U.S. cool on Iraq, Iran, China power deal

BAGHDAD, Oct. 18 (UPI) -- The U.S. government isn’t panning Iran and China’s new $1.1 billion deals in Iraq’s electricity sector but is eying them suspiciously.

Iraq, which is struggling to meet electricity demand, as well as the rest of Iraqis’ basic quality-of-life needs, has been campaigning for investment in the electricity sector.

The Electricity Ministry announced the $1.1 billion in deals, The New York Times reports.

White House spokeswoman Dana Perino told reporters Thursday she hasn’t seen the details of the contracts.

“We would like to see constructive and positive action in Iraq by its neighbors,” she said. “If that is going to be Iran and they want to help contribute to building a power plant, and that’s a constructive way to contribute to building up the Iraqi society, great.”

She warned, however, against “a cover for clandestine operations” for the administration-alleged Iranian insurgency in Iraq and training of Iraqi forces by the Iranian security forces.

The Iranian firm Sunir has been awarded a 160-megawatt, $150 million power plant and refinery project in Sadr City, a Baghdad neighborhood, The Times reports. Shanghai Heavy Industry was awarded a $940 million power plant, with a 1,300-megawatt capacity, to be built in Wasit.