Iraqi Contracts With Iran and China Concern U.S.
Posted: Thursday, October 18, 2007
By James Glanz
BAGHDAD, Oct. 17 — Iraq has agreed to award $1.1 billion in contracts to Iranian and Chinese companies to build a pair of enormous power plants, the Iraqi electricity minister said Tuesday. Word of the project prompted serious concerns among American military officials, who fear that Iranian commercial investments can mask military activities at a time of heightened tension with Iran.
The Iraqi electricity minister, Karim Wahid, said that the Iranian project would be built in Sadr City, a Shiite enclave in Baghdad that is controlled by followers of the anti-American cleric Moktada al-Sadr. He added that Iran had also agreed to provide cheap electricity from its own grid to southern Iraq, and to build a large power plant essentially free of charge in an area between the two southern Shiite holy cities of Karbala and Najaf.
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