UK Export Finance (UKEF) is providing $17 million (£13m) for two firms to deliver power projects in Iraq.

Enka UK and General Electric (GE) will use the financing for the construction of two 150MW gas-fired power plants at Dhi Qar and Samawa in southern Iraq.

They are expected to help alleviate severe energy shortages in the country.

UKEF and the Department for International Trade are also working closely with the two companies in Iraq and Turkey to source at least $250 million (£193m) worth of goods and services from the UK to deliver the projects in the coming months.

A supplier fair was held in March, in partnership with energy sector bodies NOF Energy and the Energy Industry Council, to connect companies in the UK supply chain with the projects.

The support follows an agreement between the UK and Iraqi Governments in March, reaffirming the UK’s commitment to supporting Iraq’s continued economic development.

Minister for International Trade Greg Hands said: “The Department for International Trade through UK Export Finance is delighted to be supporting these power projects, which will significantly enhance the energy sector in Iraq. Construction of the projects also presents huge – and hugely exciting – opportunities for UK exporters and clearly demonstrates the UK’s leadership in the energy sector.”