date will turn into monthly payment plans automatically.

(With files from Rudaw)