Amec wins £139m contract to restore power to Iraq

International project management and services company Amec has won its first big contract in Iraq - worth up to £139m.

Amec, which won the £277m contract with Fluor, its joint-venture partner in Iraq, is the first UK company to win major reconstruction work in Iraq. Fluor will also receive £139m as part of the deal.

Sir Peter Mason Amec's chief executive said: "While we and Fluor are already on the ground with around 2,000 people near Baghdad, this is a much more sizeable piece of work across the whole of Iraq and confirms our important role in the reconstruction of the country."

Amec, which announced its preliminary results yesterday (Thursday), said that it was proud to be one of the few UK companies with the skills and experience to participate in the reconstruction.

The contract involves the provision of engineering services for the restoration, rehabilitation, operation and maintenance of power generation facilities across Iraq.

The contract is one of 10 likely to be awarded over the next few weeks by the Coalition Provisional Authority, the US-led body in charge of Iraq reconstruction.

Work on this contract will start immediately and will initially involve the mobilisation of a further 80 Fluor Amec personnel, as well as many more Iraqi subcontractors. It should be completed some time in 2005.

Amec has also bid for six further contracts for restoring power, water, transportation and justice infrastructure - the outcome of these will be known by early April.