US energy giant General Electric holds a vise grip over Iraqi energy matters. Since the US invasion, Iraq has spent $85 billion on its electricity sector but still faces 12-hour daily power outages. So why is GE still getting contacts it won't fulfill?

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GE’s energy policy in Iraq mirrors the broader approach that has been adopted by the White House towards Baghdad since the tumultuous illegal US-led invasion of 2003.

Origins of Iraq’s energy crisis

The energy conundrum has long been a source of concern for Iraqis. In the wake of the US occupation, corruption proliferated within state institutions, but it is the stranglehold exercised by GE - alongside Germany’s Siemens - over all matters pertaining to Iraqi energy that has exacerbated the situation.

This intricate web of control first emerged in 2003 when Washington assumed complete authority over Iraq. At that juncture, GE assumed responsibility for maintaining Iraq's electricity infrastructure following the decision to privatize this once-government-subsidized sector.

An energy expert who represented the Iraqi government during those negotiations reveals to The Cradle that the initial maintenance contract inked between Baghdad and GE carried a staggering price tag of $5 billion.

More astonishing is that GE had no physical presence in Baghdad at the time: "The Americans were negotiating and signing contracts in Baghdad and then returning to Amman," says the expert.